2013-02-27 12:01:26 - - One in three say that retirement is more expensive than they expected - Tip to younger Canadians: start saving as much as possible from an early age to realize ideal retirement lifestyle
TORONTO, ONTARIO -- (Marketwire) -- 02/27/13 -- According to a study by BMO Financial Group, Canadians are a happy bunch in retirement. When asked about how they feel about retirement living, Canadian retirees revealed the following:
-- Eighty-two per cent are happy with their current lifestyle.
-- More than a third have more activities than time in which to do them.
-- Six in ten say their current lifestyle matches how they expected it
-- Half say they saved the right amount of money for retirement.
"It's nice to see that retired Canadians seem to be generally happy with their lifestyle," said Chris Buttigieg, Senior Manager, Wealth Planning Strategy, BMO Financial Group. "Younger generations should take a page out of their parents' book and view this as even more of a reason to start saving to ensure a satisfying lifestyle in retirement."
Looking Back, Looking Ahead
However, with age comes wisdom: some retirees still have concerns and regrets in retirement.
-- According to the study, while many say they saved enough for their
retirement, the remaining 42 per cent of Canadian retirees feel they did
-- Half (52 per cent) wish they had started saving for retirement at an
-- When asked about the younger generation's likelihood for a happy
retirement, 58 per cent of retirees predict younger Canadians will be
less likely to realize their ideal retirement lifestyle compared to
their parents and grandparents.
"For those who are just starting off a career, it's never too early to think about establishing a long-term financial plan that includes a retirement component," said Mr. Buttigieg. "Putting money away in an RRSP or Tax-Free Savings Account are great first steps in getting prepared for life's future milestones."
The Benefits of Adopting a Continuous Savings Plan
Mr. Buttigieg added that young Canadians should consider setting up a Continuous Savings Plan (CSP) in order to help them save for retirement. A CSP regularly and automatically withdraws a specific amount of money from an individual's bank account and invests it directly into his/her RRSP.
A CSP eases the cost of investing away from one annual deposit, and helps to increase savings. Investments like mutual funds fluctuate in value based on market conditions; by investing the same amount in a fund each month, an investor can buy more fund units when the cost is lower. This can reduce the average price per unit an investor pays over the long term.
Until March 1st, 2013, if you set up and maintain a new BMO mutual fund CSP for 12 months, you will receive a one-time 15 per cent bonus on your first month's contribution (up to a maximum of $150). Certain conditions apply to this offer, please visit www.bmo.com/csp/ for further details.
For more information on saving for retirement, please visit www.bmo.com/retirement.
Get the latest BMO press releases via Twitter by following @BMOmedia.
The survey results cited in this release are from online interviews with a random sample of 1,000 Canadians 18 years of age and older, conducted between November 23rd and November 27th, 2012. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20. The subsample for retirees in Canada is n = 118, with a probability sample of this size yielding results accurate to +/- 9 per cent, 19 times out of 20.
BMO Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their value changes frequently and past performance may not be repeated.
Amanda Robinson, Toronto
Valerie Doucet, Montreal
Laurie Grant, Vancouver
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