Despite concerns regarding spending and purchasing power, many Canadians are deciding to retire earlier, according to a recent survey.
With the evolution of several external factors, nearly 33% of new retirees admitted to having moved up their departure, indicates the boost conducted online by the firm Ipsos from March 8 to 10 on behalf of RBC Insurance. In addition, 30% of pre-retirees intend to change their retirement date due to the pandemic.
However, a longer retirement can bring monetary worries. In fact, more than a quarter of retirees (28%) spent more than expected, while 41% mentioned having had unforeseen expenses, such as renovations (16%), health care or transportation costs (12 %) and financial assistance to the family (12%). That’s not counting inflation and rising interest rates.
“With the current high rate of inflation on top of the rest, many Canadians, including those approaching retirement, are concerned regarding their purchasing power and increased spending,” said Selene Soo. , Managing Director, Wealth Insurance at RBC Insurance. What people need to remember is that they can take matters into their own hands – good planning is key to instilling confidence in the financial future.”
Thus, more than three-quarters of older Canadians (78%) are primarily concerned regarding the impact of inflation on savings, spending and purchasing power. Fear of a lack of guaranteed income (47%) and fear of outliving their retirement savings were also among the biggest concerns of those surveyed.
While many take advantage of savings tools such as TFSAs (54%), RRSPs (53%) and the Canada Pension Plan, the Quebec Pension Plan and Old Age Security (52%), “there important to protect the money that Canadians have built up with so much effort,” said Ms. Soo.
The survey was conducted online with a sample of 1,000 Canadians aged 55 to 75.
