Welcome!

News Feed Item

Cost of "Boomer Sandwich" Generation May Impact Retirement Cash Flow: Scotiabank Retirement Study

Younger Boomers to Feel the "Sandwich Squeeze" Most; Government Pensions Main Source of Retirement Income

TORONTO, ON--(Marketwired - June 26, 2014) - A new Scotiabank study reveals many Canadian baby boomers are concerned about caring for their parents and financially assisting their adult children -- a reality that may impact retirement cash flow. The study also shows that government pensions will be the top source of retirement income for the boomer generation, followed by RRSPs and savings accounts.

Other key findings in a new Scotiabank study, The Retirement Landscape -- A Focus on the Baby Boomer, include:

The Sandwich Challenge

  • Twenty-five per cent of boomers are concerned about their parents' health and how it will impact them in retirement;

  • Sixty-four per cent of boomers say they have one or both parents alive, meanwhile 15% of boomers say that preparing for the health care costs of aging parents is extremely or very important;

  • Almost one-half (45%) of the 41% of boomers with children currently under the age of 21 living at home expect their adult children to continue to live at home past the age of 21. The study also found that 16% of boomers say helping their children financially is going to be a financial objective.

Young boomers to feel the "sandwich squeeze" most

  • Only 40% of younger boomers (45-54 year olds) feel prepared for their retirement compared to 62% of older boomers (65-70 year olds). Younger boomers (49%) are also more concerned about outliving their money in retirement than older boomers (33%).

  • Not surprisingly, younger boomers are considering how their aging parents will affect their retirement. Twenty-eight per cent are concerned about how their parents health will impact them (vs. 12% of older boomers), and 45% say that preparing for their aging parents' health care costs is an important financial objective in retirement (vs. 17% of older boomers).

Paying for the boomer sandwich

  • Boomers agree that, on average, 65% of their pre-retirement income is needed to live in retirement.

  • Boomers' retirement income will come from a variety of sources with pensions (84%), particularly government pensions (72%) and RRSPs/RRIFs (77%), as the primary sources of income, followed by savings accounts (52%).

Quotes

"While retirement tends to be thought of in terms of freedom and lifestyle choices, it's largely driven by finances and having enough money to retire," says Ahmad Dajani, Vice President of Investments, GICs & Sales Tools at Scotiabank. "For boomers, the prospect of aging parents in their care and adult children at home means reviewing and updating their retirement plan has never been more important than now. Speaking with a financial advisor will help you create a plan to help balance these priorities and enjoy your retirement years."

"We are seeing baby boomers, who were once known as the 'me' generation, transitioning into the 'we' generation as they move into retirement," says Lisa Ritchie, Senior Vice President of Customer Knowledge and Insights at Scotiabank. "Unlike previous generations, boomers' responsibilities go beyond what was traditionally expected and now include caring for aging parents and supporting adult children."

About the study

For this survey, TNS Canada conducted online interviews among 1,201 Canadians who are 45 to 70 years of age. All respondents had a minimum of $50,000 in investable assets, and have sole or shared responsibility for household financial decisions. Among those surveyed, 37% are retired and 63% are not retired. In tabulation, data was weighted to be to represent the general population based on age, gender, and region. The survey was conducted from January 8 to 23, 2014.

About Scotiabank

Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 86,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $792 billion (as at April 30, 2014), Scotiabank trades on the Toronto (TSX: BNS) and New York (NYSE: BNS) Exchanges. Scotiabank distributes the Bank's media releases using Marketwired. For more information please visit www.scotiabank.com.

BACKGROUNDER: REGIONAL BREAKOUTS

BOOMERS WITH AGING PARENTS

                                                                            
----------------------------------------------------------------------------
                             Total Atlantic Quebec  Ontario Prairies  B.C.  
----------------------------------------------------------------------------
% of boomers who have one                                                   
 or both parents alive        64%     63%     59%     65%      67%     68%  
----------------------------------------------------------------------------
% of boomers concerned                                                      
 about impact of their                                                      
 parent's health in their     25%     25%     28%     23%      19%     28%  
 retirement                                                                 
----------------------------------------------------------------------------
% of boomer who say that                                                    
 preparing for health care                                                  
 costs of aging parents is    15%     12%     16%     16%      10%     16%  
 extremely or very                                                          
 important                                                                  
----------------------------------------------------------------------------
                                                                            

BOOMERS FINANCIALLY ASSISTING ADULT CHILDREN

                                                                            
----------------------------------------------------------------------------
                             Total Atlantic Quebec  Ontario Prairies  B.C.  
----------------------------------------------------------------------------
% of boomers who say                                                        
 helping their children                                                     
 financially is going to be   16%     17%     14%     17%      12%     17%  
 a financial objective                                                      
----------------------------------------------------------------------------
                                                                            

SOURCES OF RETIREMENT INCOME FOR BOOMERS

                                                                            
----------------------------------------------------------------------------
                             Total Atlantic Quebec  Ontario Prairies  B.C.  
----------------------------------------------------------------------------
Pensions - Government                                                       
 pension programs/Personal                                                  
 employer                                                                   
 sponsored/Spouse's           84%     85%     83%     82%      88%     85%  
 employer sponsored pension                                                 
 plan                                                                       
----------------------------------------------------------------------------
Government Pensions           72%     74%     67%     72%      72%     80%  
----------------------------------------------------------------------------
RRSPs/RRIFs                   77%     73%     77%     77%      81%     73%  
----------------------------------------------------------------------------
Savings Accounts              52%     36%     47%     55%      57%     54%  
----------------------------------------------------------------------------
                                                                            

Media inquiries:
Kate Simandl
Scotiabank Media Communications
[email protected]
Desk: (416) 866-6218

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
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In a world where the internet rules all, where 94% of business buyers conduct online research, and where e-commerce sales are poised to fall between $427 billion and $443 billion by the end of this year, we think it's safe to say that your website is a vital part of your business strategy. Whether you're a B2B company, a local business, or an e-commerce site, digital presence is key to maintain in your drive towards success. Digital Performance will take priority in 2018 for the following reason...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
In his session at Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to maximize project result...
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abilit...
In his keynote at 19th Cloud Expo, Sheng Liang, co-founder and CEO of Rancher Labs, discussed the technological advances and new business opportunities created by the rapid adoption of containers. With the success of Amazon Web Services (AWS) and various open source technologies used to build private clouds, cloud computing has become an essential component of IT strategy. However, users continue to face challenges in implementing clouds, as older technologies evolve and newer ones like Docker c...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.