Canada NewsWire
TORONTO, Aug. 27, 2021
TORONTO, Aug. 27, 2021 /CNW/ - The pandemic has Canadians rethinking what their retirement could look like, when they will be able to retire, and how much they will now need to save to do so, according to not-yet-retired Canadians aged 50+ surveyed by the 2021 RBC Retirement Myths & Realities Poll.
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:
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.
To help bridge a shortfall during retirement, both of these groups responded that they would:
"We know from past polls that retirees will find a way to make their finances work, but this may mean they aren't leading the lives they were hoping for when they retire," notes Lowes. "We're here to help Canadians so they can focus on what truly matters to them."
Being able to find and follow a passion as a retiree is the focus of RBC's new Second Act video series, which highlights what can be accomplished beyond a first career, particularly if a retiree has a plan. For those who may feel their retirement dreams are out of reach, the series has a key piece of advice: Don't give up on what you really want to do in retirement.
More information about the comprehensive resources RBC provides to support Canadians as they transition into and live in retirement is available in Retirement Planning.
Fast Facts – RBC 2021 Retirement Myths & Realities Poll
Selected National, Regional, Gender Findings: Non-Retired Canadians aged 50+
RESPONSE | CANADA | BC | AB | ON | QC | MALE | FEMALE |
Will delay retirement | 18% | 20% | 33% | 16% | 9% | 15% | 20% |
Will outlive savings for retirement by 10 years (among those with $100K investable assets) | 21% | 21% | 20%* | 19% | 27% | 20% | 23% |
Thinking more about/acting on… where I will live in retirement | 22% | 29% | 28% | 20% | 23% | 23% | 21% |
Thinking about/acting on… not living in a retirement home | 20% | 30% | 19% | 18% | 18% | 20% | 20% |
Thinking about/acting on… reviewing/updating wills and beneficiaries | 15% | 17% | 13% | 18% | 12% | 15% | 14% |
Thinking about/acting on… taking stock of my financial affairs | 17% | 28% | 23% | 20% | 14% | 18% | 16% |
Thinking about/acting on… taking up a new career or hobby | 16% | 15% | 9% | 24% | 4% | 15% | 16% |
* Small base size. Findings for SK/MB and AC also not included due to small base sizes. |
Investable Assets Findings: Non-Retired Canadians aged 50+
RESPONSE | >$100K investable assets | <$100K investable assets |
Retirement savings goal | $1,000,670 | $533,153 |
Amount already saved for retirement | $703,058 | $60,163 |
Retirement savings goal deficit | ~$300,000 | ~$470,000 |
If I need more $ in retirement… I would return to paid work | 31% | 36% |
If I need more $ in retirement… I would stay in my current home, live frugally | 37% | 36% |
If I need more $ in retirement… I would move (downsize; rent not own, etc.) Werbung Mehr Nachrichten zur Royal Bank Canada Aktie kostenlos abonnieren
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