May 17, 2022

The Queens County Citizen

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Early retirement despite financial fears

Early retirement despite financial fears

Despite concerns about cost and purchasing power, a recent survey found that many Canadians are deciding to retire early.

As a result of a number of external factors, nearly 33% of new retirees agreed to increase their exit, according to a boost conducted by Ipsos online on behalf of RBC Insurance from March 8 to 10. In addition, 30% of pre-retirees are expected to change their retirement date due to the epidemic.

However, a long retirement can bring monetary worries. In fact, a quarter (28%) of retirees spent more than expected, while 41% reported having unexpected expenses such as reconstruction (16%), health care or transportation costs (12%) and financial assistance to the family. (12%). It does not take into account inflation and rising interest rates.

“With the current high inflation rate, many Canadians, including those on the verge of retirement, are worried about their purchasing power and rising costs,” said Celine Sue, managing director of Wealth Insurance at RBC Insurance. One thing that people need to remember is that they can take things into their own hands – a good plan is crucial to instilling confidence in the financial future.

Thus, more than three-quarters (78%) of older Canadians are primarily concerned about the impact of inflation on savings, spending and purchasing power. Lack of guaranteed income (47%) and fear of exceeding their retirement savings were also one of the biggest concerns of those surveyed.

Many TFSAs (54%), RRSPs (53%) and Canadians benefit from savings tools such as the Pension Plan, Quebec Pension Plan and Old Age Security (52%). Mrs. Soo.

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The survey was conducted online with a sample of 1,000 Canadians aged 55 to 75 years.