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BMO Retirement Institute

BMO Retirement Institute

October 04, 2011 09:26 ET

REPEAT: BMO Retirement Institute Special Report: Canadian Boomers Plan to Stay in Their "Home and Native Land" During Retirement

- Overwhelming majority of Canadians 45 and over plan to stay in Canada upon retirement

- Weather, followed by finances and family considerations, are the key motivators in deciding where to retire

- Victoria, BC remains retirement capital of Canada, with 15 per cent of Boomers intending to retire there

- Albertans are most likely to relocate for retirement, while Atlantic residents are least likely

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2011) - Home is indeed where the heart is for Canadian Boomers, with 85 per cent of Canadians aged 45+ indicating they plan on staying in Canada during their retirement, according to a Special Report issued today by the BMO Retirement Institute titled Where do Canadians plan to retire and why?

The Special Report explains that, while Canadians often talk about a change of scenery during retirement, what happens in reality is very different. In fact, Canadians prefer to stay close to home, with only five per cent planning to relocate to the United States, two per cent to Europe and one per cent to Mexico, South America and Asia respectively.

The study also examined the factors that are motivating Boomers to relocate upon retirement and found the following key drivers:

  • Weather (57 per cent)
  • Financial reasons (54 per cent)
  • Proximity to family and friends (45 per cent)
  • Better access to healthcare/support services (35 per cent)

"Regardless of what motivates an individual to relocate upon retirement, financial considerations need to be addressed and considered a priority," said Tina Di Vito, Head of BMO Retirement Institute. "Relocation can be the cause of many new or additional expenses, including increased travel to see loved ones, and an elevated cost of living due to higher health costs and taxes."

Where are the Canadian retirement hotspots?

For those planning to remain in Canada, Victoria, B.C. remains the retirement capital of the country with 15 per cent of Boomers indicating they would like to retire there. This was followed by:

  • Smaller towns in Ontario (14 per cent)
  • Montreal/Eastern Townships (11 per cent)
  • Greater Toronto Area (11 per cent)

Other Key Findings:

  • For Canadians planning on heading to the United States when they retire, Florida (49 per cent) and Arizona (16 per cent) are the most popular choices
  • Residents of Alberta, Manitoba and Saskatchewan are more inclined to move compared to other provinces, with Albertans the most likely to relocate (61 per cent)
  • Residents of Atlantic Canada are the least likely to relocate (37 per cent), ranking proximity to family as the most critical factor, while residents of B.C. and Alberta chose housing costs

Thinking of relocating upon retirement? Ms. Di Vito of the BMO Retirement Institute offers the following advice:

  • Relocating to a different province? Be sure to review your healthcare coverage, provincial tax differences and the adequacy of your estate plan
  • Relocating outside of Canada? Don't forget about departure taxes as well as managing your Canadian assets as a non-resident
  • Relocating in general? Remember that relocation can also increase your retirement income needs, due to a higher cost of living or more frequent travel to visit loved ones

Regional Breakdown of What Is Impacting Retirement Relocation Decisions

To view the graph associated with this press release, please visit the following link: http://media3.marketwire.com/docs/bmoretirementrelocationeng.pdf.

To view a copy of the full report, please visit: www.bmo.com/retirementinstitute.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly-diversified North American financial services organization. With total assets of $477 billion as at July 31, 2011, and more than 47,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

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