Many Canadian baby boomers worry about a retirement savings shortfall and Albertans have the highest expectations for how much they think they’ll need to save for retirement, according to a report released on Thursday by RBC.
In a poll, Albertans surveyed said they think they will have to save $1.1 million for their retirement. The Canadian average expectation was $949,000, according to the boomers surveyed for the latest RBC Retirement Myths & Realities poll, conducted by Ipsos.
“When you peel back the layers, many boomers worry about their savings shortfall because they just don’t know where to start,” said Rick Lowes, vice-president of retirement strategy at RBC, in a news release.
“The best approach is to start with expectations including: the lifestyle you hope to lead in retirement, retirement income options, and then build a plan to get you there.”
The RBC poll found that not-yet-retired boomers are considering a number of options to boost their retirement income, including:
- downsizing/moving – 52 per cent;
- working in retirement – 41 per cent;
- borrowing against home equity – 25 per cent;
- relying on an expected inheritance – 21 per cent;
- hoping to win the lottery – three per cent.
“No one should be relying on an inheritance or a lottery win. We also don’t want anyone feeling discouraged by unrealistic savings goals or thinking they don’t have enough time. Concerns like these can be overcome by taking control of your finances,” said Lowes.
“There could be some tough choices ahead. A half-hour conversation with a financial planner can help you get started and shape your retirement plans to make a real difference to your financial future.”