Central 1 Credit Union

Central 1 Credit Union

December 10, 2010 06:00 ET

Central 1 Credit Union: Baby Boomers Optimistic About Their Financial Futures

But Almost 80 Per Cent Say They Want Professional Advice, Central 1 Study Finds

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2010) - Despite having their investments hit hard by the recession, Baby Boomers are relatively optimistic about the economy and their personal financial situations, says research done for Central 1 Credit Union.

But the research conducted by Vision Critical found some Boomers may have unrealistic hopes about how much they can save or earn from their investments in the next few years before they retire.

On average, Boomers who have not yet retired have $231,000 in assets and expect to retire with $707,000. By contrast, older Boomers who have already retired have $344,000 in assets. Half of the retired Boomers said they had debts when they retired: 26 per cent had mortgages; 26 per cent had line of credit balances; 24 per cent had credit card balances and 8 per cent had personal loans.

Vision Critical interviewed 2,180 people in Ontario and British Columbia between September 22 and October 2 to uncover the perceptions and expectations of the Baby Boomer Generation. Baby Boomers were born between 1940 and 1964.

The survey included Boomers who have already retired and younger Boomers, aged 45-54, who are still spending and raising children.

Central 1's Boomers Study shows that older Boomers have confidence in their financial knowledge and situation. It found 66 per cent say they have a very good understanding of financial products and 59 per cent believe they can reach all their retirement goals. But 77 per cent said they want advice from a knowledgeable professional.

Thirty per cent believe the economy will improve during the next three months, but 17 per cent are concerned that they might lose their job because of continuing economy issues.

One-third of Baby Boomers in Ontario and B.C. are retired, with an average age of 63. Ninety per cent retired under the age of 65, with the average being 57.

"The outlook for those not retired is not as good," said Michelle Walkey, Senior Vice President, Financial Services at Vision Critical. "The average planned retirement age for non-retired Boomers is 65, with 40 per cent retiring later than they expected."

More than one-half of those who haven't retired said not saving enough or diminished investments is the reason they will delay retiring.

Of those who have retired, 30 per cent said it was because of job loss or downsizing, while 28 per cent said health issues were a factor.

While three out of 10 retired Boomers say they would have made no changes in their financial plans, nearly one half would have saved more.

Central 1

Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Central 1 represents a consumer-oriented, full-service retail financial system that serves 2.9 million members and holds $70 billion in assets and is owned primarily by its member credit unions -- 45 in B.C. and 131 in Ontario.

With offices in Vancouver, Mississauga, and Toronto, Central 1 provides a wide range of services such as liquidity management, direct banking, and flexible payment service solutions. For more information, visit www.central1.com.

Vision Critical

Global market research and survey software company Vision Critical is a leader in the use of the Internet and rich media technology to collect high-quality, in-depth insights for a wide array of clients. For more information, visit www.visioncritical.com.

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