TORONTO, Jan. 16, 2020 /CNW/ - Retired Canadians have some advice for those approaching retirement: don't expect it to be as advertised, according to the RBC Retirement Myths & Realities poll. Responding to the biennial poll of Canadians aged 50+, retirees cite three notable misconceptions about when, where and how you plan to retire.
As the aging population continues to grow in Canada, the cautionary note from retirees is that taking the time to plan can help ensure you minimize any gaps between your expectations and the realities of retirement.
"We know that the majority of Canadians do not have a retirement plan – and those who do are more prepared and confident," says Rick Lowes, Vice-President, Retirement Strategy, RBC. "A plan helps you understand all your options so you don't have to make major trade-offs to enjoy the retirement lifestyle you desire."
Retired Canadians called out three key misconceptions about retirement:
Thinking you'll know your retirement date well in advance? While more than half (55%) of pre-retirees aged 50+ expect to know their retirement date more than one year in advance, this was true for only 39% of retirees aged 50+… and 16% had no advance notice at all.
Expecting to winter in warmer climates as a snowbird when you retire? Close to one-third (29%) of pre-retirees expect to be snowbirds, but only 18% of retirees are actually flocking south in the winter. Ranking higher for retirees: spending time with family (51%) and friends (48%).
Planning to return to work in retirement? While half (50%) of pre-retirees plan to work in retirement, only 11% of retirees responded they actually had returned to full-time or part-time work. The main reasons why pre-retirees say they plan to go back to work: to stay active, mentally (64%) and physically (48%); to stave off boredom (44%); and to generate income (43%).
Lowes also stresses that it's never too late for Canadians in their 50s and into their 60s to set up retirement plans and make tax-smart decisions, to ensure they get the most out of their savings and investments when they retire.
"Perhaps the biggest myth of all is the fear that you've missed the chance to plan for your retirement," Lowes adds. "That's just not the case. Canadians are redefining retirement and there is a wide range of financial options to explore right up until the day you stop working."
About the RBC Retirement Myths & Realities Poll These are the findings of the most recent biennial RBC Retirement Myths and Realities Poll, conducted by Ipsos between April 2 to 8, 2019. For the overall survey, a sample of 2,000 Canadians aged 50+ was interviewed via the Ipsos I-Say panel and non-panel sources. Quotas and weighting were applied to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. For this release, the data referenced is among a sample of 1,800 aged 50+ who are retirees and pre-retirees with investable assets of $100K or more. The credibility of Ipsos online polls is measured using a credibility interval. In this case the results are considered accurate to within ±2.6 percentage points, 19 times out of 20, for the full sample of retired and pre-retired Canadians aged 50+ with investable assets of $100K+.
About RBC Retirement Planning Resources TheRBC Retirement Planning hub can help you plan for the 30 years or more you may spend in retirement. This website also includes links to financial planners/investment & retirement planners who can help you determine the retirement lifestyle you hope to live, the sources of income you'll be able to draw from when you retire and considerations to make before applying for your CPP/QPP. Our financial advice is complemented by a free service unique to RBC – MyAdvisor – where together clients and advisors together can add goals, create a plan and view and adjust a client's comprehensive financial picture. In addition, Boomerang from RBC Ventures is a free social platform for Boomers looking to explore, share, and connect with their community through interactive skill-sharing experiences (currently available only in Toronto).
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SOURCE RBC Royal Bank
For further information: Media contact: Kathy Bevan [email protected] RBC Communications, 647-618-2287