SYS-CON MEDIA Authors: Xenia von Wedel, Peter Silva, Glenn Rossman, Ava Smith, Elizabeth White

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%  
----------------------------------------------------------------------------
                                                                            

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
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
Leysin American School is an exclusive, private boarding school located in Leysin, Switzerland. Leysin selected an OpenStack-powered, private cloud as a service to manage multiple applications and provide development environments for students across the institution. Seeking to meet rigid data sovereignty and data integrity requirements while offering flexible, on-demand cloud resources to users, Leysin identified OpenStack as the clear choice to round out the school's cloud strategy. Additional...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
Software-driven innovation is becoming a primary approach to how businesses create and deliver new value to customers. A survey of 400 business and IT executives by the IBM Institute for Business Value showed businesses that are more effective at software delivery are also more profitable than their peers nearly 70 percent of the time (1). DevOps provides a way for businesses to remain competitive, applying lean and agile principles to software development to speed the delivery of software that ...
Docker offers a new, lightweight approach to application portability. Applications are shipped using a common container format and managed with a high-level API. Their processes run within isolated namespaces that abstract the operating environment independently of the distribution, versions, network setup, and other details of this environment. This "containerization" has often been nicknamed "the new virtualization." But containers are more than lightweight virtual machines. Beyond their small...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...