Wednesday, November 25, 2009, 1:29PM ET - Canadian Markets close in 2 hours and 31 minutes.
As more and more boomers edge closer to retirement, one bank's retirement group is turning how it views retirement planning on its head.
With the demise of mandatory retirement, fewer corporate pension plans and longer life expectancies, BMO Retirement Market Group says the traditional approach to retirement planning puts the cart before the horse.
"Retirement planning has traditionally been focused on the means to an end rather than the end itself," says Tina Di Vito, the group's director of retirement solutions.
"However, without a clear picture of one's particular retirement outlook -- from work and leisure to health and family -- the dollars alone lack the full context," she says.
Think of it in terms of planning for a family holiday -- you pick a destination first, then you start saving for it.
"Retirement planning shouldn't establish a target financial sum without a clear picture of how the client intends to live in retirement," says Di Vito.
To that end, BMO has developed a guidebook called Define Your Path. It was created to help boomers perceive retirement planning in an entirely new light -- from an activity focused almost exclusively on accumulated savings to a process that integrates personal, philosophical and health issues into the equation.
The book helps the user to create a life map of goals by exploring such questions as:
* With whom will I spend my time?
* How will I spend my time?
* What do I value most?
* Do I still want to work part-time?
* What will I do in my leisure time?
* How will I manage my health and wellness and that of my family?
The map also helps users consider contingencies for managing those unexpected events that could derail a financial plan, such as caring for an ill loved one or dealing with a change in a significant relationship.
"This is a starting point," says Di Vito. "Sure, some of us have a plan -- a very sound and well thought out plan. But for those of use who don't, it's a chance to stop for a moment and put the dollar questions aside and talk about what you want to accomplish in retirement."
For an abbreviated version of the guidebook, go to www.retirementyourway.com.
Rates provided by 
| Mortgages Type | Rate |
|---|---|
| 1-yr Closed | 3.54% |
| 3-yr Closed | 4.15% |
| 5-yr Closed | 4.97% |
| GICs Type | Rate |
|---|---|
| 1-yr Annual | 0.95% |
| 3-yr Annual | 2.12% |
| 5-yr Annual | 2.77% |
| RRSP Type | Rate |
|---|---|
| 1-yr | 0.94% |
| 3-yr | 2.09% |
| 5-yr | 2.75% |
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