88% of retirees rate their financial health to be "good", "very good" or "excellent"



    
    New Russell and Harris/Decima survey reveals that retirement isn't as
    scary as it is made out to be.

    Survey Highlights:

    -   Majority of retirees reveal that their financial health is strong

    -   Retirees report needing only 60% of their pre-retirement income

    -   68% of pre-retirees expect to work part-time during retirement, yet
        only 27% of current retirees actually do.
    

    TORONTO, Sept. 23 /CNW/ - With the markets as volatile as they've been of
late, now is a good time as ever to think about plans for a secure retirement.
    "It doesn't have to be a daunting process. Just taking the time to check
a few key points should help you put your retirement plan on a steady course,"
says Irshaad Ahmad, President and Managing Director of Russell Investments
Canada Limited.
    "Retirement isn't as scary or complicated as some make it out to be. In
fact, our research shows that Canadians have a lot to be optimistic about when
planning their financial futures."
    In an effort to distinguish retirement reality from perception, Russell
Investments Canada teamed with Harris/Decima to survey over 2,200 Canadians
across the country.
    "Our goal was to speak with Canadians about their actual
experiences--both before and during retirement. Our findings challenge the
conventional wisdom and help to paint a clearer picture of the retirement
reality. In short, retirement is not as scary as many people suggest. While it
is true that some pre-retirees are anxious about their future well-being, the
majority of Canadians at virtually every stage of retirement say they are
happy, confident, and financially secure," says Ahmad.
    Reality No. 1: Only 65% of pre-retirees expect their financial health in
retirement to be "good", "very good" or "excellent". But 88% of actual
retirees rate their financial health to be "good", "very good" or "excellent".
    "In fact, further research revealed that 10 years before retirement, 40%
of Canadians felt anxious about their retirement finances. But by their
retirement date, this number falls to 27%, and within the first three to five
years of retirement, it falls to only 10%," explains Harris/Decima SVP, Bob
Murphy.
    "This shows that despite the perception of doom and gloom by pre-retirees
when it comes to their financial futures, the reality is that everything is
going to be alright - with the right investments, advice, and planning.
    Please click on these charts to see how the perception of financial
health is at its lowest levels 10 years before retirement, and at its highest
levels 15 years or more after retirement. (Source: Russell Investments Canada
Limited, Harris/Decima)

    http://www.russell.com/ca/images/chart_page_02.jpg

    http://www.russell.com/ca/images/chart_page_01.jpg

    Reality No. 2: A survey of actual retirees report needing only 60% of
their pre-retirement income - where as it has been suggested that retirees
will require 80% of their pre-retirement income to maintain a comfortable
lifestyle.
    "Certain living expenses tend to drop significantly during retirement as
most retirees are mortgage-free and no longer incur employment costs such as
daily transportation," says Ahmad.
    "However, for a comfortable retirement, retirees should still plan for
lifestyle expenses related to travel, hobbies, and entertainment by seeking
investment solutions that still have growth potential. Just because you are
retired, doesn't mean your portfolio has to."
    Reality No. 3: Retirees draw income from many sources, but part-time work
is rarely one of them. 68% of pre-retirees expect to work part-time during
retirement, yet only 27% of current retirees actually do. Among the minority
who do continue to work during retirement, only 23% do so out of financial
necessity.
    "We believe this research can help Canadians better prepare for
retirement in two ways. First, by replacing the potentially paralyzing fear of
retirement as a financial threat with a realistic, fact-based sense of
optimism," says Ahmad.
    "And second, by showing that taking advantage of professional financial
advice and a sensible investment strategy helps Canadians achieve a retirement
that is both personally fulfilling and financially healthy. Going forward,
investors can expect continued retirement research and leadership from Russell
in the future."
    For more survey results and information regarding these research
findings, please contact Thien Huynh at (416) 640-2529.

    Research details

    Harris/Decima conducted 2,200 online surveys across Canada between
January 25th, 2008 and February 9th, 2008. Survey data was weighted by region
and retirement status in order to gain a representative cross-section of
Canadians.
    The survey respondents had a personal/household income of $50,000 or more
and were 42 years of age or older. Of the group, 1,078 were presently
employed, and 1,122 were retired from work. The retired group excludes those
who were unemployed, students, or homemakers.

    About Russell

    Russell Investments provides strategic advice, world-class
implementation, state-of-the-art performance benchmarks and a range of
institutional-quality investment products. With nearly US$213 billion in
assets under management (as of 3/31/08), Russell serves individual,
institutional and advisor clients in more than 40 countries. Russell provides
access to some of the world's best money managers. It helps investors put this
access to work in corporate defined benefit and defined contribution plans,
and in the life savings of individual investors.
    Founded in 1936, Russell Investments is a subsidiary of Northwestern
Mutual Life Insurance Company and headquartered in Tacoma, Wash. Russell has
principal offices in Amsterdam, Auckland, Johannesburg, London, Melbourne, New
York, Paris, San Francisco, Singapore, Sydney, Tokyo and Toronto.

    Russell Investments Canada Limited is a wholly-owned subsidiary of Frank
Russell Company. For more information, please go to www.russell.com/ca.
    Commissions, trailing commissions, management fees and expenses all may
be associated with mutual fund investments. Please read the prospectus before
investing. Mutual funds are not guaranteed, their values change frequently and
past performance may not be repeated.
    Nothing in this publication is intended to constitute legal, tax
securities or investment advice, nor an opinion regarding the appropriateness
of any investment, nor a solicitation of any type. This is a publication of
Russell Investments Canada Limited and has been prepared solely for
information purposes. It is made available on an "as is" basis. Russell
Investments Canada Limited does not make any warranty or representation
regarding the information. Date of First Publication: September 23, 2008.
    Russell Investments logo is a trademark of Frank Russell Company.





For further information:

For further information: Thien Huynh, (416) 640-2529; Katita Stark,
(416) 929-9100


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