- TD Waterhouse Boomer Happiness Index shows only 32% of B.C. boomers
have a financial plan for retirement -
VANCOUVER, Jan. 5 /CNW/ - While the majority of B.C. boomers (88%) state
that they are very happy (28%) or somewhat happy (60%), compared to the
rest of Canada, they feel the least prepared for retirement. Over half
(57%) of boomers in B.C. stated they feel unprepared, compared to 42%
nationally. In fact, according to the TD Waterhouse Boomer Happiness
Index, which polled boomers (ages 45-64) to determine their emotional
and financial state heading into retirement, 79% in B.C. worry that
they won't have enough money to last through retirement.
Money doesn't buy happiness, but it appears having a financial plan does.
Boomers' concerns about money are warranted - only 32% 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
"It's concerning that less than a third of B.C. boomers have established
a comprehensive plan for achieving a financially-secure retirement,"
says Jillian Bryan, an Investment Advisor with TD Waterhouse in
Vancouver. "Formulating a plan for how you are going to manage your
money to last your lifetime takes careful, thoughtful execution.
Getting an early start on planning, saving and investing for retirement
is even more critical now than ever before - we can't afford to ignore
Are B.C. boomers counting on a winning lottery ticket?
The top three ways B.C. boomers plan to fund their retirement are
through: Old Age Security and Canada Pension Plan (70%), RRSPs (61%)
and company pensions (41%).
However, B.C. survey respondents feel like they are playing catch-up:
the majority (64%) feel behind in their retirement savings compared to
their peers. Forty-six per cent say they will keep working to fund
their retirement, and alarmingly, more than a third (36%) are hoping to
win the lottery, making them among the most likely in the country to be
relying on this method to fund their retirement (vs. 32% nationally).
And while winning the lottery may be a tongue-in-cheek response,
according to the survey results, this group is less likely to have a
financial plan and more likely to feel anxious about retirement.
What's keeping boomers up at night?
When thinking about retirement, the top fears voiced by boomers were:
not having enough money to last through retirement (79%), maintaining
their current standard of living (75%) and keeping healthy and active
(71%). 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
Most Canadians recognize the importance of planning ahead to ensure that
they are financially ready when they stop working. 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 Bryan. "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 B.C. boomers and pre-boomers (ages
65-74) recommend for the next generation are: start saving earlier
(87%), save more money or invest more in an RSP (68%) and pay off your
mortgage faster (63%).
"I agree that the most important tip is to start saving earlier: don't
procrastinate," says Bryan. "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 120 people in British Columbia.
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 Financial Group