TORONTO – Non-retired Canadians have big numbers in mind for the money they’ll need to save to ensure a comfortable financial future – averaging as high as $1.07 million in B.C. – but almost half (48 per cent) don’t have a financial plan to help them reach that goal, according to the 2019 RBC Financial Independence in Retirement Poll.
Poll respondents expressed varying degrees of confidence about their ability to save enough to build their nest egg, with 45% feeling somewhat confident, 16% very confident and 39% having no confidence.
Respondents also have a number of actions they would be willing to take to help them create their nest egg, including:
– 74% spend less on non-essentials;
– 59% eat out less;
– 45%postpone major purchases; and
– 34% cut back on travel;
Approximately 66% say they also have a strong motivator to save: they want to be debt-free.
“Debt is a huge motivator for most Canadians – they’re telling us they don’t want to live with debt now and they don’t want to retire with debt in the future,” noted Richa Hingorani, RBC senior director, digital strategy.
“Identifying actions to start taking today is an important first step – and those actions can become much more effective if people put a plan in place to help them reach their goal.”
While the RBC poll found the percentage of all Canadian adults who have a financial plan has been growing – it reached over 54% in 2018 – one-third or 32%of those report their plan is “in my head” and 46% still have no plan at all.
“This is where new digital resources can be of great assistance, where you can easily see – in real time, from the comfort of your home – how having a plan can have an immediate impact on your savings goal,” added Hingorani.
“You don’t need a big plan in order to have a big savings and investing goal – but you do need to be able to track your progress. By activating your personal plan, supported by advice you can easily access online whenever you wish, you can make a real difference to your financial future.”
– Royal Bank of Canada
