Baby Boomers are a stressed generation, but even with their worries about retirement, they are satisfied with life in general.

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1 Baby Boomers are a stressed generation, but even with their worries about retirement, they are satisfied with life in general. * The State of the Baby Boomers study was conducted by The Strategic Counsel, a national market research firm and the exclusive supplier of public opinion research for The Globe and Mail and CTV.

2 Introduction Earlier this year, we introduced findings from an Ipsos Reid retirement trends study commissioned by BMO Financial Group in late One of the most intriguing findings in that study was that the term retirement should be retired, as Canadians approaching or in that particular phase of life did not perceive it as a fixed point in time, but rather a transition between full-time work and active retirement. Since then, BMO has coined the term regeneration as a more appropriate descriptor for this rapidly evolving stage of one s life. To learn more about regeneration and take advantage of some innovative planning tools, visit In its effort to keep a finger firmly on the pulse of regenerating Canadians, BMO Financial Group recently sponsored a national poll undertaken by The Strategic Counsel on behalf of The Globe and Mail. This most recent probe into the hearts and minds of aging Canadians, unveiled in June 2006, revealed additional thought-provoking findings. The following overview offers insights into the latest results. Survey Methodology The State of the Baby Boomers poll was conducted between May and June, 2006, by The Strategic Counsel the exclusive supplier of public opinion research to The Globe and Mail and CTV and sponsored by BMO Financial Group. Findings are based on a telephone survey of 1,502 people across Canada and are considered accurate to within 2.5 percentage points, 19 times out of 20. The total sample was divided among representative groups of Canadians as follows: the Echo generation (20-29 years of age); Gen-X ers (30 39); younger Boomers (40 49); older Boomers (50 59); and pre-boomers (60+). Key Findings The poll revealed some interesting trends. For example, as the so-called sandwich generation, Baby Boomers 1 are more stressed than their predecessors, often juggling the needs of aging parents with those of children still living at home. One-quarter (25%) has one or more parents that require regular assistance, and 30% of Boomers provide financial support to children over the age of 18. Stress notwithstanding, 47% of Boomers and 56% of pre-boomers (those 60 and over) say they are very satisfied with their lives. In addition, the generation gap so prominent in the past appears to be decreasing at a rapid rate. Almost half (49%) of year-olds polled say they have a better relationship with their children than they had with their parents, with 60% saying their adolescent or adult children enjoy their company very much. Furthermore, many respondents feel that their interests have begun to overlap with those of their children tastes in music, for instance. Key Findings Snapshot Seventy-seven per cent of Gen-X ers, 61% of Boomers and 43% of pre-boomers share similar tastes in music with their children. That said, older generations are less likely than their younger counterparts (the Echo generation and Gen-X ers) to embrace technology, so it is doubtful they would, for example, download their music from the Internet. 1 For the purposes of this overview, the term Baby Boomers refers to the total Boomer universe, comprised of younger and older boomers between the ages of 40 and 59. 1

3 Key Findings Snapshot Almost twice as many (33%) Gen-X ers bank online, compared to just 17% of Boomers. Expectations of Life Improvement Over Next 10 Years The closer relationship between generations, combined with the fact that Boomers are often providing support to their grown children and parents, suggest that the prevalence of the extended family is growing among Canadian families. Key Findings Snapshot Pre-Boomers are particularly close with their parents 39% are very close, and 61% are somewhat close. These are just some of the attention-grabbing trends revealed by The Strategic Counsel poll. Following is a review of the overall findings. For the complete top line results, please visit So, what is the state of the Baby Boomers? Future Outlook In response to the question, In ten years do you expect that your life will improve greatly, improve somewhat, stay about the same, worsen somewhat, or worsen greatly, pre- Boomers were the most likely to feel their lives will worsen over the next ten years, even though they were the most satisfied with life in general compared to the Boomers, Gen-X ers and the Echo cohorts. Only 13% of those 60+ believed their lives would improve over the next decade. The Sandwich Generation Pre-Boomer concerns about the future may be owed to the fact that many of them worry they will outlive their savings or experience some sort of physical disability as they age. This is not good news for Boomers, who may be helping both their aging parents and their adult children. One-quarter of Boomers with living parents are assisting them regularly. Incidence of Living Parents and Their Care Requirements 2

4 And almost half (47%) of Boomers still have children living at home. Incidence of Children Living at Home Perception of Self Image Compared to Parents Among Those Whose Parents Were Alive at Their Age More About Same Less Likely to travel Physically fit Hours of work Conservatism Likely to drink to excess Religious Better About Same Worse Relationship with children Financial position The majority of Boomers (59%) with children age 18 and over are still providing financial support to their kids. Among Those with Children Over 18 They also feel their children have more opportunities than they did. Among those whose youngest child is less than 25 years old, 69% felt their children had more educational opportunities, and 56% said their children had more employment opportunities. Perceived Quality of Life Despite having to care for their parents and support their adult children, Boomer respondents perceive their lifestyle to be healthier, more affluent and more liberal than that of their parents at their age. 3

5 Financial Uncertainties Entering & Upon Retirement Confidence in Financial Security in Old Age One of the big questions for Boomers is whether they will enter retirement with debt. The Strategic Counsel poll revealed that slightly more than half of Boomers still hold mortgages, though most expect those mortgages to be paid off before retirement. Key Findings Snapshot Eighty-two per cent of pre-boomers (those 60+) have paid their mortgage in full; 85% have prepared a Will. Among Those Who Own Their Home Expect to Have Mortgage Paid Off Perhaps part of the reason for this financial uncertainty is that few from the Boomer generation expect that more than half of their post-retirement income will come from government sources a sharp contrast with the reality for those aged 60+, one quarter of whom receive most of their income from government sources. Estimates of % of Income from Government After 65 That said, an earlier IpsosReid study commissioned by BMO Financial Group indicated that 64% of retirees carry debt into retirement and more than one-in-four of them (28%) does not feel comfortable with the debt load. That study further illustrated more than two-thirds (68%) of preretirees expect to carry debt into retirement. This may explain the finding that Boomers are less confident than other generational groups about their financial security in old age. This may explain why Boomers are more likely than other generations to put their entire inheritance towards retirement savings. 4

6 Use of Inheritance Among Those Who Have or Expect to Receive an Inheritance Both DK/Na/Ref Planning Ahead While only half of Canadians have prepared a Will, two-thirds of Boomers and the majority of pre-boomers have made end-of-life preparations for the distribution of their assets and belongings. Incidence of Preparing a Will Put Towards Retirement Used for Something Else emerged. What is certain is that retirement however you define it is a dynamic stage of life. For the majority of us, the meaning has changed over time, and we as a society have adapted to the shifting landscape by adjusting our attitudes and behaviours. And how the Baby Boomers adjust their attitudes and behaviours will set a precedent for subsequent generations; hence, the current State of the Baby Boomers will be of tremendous importance as we seek to understand and shape our own retirement over the next several decades. Learn More: Tools for Regeneration Planning Learn more about the new retirement at With a fresh look at how Canadians are planning for later life, the site explores the new realities of retirement, supplemented with case studies and interactive resources. Check out the retirement transition illustrator, which provides immediate feedback on savings requirements depending on a variety of variables such as retirement transition period, current savings, etc. About BMO Financial Group Summary Clearly, the State of the Baby Boomers poll reveals a host of interesting trends some consistent with past studies and others newly BMO Financial Group can help plan for retirement with flexible and personalized solutions. We offer trained investment professionals at our bank branches; skilled BMO Nesbitt Burns Investment Advisors; Private Wealth Consultants at BMO Harris Private Banking; and self-directed investing options through BMO InvestorLine. 5

7 Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $320 billion as at October 31, 2006, and 35,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and solutions. BMO Financial Group serves clients across Canada through its Canadian retail arm, BMO Bank of Montreal, and through BMO Nesbitt Burns, one of Canada s leading full-service investment firms, BMO Harris Private Banking Canada s #1 private bank according to Euromoney and through BMO InvestorLine, the most awardwinning online broker in Canada. In the United States, BMO serves clients through Chicagobased Harris, an integrated financial services organization that provides more than one million personal, business, corporate and institutional clients with banking, lending, investing, financial planning, trust administration, portfolio management, family office and wealth transfer services. Contact Us We can show you a wealth of options to retire with confidence on your terms. If you re an existing BMO Financial Group client, contact your investment professional. If you re new to BMO Financial Group, call the BMO Investment Center at to find the right BMO Financial Group advisor/professional for you. We're available to serve you Monday to Friday, 7 a.m. 11 p.m. (EST) and Saturday, 9 a.m. 5 p.m. (EST). BMO (M-bar roundel symbol) is a registered trade-mark of Bank of Montreal, used under licence. * All insurance products are offered through BMO Nesbitt Burns Financial Services Inc. by licensed life insurance agents and, in Quebec, by financial security advisors. 6

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