News Releases

When it Comes to Retirement Income Planning: Canadians Want to Have Their Cake and Eat it Too

The largest concern among survey respondents was having enough money to survive on a fixed income (39 per cent of retirees, 45 per cent of pre-retirees)
The biggest risk identified by respondents when planning for their retirement was unexpected costs (31 per cent for retirees, 27 per cent for pre-retirees), followed by outliving their retirement assets (18 per cent for retirees, 19 per cent for pre-retirees)
When asked about considerations important to them in retirement planning, 93 per cent of all survey respondents said that having enough money to maintain their current lifestyle was important

The study also reveals 32 per cent of pre-retirees and 42 per cent of retirees are not prepared to give up control of their capital in order to receive guaranteed income for life.

Ms. Di Vito recommends that every Canadian who is within ten years of retirement should determine how much guaranteed retirement income they will be receiving and what their retirement expenses might be.

“An individual's income needs and goals will determine which retirement income strategy - or combination of strategies - is best for him or her,” said Di Vito. “It is important to start thinking and planning early. Since the successful implementation of your strategy may involve taking action well before retirement, it is important to speak with a financial advisor to ensure you are on the right track.”

The BMO Retirement Institute report was based on a survey conducted by Leger Marketing using its online panel LegerWeb between November 24 and December 1, 2010. The survey polled 1,127 Canadians who are 55 years and older (604 of which are retired and 523 of which are planning to retire in the next five years).

About BMO Financial Group
Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $409 billion as at October 31, 2010, and more than 38,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

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For more information:

Martha McInnis, Toronto, martha.mcinnis@bmo.com, (416) 867-3996
Sarah Bensadoun, Montreal, sarah.bensadoun@bmo.com, (514) 877-8224