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Two-thirds of working Canadians say their physical health is better than their financial health

Canadians have established regular patterns of physical activity, but are less proactive with their financial fitness

Winnipeg, MB - January 3, 2007: New research released today by Investors Group shows that non-retired Canadians overwhelmingly say their physical health is better than their financial health (67 per cent) – and many may be relying on continued good health to enable them to keep working during their retirement years.

From ‘no-carb' diets to the increasing demand for herbal medications and natural products, Canadians' desire for a healthier lifestyle is manifesting itself in most aspects of daily life. Food companies and restaurants are stepping up health and nutrition initiatives to meet consumer demand for healthier products. And, in addition to eating well, 7 in 10 Canadians claim they have established a regular pattern of physical activity, according to the Canadian Fitness and Lifestyle Research Institute.

But less than 5 in 10 are proactive with their financial fitness - only 46 per cent of Canadians consult an advisor for help with managing their finances, according to the national poll conducted for Investors Group by Decima Research.

“ Canadians are increasingly focused on improving their physical fitness, but it is equally important to establish healthy habits to ensure sound financial fitness,” said Debbie Ammeter, Investors Group's Vice President of Advanced Financial Planning Support. “Physical health and financial health are not mutually exclusive – both are essential to longevity and a prosperous future.”

Canadians counting on good health to work in retirement

Many Canadians may be counting on their good physical health to support their intention to work in retirement. The poll found that 58 per cent of all working Canadians plan to do some sort of paid work in retirement, while only 23 per cent of current retirees surveyed did the same after they retired. Canadians in the “baby-boom” generation have the strongest intentions to remain in the workforce, with 65 percent of respondents in the 45-64 age group saying they plan to do some sort of work in retirement.

But working Canadians may want to pay mind to the lessons learned by retired Canadians. While only 8 per cent of non-retired Canadians say they have a health condition that might prompt them to retire earlier than they would prefer, 21 per cent of retired Canadians said they encountered a health condition that required them to retire early.

“As we age, health and other complications can come into play. It is critical to remember that you may not be able to work as long as you hope or plan to,” cautioned Ammeter.

Working in retirement about more than money

The majority of working Canadians (56 per cent) agreed that they think they would not have enough money to live on if they stop working entirely, but maintaining social connections and gaining new experiences also appear to be on the minds of Canadians as they envision their retirement lifestyle. Thirty per cent of survey respondents said the opportunity to maintain connections with other people was a benefit of working in retirement.

The research showed interesting gender differences: Men are more likely to say the satisfaction of making a contribution/having something to do is the greatest benefit of working in retirement (46% vs. 26% of women), while women are more driven by the desire for social connection to continue working in retirement (37% vs. 26% of men). Women were also more likely to say money is an important motivator for working in retirement (34% vs. 28% of men). In addition, women are more likely to say their physical health is better than their financial health (70% vs. 64% of men).

“While work in retirement is certainly a great way to maintain and enhance social connections, we prefer the decision to be a choice rather than a necessity. Having a financial plan for retirement can help ease the pressure as well as help make choices that best suit each individual,” added Ammeter.

Planning for the money you want

The research found that the higher their household income, the more likely Canadians are to work with a financial advisor. “Professional financial advice is not something reserved for the wealthy,” advised Ammeter. “You do not just use an advisor to manage the money you've got; you work with an advisor to plan for the money you want.”

The research confirmed that financial planning isn't being done until late in the game. While Canadians on average say they think they'll retire at age 61, forty-two per cent of retired respondents say they did not start thinking seriously about retirement until after age 50. “But late is better than never,” added Ammeter. “There are still important decisions to be made that will benefit from advice – decisions around pensions and accessing retirement income in a tax effective way, for example.”

And it appears the proof is in the pudding. Research shows advisors are seen to be adding tremendous value – 76 per cent of those who are not retired and 80 per cent of those who are retired said working with an advisor has helped them be more prepared for a comfortable retirement.

Government programs more important for retirees

When it comes to funding their retirement, Canadians are overwhelmingly counting on RRSPs and government pensions as a source of income, but those currently in retirement are counting more on government programs. Canadians are also relying on employer-sponsored pensions, but many are lacking knowledge about their plans. Of those with a plan, 51 per cent of non-retired and 45 per cent of retired respondents did not know if their plan was defined benefit or defined contribution.

“Now more than ever, Canadians are charged with being engineers of their own long-term financial security,” said Ammeter. “Professional advice and advance preparation for retirement are key.”

The Decima data were gathered between October 20th and October 30th, 2006, through Decima eVox, the company's large national online panel. Results are based on a sample of 2,170 Canadians and the corresponding margin of error is 2.2%, 19 times out of 20.

Investors Group, founded in 1926, is a national leader in delivering personalized financial solutions to Canadians through a network of over 3800 Consultants located throughout Canada. In addition to an exclusive family of mutual funds and other investment vehicles, Investors Group offers a wide range of insurance, securities, mortgage and banking services. Investors Group is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada 's premier financial services companies with over $116 billion in total assets under management as of November 30th, 2006.

For more information contact:
Ron Arnst
Media Relations
(204) 956-3364
ron.arnst@investorsgroup.com		 Laura Vallis
Environics Communications
(416) 969-2781
lvallis@environicspr.com