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Stuck in the Middle: BMO Nesbitt Burns Study Finds Sandwich Generation Short $560,000 for Retirement

- $818,000 is the Average Amount This Cohort Feels They Need to Have for Retirement, but the Average Amount They Have Saved to Date is Just $258,000

TORONTO, ONTARIO -- (Marketwired) -- 08/12/14 -- BMO Nesbitt Burns today released a study which found that Canadians in the sandwich generation (those aged 45-64 who are known as being 'sandwiched' between the demands of caring both for their aging parents and for their own children), are more than half a million dollars short of their individual retirement savings goal.

The study is the second in an annual series examining the retirement readiness of a specific generation. Last year's study examined Canadian Boomers (those born between 1945-1964) and found that, on average, they are more than $400,000 short for saving for their ideal retirement lifestyle.

According to this year's study:


--  More than half (55 per cent) of the sandwich generation are currently
    caring for their children, aging relatives (parents, in-laws,
    grandparents, etc) or both.
--  Almost one-third currently care for a parent or older relative.
--  Thirty-nine per cent of this cohort are concerned that being in the
    situation of caring for others will impact their ability to meet key
    financial goals, including saving for retirement.

"There's a sense among those in the sandwich generation that they're getting squeezed and are being forced to balance a plethora of financial priorities, from paying down their mortgage to saving for their child's education to saving for retirement," said Sylvain Brisebois, Regional Manager, BMO Nesbitt Burns. "The stress that comes with caring for children and aging relatives, balancing a career and generally keeping up with daily tasks can make it hard to focus on the future and saving for retirement."

A Financial Plan Can Help Ease the Strain

The study found that 76 per cent of this cohort feel that the stress of everyday living -- such as working, taking care of family, paying household bills, helping older relatives, etc. -- is impacting their ability to meet long-term financial goals.

Mr. Brisebois noted that one way individuals in the sandwich generation can help manage stress and prioritize goals is to develop a financial plan -- a blueprint for a financial strategy that may include tracking or managing the household budget, savings and/or investments. Currently, only 40 per cent of those in the sandwich generation have a plan in place.

"This cohort grew up generally doing things much on their own. Much of what they have accomplished -- getting an education, building their career, buying their first house -- was done without the help of others," said Mr. Brisebois. "However, it's clear they need assistance when planning and prioritizing finances for the future. A financial plan can take away from the stress of worrying and leave more time to relax and find balance in everyday life."

Regional Breakdown


----------------------------------------------------------------------------
                                        Average gap               % who feel
                                            between            the stress of
                  Average              amount saved % currently     everyday
            amount needed      Average   and amount  caring for    living is
              in order to       amount    needed to   children,    impacting
               have ideal    currently   have ideal       aging    long-term
               retirement    saved for   retirement  relatives,    financial
Region          lifestyle   retirement    lifestyle     or both        goals
----------------------------------------------------------------------------
National         $818,000     $258,000   ($560,000)          55           76
----------------------------------------------------------------------------
Atlantic         $839,000     $166,000   ($673,000)          64           83
----------------------------------------------------------------------------
Quebec           $447,000     $180,000   ($267,000)          47           64
----------------------------------------------------------------------------
Ontario          $876,000     $227,000   ($649,000)          61           82
----------------------------------------------------------------------------
Prairies         $581,000     $247,000   ($334,000)          51           77
----------------------------------------------------------------------------
Alberta          $970,000     $491,000   ($479,000)          53           72
----------------------------------------------------------------------------
B.C.           $1,131,000     $317,000   ($814,000)          56           77
----------------------------------------------------------------------------

For more information on financial planning locate a BMO Nesbitt Burns Investment Advisor at www.bmo.com/nesbittburns.

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

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

The BMO Sandwich Generation Survey was conducted by Pollara between July 29th and 31st, 2014, with an online sample of 800 Canadians between the ages of 45 and 64 years. Data has been weighted using the latest Canadian census information to be representative in terms of gender and region. The margin of error for a probability sample size of 800 is +/- 3.5%, 19 times out of 20.

About BMO Nesbitt Burns

Backed by the experience, stability and resources of BMO Financial Group, BMO Nesbitt Burns is a full-service investment firm with an extensive network of approximately 1,300 Investment Advisors at 76 branches across Canada. The origins of BMO Nesbitt Burns' predecessor firms date back to 1912. In 1987, BMO Bank of Montreal acquired Nesbitt Thomson, then one of Canada's oldest and most respected investment houses. In 1994, BMO Bank of Montreal also acquired Burns Fry, one of the largest dealers of Canadian equities and debt securities. Nesbitt Thomson and Burns Fry then merged to become BMO Nesbitt Burns.

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