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Millennials are more likely to be behind on saving for retirement, according to a survey by Edward Jones Canada.
In a survey released Wednesday, it found 70 per cent of Canadians aged 26 to 41 are not saving enough for their golden years, while 27 per cent can’t afford to save anything for retirement.
Millennials also cited debt obligations (21 per cent), their employment situation (13 per cent) and lifestyle (nine per cent), as other top factors holding them back on putting away money for retirement.
“The data points to generational shifts in values and priorities when it comes to retirement, which are impacted by many different factors such as the evolving economic environment that impacts our day-to-day lives,” Julie Petrera, senior strategist of client needs at Edward Jones Canada, said in a press release.
PRIORITIZING FINANCIAL GOALS
The report found about two-thirds of millennials (66 per cent) think saving for retirement isn’t as important as other financial goals like paying off debt, buying a house or starting a family.
In comparison, only 46 per cent of generation X respondents (aged 42 to 57) shared this sentiment, along with 40 per cent of the baby boom generation (aged 58 to 67).
Petrera said a major factor that’s impacting millennials’ retirement savings is the decline of defined-benefit pensions offered by employers.
As a result, she said many Canadians in this cohort are being forced to take their savings into their own hands.
“This is a challenge, especially for millennials who are navigating multiple obstacles that impact their ability to save for their retirement,” Petrera said.
“Having a financial strategy in place that helps them overcome those obstacles to get them on track and keep them on track is so important.”
This data was collected from1,022 adult Canadians, 18 years of age of older. The online surveys were conducted by Pollara Insights on October 25, 2022. A representative sample of this size would be considered accurate to within ±3.1 per cent, 19 times out of 20.