RY Royal Bank of Canada

• Majority of Canadians approaching retirement feel they haven't saved enough
• Almost one-third think they'll outlive their savings by 10 years or more
• MyAdvisor shows multi-year projections for retirement income, expenses

TORONTO, April 5, 2022 /CNW/ - Canadians approaching retirement are voicing concerns about outliving their savings, according to the latest RBC Retirement Myths & Realities Poll. This biennial survey of Canadians aged 50+ found that a large majority of not-yet-retired respondents (83%) say they've saved less than they think they'll need and almost one-third (32%) think they'll outlive their savings by 10 years or more.

To help mitigate any shortfall, it's important to know all your expected sources of income in retirement and be able to forecast the amount of money you anticipate will come from those sources, says Rick Lowes, Vice-President, Retirement Strategy, RBC.

"Trying to figure out your retirement income sources and the impact they will have on your cash flow and taxes can seem like a daunting task – but this is crucial to helping you plan ahead to manage any shortfalls," notes Lowes. "Fortunately, this is where technology can help. For example, using our MyAdvisor advice platform, our advisors can walk you through single year and multi-year projections, so you can visualize what money will be coming in and going out during your retirement years."

Lowes adds, "We start by reviewing your goals and key aspects of your finances with you – including your current savings situation, anticipated lifestyle and other retirement considerations – to see what the likely impact will be on your retirement over time. We'll also project how close you'll be to reaching your monthly retirement income goal and deliver prompts to help you manage any gaps before they happen."

Even though the goal of retirement savings is to have enough money to support their chosen lifestyles when they're no longer working full-time, the poll found that over half (55%) of pre-retiree respondents said they were anxious about spending their savings in retirement. Possibly contributing to that anxiety: while half (50%) of pre-retirees said they had a financial plan, 22% of those said it was 'in my head', and only 20% had created a formal plan with a Financial Planner.

"After a lifetime of saving, we know it can be difficult to make the shift into spending those savings, particularly if you don't understand your income sources and whether they will last throughout your retirement," explains Lowes. "A comprehensive plan helps you understand your finances, achieve your goals and prepare for your future – and gives you a sense of financial wellbeing that is important in retirement. With MyAdvisor, you can monitor and review your progress over time, to help ensure you're maximizing your retirement income."

MyAdvisor – RBC's digital advice platform – has empowered nearly 3 million Canadians with their personalized plans and access to interactive scenarios, where they can see the potential impact of today's financial decisions on tomorrow's projected outcomes. More information is available on the MyAdvisor website.

Fast Facts – 2021 RBC Retirement Myths & Realities PollSelected National, Regional, Gender Findings: Canadian Pre-Retirees Aged 50+

About the 2021 RBC Retirement Myths & Realities Poll
These are the findings of the most recent RBC Retirement Myths & Realities Poll, conducted every two years by Ipsos. For the overall survey, conducted between May 21 and June 1, 2021 a sample of 2,200 Canadians aged 50+ was interviewed via the Ipsos I-Say panel and non-panel sources, of whom 1,100 are pre-retirement and 1,100 are retired. Quotas and weighting were applied 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. For this release, the data is referenced among a sample of 1,100 aged 50+ who are pre-retirees. The credibility of Ipsos online polls is measured using a credibility interval. In this case the results are considered accurate to within ±2.6 percentage points, 19 times out of 20, for the full sample of retired and pre-retired Canadians aged 50+, and ±3.4 percentage points, 19 times out of 20, for the sample of pre-retired Canadians aged 50+.

About Retirement Planning at RBC
The RBC Retirement Planning hub can help you plan for the 30 years or more you may spend in retirement. This website also includes links to Financial Planners/Investment & Retirement Planners who can help you determine the retirement lifestyle you hope to live, the sources of income you may be able to draw from when you retire and considerations to make before applying for your CPP/QPP. For more information, please visit Retirement Planning. In addition, MyAdvisor – a digital advice platform only available at RBC – connects you to a personalized plan and the ability to adjust those plans in real time. In-retirement support helps you plan the withdrawal of your investments and savings to finance your retirement and legacy. MyAdvisor helps you not only understand what you may need to save and invest for retirement, but also how you can then use those funds during your retirement.

About RBC
Royal Bank of Canada is a global financial institution with a purpose-driven, principles-led approach to delivering leading performance. Our success comes from the 88,000+ employees who leverage their imaginations and insights to bring our vision, values and strategy to life so we can help our clients thrive and communities prosper. As Canada's biggest bank, and one of the largest in the world based on market capitalization, we have a diversified business model with a focus on innovation and providing exceptional experiences to our 17 million clients in Canada, the U.S. and 27 other countries. Learn more at rbc.com.

We are proud to support a broad range of community initiatives through donations, community investments and employee volunteer activities. See how at rbc.com/community-social-impact.

SOURCE RBC Royal Bank