RBC poll discovers the magic number for financial comfort
Who wants to be a millionaire? The average British Columbian does and those in Alberta, Saskatchewan, and Manitoba are not far behind.
But while Canadians have big numbers in mind when it comes to a comfortable financial future, many lack a plan to help them get there according to RBC.
A new poll of non-retired Canadians found that $787,000 was the average amount that respondents felt would give them the secure future they want, ranging from an average $427K in Quebec to $1.07m in BC.
But 48% of respondents said they don’t yet have a plan to get them to their goal.
The 2019 RBC Financial Independence in Retirement Poll also reveals that 45% are somewhat confident in their ability to save their nest egg, 16% are very confident and 39% have no confidence they would ever reach their goal.
Debt free is a must
Two thirds though are clear on one thing – they want to be debt free.
"Debt is a huge motivator for most Canadians – they're telling us they don't want to live with debt now and they don't want to retire with debt in future," noted Richa Hingorani, Senior Director, Digital Strategy, RBC. "Identifying actions to start taking today is an important first step – and those actions can become much more effective if people put a plan in place to help them reach their goal."
To save for their nest egg, 74% said they are willing to cut back spending on non-essentials, 59% would eat out less, 45% would postpone major purchases, and 34% would curb their traveling.
Planning is ‘in the head’ for many
Of those respondents that said they do have a financial plan, 32% said it was “in my head” rather than a clear and achievable plan created with a financial advisor.
REGIONAL COMPARISONS – NON-RETIRED CANADIANS
|
RESPONSES |
NAT'L |
BC |
AB |
SK/ MB |
ON |
QC |
AC |
M* |
F* |
|
---IN DOLLARS--- Nest egg amount to ensure comfortable financial future |
787K |
1.07M |
916K |
907K |
872K |
427K |
774K |
942K |
650K |
|
Top motivators to build nest egg for financial future: • Being debt free |
|||||||||
|
66% |
69% |
66% |
67% |
60% |
70% |
74% |
64% |
67% |
|
|
• Having things to make my life more comfortable |
47% |
48% |
52% |
58% |
49% |
37% |
46% |
48% |
46% |
|
• Having money to take part in experiences I want |
39% |
31% |
41% |
38% |
39% |
41% |
42% |
36% |
41% |
|
• Having money to travel where I want |
36% |
42% |
44% |
38% |
34% |
32% |
29% |
34% |
37% |
|
Actions to save for nest egg: • Spend less on non-essentials |
|||||||||
|
74% |
75% |
77% |
80% |
74% |
72% |
64% |
71% |
76% |
|
|
• Eat out less |
59% |
62% |
62% |
64% |
62% |
53% |
53% |
58% |
61% |
|
• Postpone major purchases |
45% |
52% |
54% |
55% |
45% |
33% |
51% |
45% |
45% |
|
• Cut back on travel |
34% |
37% |
43% |
44% |
34% |
25% |
34% |
33% |
35% |
|
Level of confidence I'll reach my nest egg goal: |
|||||||||
|
• Very confident |
16% |
16% |
14% |
12% |
19% |
14% |
14% |
21% |
11% |
|
• Somewhat confident |
45% |
33% |
41% |
40% |
50% |
47% |
39% |
44% |
45% |
|
• I'll never build my nest egg up enough |
39% |
51% |
45% |
47% |
32% |
39% |
47% |
34% |
43% |
|
* M, F = Male, Female for all statistic charts |
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