2010-06-11 18:32:01 -

TORONTO, ONTARIO -- (Marketwire) -- 06/11/10 -- The BMO Retirement Institute (TSX: BMO)(NYSE: BMO) has five ideas for finance ministers to consider on the eve of meetings at the Rodd Crowbush Resort in PEI.

1.  Help grandparents help finance their grandkids' education and give the
Sandwich Generation a break.
--  Allow tax-free transfers to the Registered Education Savings Plan
(RESP) from RRSPs and RRIFs.

2.  Help Canadians continue to save for their retirement past age 71.
--  At the end of the year when Canadians turn 71, they must stop making
Registered Retirement Savings Plan (RRSP) contributions, and begin
to deplete their savings by converting them into Registered
Retirement Income Funds (RRIFs) or annuities. As Canadians live
longer, they should be able to continue contributing to their RRSP
beyond age 71 and convert to RRIFs and annuities later. According to
BMO Capital Markets Economics, despite modest short-term costs, such
changes could be revenue neutral in the long run.

3.  Help seniors save for long-term care, which can run as high as $60,000 a
year.
--  Create a new "Registered Medical Savings Plan" for long-term
healthcare, with tax free transfers from RRSPs and RRIFs to such a
plan.

4.  Tax RRIF income more fairly; don't tax RRIF payouts at employment income
rates.
--  Only the contributions to the plan should be taxed as employment
income; the rest, since they include capital gains and dividend
income, should be taxed as if they were held outside a registered
plan.

5.  Provincial and territorial finance ministers should join Minister
Flaherty, who established the Task Force on Financial Literacy, to draw
attention to the need for a high level of financial literacy among
Canadians.

About the BMO Retirement Institute



The BMO Retirement Institute was established in 2008 to provide thought-provoking insight and financial strategies for individuals planning for, or currently in, their retirement years. Tina Di Vito is Head, BMO Retirement Institute. Tina is a Chartered Accountant, Certified Financial Planner and Trust and Estate Practitioner. Visit the BMO Retirement Institute at www.bmo.com/retirementinstitute : .




Contacts:
Media contacts:
Nini Krishnappa, Toronto
416-867-3996
nini.krishnappa@bmo.com :

Sarah Bensadoun, Montreal
514-877-1101
sarah.bensadoun@bmo.com :

Laurie Grant, Vancouver
604-665-7596
laurie.grant@bmo.com :