Canadian women are relatively well-prepared financially: RBC Insurance Poll

There was a poll done in February by the Royal Bank of Canada of women with a household income of more than $60,000 a year, which is under the Canadain average household income of $73,336. Here are some hightlights from this poll.

Canadian women over 45 are relatively well-prepared for the future. The majority have a very clear idea of what they would do with a sudden lump sum of money, and only a quarter (24 percent) worry about being able to manage the money properly. A large majority (94 percent) express a prudent approach, agreeing that they would develop a strategy for making the money last. Other top responses include looking for ways to help protect the money from risks such as market volatility (92 percent) and considering investing in products that provide guaranteed income (91 percent).

However, nearly one-quarter (24%) say they wouldn’t be able to maintain their financial situations if their spouses or partners were to pass away, a figure that’s significantly higher among women 45-54 than women over the age of 65 (30% versus 14%), potentially reflecting greater financial responsibilities at midlife.

Additionally, one-third of women aren’t confident that they’ll be able to afford their preferred lifestyle during retirement.

Women appear to understand their finances and are confident but despite their strong financial awareness confidence about future security diminishes. In particular, women between 45-54 are most likely (38 percent) to express this uncertainty around the future, compared to 22 percent for women 65+. Interestingly, single women were only slightly more likely than married women (36 vs. 34 percent) to cite a lack of confidence in their ability to afford their lifestyle in retirement. Looking critically at their financial needs and having a plan for all scenarios will go a long way to maintaining that confidence right through retirement.

The majority (84 per cent) of Canadian women would like to leave an inheritance for their loved ones. Half (49 per cent) have received an inheritance themselves in the past, while a slightly smaller proportion (46 per cent) expect to receive one in the future. However, women are not depending on an inheritance to fund their retirement, with only 17 per cent agreeing that they are relying on one to help them get through their retirement years.

While Canadian women have their finances relatively well in hand, there is always room for improvement. When it comes to increasing confidence in, and preparing for their financial future, Canadian women should consider speaking to an advisor to discuss options and ensure you’re on track to meet theirlong-term financial goals. They should consider estate planning as a key component for their inancial legacy. Having the conversations early with family will help plan for a transfer of wealth.