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- Almost nine-in-ten investors aged 18-34 have an RSP, says TD Waterhouse poll - Less likely to hold company pension plans than their older counterparts - Investors aged 18 - 34 anticipate needing $933,000 to retire comfortably - Six-in-ten Canadian investors made first RSP contribution under age 35 TORONTO, Feb. 25 /CNW/ - When 20-year old Pete Townshend wrote the lyrics "Hope I die before I get old" back in 1965, he was reflecting a common outlook among young people at the time. But times have changed, according to the 2008 TD Waterhouse Investor Poll. Today, 85% of people aged 18-34 hold RSPs, compared with an average of 87% of all age groups. Even more, 89% indicate they have made, or plan to make, an RSP contribution for the 2007 taxation year - the highest percentage of all age categories and considerably higher than the 68% average. Among poll respondents aged 18-34, 89% have made or plan to make an RSP contribution. As well, 60% of all investors made their first contribution under the age of 35 and 43% made it under the age of 30. 27% of investors in the 18-34 age group believe that they will be drawing on their RSP or pension income for 25 or more years, compared with an average of 28% for all age groups. One-quarter of 18-34 year olds (25%) say they will be doing so for 20 to 24 years (28% for all age groups). While investors under age 35 are thinking enough about their retirement to have an RSP and regularly contribute to it, they are not doing much more than that. Only 9% have a formal, written retirement plan - a lower incidence than the already low average for all age groups of 14%. Further, just one-in-five (20%) have tried to calculate how much money they will need in retirement, compared with an average of 31% for all age groups. "It's very encouraging to see that so many people under 35 have RSPs," says Patricia Lovett-Reid, Senior Vice-President, TD Waterhouse. "We're seeing a trend towards young people taking control of their future, saving for retirement, getting into the housing market and so on. I would still like to see them become more involved on the planning side because that is essential to achieving long-term financial goals. But having and contributing regularly to an RSP is a great start." The amount of debt carried by younger Canadian investors (18-34) is an important determinant in their RSP planning. More than half in this age bracket (51%) agree with the statement, "I'll think about investing more when I pay off my outstanding debt." A recent Statistics Canada study found that young families (with heads of the household younger than 35) carry the heaviest debt load among Canadians. Compared to the national median debt of $13.52 for every $100 in assets, Canada's young families owe $39.40 for every $100 they own in assets, a 17-per-cent increase from 1999. "One of the biggest mistakes investors make is thinking that they need to be debt-free before beginning to contribute to an RSP," comments Lovett-Reid, "Clearly this view is prevalent among 18-34 year-olds. With debt loads rising for young families, the risk is that they will wait too long to start investing and miss out on both the tax advantages and compound interest growth. The truth is that there is good debt and bad debt, and ways to carry the first and get rid of the second." Young people are pragmatic about how much money they will need for a comfortable retirement. The average amount given by 18-34 year-olds is $933,000, or 28% more than the average for all age groups ($727,000). However, they are overly optimistic about reaching retirement debt-free, especially if debt loads for young families continue to grow. Three-quarters (75%) of people aged 18-34 currently expect to retire debt-free. "Our data shows that young Canadians get the big picture," concludes Lovett-Reid. "They know they'll likely be funding their own retirement. They know they'll need a large nest-egg, and the great majority have started their RSPs. What's missing from the picture is a professionally developed financial plan that will help them become disciplined and confident investors." The findings are part of an on-line survey conducted by TNS Canada Facts from December 14-27, 2007 with 1,077 Canadian investors across Canada between the ages of 18 and 69. Other poll findings: - Most Canadians of all ages (57%) believe that one should start thinking about investing in an RSP before age 35. For those actually under that age, 65% believe this to be true. - Investors aged 18-34 expect a 7.1% rate of return from their investments in 2008, below the average of an 8% ROR expectation for all age groups. Respondents aged 50-64 have the highest ROR expectation - 8.9% - The propensity to think about the process involved in drawing on pension and investments once retired increases with age. Only 23% of investors aged 18-34 have thought about it. By age 50-69, 59% of those not yet retired have done so. The average for non-retirees of all age groups is 41%. - 38% of Canadians aged 18-34 have company pension plans compared with an average of 47% for all age groups. About TNS TNS is one of the world's leading market information groups, providing market measurement, analysis and insight through its operating companies in 70 countries. Working with national and multi-national organizations, we help our clients develop effective business strategies and enhance relationships with their customers. In Canada, TNS Canadian Facts provides full-service, primary market research. Its mission is to become clients' sixth sense of business(TM) by giving them a deeper understanding of their customers' behaviour, better anticipation of their actions and greater insight into what they really want. About TD Bank Financial Group The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Financial Group. TD Bank Financial Group serves more than 14 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking through TD Banknorth; and Wholesale Banking, including TD Securities. TD Bank Financial Group also ranks among the world's leading on-line financial services firms, with more than 4.5 million on-line customers. TD Bank Financial Group had CDN$422 billion in assets as of October 31, 2007. The Toronto-Dominion Bank trades on the Toronto and New York Stock Exchanges under the symbol "TD", as well as on the Tokyo Stock Exchange. For further information: Stephen Ledgley, NATIONAL Public Relations, (416) 848-1376,

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