CIBC Poll: Majority of Canadian Retirees happy with retirement today - but worried about running out of money over the long

CIBC Poll: Majority of Canadian Retirees happy with retirement today - but 
worried about running out of money over the long term 
Some retirees vulnerable to short term financial shocks, and have long term 
concerns about making their money last 
TORONTO, Jan. 14, 2013 /CNW/ - A new CIBC (TSX: CM) (NYSE: CM) poll conducted 
by Leger Marketing reveals that most of Canada's retirees feel positive about 
their current finances in retirement, saying they are living the retirement 
they hoped for today. However, some retirees are concerned they won't be 
able to sustain their lifestyle over the long term and worry that they will 
run out of money at a future date. 
Key poll findings include: 


    --  69 per cent of retired Canadians said they are currently living
        the retirement they hoped for.
    --  However, 28 per cent said they are afraid of running out of
        money for their retirement over the longer term.
    --  Regionally, retirees in Quebec and Manitoba and Saskatchewan
        were among the most likely to say they are currently living the
        retirement they planned for (74 per cent), while retirees in
        British Columbia were among the least likely (60 per cent).
    --  British Columbia retirees were among the most likely (45 per
        cent) to say they are afraid of running out of money for their
        retirement, while Atlantic Canadians were among the least
        likely (21 per cent)

"While it is positive to see that a majority of retired Canadians are living 
the retirement they hoped for, our poll findings also show there is concern 
around whether their retirement savings will sustain them in the years to 
come," said Christina Kramer, Executive Vice President, Retail Distribution 
and Channel Strategy, CIBC. "There are some unique factors facing today's 
retirees as they look to the years ahead, including low interest rates on 
savings and the need to make their retirement funds last longer than previous 
generations, which makes long range planning even more important."

Planning Doesn't End With Retirement

While many Canadians focus on how much they need to save in order to reach 
retirement, it is just as important to focus on how you will convert your 
savings to income that will last throughout your retirement.
    --  Only 62 per cent of retired Canadians say they have a plan to
        help them determine how long their savings will last and how
        much they can withdraw each year to support their lifestyle.
    --  Among those with a plan, there was a even split in how they
        developed their plan - with 31 per cent saying they have a plan
        with an advisor and 31 per cent saying they have a plan they
        developed on their own.

"Having a plan you can be confident in can contribute to your peace of mind 
and allow you to enjoy your retirement with a clear view of how you will make 
your finances work over the long term," noted Ms. Kramer. "Considering the 
number of factors retirees face today, a conversation with an advisor can help 
ensure all components of your retirement are accounted for."

Ms. Kramer also noted that those doing their own planning would likely benefit 
from reviewing their plan with an advisor. "Even if you choose to do much of 
your own planning when it comes to your finances, an advisor can serve as a 
useful sounding board to check your assumptions and offer solutions you may 
not have considered."

Retirees More Vulnerable to Financial Shocks

While the concerns of today's retirees were primarily focused on the long 
term, poll results also show that more than half of retired Canadians indicate 
that a short term financial shock could create a challenge in managing cash 
flow:
    --  Given their current income and cash flow, 54 per cent of
        retired Canadians said that taking on a new $500 monthly
        payment would be unmanageable
    --  Within this group, 34 per cent said it would be very
        unmanageable and 19 per cent said it would be somewhat
        unmanageable

This suggests that some retired Canadians may not be financially prepared to 
pay for costs associated with an unexpected emergency - such as needing a new 
roof or replacing a car - which could add to their concerns about running out 
of money in the future.

"It's important to plan for your long term retirement goals, but your plan 
should also include an emergency savings component," said Ms. Kramer. "You may 
have to reevaluate how much you are able to withdraw each year to ensure you 
do have savings that could be used in the event of an emergency to avoid 
taking on a new monthly debt payment that can impact your lifestyle."

Financial Advice for Retired Canadians
    --  Meet with an Advisor to review your finances - You need to
        understand how much income you generate from your savings
        combined with your pension or income you continue to earn. This
        will help you determine what level of retirement expenses are
        appropriate for you and allows you to make changes to your
        retirement strategy today if required.
    --  Minimize and eliminate debt - One of the most effective ways to
        make your retirement savings go further is to minimize or
        eliminate debt repayment in retirement. This reduces interest
        costs and increases cash flow.
    --  Plan for tomorrow - today's retirees' are living longer,
        healthier lives.  An advisor can help you develop a
        comprehensive plan that ensures you have the financial ability
        to live the retirement you hoped for throughout your
        retirement, regardless of any unexpected emergencies that may
        arise.

For Reference - Summary of Key Data

Percentage of retired Canadians that said they are currently living the 
retirement they hoped for, by region:

National Average          69% 

BC                        60%

Alberta                   66%

Man/Sask                  74%

Ontario                   70%

Quebec                    74%

Atlantic Canada           71%

Percentage of retired Canadians that said they are afraid of running out of 
money for their retirement, by region:

National Average          28% 

BC                        45%

Alberta                   29%

Man/Sask                  32%

Ontario                   26%

Quebec                    23%

Atlantic Canada           21%

Percentage of retired Canadians that given their income and cash flow, taking 
on a new $500 loan payment would be unmanageable, by region:

National Average          54% 

BC                        66%

Alberta                   39%

Man/Sask                  50%

Ontario                   50%

Quebec                    60%

Atlantic Canada           52%

Results are based on a CIBC poll conducted by Leger Marketing, via a Web 
survey. These data were gathered in a sample of 867 retired or pre-retired 
Canadians between September 18 and 21, 2012.

CIBC is a leading North American financial institution with nearly 11 million 
personal banking and business clients. CIBC offers a full range of products 
and services through its comprehensive electronic banking network, branches 
and offices across Canada, and has offices in the United States and around the 
world. You can find other news releases and information about CIBC in our 
Press Centre on our corporate website at www.cibc.com.





Sean Hamilton, Director Communications and Public Affairs at  
416-304-8456,sean.hamilton@cibc.ca

SOURCE: CIBC

To view this news release in HTML formatting, please use the following URL: 
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CO: Canadian Imperial Bank of Commerce
ST: Ontario
NI: FIN ECOSURV 

-0- Jan/14/2013 10:00 GMT


 
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