Data & Research September 6, 2012

Canadians Report Not Saving Enough for Retirement

Forty percent of Canadians surveyed said they now expect to retire later than they previously planned.
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According to the third annual survey of employees conducted by the Canadian Payroll Association (CPA), the primary reason (cited by 40%) was “I’m not saving enough money for retirement.”  

Nearly three-quarters of employees (74%) said they have saved less than one-quarter of their retirement savings goal. “This is particularly troubling when you realize that 71% of the respondents are over the age of 35, with the bulk in their main saving years between 35 and 54,” said Dianne Winsor, chairman of the CPA.  

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The survey also found half (50%) of employees across the country reported they are saving 5% or less of their net pay. This is well below the 10% of net pay that financial planning experts generally recommend as a retirement savings rate.  

While 60% said they are trying to be better savers, more than half of the individuals reported that they have been unable to do so. The remaining 40% of Canadians said they were not even trying to save more.  

Most Canadians do understand what they could be doing to improve their financial situation and meet their retirement goals. Ranked in order of importance, respondents thought they should be spending less (32%), paying off credit card debt (22%), reducing their mortgage (19%), and contributing more to their retirement savings (14%).  

Between July 6 and August 2, 2011, 2,070 employees responded to the online survey.

 

Products September 6, 2012

BMO Global Asset Mgm’t Extends Brand to M&I Lines

The three primary lines of business in the former M&I Institutional Trust Services will be renamed to reflect their integration into BMO’s global businesses.
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M&I Institutional Trust Services was previously a unit of Marshall & Ilsley Trust Company N.A., an affiliate of BMO Harris Bank N.A. This follows an initiative earlier this year that rebranded the Marshall Funds to BMO Funds and the merging of M&I Investment Management Corp into Harris Investment Management Inc., which was renamed BMO Asset Management Corp.

The newly branded businesses are BMO Retirement Services, BMO Taft-Hartley Services  and BMO Not-for-Profit Services. All include the services provided by the firm’s retirement and trust and custody division, and have access to the investment expertise of BMO Global Asset Management. 

“Rebranding these lines of businesses was the next step in our successful integration efforts and reflects the importance they play in our overall business strategy,” said Barry S. McInerney, co-chief executive. “Our ability to provide clients with holistic asset management solutions and service excellence is at the core of our corporate principles.”

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BMO Retirement Services features a platform of retirement and trust and custody services. BMO Taft-Hartley Services provides recordkeeping, custody, securities lending and other financial services for both single- and multi-employer benefit plans, as well as unions and other labor-related entities. BMO Not-for-Profit Services offers a wide range of services to charities, endowments and other nonprofits.

“As an integrated part of BMO Global Asset Management, clients of these three businesses will benefit from the backing, reach and extensive resources of a truly global financial services provider,” McInerney said.

 

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