Working Canadians are more concerned with their personal finances than their health as they approach retirement, a recent poll by the Royal Bank of Canada has found.
The bank’s 19th annual RRSP Poll found that three in 10 working Canadians plan to retire when they have enough money, while only 9% expect to retire as a result of health issues or illness.
This compares to 25% of retired Canadians who say health issues triggered their retirement, according to the October poll of more than 1,200 people conducted by Ipsos Reid.
“We are seeing that pre-retirees have not planned for the possibility that health issues may force them to retire,” said Lee Anne Davies, head of advanced retirement strategies at RBC. “Prior to retirement, it’s important to take the time to think about how changes in your health, or the health of someone depending on you, could affect when and how you live in retirement.”
Besides health issues, qualifying for a pension and company downsizing were the leading factors that prompted Canadians to retire.
Among working Canadians, only 1% expect to retire due to company downsizing or losing their job. Another 13% would retire once they qualify for a pension, and 14% plan to wrap up their career once they reach the mandatory retirement age for their job, such as 65.
One in five working Canadians say they will never fully retire, compared to one in 10 of those who are now technically retired.
When retirees were asked to state the best gift they could receive in retirement, more than half named good health, compared to 30% who would prefer to eliminate financial worries.
The reverse is true for Canadians who have not yet retired, with 38% ranking strong finances as their top priority, while 34% chose good health.
“One of the fundamental steps to ensuring a successful retirement is to develop a plan,” said Davies. “As Canadians plan for retirement, there may be a number of questions that arise regarding physical, mental and financial health. It’s important for Canadians to consider what they can do to integrate the maintenance of good health into their retirement planning.”
According to the poll, half of retired Canadians have changed their lifestyle to ensure a healthy retirement. This includes 80% who improved their diet, 69% who exercise more and 64% who attend regular medical appointments.
Of those who have yet to retire, 41% plan to become healthier in retirement. Of those, 80% plan to improve their diet, 79% will exercise more and 32% will attend regular medical appointments.
IE
Working Canadians overlook health issues when planning for retirement
Retirees would rather have good health than no financial worries: survey
- By: Megan Harman
- January 6, 2009 October 31, 2019
- 13:35