BMO Study: Two in Five Canadians Open to Being Their Own Boss in Retirement
- Forty per cent of Canadians likely to start their own business in retirement - Top reasons to start a business in retirement include additional income, staying mentally sharp and using it as a hobby - Retirement savings identified as top funding source for starting new businesses
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 01/29/13 -- According to a study released today by BMO Financial Group, many Canadians envision becoming entrepreneurs during their retirement years; 39 per cent say that it is likely they will start their own business after they reach retirement age (65 years old). More generally, 81 per cent plan on working in some capacity during their retirement.
The top reasons identified by Canadians for starting their own business in retirement are:
"It's clear that many Canadians are looking to generate additional income during their retirement years," said Marlena Pospiech, Senior Manager, BMO Wealth Planning Group, BMO Financial Group. "People are living longer than ever before so, for an increasing number of Canadians, retirement savings may need to last more than 25 years. Additionally, with the decline in employer-sponsored defined registered pension plans and reforms to government pension plans, there's now a greater need for people to supplement their income during retirement to compensate for that income gap. This is particularly true for those who haven't been saving aggressively for retirement through retirement savings vehicles such as RRSPs and TFSAs."
Other key study findings:
Ms. Pospiech added that Canadians are getting creative in how they picture their retirement; many view a gradual transition from work to full-time retirement as the optimal choice. She noted that not only does working longer benefit your bank account by generating additional income, it also helps keep retirees mentally active, involved in the community and contributing to the larger economy.
Funding a small business in retirement
The study also found that, when asked about how they plan to fund their business, almost half (47 per cent) of Canadians responded that they would use a portion of their retirement savings. Other funding sources pre-retirees said they would consider include:
"While it may be tempting to draw on retirement savings to fund your post-retirement business, there are other options available," said Steve Murphy, Head of Commercial Banking for BMO Bank of Montreal. "It's important that those looking to start a business have personal retirement savings, as well as savings set aside to fund their retirement business along with a business plan. A financial professional can help you develop a strategy that incorporates saving for retirement, as well as a post-retirement business."
For those who are considering starting a business when they retire, BMO offers the following tips:
For more information on starting a small business, please visit: .
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The results cited in this release are from a Pollara survey with a sample of 1,000 Canadians 18 years of age and over, fielded online between January 17th and January 22nd, 2013. A probability sample of this size would yield results accurate to +/- 3.1 per cent, 19 times out of 20.
Contacts:
Media Contacts:
Amanda Robinson, Toronto
416-867-3996
Valerie Doucet, Montreal
514-877-8224
Laurie Grant, Vancouver
514-877-8224
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Unternehmensinformation / Kurzprofil:
Datum: 29.01.2013 - 11:00 Uhr
Sprache: Deutsch
News-ID 223779
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Town:
TORONTO, ONTARIO
Kategorie:
Commercial & Investment Banking
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