- TD Waterhouse Boomer Happiness Index shows 81% of Atlantic boomers
worry about keeping healthy and active during retirement -
TORONTO, Jan. 5 /CNW/ - Two-thirds of Atlantic Canadian baby boomers
(65%) worry their retirement nest eggs will run out too soon. To
prevent this, 30% say they are working hard to build up their savings,
but report they are more than ten years away from retiring. This is
according to the TD Waterhouse Boomer Happiness Index, which polled
boomers (ages 45-64) and pre-boomers (ages 65-74) to determine their
emotional and financial state as they prepare for, or enter,
retirement. Despite minimal retirement savings, and worries about
their lifestyle in retirement, boomers and pre-boomers in Atlantic
Canada are more likely than any other region to say that in general,
they are happy (96% versus 90% nationally).
Money doesn't buy happiness, but it appears that having a financial plan
Only 35% of Atlantic Canada boomers and pre-boomers have a financial
plan in place for retirement - the lowest in the country. And while
the Boomer Happiness Index found that boomers and pre-boomers in the
Atlantic provinces are happy, a financial plan could help them feel
happier. The Index found a correlation between having a financial plan
and happiness levels: when thinking about their current or future
retirement, boomers who have a financial plan are more likely to feel
happy (55% versus 31%) or relieved (37% versus 22%) than those without.
"Atlantic Canada boomers may be working hard to build up their savings,
but only a small percentage actually has a financial plan in place.
It's essential to establish a written, comprehensive plan for achieving
a financially-secure retirement," says Patricia Lovett-Reid, Senior
Vice President, TD Waterhouse. "Planning, saving and investing for
retirement is even more critical now than ever before - we can't afford
to ignore it."
Are boomers and pre-boomers counting on a winning lottery ticket?
The top three ways boomers and pre-boomers in Atlantic Canada plan to
fund their retirement are: Old Age Security and Canada Pension Plan
(75%), RRSPs (54%) and company pensions (46%).
When it comes to their savings, half (50%) of boomers and pre-boomers in
Atlantic provinces feel like they are behind where they should be in
terms of retirement savings compared to their peers. One quarter
(26%) of Atlantic Canada boomers and pre-boomers will fund their
retirement by continuing to work and alarmingly, another quarter (26%)
even declared they hoped to win the lottery to help supplement their
savings. While this statement may be tongue-in-cheek, according to poll
results, this group is less likely to have a financial plan, be more
anxious about retirement and feel behind in their savings.
What's keeping boomers up at night?
When thinking about retirement, the top fears voiced by boomers in
Atlantic Canada were: keeping healthy and active (81%), having enough
money to last through retirement (65%) and maintaining their current
standard of living (61%). 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 retirement income plan will
help you compare your current and future sources of income against your
expenses," says John Tracy, Vice-President, Managed Investments &
Wealth Planning, TD Waterhouse. "An 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."
Passing on wisdom: helpful tips from those with experience.
The top three pieces of advice that boomers and pre-boomers recommend
for the next generation are: start saving earlier (91%), pay off your
mortgage faster (73%) and save more money or invest in an RSP (66%).
Two-thirds (66%) recommend finding employment with the government or a
company that offers a pension.
"I agree that the most important tip is to start saving earlier: don't
procrastinate," says Lovett-Reid. "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. 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 80 Canadians in Atlantic Canada.
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