TORONTO, ON - June 26, 2014 /CNW/ - 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 CNW. For more information please visit www.scotiabank.com.

BACKGROUNDER: REGIONAL BREAKOUTS

BOOMERS WITH AGING PARENTS

BOOMERS FINANCIALLY ASSISTING ADULT CHILDREN

SOURCES OF RETIREMENT INCOME FOR BOOMERS

Media inquiries:
Kate Simandl
Scotiabank Media Communications 
kate.simandl@scotiabank.com
Desk: (416) 866-6218