News Releases

TORONTO, ONTARIO--(Marketwire - Jan. 12, 2012) - BMO Financial Group today announced the results of a cross-border study examining how Canadians and Americans feel about planning and saving for retirement. The study found that Canadians, in general, have a higher level of confidence and optimism than their counterparts south of the border.

The survey, conducted by Leger Marketing, found the following:

• Almost 60 per cent of Canadians are confident in their ability to save for their ideal retirement lifestyle; fewer than 40 per cent of Americans feel the same way.
• Slightly more than two-thirds (71 per cent) of Canadians are concerned about the performance of their Registered Retirement Savings Plan (RRSP), while almost 90 per cent of U.S. residents express similar concerns about the performance of their 401K, a U.S. retirement savings plan similar to an RRSP.
• Half of Canadians and Americans say they have or may have to delay their retirement and/or work part-time during retirement due to a shortage of retirement savings

"Despite the effect that the 2008 global recession had on investors' abilities to save for retirement, the Canadian economy has fared significantly better than what's been seen in the U.S.; this has contributed to our more optimistic outlook," said Tina Di Vito, Head of the BMO Retirement Institute. "It's telling, however, that half of respondents in both countries feel that they may need to delay their retirement or hold down a job during retirement. This doesn't necessarily have to happen - there are strategies that can be implemented to better protect retirement portfolios during volatile times and help both Canadians and Americans achieve retirement success."

"These results reflect a sense of weariness among U.S. investors who, for the last few years, have been dealing with high degrees of market volatility and economic uncertainty," said Todd Perala, Director, Relationship Management, BMO Institutional Trust Services. "However, regardless of how the markets are performing, it's important that Americans plan for their future and make saving for retirement a priority."

The survey also found that almost two-thirds of Canadians have an RRSP in place, while only 34 per cent of Americans invest in a 401K.

"Although market volatility - like we've seen over the last year - can deter people from saving, investing in an RRSP can play a critical role in helping Canadians reach their retirement goals," added Ms. Di Vito. "A well-diversified RRSP that's appropriate for your life stage can help decrease risk. A financial professional can provide guidance on how to build the right RRSP in order to set you up for retirement success."

Ms. Di Vito offers the following advice on how to protect your RRSP in volatile markets:

Have a well-diversified portfolio - Maintaining the right investment mix is a good way to manage your portfolio during turbulent times. Spreading your money across a variety of investments increases the potential for higher returns while mitigating risk, thereby creating a stronger and more robust portfolio.

Dollar cost averaging - Investing the same amount consistently over a longer period of time can benefit your portfolio, even in times of market volatility. As you are purchasing more shares when prices are low and fewer when prices are high, your average return will be greater than if you invested all your money at once.

Don't panic - As hard as it may be, try not to overreact and make impulsive moves with your investments, especially equities.

Seek out an expert opinion - Seek out reliable sources and trusted experts in order to gain a better understanding of how financial markets can impact your investment portfolio. This should include speaking to a financial professional who can ensure your portfolio not only reflects your risk tolerance but is also meeting your financial goals.

To learn more about how to manage retirement savings, please visit:
http://www.bmo.com/home/personal/banking/investments/retirement-savings/retirement-planning.

Canadian Survey Data:

The online survey was conducted by Leger Marketing from November 21st, 2011 to November 24th, 2011, with a sample of 1520 Canadians, 18 years of age or older. A probability sample of the same size would yield a margin of error of ± 2.5% 19 times out of 20.

U.S. Survey Data:

The online survey was conducted by Leger Marketing from November 3^rd to November 8^th, 2011 with a sample of 1,032 Americans, 18 years of age or older. A probability sample of 1,032 respondents would yield a margin of error of +/- 3.1%, 19 times out of 20.

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 $477 billion as at October 31, 2011, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.