A third (33 per cent) of recently retired Canadians said they retired sooner than they planned and 30 per cent of pre-retirees intend to change their retirement date because of the coronavirus pandemic, according to a new survey by RBC Insurance.
It found Canadians are still largely relying on traditional retirement savings tools, such as tax-free savings accounts (54 per cent), registered retirement savings plans (53 per cent) and Canada Pension Plan/Quebec Pension Plan/old-age security (52 per cent), while fewer employees are taking advantage of annuities (seven per cent) or segregated funds (three per cent).
More than three-quarters (78 per cent) said their No. 1 concern is the impact of inflation on savings, expenses and purchasing power, followed by a lack of guaranteed income (47 per cent) and outliving their savings (48 per cent).
“The events of the last two years are clearly affecting Canadians, including those nearing retirement,” said Selene Soo, director of wealth insurance at RBC Insurance, in a press release. “And with the current high inflation rate added to the mix, many are feeling concerned about their purchasing power and increasing expenses. What people must remember is they can take control — good planning is critical in driving confidence around their future finances.”