Canada's retirees rate themselves as the best budgeters in the country - and think others could learn to watch their monthly budgets more closely

TORONTO, July 20, 2011 /CNW/ - Canada's retirees lead the country when it comes to their ability to manage their day to day budget so far in 2011, according to a recent CIBC poll conducted by Harris-Decima. With so many Canadians looking ahead to retirement and working to build their savings, many could take a lesson from Canadians who are already enjoying retirement - set a budget, and stick to it.

The poll revealed that 43 per cent of retirees feel they are doing a very good job when it comes to managing their budget and their day to day expenses, well above the rest of Canada at 25 per cent.

Retirees also "walk the talk" when it comes to budgeting, with 67 per cent saying they have a budget in place that they use to track and manage their spending each month, significantly above the rest of Canada at 60 per cent.

In earlier CIBC research released in January 2011, retired Canadians identified budget management as their top financial priority for this year. Their progress so far in 2011 suggests their focus in this area is paying off.

"Many retired Canadians have managed their money successfully through different economic environments over the years, and their strong focus on budget management is clearly one of the keys to that success," commented Christina Kramer, Executive Vice President of Retail Distribution and Channel Strategy for CIBC. "Success in budgeting is particularly important to retired Canadians, who are more likely to be working with a fixed income each month to allocate towards daily living expenses and one time costs such as travel or unexpected costs."

Drawing on their experience in saving for retirement and managing their budget carefully, Canadian retirees see room for improvement in their fellow Canadians when it comes to financial management:

• Only 14 per cent of retirees felt the rest of the country was doing a good job when it came to managing their day to day budget
• 13 per cent of retirees felt the rest of the country was making good progress on building savings

"Canadians who have already retired are uniquely positioned to better understand the value of building your savings over time and carefully managing the money you have to provide an income later in life," added Ms. Kramer.  "From their perspective, they see an opportunity for the rest of Canada to keep a closer eye on their monthly budget and ensure they are making progress on building their savings."

Despite their positive views on their budgeting abilities, the poll identified that Canadian retirees could visit their advisor more often to help keep their retirement income on track. Only 56 per cent of retired Canadians say they've met with an advisor in the last year.

"Once you've retired, it may be tempting to feel that the heavy lifting is done financially and that you are beyond the need for financial advice, but active management of investments is even more important once you have shifted into retirement to ensure they provide the income necessary to maintain the lifestyle you want," noted Ms. Kramer. "An advisor can work with you to ensure your current level of savings and expenses are sustainable to help you enjoy your retirement."

In the survey, 65 per cent of those who identified themselves as retired were 65 or over, with another 26 per cent between the ages of 55-64.

To brush up on their budgeting, Canadians can leverage a number of tips and strategies:

Meet with a Financial Advisor - Talking to a CIBC Financial Advisor will help you determine if you are on the right track towards meeting your financial goals.  You can work with an advisor to look at costs such as the interest you are paying on your mortgage or other debts, and build a plan to pay those down. This can improve cash flow within your monthly budget, and reduce interest costs.

Build in automatic savings - Research shows that establishing a regular savings plan where you put money away every month is a key to building savings for the long term, and helps you feel more positive about reaching your goals.  A financial advisor can help you establish a regular savings plan in an amount that supports your long term financial goals.

Managing and Tracking Spending - Free services like CIBC CreditSmart can help Canadians stick to their budget. Free to CIBC Visa credit card holders, CIBC CreditSmart allows clients to set a budget limit on each spending category on their credit card, and be notified by phone, email or online message when they exceed their customized budget.

Staying on Top of your Chequing Account - CIBC Mobile Banking allows you to stay on top of your account balance anywhere, anytime. You can check your balance and monitor your daily spending using your smartphone. You can also make transfers to your savings account, or send and receive Interac Email Money Transfers.

Data Highlights:

Retired Canadians assessment of their management of their day to day budget thus far in 2011:

Very Good - 43%
Good - 30%
Fair - 17%
Poor - 6%
Very Poor - 2%

Percentage of retired Canadians who have a monthly budget in place that they track each month:

Atl. - 66%
Que. - 71%
Ont. - 67%
Man./Sask.- 64%
Alb. - 69%
B.C. - 58%

Percentage of retired Canadians who have consulted with a Financial Advisor in the last 12 months, regionally:

Atl. - 49%
Que. - 49%
Ont. - 64%
Man./Sask.- 48%
Alb. - 57%
B.C. - 54%

Each week, Harris/Decima interviews just over 1000 Canadians through teleVox, the company's national telephone omnibus survey. These data were gathered in a sample of 660 retired Canadians between May 26 and June 5, 2011. A sample of this size has a margin of error of +/-3.8%, 19 times out of 20.

CIBC (CM: TSX;NYSE) is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.