Reversing last year’s results, more Canadians cite saving for retirement as a top financial priority compared to paying off debt, according to the RBC RRSP Poll.
Read: Retirement still not a high priority — are advisors to blame?
Over half (52%) are now focusing on increasing retirement savings, with 48% placing a priority on debt reduction, compared to 44% and 54%, respectively, in last year’s poll. The reversal is even more marked among middle-aged Canadians — those 35 to 54 years old — with almost two-thirds (62%, versus 52% last year) focusing on saving for retirement ahead of reducing debt (52% versus 56%).
Read:
Talk retirement with young clients
The poll also found that RRSP ownership among those aged 35 to 54 has jumped to 68% from last year’s 58%. In addition, one-quarter (26%) of middle-aged Canadians have determined they will need to save, on average, $545,000 for a comfortable retirement.
RBC RRSP Poll — Key Results:
| Financial Priority | Canadians 18+ |
Canadians 35-54 |
||
| 2013 | 2012 | 2013 | 2012 | |
| Retirement savings | 52% | 44% | 62% | 52% |
| Reduce or eliminate debt | 48% | 54% | 52% | 56% |
| Rainy day savings | 43% | 44% | 39% | 40% |
| Home ownership | 32% | 34% | 29% | 33% |
| Keep head above water | 30% | 32% | 30% | 32% |
| Saving for large purchase | 25% | 28% | 19% | 22% |
| Building investment portfolio | 23% | 17% | 22% | 16% |
| Home renovation | 20% | 20% | 20% | 20% |
| Child/grandchild education | 16% | 20% | 18% | 24% |
| Supporting aging parents | 7% | 7% | 7% | 6% |
| RRSP Ownership | 2013 | 2012 | 2011 | 2010 | 2009 |
| Canadians 18+ | 59% | 55% | 60% | 61% | 54% |
| Canadians 35 to 54 | 68% | 58% | 67% | 70% | 57% |
| Comfortable retirement savings amount estimated |
C$ hundred thousands | ||||
| 2013 | 2012 | 2011 | 2010 | 2009 | |
| Non-retired Canadians | $610 | $564 | $778 | $655 | $656 |
| Retired Canadians | $235 | $347 | $339 | $274 | $267 |
| Canadians 18+ | $476 | $465 | $601 | $501 | $497 |
| Canadians 35 to 54 | $545 | $547 | $786 | $633 | $581 |