When it comes to determining how much money is needed to reach one’s retirement goals, a sharp dividing line in perceptions of the size of that investment occurs among women in their mid-forties, suggests the 2006 TD Waterhouse Female Investor Poll.

The poll was conducted among 900 women who have personal responsibility for household financial planning or investment decisions. When asked how much they think they will need to accumulate by retirement in order to meet their goals, those under 46 years of age say on average about $300,000 more than those aged 46 and above.

The estimated retirement nest-egg for the youngest group of respondents, aged 25 to 35, is $750,000. Those in the next age bracket, 36 to 45, say $743,000. Those in the 46-to-55 age bracket feel they will need a $435,000 nest-egg and the oldest group, 56 to 69, say they need $408,000.

“It’s rare to see such a pronounced rift in our poll findings,” said Patricia Lovett-Reid, senior vp, TD Waterhouse Canada Inc. “One explanation may be that the 46-plus group is more likely to have paid off their mortgages and seen the value of their homes rise quickly in recent years. As a result, they may be more likely than younger investors to include their real estate assets in their retirement calculations.”

Despite the pronounced gap in nest-egg size, the poll found little difference by age group in the proportion of current income that respondents feel they will need when retired. Estimates ranged from a low of 53% for those aged 36-45 to 58% for those aged 46-55.

“Younger women are setting realistic goals when it comes to achieving financial independence,” continued Lovett-Reid. “People are living longer and financial security from sources such as pension plans or from a spouse is declining. Women of all ages need to understand clearly what it takes to have a comfortable, secure retirement, and I am encouraged that younger women are getting the message.”

Female investors in the youngest age-group (25-35) are most likely to report that they were inspired to invest because of someone who successfully took control of their investing (35% vs. an average of 24% for the other age groups).


Female investors 36 to 45 are the least likely to do their investing entirely on their own and are most likely to invest with the assistance of a financial professional.

TNS Canadian Facts conducted the poll on behalf of TD Waterhouse. Respondents were contacted by telephone between July 24th and August 8th, 2006. To qualify for the survey, women had to be between 25 and 69 years of age and had to have sole or shared responsibility for household financial planning or investment decisions. The survey is considered accurate within +/- 3.3%, 19 times out of 20.”

TD Waterhouse previously conducted the Female Investor Poll in 2001, 2002 and 2005.