Older respondents expect to live longer Average age Ages 50-59 (n=1277) 83 years Ages 60-69 (n=799) 84 years Ages 70+ (n=169) 88 years QB1aNEW. You may or may not have thought a lot about this, but if you had to estimate, until what age do you expect to live? 1
Younger respondents, and/or females, feel their family history has more influence on their estimate of longevity; retirees, and/or older respondents, feel their current health has more influence My family history/the age of my parents My current health The health I expect to have as I get older 17% 1 16% 2 50-59 17% 60-69 22% 70+ 34% 50-59 15% 60-69 15% Males 16% 44% 46% 50-59 47% Females 50% My current lifestyle 10% 9% My expectations of modern medicine 5% 5% The lifestyle I expect to have as I get older Other 2% 2% 4% 5% Retired (n=1089) Not retired (n=1156) QB1bNEW. Which of the following factors do you think has the most influence on your estimate? 2
Older respondents also expect to maintain their independence, free of health or disability constraints, to an older age Average age Ages 50-59 (n=1277) 75 years Ages 60-69 (n=799) 78 years Ages 70+ (n=169) 83 years QB1cNEW. At what age do you think the lifestyle or independence you have now will change due to health or disability constraints? 3
All age groups expect their money to outlast them; among ages 50-59 there is not a big margin Average age Until what age do you expect to live? Ages 50-59 (n=1277) 84 Years (+1) 83 Ages 60-69 (n=799) 87 Years (+3) 84 Ages 70+ (n=169) 93 Years (+5) 88 QB4. Until what age do you think you could financially live comfortably in retirement? (Question updated in 2011) 4
More respondents in 2011 think their parents may outlive their money; there is also a greater expectation this year that the government will help support their parents; retirees are less sure who will cover the shortfall Yes No 20% 17% 72% 77% Government money/funding Their adult children shared/will share the costs A close family member or friends shared/will share the costs 4% 2% 29% 30% 69% 64% Retired 24% Pre-retired 3 Don't know 7% 6% Don't know 14% 18% Retired 19% Pre-retired 11% 2011 (n=2245) 2010 (n=2143) 2011 (n=465) 2010 (n=356) QB6. Did your mother or father outlive their money in retirement or are they likely to outlive their money in retirement? QB7. Who supported/will support them? Base: Parents outlived/outliving money 5
Retirees are more likely than pre-retirees to say TFSAs and Annuities will be income sources for them in retirement; 1-in-4 pre-retirees are expecting an inheritance to be one of their income sources RRSP or RRIF CPP/QPP (Canada or Quebec pension plan) OAS (Old Age Security) Registered pension plan from an employer Equity in my home - I can sell my home or take out a loan or mortgage if I need to Non-registered savings or investments TFSA (new in 2011) Inheritance (new in 2011) Annuity (new in 2011) Insurance GIS (Guaranteed Income Supplement) Home equity loan Reverse mortgage Other 20% 26% 19% 15% 15% 1 12% 1 1% 10% 9% 72% 66% 64% (67%) 58% (65%) 55% (59%) 56% (59%) 54% (6) 47% (58%) 45% 40% Retired (n=1089) Not retired (n=1156) 87% (91%) 90% 86% (91%) 84% (87%) (77%) QD2. Which of the following income sources does your household have/ expect to have to fund your retirement? = significant difference compared to 2010. 6
Older respondents are more likely to include CPP and OAS in their retirement income; those with a plan are more likely to expect income from RRSPs, employer pension plans, non-registered savings and TFSAs Age Gender Retirement plan Total 50-59 60-69 70+ Males Females Yes No (n=2245) (n=1277) (n=799) (n=169) (n=1255) (n=990) (n=1353) (n=892) % % % % % % % % RRSP or RRIF 88 88 88 86 87 89 90 85 CPP/QPP (Canada or Quebec pension plan) 85 81 91 92 84 87 86 83 OAS (Old Age Security) 69 61 76 92 66 72 69 69 Registered pension plan from an employer 61 61 61 64 63 59 64 57 Equity in my home - I can sell my home or take out a loan or mortgage if I need 55 54 56 62 53 58 57 53 to Non-registered savings or investments 50 49 51 62 49 52 52 48 TFSA 43 42 42 52 42 44 45 39 Inheritance 23 28 18 12 21 26 25 21 Annuity 17 15 19 21 18 15 17 15 Insurance 14 15 13 16 14 14 14 14 GIS (Guaranteed Income Supplement) 12 12 12 17 12 13 12 13 Home equity loan 3 3 3 3 4 3 3 4 Reverse mortgage 2 3 2 1 3 2 2 3 QD2. Which of the following income sources does your household have/ expect to have to fund your retirement? 7
The majority of respondents, particularly women, are prepared to adjust their lifestyles in order to keep pace with inflation in retirement; those with a plan are more likely to have invested with inflation in mind I will adjust my lifestyle as necessary I've invested with inflation in mind I will trust my financial advisor to take this into consideration for me 35% 34% 30% 31% Plan 40% 50-59 35% Males 37% Plan 40% 60-69 3 Females 34% 69% 70% Females 7 Females 77% No plan 76% I will take on more debt to invest in assets that will appreciate in value 2% 50-59 4% Other plans I won't do anything 11% 9% 6% Males 1 Males 11% Plan 8% Retired (n=1089) Not retired (n=1156) E10aNEW. How do you anticipate keeping pace with inflation throughout your retirement? 8