TORONTO, Feb. 4 /CNW/ - According to the 19th Annual RBC RRSP Poll,
three-in-four retired Canadians (76 per cent) are unaware of how much money
they spent in their first year of retirement. Of those who are aware, almost
half (46 per cent) say it was more than expected, 12 per cent say it was less
and 42 per cent say they didn't have any expectations.
"Before retiring it's important to be aware of how much money you think
you'll spend once you've retired," said Lee Anne Davies, head, Advanced
Retirement Strategies, RBC. "Take the time to get an idea of what your
day-to-day expenses are. This way, you'll also have more time to make
adjustments in your investment strategy - to ensure that your nest-egg can
provide the retirement lifestyle you've been planning for."
Not only are the majority of Canadians unaware of how much they spent in
their first year of retirement, the study found that over one-third (39 per
cent) of retired Canadians encountered costs they did not anticipate in
retirement. Of those, almost half (45 per cent) encountered unanticipated home
repairs or maintenance costs, 42 per cent experienced unplanned healthcare
costs and 36 per cent experienced unintended vehicle repair costs.
When retired Canadians were asked about spending in the first three years
of retirement, three-quarters (75 per cent) say they made large purchases.
Forty-one per cent said they spent money on a trip, 38 per cent bought a car
and 37 per cent made home improvements.
"When it comes to retirement planning, professional advice has never been
more important than it is today," said Davies. "Successful planning takes
discipline, knowledge and experience. It's key to ensuring your retirement
dreams won't be sidetracked by unforeseen costs or large purchases."
According to the poll, day-to-day living expenses make up the majority
(58 per cent) of annual spending for retirees, followed by health care (10 per
cent), treating themselves (nine percent), supporting their family (eight per
cent) and treating their family (eight per cent). Pre-retirees, on the other
hand, believe that 47 per cent of their annual spending in retirement will be
allocated towards day-to-day living expenses, 12 per cent for health care, 14
per cent for treating themselves, 10 per cent for supporting their family and
10 percent for treating their family.
About the 19th Annual RBC RRSP Poll
The 19th Annual RBC RRSP Poll was conducted by Ipsos Reid from October 16
to 23, 2008. This online survey of 1,272 Canadians was conducted via the Ipsos
I-Say Online Panel, Ipsos Reid's national online panel. The results of this
poll are based on a sample where quota sampling and weighting are employed to
balance demographics and ensure that the sample's composition reflects that of
the actual Canadian population according to Census data. Quota samples with
weighting from the Ipsos online panel provide results that are intended to
approximate a probability sample. Statistical margins of error are not
applicable to online polls, however, an unweighted probability sample of this
size, with a 100 per cent response rate, would have an estimated margin of
error of +/- 2.7 percentage points, 19 times out of 20, had the entire adult
population of Canada been polled.
Your Future by Design(R) is RBC's distinctive approach to help clients
identify, plan, and realize their goals for retirement. With the guidance of
RBC financial planners and investment and retirement planners, Your Future by
Design helps clients create a blueprint for a successful lifestyle and
financial plan for retirement based on what is truly important to them in key
areas in life, including family, health, home, lifestyle, work/business, mind
and spirit, and legacy. To find out more about how RBC can help build a
blueprint for the future, visit www.rbc.com/yourfuture or call 1-866-335-4055.
For further information:
For further information: Media contacts: Sarah Pendrith, RBC Wealth
Management, (416) 974-8820; Jackie Braden, Media Relations, (416) 974-2124