Stuck in the middle: RBC poll finds Canadians struggle to address children's education, aging parents and own retirement needs

Stuck in the middle: RBC poll finds Canadians struggle to address children's 
education, aging parents and own retirement needs 
TORONTO, Jan. 23, 2013 /CNW/ - Canadians (aged 18 to 54) are concerned that 
their ability to save for retirement will be impaired both by saving for their 
children's education (48 per cent) and by taking care of their aging parents 
(36 per cent), according to the 23rd Annual RBC RRSP Poll. 
Despite the potential strain of these family priorities on their retirement 
savings, more than half (57 per cent) of Canadians aged 18 to 54 say their 
parents' retirement experience has shaped their expectations of retirement. 
"While Canadians may see their parents' retirement experience as a model for 
what to expect, the reality is that their retirement may not be the same, 
particularly if they are part of the sandwich generation with both aging 
parents and school age children," said Amalia Costa, head, Retirement 
Strategies, RBC. "Canadians know that juggling competing financial priorities 
creates enormous strain on both time and money. A financial advisor can make 
it easier to develop a retirement plan to balance your financial commitments 
and family life." 
Retirement will likely look different for the next generation of retirees, as 
employer-sponsored pension plans become more rare. The RBC poll found that 
one-quarter (26 per cent) of Canadians (aged 18 to 54) expect a pension income 
from an employer to be their primary source of income in retirement and, 
similarly, fewer than one-in-five (18 per cent) of them have a defined benefit 
pension plan. 
"The growing demands on time and money can make meeting retirement goals a 
challenge, but Canadians don't have to do this on their own," added Costa. 
"Taking the time to meet with a financial advisor is one of the best 
investments you can make in your financial future. An advisor can help review 
your financial priorities; understand your income sources and your savings and 
investment options - all to help make your retirement goals a reality." 
Costa provides the following practical advice to help you live for today and 
save for tomorrow: 


    --  Show me the money - Look for hidden sources of contribution
        funds. If you have debt, take advantage of lower interest rates
        to reduce your overall borrowing costs and free up some of your
        monthly cash flow. For example, you can do this by
        consolidating higher interest credit card balances into a loan
        or home equity line with a lower interest rate.
    --  Automate your savings habit - Get into the good savings habit
        of paying yourself first by setting up an automatic
        contribution plan to coincide with your payroll deposit. The
        funds will come off the top and are often not missed.
    --  Start thinking about your retirement income plan - If you are
        within a few years of retirement, switch your focus to
        establishing your retirement income plan. Translate your vision
        for the lifestyle you want in your retirement into financial
        requirements and work with an advisor to learn about your new
        sources of retirement income and how these will fund your new
        lifestyle.

About RBC's financial planning advice, resources and interactive tools
The RBC Advice Centre offers free online advice, resources and tools regarding 
retirement and estate planning including RRSPs, the RSP-Matic® Savings 
Calculator and updates on the federal government's RRSP First Time Home 
Buyers' Plan. In addition, RBC's myFinanceTracker, a comprehensive online 
financial management tool, offers all personal RBC online banking clients the 
ability, at no cost, to create a set budget and track their spending habits 
and to access H&R Block tax-related apps in the new myTax Centre, to help 
manage and plan their taxes.

About the 23(rd) Annual RBC RRSP Poll
The 23(rd) Annual RBC RRSP poll was conducted by Ipsos Reid between October 24 
and November 27, 2012 via a random sample of 1,225 Canadian adults in the 
general population (aged 18 and over). The results are based on samples where 
quota sampling and weighting are employed to balance demographics and ensure 
that the sample's composition reflects that of the actual population according 
to Census data. Quota samples with weighting from the Ipsos online panel 
provide results that are intended to approximate a probability sample. A 
weighted probability sample of 1,225 Canadian respondents, with 100 per cent 
response rate, would have an estimated margin of error of ±3 per cent, 19 
times out of 20.

Media contacts: Suzanne Willers, RBC, 416 974-2727 Kate Yurincich, RBC, 416 
974-1031

SOURCE: RBC

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2013/23/c7793.html

CO: RBC Royal Bank
ST: Ontario
NI: FIN ECOSURV 

-0- Jan/23/2013 10:00 GMT


 
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