Poll reveals most British Columbians envision saving enough money to choose their retirement date, however optimism fades as retirement approaches

VANCOUVER, Oct. 6, 2011 /CNW/ - British Columbians anticipate saving enough to retire at age 64, and most see themselves entering retirement without debt according to a new CIBC (TSX: CM) (NYSE: CM) poll conducted by Harris/Decima. However, the results also show that as British Columbia residents draw closer to retirement they become less optimistic about reaching their savings goals and see it as more likely they'll carry at least some debt into retirement.

Findings of the poll include:

• On average, B.C. respondents believe they will retire at age 64
• When asked why they would ultimately retire, the most popular answer among British Columbians was that they will have saved enough money to choose to retire (40 per cent),
• 32 per cent of B.C. residents believe they will carry some debt into retirement, while among the rest of Canadians, only 22 per cent believe they will carry debt into retirement.  However past CIBC research shows that among retired Canadians, 54 per cent hold some form of debt

"Our CIBC Poll shows that British Columbians set out with a vision of building up their savings and eliminating debt to retire at a time of their choosing, but with each passing year they feel less optimistic about their plans," said Christina Kramer, Executive Vice-President, Retail Distribution and Channel Strategy, CIBC. "These findings demonstrate the importance of having a plan in place and making progress towards your goals every year, to give you the flexibility to make choices about when and how you retire."

A key finding of the poll is that as B.C. residents near retirement, their optimism in reaching their savings goals for retirement drops:

• For example, 49 per cent of B.C. respondents aged 18-44 feel they will be able to choose to retire based on the savings they will accumulate over their working life
• However, for British Columbia boomers (aged 45-64) that number drops to just 32 per cent.

"As British Columbians get closer to retirement, many are finding they have not achieved the retirement savings goals they set for themselves, which could lead to B.C. residents either working longer than they anticipated, or making adjustments to their retirement such as reducing expenses to stretch their income further," added Ms. Kramer.

Nationally, Canadians also see their debt being repaid by the time they retire, but as retirement draws closer this also is viewed as less likely:

• For example, only 15 per cent of those in the 25-34 age group believe they'll carry any debt into retirement
• That number doubles to 31 per cent for those 55-64 years of age.

Past CIBC polls show that residents of British Columbia believe they will be debt free by age 58, but many don't reach this target. As debt is carried closer to British Columbians' target retirement age of 64 outlined in this poll, it can restrict the cash flow available for savings and may lead to B.C. residents missing the savings goals they have set for themselves.

"Your finances are all connected, meaning the more effective you are at debt management, the more funds you have available to accelerate savings for retirement," commented Ms. Kramer. "Sitting down with an advisor to map out a strategy that addresses both your savings and debt management plans is an integral step to achieving your long term savings goals and enjoying the retirement you want."

ADDITONAL DATA

Average age at which Canadians expect to retire:

National Average - Age 63
Atlantic Canada - Age 62
Quebec - Age 62
Ontario - Age 63
Manitoba/Saskatchewan - Age 63
Alberta - Age 62
BC - Age 64

Percentage of Canadians by age who believe the main reason they will retire is that they will have saved enough money to do so:

Age 18-24 - 50 per cent
Age 25-34 - 43 per cent
Age 35-44 - 37 per cent
Age 45-54 - 35 per cent
Age 55-64 - 21 per cent

Percentage of Canadians by age who expect to carry some debt into their eventual retirement:

Age 18-24 - 13 per cent
Age 25-34 - 15 per cent
Age 35-44 - 24 per cent
Age 45-54 - 26 per cent
Age 55-64 - 31 per cent

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 1,116 employed Canadians and 683 retired Canadians between September 8^th and 19^th, 2011, among which a total of 148 employed British Columbians were surveyed.  A sample of this size has a margin of error of +/-2.9%, 3.7%, and 8.1% respectively, 19 times out of 20.

CIBC 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.