Welcome!

News Feed Item

BMO Report: Financial Planning Critical for the 3.8 Million Canadians With a Disability

- As Canadian population ages, hearing loss, mobility and memory loss will be the most cited contributing causes of disability

TORONTO, ONTARIO -- (Marketwired) -- 04/30/14 -- According to a report issued today by the BMO Wealth Institute, a financial plan can play a pivotal role in easing financial stress for the 3.8 million Canadians who have a disability and for those caring for them. The report also noted that, as the population ages, the percentage of Canadians who will become disabled will rise. Currently 42.5 per cent of Canadians over the age of 75 identify themselves as having some form of disability, with hearing loss, mobility issues and memory loss being among the most prevalent.(i)

"In our aging society and with the prevalence of disability on the rise as we age, a disability can lead to significant challenges for individuals and their families," said Chris Buttigieg, Senior Manager, Wealth Planning Strategy, BMO Financial Group. "Therefore, it's important that Canadians understand how disability can affect one's personal and financial situation. Planning for the possibility of a disability should be a consideration in any financial plan to help safeguard individuals and their families from the unexpected."

Mr. Buttigieg noted that few Canadians have factored in the financial repercussions that can arise from having a disability or caring for a family member who becomes disabled. The combination of reduced income and increased spending to cope with a disability can derail a financial plan. For example, a plan on track to last until at least the age of 90 could see all savings exhausted by the age of 77.

The report stressed that both individuals living with a disability and those caring for them need to manage their financial well-being. Having a well-constructed financial plan that properly utilizes a variety of tools can work to provide the most financial benefit. The report contained results from a study commissioned by the BMO Wealth Institute that identified the top tools used to improve the financial situation of those dealing with disabilities:

--  Wills (35 per cent)
--  Powers of attorney (32 per cent)
--  Tax-Free Savings Account (TFSA) (32 per cent)
--  Investment accounts (27 per cent)
--  Registered Disability Savings Plan (RDSP) (five per cent)

The report also recommended that individuals with disabilities should consider opening an RDSP. In order to be eligible for an RDSP, individuals must first qualify for the Disability Tax Credit - a non-refundable tax credit that provides tax relief for individuals who have a severe and prolonged impairment in physical or mental functions. Anyone can contribute to an RDSP, so it gives people who want to help a way to do so. Money invested in an RDSP can lessen the financial burden on those who live with disabilities and help ensure that their finances grow at an accelerated pace. The RDSP is exempt from most provincial disability and income assistance benefits and people with disabilities can choose what to do with the money once it is withdrawn.

BMO Investments Inc. recently partnered with Planned Lifetime Advocacy Network (PLAN), a not-for-profit organization committed to ensuring the safety, security and well-being of those living with disabilities. The partnership will focus on educating individuals and their families about the RDSP. It will also assist those with disabilities to set up RDSPs in order to help with their financial future.

Disability in the Workplace

The BMO Wealth Institute study also found that Canadians believe employers have an important responsibility to accommodate people with disabilities. Respondents stated the following as the top improvements needed by employers to assist disabled workers:

--  Greater accessibility to company premises (63 per cent)
--  More supportive policies and practices in the workplace, such as people
    care days and flexible work arrangements (63 per cent)
--  Improved accommodations in the workplace (58 per cent)
--  Consumer friendly interactive devices, such as self serve checkouts and
    direct payment devices (56 per cent)
--  Career development and training (55 per cent)
--  Executive sponsorship and support in hiring disabled persons (53 per
    cent)

"The longer an individual is disabled, the more pronounced the impact is on their ability to work and earn an income," said Mr. Buttigieg. "While improvements have already begun in workplaces, it is crucial that employers continue to support employees requiring time, resources and flexible work arrangements to help them, or their caregivers, get the care and support that they need."

To view a copy of the full report, please visit: www.bmo.com/wealthinstitute.

For more information on wealth management news at BMO please visit www.linkedin.com/company/bmo-wealth-management-services-canada?trk=top_nav_home.

Get the latest BMO press releases via Twitter by following @BMOmedia.

(i)Statistics Canada, 2012 Canadian Survey on Disability

About the BMO Wealth Institute

The BMO Wealth Institute provides insights and strategies around wealth planning and financial decisions. The Institute's team of professionals have deep expertise around all aspects of wealth planning including retirement, estate, tax and insurance.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified financial services organization based in North America. The bank offers a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers. BMO Financial Group had total assets of $593 billion and more than 45,500 employees at January 31, 2014.

Contacts:
Media contacts:
Amanda Robinson, Toronto
416-867-3996
[email protected]

Valerie Doucet, Montreal
514-877-8224
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
The revocation of Safe Harbor has radically affected data sovereignty strategy in the cloud. In his session at 17th Cloud Expo, Jeff Miller, Product Management at Cavirin Systems, discussed how to assess these changes across your own cloud strategy, and how you can mitigate risks previously covered under the agreement.
Digital Initiatives create new ways of conducting business, which drive the need for increasingly advanced security and regulatory compliance challenges with exponentially more damaging consequences. In the BMC and Forbes Insights Survey in 2016, 97% of executives said they expect a rise in data breach attempts in the next 12 months. Sixty percent said operations and security teams have only a general understanding of each other’s requirements, resulting in a “SecOps gap” leaving organizations u...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and Bi...
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Transformation Abstract Encryption and privacy in the cloud is a daunting yet essential task for both security practitioners and application developers, especially as applications continue moving to the cloud at an exponential rate. What are some best practices and processes for enterprises to follow that balance both security and ease of use requirements? What technologies are available to empower enterprises with code, data and key protection from cloud providers, system administrators, inside...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes how...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, will outline ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...