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BMO Financial Group

February 26, 2015 07:00 ET

BMO Study: Half of Canadians Report Needing Help With Their Retirement Portfolios

- Fifty-six per cent need assistance with deciding which investments best suit their needs

- More than half do not understand how their portfolios will react in certain markets

- Only one in five need help deciding when or if to downsize to a smaller home or deciding where to live in retirement

TORONTO, ONTARIO--(Marketwired - Feb. 26, 2015) - Today BMO Global Asset Management issued a study which shows that half of Canadians reported needing help with their retirement portfolios.

When asked to identify the top retirement planning issues where they need help, 56 per cent said they needed assistance with deciding which investments best suit their needs. Other aspects where they said they need help include:

  • Understanding how their retirement portfolios will react in certain markets (53 per cent)
  • Making adjustments because of market conditions (53 per cent)
  • Ensuring portfolios are diversified (51 per cent)
  • Determining their risk tolerance (48 per cent)

"It's understandable that so many Canadians are uncertain about how to manage their retirement nest eggs- effectively saving for retirement is an important component of your financial plan. However, investing can be a big and often complex world to navigate," said Robert Armstrong, Vice President, BMO Global Asset Management. "Taking into account market volatility, diversification and your risk tolerance is a lot to consider. With so many options available, it can be challenging to find the optimal balance."

To help Canadians invest for retirement or other major life events, BMO Investments Inc. introduced BMO SelectTrust™ Portfolios and BMO ETF Portfolios - professionally managed fund solutions built to avoid the lows of volatile markets and produce returns. Offered in six risk-differentiated options, including fixed income, security, conservative, balanced, growth and equity growth, they are reviewed and rebalanced regularly.

Help with Retirement Lifestyle and Financial Decisions

The study also looked at where Canadians need help outside of how to go about investing their retirement savings:

  • Half of Canadians need help with understanding how much money is needed to retire (51 per cent)
  • Just under half need help with estate planning (47 per cent)
  • Twenty-two per cent need help deciding when or if to downsize to a smaller home (22 per cent)

"Retirement planning includes both financial and non-financial aspects. If you can get help with either or both, it can go a long way," said Mr. Armstrong. "A financial professional can help by creating a financial plan that identifies your short- and long-term needs, what you need to save and what you need to do to reach your goals."

Age and Regional Breakdown:

% who need help deciding which investments best suit their needs % who need help understanding how portfolios will react in certain markets % who need help understanding how much money is needed to retire % who need help with estate planning % who need help deciding when or if to downsize to a smaller home
National 56 53 51 47 22
Millennials 63 63 65 56 35
Boomers 48 41 33 36 13
Atlantic 64 57 56 51 18
Quebec 49 46 44 28 18
Ontario 60 57 56 56 26
Alberta 54 49 46 52 21
B.C. 57 54 49 53 22

For more information on investing, please visit www.bmo.com/investments.

Get the latest BMO press releases via Twitter by following @BMOmedia.

The survey was conducted by Pollara with an online sample of 1003 Canadians 18 years of age and over, between January 26th and February 2nd, 2015. A probability sample of 1,003 would yield results accurate to ± 3.1 per cent, 19 times out of 20. Results have been weighted using the latest census data to be representative of Canadians as a whole.

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 of the mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

BMO Global Asset Management comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management Corp. and BMO's specialized investment management firms.

®/™ is a registered trade-mark/trades-mark of Bank of Montreal, used under licence.

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