Majority of Canadian boomers sitting on the sidelines when it comes to their investments

- The long anticipated summer months are here, and as the boomer generation approaches retirement, many are looking forward to the time when summer vacation becomes their year-long reality. However, the majority may be putting their retirement goals and dreams at risk.  According to the TD Investor Sentiment Survey, which polled Canadian investors aged 45 to 64, two-thirds admit they are investing less than they did before the 2008 economic downturn.

Why are Canadians on the sidelines?

Reasons that boomers are reducing their investment activity in the last few years include having less money to invest (49%) and being discouraged by market volatility (27%). Twenty-four percent are putting spare funds towards other financial obligations instead of their retirement savings.

"It's not surprising that many Canadians nearing retirement are focusing on other financial obligations such as paying down debt, taking care of elderly parents and paying for their children's expenses including education," says Carrie Russell, Senior Vice President, TD Canada Trust. "However, the choice shouldn't be one or the other. Even a small contribution goes a long way towards meeting financial goals."

What would make Canadian boomers more comfortable about investing?

Canadian boomers are taking a balanced approach to investing, with more than half following this strategy. Four-in-ten are taking a conservative approach, and only 7% are using an aggressive strategy.

For boomers who are investing less than a few years ago, two-thirds say investment products with a guaranteed return would make them feel more comfortable (65%), followed by a minimal risk of losing their initial investment (50%), low or no fees (38%) and an investment with a good track record (33%).

"There are a lot of investment options out there," adds Thomas Dyck, President, TD Mutual Funds. "If you're sitting on the sidelines you could be losing valuable time to grow your savings. A financial advisor can help you find investments that address your concerns, for example, a professionally managed mutual fund, or products that offer principal protection. It's important to align your savings goals and the type of investment required to get there."

Invest in your retirement

Russell and Dyck offer the following advice for Canadian boomers sitting on the sidelines on how to get back on track this summer to meet their goals:

• Look for investment options that offer a low minimum investment. You don't need a lot to get back into the market.
• Put away a little money each month with a pre-authorized purchase plan.  This will allow you to automatically invest a set amount at regular intervals and the money will automatically come out of your bank account.
• Investing doesn't have to be risky. Look for investments that match the level of risk you're comfortable with.
• Speak with a financial advisor at your local bank to map out or review your investment goals and build a plan to achieve them. No matter how close or far away retirement is for you, it's important to take control of your investments and have a plan in place.

How would Canadian boomers invest an extra $1,000?

If they had an extra $1,000, most Canadians know how they would invest it. One-third would choose an investment with a guaranteed return (37%) or one with a track record of good returns (31%).  Twenty-three percent would turn to their financial advisor for a recommendation before deciding. Nineteen percent would select one with low or no fees, and 15% would select one that is professionally managed.

What would you do with an extra $1,000 this summer? Would you invest the money, go on vacation, pay down debt? Join the Twitter discussion with @TD_Canada on June 21. Search for #TD$1000.

About the TD Investor Sentiment Survey

The results for the TD Investor Sentiment Survey were collected through a custom, online survey conducted by Environics Research Group from May 18 - 25, 2011. A total of 1,000 surveys were completed by investors aged 45-64.