Four in Ten (39%) Retirees Retired with Debt
Toronto, ON - Four in ten (39%) retired Canadians over the age of 50 and with assets of at least $100,000 retired with some form of debt, according to a new Ipsos Reid poll conducted on behalf of RBC. Nearly one quarter (22%) had a mortgage on their primary residence, 17% still had consumer debt, 7% had some other debt and 5% had a mortgage on an investment property or cottage. Six in ten (61%) managed to pay off their debt before they retired.
And even though they're retired, most (70%) believe it's still important to save part of their income, either for a rainy day (35%), for their estate (11%), for gifts (6%), for charity (5%), or simply out of habit (29%). Just three in ten (30%) retirees don't think it's still important to save their money, even in retirement. Despite the desire to continue saving, three in ten (28%) have secured more credit since retiring.
One in three (35%) retirees are concerned that inflation will negatively impact their retirement income, and 11% are unsure of their level of their concern; however, a majority (54%) are not concerned about inflation impacting their income. A larger proportion (43%) of those over the age of 50 who have yet to retire are worried about the impact inflation could have on their retirement income, while an additional 12% don't know. Just 46% of those yet to retire are not concerned.
Six in ten (62%) retirees worry about taxes on their income, and most (66%) believe that the percentage of their income devoted to taxes will increase over the next 10 years. Just three in ten (27%) believe that this proportion will remain consistent over the next ten years, while 7% think it will actually decrease. Retirees are currently living on 56% of their pre-retirement income, which suggests that one's income requirement drops significantly in retirement.
These are some of the findings of an Ipsos Reid poll conducted between March 10-19, 2010, on behalf of RBC. For this survey, a national sample of 2,143 adults aged 50 and over with household assets of at least $100,000 from Ipsos' Canadian online panel was interviewed online. A survey with an unweighted probability sample of this size and a 100 per cent response rate would have an estimated margin of error of 1772.1 percentage points 19 times out of 20 of what the results would have been had the entire population of adults in Canada been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.
For more information on this news release, please contact:
Sean Simpson
Senior Research Manager
Ipsos Reid Public Affairs
(416) 572-4474
[email protected]
About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.
To learn more, please visit www.ipsos.ca .
About Ipsos
Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.
Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2009, Ipsos generated global revenues of e943.7 million ($1.33 billion U.S.). .
Visit www.ipsos-na.com to learn more about Ipsos offerings and capabilities.
Ipsos, listed on the Eurolist of Euronext - Comp B, is part of SBF 120 and the Mid-100 Index, adheres to the Next Prime segment and is eligible to the Deferred Settlement System. Isin FR0000073298, Reuters ISOS.PA, Bloomberg IPS:FP
