"Hope I die before I get old"? Not this generation of RSP investors

    -   Almost nine-in-ten investors aged 18-34 have an RSP, says TD
        Waterhouse poll
    -   Less likely to hold company pension plans than their older
    -   Investors aged 18 - 34 anticipate needing $933,000 to retire
    -   Six-in-ten Canadian investors made first RSP contribution under
        age 35

    TORONTO, Feb. 25 /CNW/ - When 20-year old Pete Townshend wrote the lyrics
"Hope I die before I get old" back in 1965, he was reflecting a common outlook
among young people at the time. But times have changed, according to the 2008
TD Waterhouse Investor Poll. Today, 85% of people aged 18-34 hold RSPs,
compared with an average of 87% of all age groups. Even more, 89% indicate
they have made, or plan to make, an RSP contribution for the 2007 taxation
year - the highest percentage of all age categories and considerably higher
than the 68% average.
    Among poll respondents aged 18-34, 89% have made or plan to make an RSP
contribution. As well, 60% of all investors made their first contribution
under the age of 35 and 43% made it under the age of 30.
    27% of investors in the 18-34 age group believe that they will be drawing
on their RSP or pension income for 25 or more years, compared with an average
of 28% for all age groups. One-quarter of 18-34 year olds (25%) say they will
be doing so for 20 to 24 years (28% for all age groups).
    While investors under age 35 are thinking enough about their retirement
to have an RSP and regularly contribute to it, they are not doing much more
than that. Only 9% have a formal, written retirement plan - a lower incidence
than the already low average for all age groups of 14%. Further, just
one-in-five (20%) have tried to calculate how much money they will need in
retirement, compared with an average of 31% for all age groups.
    "It's very encouraging to see that so many people under 35 have RSPs,"
says Patricia Lovett-Reid, Senior Vice-President, TD Waterhouse. "We're seeing
a trend towards young people taking control of their future, saving for
retirement, getting into the housing market and so on. I would still like to
see them become more involved on the planning side because that is essential
to achieving long-term financial goals. But having and contributing regularly
to an RSP is a great start."
    The amount of debt carried by younger Canadian investors (18-34) is an
important determinant in their RSP planning. More than half in this age
bracket (51%) agree with the statement, "I'll think about investing more when
I pay off my outstanding debt." A recent Statistics Canada study found that
young families (with heads of the household younger than 35) carry the
heaviest debt load among Canadians. Compared to the national median debt of
$13.52 for every $100 in assets, Canada's young families owe $39.40 for every
$100 they own in assets, a 17-per-cent increase from 1999.
    "One of the biggest mistakes investors make is thinking that they need to
be debt-free before beginning to contribute to an RSP," comments Lovett-Reid,
"Clearly this view is prevalent among 18-34 year-olds. With debt loads rising
for young families, the risk is that they will wait too long to start
investing and miss out on both the tax advantages and compound interest
growth. The truth is that there is good debt and bad debt, and ways to carry
the first and get rid of the second."
    Young people are pragmatic about how much money they will need for a
comfortable retirement. The average amount given by 18-34 year-olds is
$933,000, or 28% more than the average for all age groups ($727,000). However,
they are overly optimistic about reaching retirement debt-free, especially if
debt loads for young families continue to grow. Three-quarters (75%) of people
aged 18-34 currently expect to retire debt-free.
    "Our data shows that young Canadians get the big picture," concludes
Lovett-Reid. "They know they'll likely be funding their own retirement. They
know they'll need a large nest-egg, and the great majority have started their
RSPs. What's missing from the picture is a professionally developed financial
plan that will help them become disciplined and confident investors."
    The findings are part of an on-line survey conducted by TNS Canada Facts
from December 14-27, 2007 with 1,077 Canadian investors across Canada between
the ages of 18 and 69.

    Other poll findings:

    -   Most Canadians of all ages (57%) believe that one should start
        thinking about investing in an RSP before age 35. For those actually
        under that age, 65% believe this to be true.

    -   Investors aged 18-34 expect a 7.1% rate of return from their
        investments in 2008, below the average of an 8% ROR expectation for
        all age groups. Respondents aged 50-64 have the highest ROR
        expectation - 8.9%

    -   The propensity to think about the process involved in drawing on
        pension and investments once retired increases with age. Only 23% of
        investors aged 18-34 have thought about it. By age 50-69, 59% of
        those not yet retired have done so. The average for non-retirees of
        all age groups is 41%.

    -   38% of Canadians aged 18-34 have company pension plans compared with
        an average of 47% for all age groups.

    About TNS

    TNS is one of the world's leading market information groups, providing
market measurement, analysis and insight through its operating companies in 70
countries. Working with national and multi-national organizations, we help our
clients develop effective business strategies and enhance relationships with
their customers. In Canada, TNS Canadian Facts provides full-service, primary
market research. Its mission is to become clients' sixth sense of business(TM)
by giving them a deeper understanding of their customers' behaviour, better
anticipation of their actions and greater insight into what they really want.

    About TD Bank Financial Group

    The Toronto-Dominion Bank and its subsidiaries are collectively known as
TD Bank Financial Group. TD Bank Financial Group serves more than 14 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; Wealth Management, including TD Waterhouse and an
investment in TD Ameritrade; U.S. Personal and Commercial Banking through TD
Banknorth; and Wholesale Banking, including TD Securities. TD Bank Financial
Group also ranks among the world's leading on-line financial services firms,
with more than 4.5 million on-line customers. TD Bank Financial Group had
CDN$422 billion in assets as of October 31, 2007. The Toronto-Dominion Bank
trades on the Toronto and New York Stock Exchanges under the symbol "TD", as
well as on the Tokyo Stock Exchange.

For further information:

For further information: Stephen Ledgley, NATIONAL Public Relations,
(416) 848-1376, sledgley@national.ca

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