Canada’s baby boomers are juggling the needs of their parents and children with their own future retirement needs, according to a study released today by BMO Financial Group.
The study, conducted by The Strategic Counsel, reveals that three in five Canadian boomers with children aged 18 and over are providing some kind of financial support to their kids. Adding to the pressure, one-quarter of those boomers whose parents are still alive have one or more elderly parents that need their assistance on a regular basis.
Yet, while taking care of others is a big part of their lives, boomers are becoming increasingly concerned about their own future. Only 28% of respondents are very confident that they will be financially secure in old age compared to 41% of those under 40 years of age and 47% 60 years and older. A third of boomers (32%) believe their standard of living is likely to drop in retirement, compared to 16% of younger generation Canadians.
“Given the changing nature of retirement, particularly concerning longevity, it’s no surprise that boomers are somewhat unsettled by what the future holds,” said Tina Di Vito, BMO Financial Group’s retirement planning expert, in a news release. “This is uncharted territory, so it’s all the more important for boomers to start considering a variety of contingencies and lifestyle choices today.”
According to the study, many baby boomers are having challenges balancing the books, with most still with debt (73%). Only 28% of boomers say they have savings and investments of $100,000 or more. Almost one-in-five boomers who have not yet retired (19%), say they have no savings.
Despite the grim financial picture, almost all boomers surveyed (91%) are satisfied with their lives, with almost half (47%) indicating that they are very satisfied.
The national telephone survey of more than 1,500 people was conducted by The Strategic Counsel for BMO Financial Group between May 2 and June 5.
Boomers are stressed, in debt, but satisfied with life: study
Generation is juggling needs of parents and children, while trying to plan for retirement
- By: IE Staff
- July 12, 2006 October 31, 2019
- 08:15