Seven out of 10 Canadians approaching retirement feel their retirement plans have been impacted by the market and, among this group, 60% state their plans to retire have been set back by up to five years or more.

According to the 12th Annual RBC/Ipsos-Reid poll, 59% of those aged 45 and up, who are not yet retired, are feeling far or somewhat behind in meeting their retirement goals; and surprisingly, 56% have not determined the amount they will need to save to ensure they have a comfortable retirement. Even among those with RRSPs, 39% have less than $50,000 saved in their RRSP.

“Many Canadians are realizing that their retirement plans do not match the reality of their savings,” said Laura Gainey, VP customer management, RBC Royal Bank. “Those closest to retirement are likely to feel the most anxiety about having the right strategy to make their money last.”

According to the poll, retirees are also feeling the pinch. Eighty-one per cent of this group have been adversely affected by the markets, to the extent that 74% have made changes and cutbacks to their retirement lifestyle, with another 7% having gone back to work.

Canadians have shifted in their expectations as to how they will derive income during their retirement. Only 20% of Canadians aged 45 and up believe their retirement will be funded by income from their own investments. Fifty-five per cent of these baby boomers feel that pension income from an employer or government will be the primary source of income for their retirement.

The poll was conducted by telephone between Nov. 7 and Nov. 24, 2002. The poll is based on a randomly selected sample of 1,200 Canadians 18 years of age or older. With a sample of this size, the results are considered accurate to within (+/-) 2.8 percentage points, 19 times out of 20.