-   Many Canadians too cautious about retirement saving: TD Waterhouse
        Investor Poll
    -   35% of respondents say they will think more about investing when
        they earn more or pay off debt
    -   26% say high expenses and debts as primary obstacles to saving for
        retirement
    -   The antidote? Don't think you have to be debt-free before starting a
        retirement plan

    TORONTO, Feb. 7 /CNW/ - It's a familiar story. According to Statistics
Canada's latest data, almost 86% of tax-filers were eligible to contribute to
an RSP for the 2005 tax year, yet less than a third of this group made
contributions. About 93% of the total contribution room available to Canadian
tax-filers was left unused.
    These statistics square up with the findings of the TD Waterhouse Investor
Poll, which probed the attitudes and behaviours of investors across the
country. Specifically:

    -   35% of poll respondents say they will think more about investing
        when they start to earn more or pay off their debt.
    -   27% say it is more important to take care of their immediate needs
        than invest for their future.
    -   26% blame high expenses and debts as the primary obstacle to saving
        for retirement; 23% blame insufficient take home pay.
    -   Only 32% of poll respondents contribute the maximum amount available
        to them.

    Not surprisingly, more investors this year (34%) believe they will have
to work past retirement out of necessity than last year (28%).
    With Canadian household debt increasing, the question of whether to pay
down debt or invest for the future is on more people's minds. According to
Statistics Canada, Canadians had debts estimated at $760 billion in 2005,
nearly 1.5 times higher than in 1999. Between 1999 and 2005, the median debt
load for families rose 38% from $32,300 to $44,500.
    "Paying down debt is important, but many people pursue it single-mindedly
to the detriment of other critical financial goals, such as saving for a
secure retirement," says Patricia Lovett-Reid, Senior Vice President, TD
Waterhouse Canada Inc. "This kind of linear thinking can be a dangerous trap
for investors. In some cases, it may be better to take a balanced approach."

    Mr. Tortoise vs. Ms. Hare

    To illustrate how a more balanced approach to debt reduction and
retirement savings can benefit the investor, TD Waterhouse looks at two fabled
characters: Mr. Tortoise and Ms. Hare. Both are 30 years old, have identical
incomes, mortgages and consumer loans of $12,000 at an interest rate of 12%.
In fact, they are the same in every respect except for their attitudes towards
debt and investments.
    Ms. Hare hates to be in debt. She has set a goal of paying off her loan
in two years. Therefore her monthly payment will be $565.07 and her total
borrowing cost will be $1,561.68. She won't contribute to her RSP until this
goal is accomplished, and figures she will still have 33 years to save for
retirement at age 65. At the end of the two-year term on her loan, she will
begin monthly RSP contributions of $298.05, which she will continue until
retirement at age 65.
    Mr. Tortoise has decided to put off being debt-free longer in order to
start on his RSP immediately. He will take a five-year term on his loan. His
monthly payment will be $267.02 and his total borrowing cost will be
$4,021.20. Mr. Tortoise will invest $298.05 per month - the difference between
his loan payment and Ms. Hare's - in his RSP until retirement at 65. He will
have a two-year head-start on his monthly RSP contributions and will benefit
from two additional years of tax benefits and refunds from his RSP
contribution compared with Ms. Hare.
    Paying off her loan three years sooner than Mr. Tortoise saves Ms. Hare
$2,459.52 in total borrowing costs, but what will be the size of her
retirement nest-egg at age 65 compared to that of Mr. Tortoise? Assuming they
both earn a steady 7% annually on their RSP portfolios for their entire
investment period, Ms. Hare will have accumulated $425,377.29 in her RSP and
Mr. Tortoise will have $494,418.02 - a difference of $69,040.73.
    "Ms. Hare may have $2,459.52 more in her pocket because of her aggressive
loan repayment schedule, but she's clearly behind Mr. Tortoise at the finish
line - just like in the fable," continues Lovett-Reid. "In the long run, it
simply doesn't pay to put off contributing to your RSP."
    "Looking at the bigger picture, Canadians are living longer after
retirement. By 2020, there will be only three working Canadians for every
retiree, compared with today's ratio of five to one," concludes Lovett-Reid.
"The risk of retirees outliving their retirement nest-eggs is substantial. Yet
only 7% of the RSP contribution room available to eligible Canadian tax-filers
was used in the 2005 tax year. This is a significant and growing issue for the
well-being not only of the next generation of retirees, but for the future
workforce who will have to support them in retirement."

    About TNS Canadian Facts

    TD Waterhouse's sixth consecutive annual poll was conducted by
Toronto-based research firm TNS Canadian Facts. They conducted telephone
interviews with 1000 randomly selected Canadians across Canada who hold
investments products either inside or outside of a registered savings plan.
The interviews were conducted between October 18 and November 2, 2006.
Respondents were between the ages of 18 and 69. The total sample data is
accurate to +/-3.1 percentage points, 19 times out of 20.

    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; Wholesale Banking, including TD Securities; and
U.S. Personal and Commercial Banking through TD Banknorth. 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$392.9 billion in assets, as of October 31, 2006. The Toronto-Dominion Bank
trades on the Toronto and New York Stock Exchanges under the symbol "TD".

For further information: Stephen Ledgley, NATIONAL Public Relations,
(416)848-1376, sledgley@national.ca; Lisa Hodgins, TD Bank Financial Group,
(416) 983-2982, lisa.hodgins@td.com