News Releases

• 7 in 10 boomers would give something up and 83 per cent would also work longer
• Quebecers most likely to retire even if they haven't saved enough, but are willing to give up a second property or travel
• Boomers in Alberta and B.C. are most likely to consider moving when they retire because of the cost of living
• B.C., Alberta and Ontario boomers are most likely to refinance or downsize their homes
• Boomers in B.C. are most open to giving up their cars

According to a survey conducted for BMO Financial Group by Ipsos Reid, 70 per cent of boomers don't feel they are on track with saving for their retirement or don't know if they're on track, but they are willing to do what it takes to get there.

The survey of 1,066 Canadians aged 45 – 60 revealed that 7 in 10 respondents would give something up if they couldn't save enough, and the majority of this group (83 per cent) would also plan to work longer if they had to. Thirty-nine per cent of boomers would consider moving when they retire because of the cost of living in the area where they currently reside.

“Although it's concerning that such a large number of boomers aren't adequately prepared to fund their retirement, it's encouraging that most recognize that they'll likely have to make some adjustments to ensure they have enough money,” said Kris Vikmanis, Head of Retirement Market, BMO Financial Group.

“Boomers no longer hold idealistic notions that ‘the government will take care of me' or that ‘things will work themselves out' in retirement. Rather, they acknowledge that they may have to work longer or give up something if they don't have the money they need to fund the next phase of their lives.”

Eighty-one per cent of boomers agreed that they wished they had started earlier, even in their teens, to save for retirement and 91 per cent agreed that having enough money for retirement requires a lot of planning and advice to reach your goals.

“This inclination to postpone retirement planning is consistent with previous research we've undertaken. Most boomers see retirement as a transition from full-time work to full-time retirement, rather than a point-in-time event, so they may not feel the pressure to plan for something that seems to be far off in the future,” said Vikmanis.

“Although boomers may feel they're not on track or that they should have started earlier to plan for their retirement, it is important for them to sit down with a financial planner now to assess their current situation and develop a realistic plan based on this. It's never too late to start saving, particularly when the average Canadian should plan to fund at least 20 years of retirement,” added Vikmanis.

Additional research highlights:

Boomers not sure they'll be ready for retirement

• 46% of boomers do not feel they are on track with saving enough to fund their retirement
• 24% of boomers don't know if they are on track

More boomers in Atlantic Canada (56%) don't feel on track, while more boomers in Saskatchewan and Manitoba (34%) and in Quebec (33%) feel on track.

Why boomers aren't on track with their retirement savings
Top five reasons:

• No money left over to save (58%)
• Started saving too late (44%)
• Still supporting kids (28%)
• Health issues (22%)
• Job issues (20%)

What are boomers willing to sacrifice?
If they're not able to save enough to fund their retirement, 69% would be willing to give something up; of this group, 58% said they would give up a second property, 51% would give up travel, 46% said they would refinance or downsize their house and 25% said they would give up a car.

• 31% said they would give nothing up and work longer
• Quebecers (21%) are most likely to plan to retire anyway (even if they don't have enough money to retire) and simply give something up in retirement.

Boomers ready to move if needed
Those who currently live in Alberta (69%), B.C. (52%) and Ontario (42%) are most likely to consider moving to another area, compared to Saskatchewan/Manitoba (19%), Atlantic (24%) and Quebec (26%).

BMO Financial Group and the New Retirement
Recognizing that retirement is changing for most Canadians, BMO Financial Group is committed to helping clients understand the new issues and challenges they face heading into retirement, while providing flexible and personalized options for mitigating them. BMO's Retirement Your Way web site, found at: www.bmo.com/retirementyourway, provides an overview of the new realities to consider in the retirement planning process, supplemented with case studies and external resources that are updated on an ongoing basis. BMO has also launched a number of income-oriented products and financial management services to help clients prepare for this regenerating phase of their lives.

- 30 -