Retirement reset: pandemic impacts retirement plans, timing and savings goals, RBC poll finds

TORONTO, Aug. 27, 2021

The most immediate impact is that the pandemic has caused some Canadians to hit the pause button on their retirement date. Eighteen per cent of respondents say they'll now be retiring later than expected, with that response highest in Alberta (33%).

Concerns around outliving retirement savings have reached their highest level in a decade, as 21% of respondents with more than $100,000 in investable assets now expect to outlast their savings by 10 years (compared to 16% in 2010), with the highest percentage reported in Quebec (27%).

Compounding what respondents are facing over the near-term is the fact that half (50%) do not yet have a financial plan, and only 20% have created a formal plan with an advisor or financial planner.

"If you're nearing retirement without a formal plan, there's a shrinking window of opportunity to review your options, to see if you can enjoy the retirement lifestyle you're hoping for," explains Rick Lowes, Vice-President Strategy, RBC. "An advisor can help you translate your personal goals into financial ones and explore strategies to achieve them. Also, RBC's MyAdvisor gives our clients the ability to use interactive scenario planning, to see the potential impact of today's financial decisions on tomorrow's projected outcomes."

Poll respondents also indicated the pandemic has prompted them to either think about, or take action on, a number of retirement-related issues, including:

• Thinking more about where they will live in retirement (22%)
• Deciding where they do not want to live (20% do not want to live in a retirement home)
• Reviewing and updating wills and beneficiaries (15%)
• Taking stock of their financial affairs (17%)
• Taking up a new career or hobby, realizing 'life is short' (16%)

Canadians approaching retirement have also been resetting their retirement savings goals. Those with more than $100,000 in investable assets now estimate they will need to save $1 million on average – approximately $50,000 more than in 2019 – with over three-quarters falling short of their goal by almost $300,000 on average. Meanwhile, those with less than $100,000 in investable assets have lowered their retirement savings goal – now sitting at $533,153 (vs. $574,354 in 2019) – but they have a much larger savings gap of $472,991.