Happy boomers with empty pockets

Most boomers content despite being financially ill-prepared for retirement

Many baby boomers are struggling to balance the books according to a new survey. And though they are concerned about their financial future, the boom generation is still smiling.

The survey of 1,500 Canadians released by BMO Financial Group found that 73 per cent of boomers still have debt and only 28 per cent say they have savings and investments of $100,000 or more. Almost 19 per cent of boomers who have not yet retired say they have no savings at all.

Despite a strained financial picture, 91 per cent of boomers are satisfied with their lives and 47 per cent indicate they are very satisfied.

After many years of work one might wonder why boomers continue to struggle financially. The survey indicated that three in five Canadian boomers with children aged 18 and over provide some kind of financial support to their kids. Adding to the pressure, one-quarter of those boomers whose parents are still alive have one or more elderly parents that need their assistance on a regular basis.

While taking care of others is a big part of their lives, boomers are becoming increasingly concerned about their own future. Only 28 per cent of respondents are very confident that they will be financially secure in old age compared to 41 per cent of those under 40 years of age and 47 per cent 60 years and older. Thirty-two per cent of boomers believe their standard of living is likely to drop in retirement, compared to only 16 per cent of younger generation Canadians.

"Given the changing nature of retirement, particularly concerning longevity, it's no surprise that boomers are somewhat unsettled by what the future holds," said Tina Di Vito, BMO Financial Group's retirement planning expert.

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