RBC Wealth Management survey: Retirement worries intensify as planning and saving get more complex
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Retirement Paycheck survey compiles insights from retirement savers and current retirees on concerns, strategies and more
Knowing that they can't solely rely on pensions and Social Security to cover every-day expenses, for this generation creating reliable income in retirement or a 'retirement paycheck' is also an important consideration.
The survey also shows an increase of concerns around market volatility, dying early and leaving a legacy when compared to RBC Wealth Management's last survey from 2018.
43% of retirees are worried about outliving their assets compared with 37 percent in 201832% of those approaching retirement are worried about investment loss, up from9% in 201825% of those approaching retirement are worried about dying early, increasing from11% since 201817% of those approaching retirement are concerned about estate taxes, up from3% in 2018- Only
53% of those surveyed said they understand how their assets and investments will work together to provide them a paycheck in retirement, while49% understand the tax implications of withdrawals and44% understand required minimum distributions - Nearly half of respondents don't have a documented plan for retirement. Of those who have a documented plan,
91% are confident about maintaining their standard of living in retirement, compared to only70% for those without a documented plan.
The survey findings reinforce a need for people to think beyond saving for retirement and the importance of having a clear understanding of how their investment sources will work together to create income throughout their retirement years. This concept of a personalized income plan or "retirement paycheck" appealed strongly to survey respondents, with
"Today's retirees need to navigate risks and establish a well-thought-out retirement paycheck that will likely come from a number of sources," said Angie O'Leary, head of Wealth Planning for RBC Wealth Management –
To help meet this need, RBC Wealth Management created a guide for creating a paycheck in retirement and a new Retirement Paycheck tool for financial advisors to provide clients with a simple snapshot of their retirement income. Available to all clients with an RBC WealthPlan, this tool includes an easy-to-understand dashboard projecting a client's total income up to 30 years in the future based on their retirement spending goals. For those in or within five years of retirement, the dashboard also provides a visual snapshot of what their Retirement Paycheck will look like over the next five years and where that money will come from.
"When you need to tap into your investment and retirement accounts, the timing and order of how you draw down those accounts is critical and can make a big difference in the taxes you end up paying, and when you pay them," O'Leary added. "Most people need that visual. It simplifies the question of 'How am I going to live in retirement?'"
Additional insights and a glimpse of how to build a retirement paycheck is available in the RBC Wealth Management Retirement Paycheck report available here.
A 10-minute online survey was conducted in September 2023. Respondents included 2,000 general public households in or approaching retirement across gender, race and geography in
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SOURCE RBC Wealth Management -
FAQ
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