Alberta Boomers To Be More Entrepreneurial and Charitable in Their Retirement Years Than Other Canadian Boomers, says BMO Study
According to a survey of Canadians aged 45 – 60 conducted for BMO Financial Group by Ipsos Reid, Alberta boomers are less likely than their Canadian counterparts to want to retire the conventional way and are more likely to want to start a business, consult part-time or volunteer.
When asked what would most appeal to them at age 62, 50 per cent of boomers surveyed in Alberta said volunteering, 35 per cent chose consulting part-time and 23 per cent said starting a business – all above the national average. Sixty-eight per cent said they think they will retire the conventional way, in contrast to 76 per cent of Canadian boomers.
However, like their Canadian counterparts, many Albertans are not well prepared to fund their version of retirement. Thirty-four per cent of Alberta boomers said they don't have RSPs, in contrast to 30 per cent of national boomers. Of those who do have RSPs, 40 per cent consider these as their financial plan. When asked where their financial plan resides, 17 per cent said “in my head” and 34 per cent said they don't have a plan at all, on par with other Canadian boomers.
“Alberta boomers certainly intend to be more active in their traditional retirement years, however, this doesn't negate the need for them to plan for their vision of retirement and generating the income they'll need,” said Joleen Sloper, Regional Sales Manager, BMO Mutual Funds. “Unfortunately, our research confirms that, like boomers in the rest of Canada, Alberta boomers are still far behind when it comes to planning for their future.”
Many Alberta boomers said they are spending more time planning other activities than planning for their retirement. Forty-six per cent said they spend more time planning exercise, 44 per cent on diet, 27 per cent on car maintenance, 37 per cent on home renovations and 40 per cent spend more time planning travel than their retirement.
Yet, in previous BMO-Ipsos Reid research, 81 per cent of Canadian 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.
“Boomers acknowledge that planning is important, yet they are reluctant to plan for something that they see as too far down the road when compared to the many other priorities they have to deal with,” said Sloper.
“Retirement represents uncharted territory for boomers - so it's all the more important for them to start considering a variety of contingencies and lifestyle choices today. Whether they plan to continue working through their traditional retirement years, volunteer or hit the road and travel around the world, we need to help them conceptualize what they want their retirement to look like so that they can plan ahead to fund the lifestyle they want to enjoy in the future,” added Sloper.
Additional research findings –
Do you spend more time planning for these activities than planning for retirement?
Activity
|
Average
|
BC
|
AB
|
SK/MB
|
ON
|
QC
|
ATL
|
Exercise
|
49%
|
53%
|
46%
|
54%
|
48%
|
50%
|
50%
|
Diet
|
47
|
48
|
44
|
60
|
50
|
39
|
52
|
Car
|
33
|
39
|
27
|
42
|
33
|
29
|
33
|
Renos
|
46
|
44
|
37
|
55
|
48
|
42
|
57
|
Travel
|
43
|
48
|
40
|
42
|
43
|
43
|
39
|
What do you think would most appeal to you at age 62?
Activity
|
Average
|
BC
|
AB
|
SK/MB
|
ON
|
QC
|
ATL
|
Conventional retirement
|
76%
|
73%
|
68%
|
71%
|
74%
|
83%
|
83%
|
Volunteer
|
49
|
50
|
50
|
61
|
45
|
47
|
67
|
Consult
|
31
|
31
|
35
|
31
|
31
|
32
|
19
|
Start business
|
19
|
18
|
23
|
20
|
22
|
10
|
20
|
Cycle south of France
|
18
|
17
|
16
|
11
|
19
|
22
|
9
|
Climb Mount Kilimanjaro
|
9
|
11
|
8
|
7
|
10
|
8
|
3
|
Full results available upon request.
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