Just 22% of Canadians Aged 55 to 75 Believe Public Pension Plans Will Provide Them with Adequate Retirement Income;
Majority (58%) Worries They've Outlive Their Savings

Toronto, ON - While most (94%) Canadians aged 55 to 75 `agree' (62% strongly/32% somewhat) that they would `like to have guaranteed income for life' when they retire, a new Ipsos poll conducted on behalf of RBC insurance finds that just two in ten (22%) Canadians `agree' (3% strongly/18% somewhat) that `Canadian public pension plans (such as CPP/QPP/OAS) will provide enough retirement income' for them. In fact, most (78%) `disagree' (38% strongly/40% somewhat) that these pensions plans will suffice.

It's no surprise then that six in ten (58%) `agree' (21%) strongly/38% somewhat) that they're `worried about outliving their retirement savings', while four in ten (42%) `disagree' (15% strongly/26% somewhat) that they're worried. Women (66%) are considerably more likely than men (50%) to be worried about outliving their savings, as are those aged 55 to 64 (62%) compared to those aged 65 to 75 (52%). Atlantic Canadians (67%) are most worried about outliving their retirement savings, followed by those in Ontario (63%), Alberta (60%), Quebec (59%), Saskatchewan and Manitoba (58%) and final British Columbia (41%).

One way of supplementing retirement income is through the use of an annuity, but many Canadians aged 55 to 75 appear in the dark about what an annuity is and how it might help them. In fact, six in ten (61%) `agree' (23% strongly/38% somewhat) that they `don't know much about annuities', while four in ten (39%) `disagree' (12% strongly/26% somewhat) that they lack knowledge in this area. Women (71%) are significantly more likely than men (51%) to say they don't know much about annuities, as are those aged 55 to 64 (66%) compared to those aged 65 to 75 (55%). Albertans (75%) are most likely to admit they don't know much about annuities, followed by those living in Saskatchewan and Manitoba (71%), Ontario (69%), Atlantic Canada (65%), BC (61%). Quebecers (42%) are much less likely to agree that they don't know much about annuities.

A small quiz confirms that many Canadians lack some fundamental knowledge about annuities. Just 55% of Canadians were able to answer more than half of the questions correctly, and only 6% got all six questions right. British Columbians (62%) were most likely to pass the test, followed by those in Quebec (57%), Ontario (54%), Atlantic Canada (53%), Alberta (52%) and finally Saskatchewan and Manitoba (49%).

• Just four in ten (40%) believe that it is true that they need a licensed insurance advisor to buy an annuity. In contrast, six in ten (60%) believe this is false - when in fact, it is true.
• Seven in ten (71%) correctly believe it's true that there are potential tax savings to investing in annuities, while 29% incorrectly believe this to be false.
• Half (47%) incorrectly believe it's true that annuities last for a specific period of time, while the other half (53%) believes this is false, which is the correct answer.
• Seven in ten (70%) correctly believe it's true that annuities can provide guaranteed income for life, while three in ten (30%) incorrectly believe this to be false.
• Half (51%) think it's true that annuities are not a good investment during low interest rate environments, while the other half (49%) correctly believes this to be false.
• Three quarters (73%) correctly believe it's true that they can invest in an annuity using their RRSP and/or RRIF savings, while 27% incorrectly think this is false.

Despite the majority being uneasy about their retirement savings, just one in three (35%) `agrees' (7% strongly/28% somewhat) that they are exploring or considering annuities as part of their retirement plan, while most (65%) are not (34% strongly/31% somewhat). One quarter (23%) say they have an annuity.

These are some of the findings of an Ipsos poll conducted between August 7 to 14, 2015 on behalf of RBC Insurance. For this survey, a sample of 1,000 Canadians aged 55 to 75 from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics to 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. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within +/ - 3.5 percentage points, 19 times out of 20, had all Canadian adults aged 55 to 75 been polled. The credibility interval will be wider among subsets of the population. 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
Vice President
Ipsos Public Affairs
(416) 572-4474
[email protected]

About Ipsos in Canada

Ipsos 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 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' 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 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 is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos.ca.

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks third in the global research industry.

With offices in 86 countries, Ipsos delivers insightful expertise across six research specializations: advertising, customer loyalty, marketing, media, public affairs research, and survey management.

Ipsos researchers 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 and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of e1,669.5 ($2,218.4 million) in 2014.

Visit www.ipsos.com to learn more about Ipsos' offerings and capabilities.