Canadians scale down retirement dreams Page 1 of 2

Monday, January 18, 2010

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Canadians scale down retirement dreams
Julie Fortier, Financial Post

OTTAWA -- Few Canadians see themselves sailing a yacht or

taking a trip around the world in their retirement, according to the
results of the Annual RBC RRSP Poll released Monday.

Although 90 per cent of Canadians feel they will have enough

income to cover their necessities in retirement, only 25 per cent of
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Canadians feel they will have enough money to fulfill their
retirement dreams.

"How much money you'll need in retirement depends on how you'll be spending your time, with many
Canadians underestimating the amount they will need," Lee Anne Davies head of retirement strategies
at RBC Royal Bank wrote in a release.

The poll of 1,457 Canadian adults conducted by Ipsos Reid between Oct. 21 and Nov. 2, 2009 also
showed that 75 per cent of those already in retirement said they didn't know how much they spent in
their first year in retirement -_virtually the same as 2008, when 76 per cent said they didn't keep a
budget.

Of the 25 per cent who did keep track of their finances, their spending was cut by 31 per cent on
average in their first year of retirement from $51,000 in 2008 to $35,000 in 2009. However, 52 per
cent said they still spent more than expected, up from 46 per cent in 2008.

The study also found that 48 per cent of Canadians who were still in the workforce were most worried
about having enough savings, while only 29 per cent of retirees had this concern. Forty per cent of both
pre-retirees and retirees said they were concerned about maintaining their standard of living. One in
three retirees said health care coverage is a concern, compared to only 28 per cent for those still in the
workforce.

"All of these concerns are valid. Whether retired or not, your life will be somewhat unpredictable at
times and you need to be ready when life throws you a curve ball. This is where having a plan can
provide peace of mind - you'll know you've considered the unexpected and you've taken the steps to
save for your retirement," wrote Davies.

However, a poll released by RBC in December showed fewer Canadians planned and saved for
retirement in 2009, with 32 per cent saying they have not started saving for retirement yet, up from 24
per cent in 2008. The study also found only 36 per cent of the 1,457 respondents said they were
planning or have planned for retirement, down from 42 per cent in 2008. The decline was most

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Canadians scale down retirement dreams Page 2 of 2

noticeable among those aged 55 and over, with only 53 per cent doing any retirement planning
compared to 67 per cent in 2008.

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http://www.financialpost.com/story-printer.html?id=2454790 19/01/2010