Finance & Economics

Half of Canadians do not yet have retirement plan: survey

Canadians aged 50+ are 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

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Half of Canadians do not yet have retirement plan: survey. Source: pexels.com

According to the Royal Bank of Canada, some Canadians hit the pause button on their retirement date amid the pandemic. In fact, 18% of respondents say they’ll now be retiring later than expected, with that response highest in Alberta (33%).

Besides, concerns around outliving retirement savings have reached their highest level in a decade. For instance, 21% of respondents with over $100,000 in investable assets now expect to outlast their savings by 10 years, compared to 16% in 2010.

Indeed, 50% of the respondents 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. 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
Rick Lowes, Vice-President Strategy, RBC

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%)

We’ve reported that Brits unveiled what financial freedom really looks like.

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