How Will You Be Paying for That?
RBC Ipsos Reid Poll Reveals Half (54%) of Canadians Expect Pensions to be Primary Source of Income
in Retirement
Toronto, ON - One half (54%) of Canadians expect their pensions (29% employer pension, 25% government pension) to be the single, largest source of income during retirement, according to the 20th annual RBC RRSP poll conducted by Ipsos Reid. Pensions beat out investment income (18%), part time or occasional work (9%), home equity (8%), cashing out investments (7%), or income from a spouse or partner who continues to work (3%) as the expected primary source of income during retirement. Despite the anticipated reliance on pensions, two in ten (19%) Canadians don't know what kind of pension plan they have.
In fact, expected (or actual) reliance on pensions is highest among those Canadians already over the age of 54, with three quarters (74%) indicating that a pension will be (or is) the primary source of income in their retirement. As for Canadians who are likely a little further off from retirement (age 35 to 54), one in ten (8%) expect their primary source of income will be from part-time or occasional work, while another three in ten (30%) say part-time work will comprise at least some of their income during retirement, suggesting that the traditional concept of a retirement is changing.
Thinking about their top-three considerations for determining when to retire, seven in ten (68%) ranked having the right amount of money in their savings or investments that would allow them to live a comfortable retirement among their top-three rankings, making it the most-often chosen consideration. However, one half (53%) of Canadians who have established financial goals feel they are somewhat short or nowhere close to where they think they should be to ensure a comfortable retirement, the proportion of whom has increased from 36% in 2007.
Interestingly, retirees have a goal of nearly $270,000, on average, as the amount of money needed to ensure a comfortable retirement, but this has dropped significantly from a much higher average of nearly $450,000 in 2007. Individuals who are not yet retired actually think they'll need much more than that - an average of $660,000 - down from almost $900,000 in 2007.
Moreover, the gender divide in savings goals continues, although it has narrowed over the last two years from $366,000 to $136,000: Men had a retirement goal of $922,000 in 2007 which fell to $555,000 in 2009, while women had a retirement goal of $556,000 in 2007, which fell to $419,000 in 2009.
These are some of the findings of an Ipsos Reid poll conducted between October 21 and November 2, 2009, on behalf of RBC. For this survey, a national sample of 1,457 adults from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics and ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/-2.6 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
Research Manager
Ipsos 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 2008, Ipsos generated global revenues of e979.3 million.
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