Canadian Baby Boomer Business Owners More Active in Retirement Planning

Retiring Baby Boomer business owners to the north are far more active in preparing for retirement compared with the average Canadian.  

According to the 22nd Annual Royal Bank of Canada Registered Retirement Savings Plan (RBC RRSP) Poll, 54% of retirement-age Baby Boomer business owners regularly review, update and keep their financial plans in mind when they are about to make key financial decisions, compared with 38% of Canadians in general. Consequently, almost two-thirds (65%) of retiring Baby Boomer business owners are confident their savings are where they should be, compared with 51% of the rest of Canadians who think they are at or ahead of their retirement savings goal.

The survey found Baby Boomer business owners are approaching retirement with a different financial priority in mind compared with the average Canadian.Their focus is on saving for retirement rather than making payments to reduce debt, which is the main priority of the average Canadian.

However, retiring Baby Boomer business owners and the rest of Canadians have one thing in common: both groups have increased the estimated amount they believe they will need to retire and live a comfortable lifestyle. Baby Boomers who own a business have upped their estimate by 16%, to $1.1 million, from $968,000 in 2010; the estimate for Canadians in general has jumped by 19%, to $778,000 since 2010.

More than half (56%) of retiring Baby Boomer business owners say that working part-time during retirement would be appealing to ensure they do not outlive their savings; only 43% of Canadians in general feel this way.

Canadians who own a business believe they have a better chance of choosing when to retire (74%), compared with 50% of Canadians in general who believe it will be their choice.

Only 50% of all Canadians have a financial plan. Of those with a plan, 47% have it written on paper, 27% are keeping track of it in their head and 21% are using a spreadsheet or electronic database.

Fewer than half of all Canadians (45%) turn to a financial adviser for help with investment decisions.

The poll was conducted by Ipsos Reid between October 24 and November 15, 2011, via interviews of 4,135 Canadian adults, including a random sample of 1,224 adults in the general population (aged 18 and over) and 2,911 Baby Boomers aged 50 to 69 with household financial assets of $100,000 or more.