- TD Waterhouse Boomer Happiness Index shows majority feel behind in
savings, worry they won't have enough money to last through retirement
TORONTO, Jan. 5 /CNW/ - Most Ontario boomers are happy (86%), but when
asked to think about their retirement their attitudes change. According
to the TD Waterhouse Boomer Happiness Index, which polled boomers (ages
45-64) to determine their emotional and financial state heading into
retirement, two-thirds (65%) of Ontarian survey respondents worry that
they won't have enough money to last through retirement. More than
one-third (39%) feel financially ill-equipped to navigate retirement
and half (52%) feel like they are behind in their savings. In fact,
24% of Ontario boomers say they are 'scared' of their looming
retirement and almost half (49%) worry they will lose their family home
as a result of their inadequate savings.
Money doesn't buy happiness, but it appears that having a financial plan does.
Boomers' concerns about money may be warranted - only 33% in Ontario
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
"Most Ontarians recognize the importance of planning ahead to ensure
that they are financially ready when they stop working. Yet, it's
concerning that only a third of Ontario boomers have established a
comprehensive plan for achieving a financially-secure retirement," says
Patricia Lovett-Reid, Senior Vice President, TD Waterhouse. "Planning,
saving and investing is critical to becoming financially prepared, so
you can enjoy your retirement."
Are boomers counting on a winning lottery ticket?
The top three ways Ontario boomers are planning on funding their
retirement are through Old Age Security and Canada Pension Plan (73%),
RRSPs (62%) and company pensions (45%).
Many Ontario boomers are playing 'catch-up', with the majority (52%)
feeling behind in their retirement savings compared to their peers.
Forty-one percent say they will keep working to fund their retirement
and alarmingly, one-third hope to win the lottery to help supplement
their savings! While this statement may be tongue-in-cheek, 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 asked to think about retirement, the top concerns for Ontario
boomers were: keeping healthy and active (70%), being able to maintain
their current standard of living (69%) and not having enough money to
last through retirement (65%).
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 Ontario boomers and pre-boomers
(ages 65-74) recommend for the next generation are: start saving
earlier (86%), pay off your mortgage faster (66%) and save more money
or invest more in an RSP (65%).
"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 surveyed
1,000 Canadians including 380 Ontarians.
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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