RBC poll finds four-in-ten Canadians aren’t retiring on date of their choosing
Although a large majority (80 per cent) of Canadians approaching retirement believe they will get to pick the day they step away from their careers, in reality 41 per cent of retirees report that they did not leave on a date of their choice, according to the RBC 2013 Retirement Myths & Realities Poll. Key reasons specified for their unanticipated departure were employer’s request (41 per cent) and health reasons (22 per cent).
As Canadians approach their retirement, planning ahead takes on added importance, noted Amalia Costa, head, Retirement Strategies & Successful Aging, RBC. Your retirement date may not be something you can control, but you can shape your retirement income plan to take the unexpected into account, so you are better prepared financially, no matter how much time you may have before you retire. The annual poll, which surveys Canadians aged 50 plus, also revealed that 20 per cent of retirees had as little as one month or no advance notice before retirement, with a majority (65 per cent) reporting they had notification one year or less before their retirement date.
Chances are two out of three retiring Canadians will have less than a year to transition into their next stage of life and they are going to have to create a new paycheque to support that next stage, said Costa. We advise our clients to begin refining their retirement ‘roadmap’ at least five years before they expect to retire, to get a clearer idea of their retirement lifestyle, as well as the corresponding retirement income plan that will help them achieve it.
This five-year review is a crucial reality check for anyone approaching retirement, added Costa. “It’s important to work with a financial advisor who can help you prepare for retirement, no matter when your retirement date actually occurs.”
November 22, 2013