More than one-third of Canadians age 50-plus who have not yet retired are worried they will not have enough money to live well once they leave their careers, according to a new poll from RBC.
Asked to what age they expect to live, the 2,245 Canadians polled offered an expected average lifespan of 85, with most (44% of retirees; 46% of those not yet retired) citing their family history as a marker of their expected longevity. In addition, 23% of retired respondents say their current health should help them live into their 80s and beyond (versus 17% of those not retired).
More than one-third (36%) of pre-retirees are worried that they will not have enough money to live well and do what they want in retirement: respondents ages 50 to 59 indicated that they expect their money to run out an average of one year ahead of their expected lifespan; that gap was three years for those ages 60 to 69, and five years for those over age 70.
Despite this fear, just 34%of pre-retiree respondents said they have invested with inflation in mind. Given this, 70%indicated they are prepared to adjust their retirement lifestyle as necessary to cope with inflation.
“As life expectancy rates continue to rise, it becomes very important to plan for longevity, which includes taking into account the impact of changing health circumstances,” said Lee Anne Davies, head, retirement strategies, with RBC. “We know that success in retirement will look different for each individual, no matter what their age. When circumstances change, you need to manage your finances well, leading up to and throughout your retirement.”
When asked their expected top sources of retirement income, 90% of pre-retirees said they believe an RRSP/registered retirement income fund will lead the way, followed by Canada/Quebec Pension Plan (84%) and Old Age Security (66%). Just 58% are expecting an employer-sponsored registered pension plan to play a role in funding their retirement.