Despite concerns about spending and purchasing power, many Canadians have decided to retire early, according to a recent survey.
With so many externalities developing, nearly 33% of new retirees admitted they had upped their leave, indicating the boost Ipsos made online March 8-10 on behalf of RBC Insurance. Additionally, 30% of retired applicants plan to change their retirement date due to the pandemic.
However, retiring for a longer period can bring financial concerns. In fact, more than a quarter of retirees (28%) spent more than expected, while 41% reported having unexpected expenses, such as renovations (16%), health care or transportation costs (12%) and family financial assistance (12%). This does not account for inflation and higher interest rates.
“With the current rate of inflation high as well as the rest, many Canadians, including those nearing retirement, are concerned about their purchasing power and increased spending,” said Celine Su, managing director of 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 about the effect of inflation on savings, spending and purchasing power. Fear of not having a guaranteed income (47%) and fear of running out of retirement savings were among the biggest fears of those surveyed.
While many benefit from savings tools such as TFSAs (54%), RRSPs (53%), the Canada Pension Plan, and the Quebec Pension and Old Age Insurance Plan (52%), “there is importance to protecting the money Canadians have raised with so much effort,” said Ms. Sue. .
The survey was conducted online with a sample of 1,000 Canadians between the ages of 55 and 75.
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