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Seventy-three Per Cent of Ontario Boomers Have RSPs, but More Than Half Don't Have a Financial Plan Fifty-two per cent of Ontario boomers mistakenly think their RSP is a financial plan

According to a survey of Canadians aged 45 – 60 conducted for BMO Financial Group by Ipsos Reid, 73 per cent of Ontario boomers have an RSP compared to the national average of 69 per cent. Yet, 52 per cent consider their RSP to be their financial plan, which suggests some boomers may be confused or ill prepared for their transition into retirement.

“RSPs are great savings instruments, make no mistake about that. However, today's reality is that more and more boomers are facing dwindling defined pension plans and longer life spans. Without a more long-term and comprehensive financial plan that goes well beyond registered investments, boomers are at risk of not being prepared to fund their retirement,” said Judy Thomson, Director, Sales, BMO Mutual Funds. “Twenty-two per cent of Ontario boomers think they'll have 20 years or more in retirement, yet over half claim that they don't have a financial plan or that their plan is ‘in their head' – clearly, a new approach is required.”

The survey also uncovered that like their Canadian counterparts, many Ontario boomers prefer to spend their time planning other activities, rather than planning for their retirement. In fact, half of Ontario boomers spend more time planning their diet (vs. 47% of Canadian boomers) and forty-eight plan home renovations (vs. 46%) rather than plan their retirement. Forty-eight per cent are also spending more time planning their exercise (vs. 49%), and Ontario boomers are on par with their fellow boomers planning their car maintenance (33%) and travel (43%) rather than planning their retirement.

Yet, in previous BMO-Ipsos Reid research, 91 per cent of Canadian boomers agreed that having enough money for retirement requires a lot of planning and advice to reach your goals.

“While boomers acknowledge that planning is important, it appears that most are reluctant to plan for something that is perceived to be so far down the road, especially when they have many other priorities to deal with,” said Thomson.

“This is 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 their future desired lifestyle,” added Thomson.

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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