MONTREAL, QUEBEC — (Marketwire) — 12/08/11 — BMO Financial Group today released the results of its Annual Registered Retirement Saving Plan (RRSP) Study, which found that 59 per cent of Quebecers are feeling confident in their ability to save for their ideal retirement lifestyle.
The study, conducted by Leger Marketing, also found that:
“These results show most Quebecers feel they are on the right track with their retirement savings and feel a cautious optimism in the midst of current market volatility,” said Jamal Khalil, Regional Sales Manager, Quebec, BMO Bank of Montreal. “To help achieve their ideal retirement lifestyle, it-s crucial that Quebecers have a financial plan that includes a retirement savings strategy and ensures their RRSP is well diversified.”
Key National Findings:
On a national level, BMO-s Annual RRSP Study found that:
Looking to maximize your retirement savings with minimal impact to your wallet? BMO offers the following advice:
Invest small amounts often – A little really does go a long way with an RRSP. Even small amounts, if invested on a regular basis, can grow significantly, especially when you take into account the effect of compound interest. Consider a pre-authorized payment plan, which takes a small amount out of your bank account every pay day and deposits it into your RRSP.
Don-t panic – Although it is tempting to make drastic moves during times of market volatility, resist the temptation to liquidate all of your investments or do anything major. If you have a well-diversified portfolio that is appropriate for your life stage, there is no need to make impulsive moves.
Choose investments that meet your needs – For investors who prefer to take a less active role in investing, target date products such as BMO LifeStage Class Funds allow investors to select the fund that best matches their retirement target date and watch their investments automatically evolve. Each Fund shifts its asset mix on an annual basis so that the percentage of equity investments in the fund decreases as it approaches its target end date. The Funds are intended to provide growth in the early stages and to become progressively more conservative over time.
Borrow to come out ahead – Borrowing money to invest in your RRSP can make sense in some cases, with the resulting tax savings often enough to cover the amount borrowed. Many financial institutions offer low-interest RRSP loans for the current year or to “catch-up” on unused RRSP contribution room. For example, BMO-s RRSP Readiline gives you access to a line of credit to maximize this year-s RRSP contribution and potentially increase your income tax refund. Speak with a financial professional to determine if this is right for you.
Take advantage of professional help – A financial professional can provide advice on how to grow your investments and assist you in developing a financial plan. To meet with a financial professional, contact a BMO Bank of Montreal branch near you or visit .
The online survey was conducted by Leger Marketing from November 21 to November 24, 2011, with a sample of 1520 Canadians, 18 years of age or older.
For 2010 results, an online survey conducted by Harris/Decima among 1,002 Canadian adults, between November 15-24, 2010 was used.
BMO LifeStage Class Funds are offered by BMO Investments Inc., a financial services firm and separate legal entity from Bank of Montreal. Commissions, trading commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus of the mutual fund before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Contacts:
Media Contacts:
Amanda Robinson, Toronto
416-867-3996
Sarah Bensadoun, Montreal
514-877-8224
Laurie Grant, Vancouver
604-665-7596