TORONTO, ONTARIO — (Marketwired) — 07/30/13 — Longevity is the defining financial challenge of our age. Canadians are living longer than ever before and while investors recognize their retirement savings may now need to last 25 years or longer, an alarming number of Canadians believe they are better prepared for a long retirement than they actually are, and few have a clear idea of how much they will need to save. This “Longevity Paradox” is revealed by BlackRock Asset Management Canada Limited-s (“BlackRock Canada”) first-ever Canadian Investor Survey, which was officially released today.
“The paradox is that investors recognize that their retirement savings will need to last longer than ever before but they aren-t making plans to ensure they will actually have the money they need,” said Noel Archard, Head of BlackRock Canada. “There tends to be a false sense of security when it comes to planning for retirement. We hope that the money will somehow be there when we need it but we-re not taking the action required to ensure it is. This is a serious problem, and addressing it must become an urgent priority.”
Investors are unjustifiably optimistic and dangerously passive.
Canadian investors are optimistic about how well they are prepared for retirement, yet they are not taking action when it comes to managing their retirement savings:
Home bias
Despite market performance and vast investment options, Canadian investors overwhelmingly overvalue Canadian equities – a sign that they are not taking a rigorous enough approach to investing for retirement.
Time for action
Inaction on retirement planning isn-t just a challenge for investors – it-s an issue that employers, the financial industry and policymakers need to address, and the reasons behind it are many and complex.
“What this survey of Canadian investors shows is the urgent need for all parties – government, employers, investment advisors and industry participants like us – to do a better job of helping prepare Canadians for retirement so that their ever-growing golden years will be a time of happiness and contentment and not one of need and worry,” added Archard. “The effects are far-reaching and the solution needs to be as big and urgent because the longer we wait to act, the bigger the problem will become.”
When it comes to retirement planning, the cost of inaction is high. Playing it safe will not help investors achieve their investment goals which is why BlackRock Canada has launched a microsite dedicated to helping Canadians plan for and understand today-s market realities and use their longevity to plan for the long term. Investors can create an investment plan today at BlackRockPlan.ca or start with these three simple steps:
About BlackRock
BlackRock® is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2013, BlackRock-s AUM was US$3.936 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of March 31, 2013, the firm has approximately 10,600 employees in 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the company-s website at
Contacts:
Contact for Media:
Maeve Hannigan
Veritas Communications
416-955-4570
C – 647-618-8621