One-third of older Canadians accelerate retirement, while expenses and purchasing power remains top concern: RBC Insurance
Good planning is critical in driving confidence around their future finances
Among Canadians who have already retired, more than a quarter (28 per cent) are spending more than anticipated, while four-in-ten (41 per cent) have experienced unexpected expenses, including major home repairs (16 per cent), healthcare or transportation costs (12 per cent) and helping family out financially (12 per cent), all of which are further exacerbated by rate hikes and inflation.
"The events of the last two years are clearly affecting Canadians – including those nearing retirement," says
As Canadians live longer, the impact of inflation on savings, expenses and purchasing power is the most pressing concern for three-quarters (78 per cent) of those surveyed, as well as a lack of guaranteed income (47 per cent) and outliving their savings (48 per cent). Additional concerns included outliving their spouse, feelings of loneliness and not having a financial legacy to leave behind. Yet Canadians are still largely relying on traditional savings tools such as TFSAs (54 per cent), RRSPs (53 per cent) and CPP/QPP/
"It's important to protect the money Canadians have worked so hard to save," adds Soo. "But for many who may be in retirement longer than originally planned, the right tools can help ensure a guaranteed income or enough to leave behind a legacy – regardless of other external factors."
In fact, a priority for the majority (58 per cent) of those aged 55-75 – whether retired or not – is evaluating will and estate planning. To help protect and grow your money for you or your loved ones, and to help preserve spending power in retirement, consider the following:
- Consider investing in products such as Segregated Funds, including Guaranteed Investment Funds (GIFs) that can keep all, or a significant portion, of your original investment safe while it grows, and offer unique estate planning benefits.
- Look at different investment options such as Annuities. These provide a guaranteed, predictable income stream for as long as you live that doesn't fluctuate with the market or interest rates.
- Speak to a financial planner or insurance advisor to discuss options and help ensure you're on track to meet your long-term financial goals.
About the RBC Insurance Study
These are some of the findings of an Ipsos poll conducted between
About RBC Insurance
RBC Insurance® offers a wide range of life, health, home, auto, travel, wealth, annuities and reinsurance advice and solutions, as well as creditor and business insurance services to individual, business and group clients.