Planning to retire in your 60s? Start saving now, say today's retirees

Planning to retire in your 60s? Start saving now, say today's retirees 
-TD Retirement Realities Poll finds Canadian retirees wish they had started 
saving decades earlier than they did - 
TORONTO, Jan. 8, 2013 /CNW/ - Canadian retirees have a wake-up call for the 
majority of working Canadians who expect to retire in their 60s: stop 
procrastinating and start saving for retirement now. According to findings 
from the TD Retirement Realities Poll, the top piece of advice retirees have 
for working Canadians is to save more money by creating a budget and sticking 
to it (52%). However, the poll also found that 15% of working Canadians only 
plan to save for retirement for less than five years before leaving the 
workforce. By comparison, more than two-thirds (69%) of retirees say, in 
hindsight, they should have saved for retirement for 25 years or more. Are 
working Canadians taking the proper steps needed to be financially ready to 
"If working Canadians don't make retirement savings a priority, day-to-day 
expenses and more immediate financial needs can pre-empt saving for the 
future. Don't get caught 30 years from now saying 'I wish I had started saving 
sooner'," says Kim Parlee, Vice President, TD Wealth Management. "When you 
start investing early, the impact of compound interest is more powerful in 
helping your savings grow." 
Boosting retirement nest eggs? Canadians plan to work longer
The poll found that a significant number of working Canadians plan to work 
longer than current retirees did during their careers. About two-thirds of 
working Canadians expect to retire in their 60s (64%): 28% in their early 60s 
and 36% after 65. Sixteen percent think they will keep working into their 
seventies. This is later in life than current retirees, who said they left 
the full-time workforce in their late 50s (36%) or early 60s (25%), with only 
3% working into their 70s. 
"Working longer and focusing on setting money aside for retirement at the end 
of your career can help bolster your savings. However, you can get much more 
out of your investment dollars when you contribute to savings early in your 
earning years and continue to do so regularly throughout your working life," 
says Cynthia Caskey, Vice President, Portfolio Manager and Sales Manager, TD 
Waterhouse Private Investment Advice. 
Caskey says the benefit of starting young is easy to see using the following 
model: a 25 year old who starts saving for retirement by investing $100 per 
month ($1,200 per year) will have a nest egg of close to $200,000 at age 
65*. By contrast, if someone decides to start focusing on retirement savings 
at age 55, for only the last ten years of his or her career, he or she must 
invest approximately $1,215 per month ($14,580 per year) each year to match 
that same nest egg number for retirement*. 
Top advice from retirees for today's working Canadians: 
1. Save more by creating and sticking to a budget (52%)
  2. Contribute the maximum amount to your RRSP each year (44%)
  3. Pay off all debts before retiring (43%) 
Looking back: retirees caution to start saving sooner 
The poll revealed that the majority (60%) of working Canadians do not plan to 
save for their retirement as long as today's retirees recommend, with 15% 
saying they will spend less than five years saving for retirement: 9% said 
they will save for less than five years and 6% said they won't actively save 
for retirement at all. In contrast, when retirees were asked how long they 
think they should have saved for their retirement, more than two-thirds (69%) 
said they should have saved for their retirement for more than 25 years. 
Pay it off, or at least pay it down 
Thirty-nine percent of working Canadians expect to retire with some debt, 
despite retirees' advice that they should try to tackle it before leaving the 
"Retiring debt-free is great advice, but the reality is that paying off all 
debt is challenging, especially because it's important to balance those 
payments with current expenses and investing for the future," adds Caskey. "An 
advisor can help you map out a plan that is aligned with your personal 
situation, including a strategy for debt repayment and investments that can 
increase the tax-efficiency of your portfolio. He or she can also suggest 
opportunities for retirement savings in addition to RRSPs, such as Tax-Free 
Savings Accounts (TFSAs) and mutual funds, to provide potential for savings 
growth while considering your risk tolerance." 
This infographic illustrates additional findings from the TD Retirement 
Realities Poll. 
*This example is based on a constant 6% annual rate of return, compounded 
monthly, in order to illustrate the advantages of tax-deferred savings and 
compounded returns. Because actual returns fluctuate, the amounts shown do not 
necessarily represent the value you would actually accumulate in a RRSP. 
TD Retirement Realities Poll 
TD Bank Group commissioned Environics Research Group to conduct an online 
custom survey of 2,407 Canadians 25 years of age or older, including 1,251 
working Canadians and 929 retired Canadians. The total sample was weighted by 
age, gender and region to be proportionately representative of the Canadian 
population 25 years of age and older. Responses were collected between 
December 5 and 11, 2012. 
About TD Bank Group 
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD 
Bank Group (TD). TD is the sixth largest bank in North America by branches and 
serves approximately 22 million customers in four key businesses operating in 
a number of locations in key financial centres around the globe: Canadian 
Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance 
Canada; Wealth and Insurance, including TD Waterhouse, an investment in TD 
Ameritrade, and TD Insurance; U.S. Personal and Commercial Banking, including 
TD Bank, America's Most Convenient Bank, and TD Auto Finance U.S.; and 
Wholesale Banking, including TD Securities. TD also ranks among the world's 
leading online financial services firms, with more than 8.5 million online 
customers. TD had CDN$811 billion in assets on October 31, 2012.The 
Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York 
Stock Exchanges. 
Ali Duncan Martin TD Bank Group 416-983-4412 
Sinead Brown / Andrea Hanft Paradigm Public Relations 416-413-5193 / 
416-413-5196 / 
PDF available at: 
SOURCE: TD Waterhouse Group, Inc. 
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CO: TD Bank Group
ST: Quebec
-0- Jan/08/2013 13:30 GMT
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