- TD Waterhouse Boomer Happiness Index also shows only 7% of Alberta
boomers feel 'very well-prepared' for retirement -
CALGARY, Jan. 5 /CNW/ - While the majority (82%) of Alberta boomers say
they are happy, their feelings change when thinking about retirement.
Seventy-eight percent say they worry that they won't have enough money
to last through retirement, and only 7% say they feel very
well-prepared. This is according to the TD Waterhouse Boomer Happiness
Index, which polled boomers (ages 45-64) to determine their emotional
and financial state heading into retirement.
Money doesn't buy happiness, but it appears that having a financial plan
The report found that Alberta boomers' concerns about money are
warranted: only 42% have a financial plan in place for retirement. The
Index also found a correlation between having a financial plan and
happiness levels: when thinking about the fact that they are retired or
approaching retirement, Canadian boomers who have a financial plan are
more likely to feel happy (55% versus 31%) or relieved (37% versus 22%)
than those without.
"I'm not surprised that Alberta boomers don't feel financially prepared
for retirement: less than half have a financial plan in place. Most
Canadians recognize the importance of planning ahead to ensure that
they are financially ready when they stop working, but they need to
start saving early," says Crystal Wong, TD Waterhouse Financial
Planning Senior Regional Manager in Calgary. "It's essential to create
a comprehensive, written financial plan - and stick to it."
Not surprisingly, the TD Waterhouse Boomer Happiness Index showed that
boomers across Canada who have a financial plan are significantly more
likely to feel prepared for retirement than those without (82% versus
Albertans most likely to work during retirement
So much for relaxing and enjoying their golden years: Albertans are
among the most likely in the country to work during their retirement to
supplement their savings (46% versus 39% nationally). The top three
ways Albertan survey respondents plan to fund retirement are: Old Age
Security and Canada Pension Plan (72%), RRSPs (70%) and company
Alarmingly, nearly one-third (31%) of Albertans say that they are
relying on winning the lottery. While this statement may be
tongue-in-cheek, across Canada this group is less likely to have a
financial plan, and more likely to be anxious about retirement and feel
behind in their savings.
Albertans worry about maintaining current standard of living in
Alberta boomers are among the most likely in the country to say that
their top fear about retirement is maintaining their current standard
of living (77% vs. 67% nationally). The top concerns are having enough
money to last through retirement (78%), maintaining their current
standard of living after retirement (77%) and keeping healthy and
active (76%). While these concerns aren't all financial in nature,
retirement anxieties may be alleviated by planning ahead and seeking
the advice of professionals who can help develop a plan that takes into
consideration your personal circumstances and goals, as well as help
you offset risks.
And it's not just about achieving a target amount of savings before
retirement. "As your retirement draws closer, speaking with a financial
advisor about creating a clearly-defined financial plan will help you
compare your current and future sources of income against your
expenses," says Wong. "An accredited financial advisor can help you
build sound financial strategies to reduce taxes as well as work to
minimize the effects of market and financial risks throughout your
retirement years, so your money is there when you need it. A
comprehensive financial plan will also include strategies for
transition of wealth and estate planning: key elements in a retirement
Passing on wisdom: helpful tips from those with experience.
The top pieces of advice Alberta boomers and pre-boomers (ages 65-74)
have for the next generation are: start saving earlier (90%), pay off
your mortgage faster (62%) and save more or invest more in an RSP
(60%). Alberta survey respondents are the most likely in the country
to advise people to develop a financial plan and not focus solely on
savings (69% vs. 57% nationally).
"I agree with the top piece of advice being start saving earlier. I tell
boomers not to procrastinate. Given that those with a retirement plan
in place are happier than those without, it makes sense both
financially and emotionally to seek the help of a qualified advisor who
can coach you through the process," says Wong. "Even do-it-yourself
investors can gain valuable insights from a second opinion."
About The TD Waterhouse Boomer Happiness Index
The TD Waterhouse Boomer Happiness Index polled boomers (age 45-64) and
pre-boomers (age 65-74) through a custom, online survey. The survey was
conducted by Environics Research from December 2 -7, 2010, and polled
1,000 Canadians including 110 Albertans.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as
TD Bank Group (TD or the Bank). TD is the sixth largest bank in North
America by branches and serves approximately 19 million customers in
four key businesses operating in a number of locations in key financial
centres around the globe: Canadian Personal and Commercial Banking,
including TD Canada Trust and TD Insurance; Wealth Management,
including TD Waterhouse and an investment in TD Ameritrade; U.S.
Personal and Commercial Banking, including TD Bank, America's Most
Convenient Bank; and Wholesale Banking, including TD Securities. TD
also ranks among the world's leading online financial services firms,
with more than 6 million online customers. TD had C$620 billion in
assets on October 31, 2010. The Toronto-Dominion Bank trades under the
symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group
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TD Bank Group