News Releases

Debunking Retirement Myths: New Definitions, New Solutions

WHAT: According to the most comprehensive survey of retirement trends in Canada by BMO Financial Group and Ipsos Reid, 87 per cent of Canadian financial decision makers age 45 and over believe the term “retirement” should be retired. If traditional notions of retirement are out of date, then so too are other prevailing myths, such as the often repeated mantra that “Canadians need to save $1 million to live a reasonable retirement” or that starting to save for retirement after 50 is a recipe for disaster.

As BMO and Ipsos Reid have uncovered in their survey of 5,325 Canadianfinancial decision makers 45 and over with at least $25,000 in financial assets, these and other retirement planning myths are outdated and ultimately unhelpful to the 58 per cent of pre-retired Canadians who intend on working during their so-called “retirement” years.

WHY: According to Statistics Canada, $342.7 billion in potential RRSP contributions have gone unused since 1991. Although this would seem alarming under conventional definitions of retirement, the new reality suggests that there are as many ways to plan and save for life after 65 as there are people under 65. So instead of getting carried away by doom and gloom scenarios, we need to look at a new way of approaching what 63 per cent of Canadians 45 and over call “the next stage of my life”.

WHO: BMO Financial Group has national and local experts who can provide insight into the minds of Canadian investors, as well as offer free financial advice for managing a diverse range of needs.

Topics for discussion:

� Planning for the new retirement – where to start

� Key hurdles Canadians face when managing finances

� The do's and don'ts of financial wellness

� Why a regular check-up with a financial expert is smart – and free!

� Avoid the RRSP rush – a New Year's resolution

* For interested broadcast media, BMO can arrange specialized ‘Call-in' crews, where audience questions about RRSP planning will be answered by local financial experts in a live format.