Saving for retirement is a lengthy process and often involves utilizing contributions to both a registered retirement savings plan (RRSP) and a tax-free savings account (TFSA).

However, statistics show Canadians are saving less than four per cent of their disposable income and, despite the billions of dollars invested in RRSPs and TFSAs, have plenty of room to add more to their retirement nest eggs.

CBC News has compiled a number of important figures on retirement and financial planning in Canada. All figures are from Statistics Canada unless otherwise indicated.

5,956,010 number of Canadians who contributed to an RRSP in 2010.

26% percentage of eligible tax filers who contributed to an RRSP in 2010.

$33.9 billion total RRSP contributions in 2010 (up from $33 billion in 2009).

$717 billion total amount Canadians were entitled to contribute in 2010 (up from $671 billion in 2009).

$632.9 billion total unused RRSP contribution room.

21 million number of Canadians with unused RRSP contributions in 2010.

$2,790 median RRSP contribution in Canada in 2010 (up from $2,680 in 2009).

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Retirement savings in Canada — by the numbers

TORONTO, ONTARIO--(Marketwire -02/29/12)- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 52:

Online calculators do not tell you the whole story

There are a variety of online financial calculators available today that can be useful tools to get a quick idea of whether or not you are on the right track to your retirement savings goal. Many of them provide you with a snapshot of how much your savings will grow over a number of years, and how much you should be saving to retire at your preferred time.

Calculators are simple projections based on a series of pre-set inputs and assumptions. They can give you misleading answers if you over- or under-estimate your investment returns over time.

What calculators do not offer you is personal advice. They cannot advise on whether your investments are appropriate for you, whether you have an effective estate plan, or who will care for you if you become disabled.

If you would like a realistic, personalized retirement plan that takes into account both your financial and personal goals, then consider hiring a professional financial advisor.

For more information on retirement: http://www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

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BMO Retirement Tip of the Day: Get Personal-Online Retirement Savings Calculators Do Not Tell the Whole Story

If you're investing for retirement that is still more than 20 years away and you do not have inclination to sell when stocks take a dive, is there any advantage to owning bonds at all? Or are bonds only for scaredy cats who will sell their stocks during a market plunge? -- Tom McCarthy, Wilmington, Delaware

It's easy for long-term investors like you to think bonds are nothing more than a drag on returns and undeserving of a place in your portfolio.

After all, if you check out "Ibbotson Associates' Classic Yearbook," a compendium of stock, bond and Treasury bill returns since 1926, you'll find that stocks have not only outperformed bonds over the past 86 years -- earning an annualized return of 9.8% vs. 5.4% -- they've also beaten bonds much more often than not over rolling periods of five, 10 and 20 or more years within that span.

But I wouldn't say that there's no advantage to owning bonds. Nor would I recommend that an investor, even one in it for the long term, invest only in stocks. While history shows what happened before, it doesn't predict how things will play out in the future.

True, stocks have beaten the pants off bonds in the past. And I fully expect stocks to continue to do so over long periods in the future. But I'm not convinced enough to make an all-or-nothing bet on stocks. When dealing with uncertainty (and your retirement money), it's prudent to hedge your bets.

There's another compelling reason for long-term investors to own bonds. As impressive as stocks' gains have been, they've come with quite a bit of drama.

From March 2000 to October 2002, the Standard & Poor's 500 index dropped almost 50%. It no sooner recovered when it fell again, this time by nearly 60% from October 2007 to March 2009. Over the 10-year stretch from 1999 through the end of 2008, stocks posted a negative 1.4% annualized return.

I mention these figures for two reasons. One is to prevent you from committing what Stanford professor Sam Savage calls the "flaw of averages" or the fallacy of using single numbers to represent uncertain outcomes. By focusing on stocks' long-term annualized gains, you may overlook how far they have fallen and how long they've remained depressed en route to those gains.

The other reason is that even though you think you're in for the long-haul now -- when the Dow has been on a roll -- it's been my experience that most investors feel differently when things fall apart.

People get very upset when they see the value of their retirement savings drop by half -- or more, as investors in the technology-heavy Nasdaq stock index discovered when it plummeted almost 75% from the beginning of 2000 through mid-2002. (To this day, Nasdaq is still 35% or so below its peak nearly 10 years ago.)

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Bond investing for retirement

In my industry, we do a lot of measuring.

Of course, that's a good thing because we need to know whether the retirement planning industry is helping investors move toward their retirement goals. That being said, some measurements are more valuable than others.

[See top-ranked ETFs by category ranked by U.S. News Best ETFs.]

For example, take surveys that ask employers whether they feel their employees are prepared for retirement. I'd prefer to know how plan participants are doing--to know whether retirement investors are on track to meet retirement goals.

Likewise, there are participant surveys that measure investors' confidence in retirement readiness. How confident are you that you'll have the retirement you envision? I'd rather know how close you are, numerically, to your retirement goals. There are countless examples of people throughout history who've felt confident only to return poor results.

[See Using Brokerage Windows to Expand Your 401(k) diversification]

What can you do to move beyond confidence and into the realm of knowing you're on track?

Engage in your employer-sponsored retirement plan. Know how much you're contributing and how much your employer is contributing. Pay attention to your monthly statements, your annual investment returns, your plan investing options, and your plan's other benefits, like advice and tools.

Create a retirement savings goal based on your retirement plans and your investing profile. Map your entire retirement savings strategy. Include everything. Things to consider include:

--How much do you contribute to your employer-sponsored plan now? And how much do you plan to increase your contributions over time? Does your employer contribute to your plan now, and will that change in the future?

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In Retirement Planning, Knowledge Trumps Confidence

NEW YORK (TheStreet) -- Beware, your employer could be stealing your retirement savings. Remember back in the 1990s when pension plans touted surpluses? Those days are long gone, as many corporations froze the plans or eliminated them altogether. Underfunded pensions became the norm. Employees investors and the public were led to believe that the tough decision to take those actions was a result of the declining stock market and cheaper foreign labor, which prompted companies to reduce expenses. Ellen Schultz, author of Retirement Heist, reveals that the funds were diminished on corporate expenses like restructuring costs, executive pay and health benefits. In some cases, the assets were even sold in merger and acquisition transactions. As unfortunate as it is, those practices are legal. But most workers don't know about them. Companies say there are disclosures in filings provided to the Securities and Exchange Commission, which are publicly available. Those disclosures are found only in footnotes in small print, according to Schultz. Schultz, a Pulitzer Prize-winning reporter for the Wall Street Journal, says most of the money went toward executive pensions and deferred-compensation packages. Those have become huge obligations as the costs associated with executive benefits have spiraled out of control. Of course, the average worker is left without anything. A rather outlandish example she provides is a practice by which CEOs use life insurance to finance their own pension plans. Here's how it works: A company takes out life insurance on its workers and, as they pass away over time, the proceeds fund executives' fat pensions.

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Retirement Funds Used to Boost Company Profits

ST. LOUIS--(BUSINESS WIRE)--

Americans are more conscious today of where every dollar is spent. And they are responding by cutting simple costs to save for retirement. A new survey from investing company Scottrade, Inc. found that Americans are taking action by comparison shopping, using coupons and generally cutting back on unessential expenses like clothing and entertainment.

“Americans are simply looking for ways to save more and spend less,” said Kim Wells, Scottrade’s executive director of product development and chief marketing officer. “They are feeling a financial pinch in more areas of their daily routine – from filling their gas tanks to heating their homes. These behaviors demonstrate that people are more mindful of their financial situations.”

Uncertainty about future circumstances is compelling nearly all Americans to take action, according to the sixth annual survey of consumer attitudes and behaviors regarding retirement and retirement planning.

In order to reduce their financial concerns this year:

69 percent are spending less, compared to 63 percent in 2011; 67 percent are using coupons, compared to 59 percent in 2011; and 65 percent compare prices to find the best deal, compared to 58 percent in 2011.

“By understanding that they shouldn’t overpay, more Americans are comparing prices to find better deals for themselves,” Wells said. “Our company was founded on the notion that everyone deserves a good value. Scottrade’s award-winning philosophy on fair pricing, and our 32-year history of low commissions and never charging account nuisance fees, gives our clients confidence that they won’t be nickel-and-dimed.”

The survey data indicates Americans’ uncertainty stems from debt. Weighed down by non-mortgage debt, this year more Americans – 40 percent compared to 33 percent in 2011 – reported it caused them to save less for retirement. And the trend is expected to continue with 34 percent stating that non-mortgage debt will cause them to save less for retirement in 2012.

This explains the ‘Do as I say, not as I do’ theme Scottrade’s research uncovered. Only 5 percent of Americans recommend saving 2 percent or less annually for retirement, yet 55 percent of Americans reported saving 2 percent or less in 2011. And the trend of under-saving should continue as 33 percent plan to save 2 percent or less in 2012.

Despite these concerns, the majority of Americans, 72 percent, said they are confident in their own abilities to plan for retirement. Overall 61 percent of respondents expect to be able to completely retire – and not work again – between the ages of 45 and 74. Fifteen percent of the survey’s respondents have already retired, with the majority doing so between the ages of 45 and 74.

About the 2012 Scottrade American Retirement Survey

The survey was commissioned by Scottrade and conducted online by Synovate. Fielded with a nationally representative sample of 1,000 respondents between January 5-9, 2012, the survey examined attitudes, behaviors and trends related to retirement. All participants were at least 18 years of age and were involved in making investment decisions in their households. Margin of error for the overall poll is +/- 3.1 percent at 95 percent confidence. This is the sixth year in a row Scottrade commissioned a survey of Americans’ current viewpoints about retirement and retirement investing.

About Scottrade, Inc.

Investors who enjoy online stock trading will find value and personalized customer service at online investing firm Scottrade, Inc. Founded in 1980, Scottrade enables customers to learn about online trading tools, stock market research and how to buy stocks online, many at just $7 per trade. With more than 500 nationwide branch offices, Scottrade has the largest branch network among online brokerage firms. To learn more about one of FORTUNE magazine’s “100 Best Companies to Work For,” visit about.scottrade.com or http://www.scottrade.com and follow us on Facebook, Twitter, YouTube and Flickr. Member FINRA/SIPC.

Scottrade® and the Scottrade® logo are the registered trademarks of Scottrade, Inc.

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New Research on Retirement Saving: Financial Frugality is Back in Style

TORONTO, ONTARIO--(Marketwire -02/28/12)- As the February 29th deadline approaches to make a contribution to a Registered Retirement Savings Plan (RRSP) and as part of its ongoing commitment to improving financial literacy, BMO Financial Group will be providing daily retirement tips during the month of February from BMO Retirement Institute Head Tina Di Vito's new book 52 Ways To Wreck Your Retirement...And How To Rescue It.

Tip Number 51:

Choose a professional financial advisor to help you meet your retirement savings goals

A comprehensive, integrated retirement plan requires a lot of financial expertise and time. If you feel you have both, then a do-it-yourself approach can work. If you are seeking professional planning and investment advice, then here are the questions you should ask an advisor before deciding to move forward with him/her:

-- What is your strategy for building a retirement plan?
-- What is your area of expertise?
-- What designations or licences do you hold?
-- What other experts do you work with - estate planners, tax experts,
lawyers?
-- How are you paid?
-- Describe your client base - how many clients do you have?
-- How did you attract those clients?
-- How often do you meet face to face with clients?
-- How and how often do you communicate with clients?
-- What is your investment philosophy?

If you are looking for an advisor, ask friends and family how they found their advisors and if they would recommend them. You can also contact your bank or the professional organization that regulates the type of financial professional you are seeking and ask for a list of members located in your area.

For more information on retirement: http://www.bmo.com/retirement.

Get the latest BMO press releases via Twitter by following @BMOmedia.

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BMO Retirement Tip of the Day: Know How to Choose a Financial Advisor

BOSTON (MainStreet) -- Even as baby boomers march into the ranks of the retired, many are behind the ball in preparing for that inevitability. Complicating matters has been a recession, market volatility and staggeringly low interest rates. More than 76 million baby boomers -- nearly 25% of all Americans -- are approaching retirement age in the next 20 years, making the transition from retirement saving to retirement spending. That shift from accumulation mode to a deccumulation phase is proving difficult for many. So much so that a recent survey by Schwab found that one-third of those who say they are just five years away from retirement have not even calculated how much income they will need in retirement. "Flummoxed" is how those same researchers described nearly half of these soon-to-be retirees when it comes to how to invest money for maximized retirement income. The findings may not come as much of a surprise to Carrie Schwab-Pomerantz, Schwab's senior vice president, whose focus on financial literacy issues has given her insight on, and concern about, street-level investing behaviors. The Schwab survey suggests that "while the vast majority of pre-retirees express feelings of optimism about their retirement readiness," their outlook may be either filtered through rose-colored glasses or masking how they really feel. One-third said they have not yet determined their essential living expenses in retirement and 64% say they have less than one year of cash savings available for living expenses during retirement. "A quarter of all Americans are retiring, and yet there hasn't been a lot of thought around decummulaton and maximizing income utilizing your various portfolios and income streams," Schwab-Pomerantz says. "It comes at a time when it's hard enough to save and build that portfolio, one of the most expensive things you'll ever do. There's so many aspects to decummulation, and we found that from our clients that coming up with a drawdown strategy for income was very complicated." "The bottom line is that transitioning into retirement mode is a very emotional time," she adds. "Saving for retirement is something most Americans know they have to do, but many people are confused, scared and literally frozen when it comes to flipping the switch from saving to withdrawing. Our data shows that people even just a year or two away from retirement don't know how to tap their savings effectively once they transition to retirement."

 

Schwab offers the following tips for tackling the need for steady, long-lasting retirement income: Review your situation.
Know how much money you've earmarked for retirement, where you keep it and how much, if anything, you want to leave to heirs. Maintain a year of cash.
Set aside an amount equivalent to what you'll need from your portfolio for at least a year. This is the money you'll use -- along with your regular sources of income -- to cover all expenses throughout the year. "One of the basic principles of finance is that you should have three to six months of cash set aside for your nondiscretionary expenses," Schwab-Pomerantz says. "Given the economy and volatility, it's also a good time to probably have more fixed income, maybe two to four years of liquid assets -- short-term bonds and CDs and so forth -- as part of your asset allocation, so that even if we never have to deal with another year of all-time lows you can weather the storm and not have to sell equities during those all-time lows." "Even somebody who is farther away from retirement should have that emergency fund in case they lose their job or have an illness," she adds. "You don't want to have to spend down any equities you have built up at their lows and you don't have to resort to a short-term loan where you might have to pay very high rates." Consolidate income in a single account.
When possible, you may want to deposit your regular sources of income into the account where you keep your year of cash. Or you might choose a similar type of account where funds can be easily transferred. According to Schwab's survey, 51% of respondents say they have four or more financial accounts, yet two-thirds are not planning to consolidate those into one account from which to withdraw their retirement income. People do have insecurity about placing all their financial eggs in one institution," Schwab-Pomerantz says, and this is particularly true of those with $100,000 or more in investible assets who tend to keep their accounts in multiple places. "The idea of consolidating accounts is so you understand how much you have, or would like to have," she says. "Hopefully you will have some tax-deferred accounts and some non-tax-deferred accounts, so there is a strategy around tax efficiency and growing your income tax deferred for a longer period of time. It's really a matter of simplifying your life so that you can focus on more complex things, like building your assets and finding a tax-efficient source of income." Match your investments to your goals and needs.
As you begin to rely on your investments for income, you may feel most comfortable investing heavily in income-generating bonds and CDs. But to counteract the long-term effects of inflation, you may need to keep a portion of your savings in growth-oriented stocks as well. Cover essentials with predictable income.
Divide your expenses into essential and discretionary categories and cover the essentials with predictable income sources. Don't be afraid to tap into principal. "One of the steps is to sort your expenses between essentials versus non-essentials and then have a draw-down strategy that uses your predictable income to cover for essentials, such as housing and utilities food," Schwab-Pomerantz says. "That predictable income can be interest off a bond or when a bond matures and you know when it's going to come." To supplement your predictable income sources such as dividend and interest income, Social Security, pension payments and rental income, consider drawing money from your retirement portfolio in this order: Start by drawing principal from maturing bonds and CDs; Take your required minimum IRA distribution if you are 70.5 or older; Sell overweighted assets in your taxable accounts; Sell from your tax-advantaged accounts starting with traditional IRAs, then Roth IRAs. "There are strategies to be had," Schwab-Pomerantz says. "If you have a traditional IRA versus a Roth IRA you might do one first versus the other, depending on what your strategy is." Rebalance annually to stay aligned with your goals.
Annual portfolio rebalancing is especially important when you're retired, not just during the accumulation phase. There's less time to recover from the potential losses of lackluster returns caused by a portfolio that has strayed from your chosen asset allocation. Stay flexible and re-evaluate as needed.
Things change. Situations change. Markets change. Priorities change. It's important to periodically revisit your portfolio asset allocation to stay aligned with your broader investment goals. Schwab-Pomerantz stresses that even for those five years away from retirement, there is still time to right their financial ship. "It's not too late," she says. "We are seeing, culturally, that baby boomers don't think of sitting in a rocking chair and knitting. They are thinking of second careers and working part time, still being viable and productive. So, there is time to build income. There is time to balance out that portfolio, get that cash stream up. Also, retirement today could be a 30-year endeavor, and you can do a lot in 30 years." "You don't get a lot of chances to change your retirement outlook," Schwab-Pomerantz adds. "The sooner you can start thinking about it and working on it, the better it will feel and the more choices you will have later in life." -- Written by Joe Mont in Boston. >To contact the writer of this article, click here: Joe Mont. >To follow the writer on Twitter, go to http://twitter.com/josephmont.

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7 Ways to Beat the Retirement Draw-Down Blues

Video Link: https://www.youtube.com/watch?v=HbAK3FSFnsk

26-02-2012 15:40 Bay area legend Too Short joins DJ Skee on Hip Hop Nation's "World Famous Weekends". They discuss his 19th studio album, a collab album with E-40, the evolution of his musical career, and thoughts on retirement from rap. "No Trespassing" album coming Feb. 28th

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Interview: Too $hort talks 'No Trespassing', Musical Career,

NASHVILLE, Tenn.--(BUSINESS WIRE)--

Parallon Business Solutionssm, today announced the retirement of Jim Fitzgerald, president of HealthTrust Purchasing Group® and Parallon’s Supply Chain Solutions business unit, effective May 31, 2012.

During his distinguished career as president of HealthTrust, Fitzgerald oversaw the initial formation of HealthTrust in 1999, its financial and operational functions and managed the contracting for clinical supplies, pharmaceuticals and capital equipment, totaling approximately $20 billion annually. Fitzgerald is a member of the Federation of American Hospitals and serves as a board member of the Tennessee Minority Supplier Development Council. He is a graduate of David Lipscomb University in Nashville, Tenn.

“Jim has made many contributions to the growth and success of HealthTrust and has proven himself to be an outstanding leader within the healthcare arena over the last 31 years,” stated Michael O’Boyle, Parallon’s president and chief executive officer. “I look forward to seeing HealthTrust build on Jim’s good work in the future, and on behalf of all of us at Parallon Business Solutions, I wish Jim a long, healthy and happy retirement.”

Tim Marlette, vice president and chief purchasing officer of Community Health Systems (CHS) and a member of HealthTrust’s Advisory Committee stated, “Jim’s vision for, and leadership of, HealthTrust Purchasing Group has been broad and steady. He has been an innovative leader who has helped us grow as a partnership and build on our collective capability to meet the needs of our patients. He will be missed.”

HealthTrust Advisory Board member and SVP of supply chain management and capital project management for Trinity Health, Lou Fierens expressed his thoughts following the announcement. “Jim has been a wonderful partner. He has had both a clear vision for what HealthTrust could become and the operational acumen to make it happen. We will certainly miss working with him but will certainly carry on his vision.”

Parallon’s O’Boyle added, “As we look forward, I see opportunity for HealthTrust and Parallon’s Supply Chain Solutions business to expand and thrive. As business operators with scale and a track record of success, we are in the position to provide an array of efficient, effective and innovative business solutions to a growing list of customers within the healthcare industry and beyond.”

A national search for Fitzgerald’s successor will be initiated immediately.

ABOUT PARALLON BUSINESS SOLUTIONS

Parallon Business Solutions, LLC, headquartered in Franklin, Tenn., is committed to transforming the business of healthcare. Over the past 12 years, Parallon’s shared services solutions have been developed and proven in 250 hospitals and 2,000 non-acute care providers across the country. Through its four business units, Parallon provides revenue cycle and business process expertise, workforce management solutions, supply chain services and the purchasing power of HealthTrust Purchasing Group, serving 1,400 hospitals and 11,000 non-acute care providers. Operating with a “patients first” philosophy, Parallon has a team of over 21,000 people dedicated to continuous process improvement through practical, impact-oriented solutions. Learn more at http://www.parallon.net.

ABOUT HEALTHTRUST PURCHASING GROUP

HealthTrust Purchasing Group, headquartered in Brentwood, Tenn., is a group purchasing organization (GPO) that supports nearly 1,400 not-for-profit and for-profit acute care facilities, as well as nearly 11,000 ambulatory surgery centers, physician practices and alternate care sites. With an annual purchasing volume by its members of more than $20 billion, HealthTrust is committed to obtaining the best price for clinically recommended products, ensuring their timely delivery, and continuously evaluating and improving its services to the patients, physicians and clinicians it serves. HealthTrust’s Advisory Board is comprised of: Community Health Systems (CHS), LifePoint Hospitals (LPNT), Universal Health Services, Inc. (UHS), Health Management Associates, Inc. (HMA), Catholic Health East (CHE), Trinity Health, Catholic Health Initiatives, (CHI), Hospital Sisters Health System (HSHS), Ministry Health Care, Provena Health, St. John Health System, Sisters of St. Francis Health Services, Inc., Via Christi Health, Inc., Wheaton Franciscan Services, Inc., Consorta and Hospital Corporation of America (HCA). Learn more at http://www.healthtrustpg.com.

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Parallon Business Solutionssm Announces Retirement of Jim Fitzgerald