Creating a 'retirement paycheck' more important than ever, RBC study reveals

Creating a 'retirement paycheck' more important than ever, RBC study reveals
Unable to rely on pensions and Social Security, retirees need extra income source.
FEB 07, 2024

Americans are facing a challenging retirement without bolstering the income they receive once they stop work.

A new survey from RBC Wealth Management shows that pensions and Social Security may not be enough to provide a comfortable lifestyle in later years, requiring an additional "retirement paycheck" to top up income.

The poll of those nearing retirement or already retired in 2023 found that 43% of respondents are concerned that they will outlive their assets, an increase of six percentage points from a similar study in 2018, and 32% are worried about investment loss, up from just 9% in 2018.

There is also a significant knowledge gap among respondents, with little more than half (53%) saying they understand how their investments and assets will work together to produce retirement income, while 49% said they understand how withdrawals will impact them, and 44% understand minimum distributions.

Also concerning is that almost half of those who took part in the research said they do not have a documented retirement plan. More of those that do (91%) are confident in maintaining their standard of living in retirement than those without (70%).

The report highlighted the potential for advisors in engaging clients in thinking beyond simply retirement savings by gaining an understanding of how assets and investment work using the ‘retirement paycheck’ analogy.

"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 – U.S. "Everyone 60 and older should have a personalized income plan, so they have the financial confidence to pursue the lifestyle they want in retirement."

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.