News Releases

B.C. Boomers Want a Long Retirement, but Aren't Taking Steps to Ensure They Can Afford it

Interview Opportunity

WHAT:

When it comes to retirement planning, boomers in B.C. face a challenging predicament: they want to enjoy a long retirement, but they aren't taking the necessary steps to ensure they can afford it.

According to previous BMO Financial Group/Ipsos Reid retirement studies, almost one in four (23%) B.C. boomers intend to spend more than 20 years in retirement with another 19 per cent expecting their retirement to last between 15 and 20 years*. However, more than half don't have a written financial plan, with 27 per cent indicating that their plans are “in their heads”, while 30 per cent admitted that they don't have a plan at all. In fact, close to one in three boomers in B.C. (28%) said they are “hoping for the best”.

Although the situation may seem dire for these boomers, more than two-thirds (72%) said they are willing to make sacrifices in order to retire. Of the B.C. boomers who identified that they were willing to make changes, more than half (56%) said they would refinance or downsize their homes to maintain a comfortable lifestyle, while a third (34%) would give up their cars.

WHO:

BMO Financial Group has local experts who can provide tips to help British Columbians build their retirement plans. They can discuss:

What it takes to build a retirement plan and tips for getting started
How to determine how much you'll need in retirement and what you'll need to do now to reach your goals
Retirement planning tips for Gen Y and Gen X – it's never too early to start saving for your future

*Based on online surveys conducted by Ipsos Reid for BMO Financial Group in 2006 among a randomly selected sample of more than 1,000 respondents aged 45-60. The first survey included 152 respondents in British Columbia, while the second included 213. With samples of this size, the margins of error would be 8.0% and 6.7% respectively, 19 times out of 20.

- 30 -