Canadians have big numbers in mind for future ‘nest egg’ – but many don’t have a plan to get them there
Non-retired Canadians have big numbers in mind for the money they’ll need to save to ensure a comfortable financial future – averaging as high as $1.07 million in B.C. – but almost half (48%) don’t yet have a financial plan to help them reach that goal, according to the 2019 RBC Financial Independence in Retirement Poll.
They also have a strong motivator to save: they want to be debt-free (66%).
“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.”
While the RBC poll found that the percentage of all Canadian adults who have a financial plan has been growing – it reached over half (54%) in 2018 – one-third (32%) of those report their plan is ‘in my head’ and almost half (46%) still have no plan at all.
“This is where new digital resources can be of great assistance, where you can easily see – in real time, from the comfort of your home – how having a plan can have an immediate impact on your savings goal,” added Hingorani. “You don’t need a big plan in order to have a big savings and investing goal – but you do need to be able to track your progress. By activating your personal plan, supported by advice you can easily access online whenever you wish, you can make a real difference to your financial future.”
An easy way to activate a plan is now available through MyAdvisor, an ‘in real time’ personalized planning solution unique to RBC. This new service digitally connects a client – from wherever the client prefers to be – with one of RBC’s more than 8,000 advisors and Financial Planners across Canada. Through this connection, the client and the advisor or Financial Planner can jointly view and adjust an online dashboard that displays an interactive picture of the client’s finances. The dynamic visual elements make it very easy for clients to see how even very small actions – such as increasing monthly contributions to savings and investments or reducing debt – can have a big impact on their financial goals, including their projected retirement date.
About RBC’s MyAdvisor and financial planning advice
MyAdvisor is a new online service unique to RBC that digitally connects clients to advisors – including Financial Planners – providing an “in real time” opportunity for the client and the advisor to view and adjust an interactive dashboard displaying the client’s savings and investment goals and to establish actions to achieve those goals. The RBC advisors behind MyAdvisor are ready to meet with clients via live video, phone or in person – whichever clients prefer when they book their appointments, all at no extra cost. Clients also receive personalized updates and alerts to track their progress against goals and see the impact of market volatility and other changes on their portfolio. MyAdvisor shows clients how the decisions and actions they take today can help them save, plan and invest to meet their goals in a way that works for them. MyAdvisor is a product of RBC’s Toronto-based innovation lab; other labs are located in the U.S., the U.K. and Europe. These innovation labs co-create new products and services based on direct input from RBC clients and employees.
RBC Financial Planning and rbc.com/savingsspot offer planning, budgeting and savings advice and resources and the RBC Retirement Planning website can help you plan for 30 years or more in retirement. In addition, for Canadians who want to get more from their day-to-day banking, protect what’s important, save and invest, borrow with confidence or take care of their businesses, RBC Discover & Learn offers free online advice, resources and tools, including the RSP-Matic Savings Calculator.