BMO Financial Group

BMO Financial Group

January 18, 2011 06:00 ET

BMO First Canadian Bank to Offer Personalized Retirement Pension Solution

Responds to calls for private sector pension innovation

- BMO Lifetime Cash Flow provides guaranteed steady cash flow for life

- Helps address concerns about outliving retirement savings

- A tax efficient bank deposit solution that is fully protected against market volatility

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2011) -

Note: There is a Fact Sheet available with this press release.

BMO today announced the launch of BMO Lifetime Cash Flow, an industry-first product that provides Canadians aged 55 and over with guaranteed cash flow for life. The new product is an attractive addition to the suite of deposit products that comprise the BMO LifeStage Retirement Income Portfolios. 

With Canadians living longer, retirement can easily last 25 to 30 years, leading many to worry about the possibility of outliving their retirement savings. The BMO Lifetime Cash Flow product helps address this concern by introducing a guaranteed lifetime cash flow component that provides continuous payments for the remainder of the product holder's life -- while protecting against market volatility.

"With access to employer sponsored pension plans becoming less common, there is a real need for Canadians to re-think where their retirement income will come from," said Caroline Dabu, VP, Head of Retirement Market Group, BMO Financial Group. "Having an income plan in place is essential to ensuring a comfortable retirement that's free of worry. BMO Lifetime Cash Flow allows Canadians to include a safety net as part of their plan, ensuring a secure and stable cash flow for the rest of their lives."

A recent BMO survey conducted by Harris Decima found that 90 per cent of Canadians believe it is important to have a guaranteed source of income during retirement, with half of respondents expressing concern over having enough money to get them through retirement. BMO recommends that every Canadian have at least one source of retirement income that is guaranteed, and which ideally makes up at least 30 per cent of their overall cash flow.

"Having enough income in retirement is now more important than ever before," adds Ms. Dabu. "At BMO we are committed to understanding our customers' full and unique retirement needs and ensuring we develop innovative solutions to meet them."

How BMO Lifetime Cash Flow Works:

  • BMO Lifetime Cash Flow is a bank deposit backed by the strength and stability of BMO and is fully protected against market volatility.

  • With as little as $5,000 Canadians can start to build a "personal pension" for themselves. 

  • The initial deposit provides exposure to a portfolio of BMO Mutual Funds and is rebalanced annually to a progressively more conservative mix of funds over time.

  • After ten years the product holder receives guaranteed cash payments equal to six per cent per year that are payable monthly based on the initial deposit. This return of capital continues for the next 15 years.

  • The deposit holder then continues to receive six per cent interest income (based on the amount of the initial deposit) paid by the Bank of Montreal on an annual basis, regardless of market conditions; this continues for the rest of the individual's life or as long as they hold the product.

  • The remaining portfolio value will be transferred to the estate upon death, providing the client with the opportunity to leave a legacy.

  • For more information on BMO Lifetime Cash Flow, please visit

The summary contained herein is issued for information purposes only to provide an overview of BMO Lifetime Cash Flow Deposit Notes and does not constitute investment advice or an offer to sell or a solicitation to purchase. BMO Lifetime Cash Flow Deposit Notes provide the holder with steady payments and the possibility of an additional return when they mature. The BMO Lifetime Cash Flow Deposit Notes are not insured by the Canada Deposit Insurance Corporation or any other entity. An investment in BMO Lifetime Cash Flow Deposit Notes is subject to certain risks, which investors should consider. Investors should read the Master Information Statement and Supplement carefully as well as consult with his or her tax advisor before investing and discuss their suitability with their branch investment professional.

Click here to view BMO Lifetime Cash Flow Fact Sheet and Sample Client Scenarios:

Contact Information