70% of millennials don’t save enough for retirement

Nearly half of Canadian millennials (49%) say the cost of living is their biggest obstacle to saving for retirement

MISSISSAUGA, HON, November 16, 2022 /PRNewswire/ – Edward Jones Canada has released a new study examining retirement savings habits. Research has found that millennials (ages 26-41) are more likely than other generations to be off track when it comes to saving for retirement. In fact, 70% of respondents in this cohort are not saving enough for retirement, while 27% cannot afford to.

While all Canadians are feeling the effects of prolonged economic volatility, with half (52%) saying the cost of living is the biggest hurdle affecting their ability to save enough for retirement, millennials are more likely than to other generational cohorts to cite their debts (21 percent), work and employment situation (13 percent), and lifestyle (9 percent) as the most significant barriers.

“We continue to see a decline in defined benefit pensions offered by employers, and as a result, saving for retirement has become a personal responsibility for Canadians,” he said. Julia Petrara, Senior Strategist, Client Needs at Edward Jones Canada. “This is a challenge, especially for millennials who are going through multiple hurdles impacting their ability to save for retirement. Having a financial strategy in place that helps them overcome these hurdles to put them on track and keep them on track is very important. ”

Millennials usher in a new approach to personal finance

Millennials are far more likely to agree that saving for retirement is a lower priority than other financial goals, like paying down debt, buying a home, or starting a family. In fact, 66% of millennials agree they prioritize other financial goals, compared to 46% of Generation X (ages 42-57) and 40% of Boomers (ages 58-67).

This short-term approach to financial priorities is a long-term strategy for most millennials, who are also more likely than other generational cohorts to delay retirement in favor of their lifestyles. Nearly three-quarters of millennials (72%) agree they would delay retirement if it meant maintaining their ideal lifestyle before retirement. Despite this, 38% of millennials say they would rather retire before age 65.

According to another recent study conducted by Edward Jones in collaboration with Age Wave, this approach can be consequential. As the life expectancy in Canada continues to increase, respondents said their ideal retirement length is 27 years. With nearly three decades of retirement to spare, those retiring or nearing retirement admitted they started saving for this new chapter of life at the average age of 37, but wish they had started nearly a decade earlier (28 years). .

Once retired, Millennials are more likely than other generational cohorts to enjoy being active in retirement rather than using it as a time for rest and relaxation. However, they are much less interested in paid work (22%) than those over 55 (45%). Older Canadians (55+) are also more likely to want to devote their time to volunteering in some way (26%), while millennials are more likely to volunteer their money to support friends or family in need (25%) .

While there are generational trends shifting the retirement landscape, and they will likely continue to evolve, the desire for peace of mind remains a constant for Canadians, with two-thirds of Canadians (63%) saying they either don’t or don’t want to worry less about their finances in retirement.

“The data points to generational shifts in values ​​and priorities when it comes to retirement, which are influenced by many different factors such as the changing economic environment that affects our daily lives,” Petrera said. “When, where and how younger cohorts retire have changed, and therefore a traditional approach to saving for retirement may not work for them. As personal finance continues to evolve, your financial strategy should reflect what matters most. more for you. It’s that simple.”

The data referenced comes from an online survey conducted with 1,022 Canadian adults, 18 years of age and older. The polls were conducted by Pollara Insights on October 25, 2022. A representative sample of this size would be considered accurate to within ±3.1%, 19 times out of 20. Results were weighted using the latest data from StatsCan to be representative of the Canada population as a whole.

About Edward Jones Canada

Edward Jones is a full-service investment retailer providing a range of investment products, services and solutions to retail investors. We have nearly 850 financial advisors serving clients in Canadian communities from coast to coast. A member of the investment industry regulatory organization of Canada and the Canadian Investor Protection Fund, the firm is also a participating organization on the Toronto Stock Exchange. Edward Jones is a proud supporter of health and wellness industry partners such as The Terry Fox Foundation, whose mission supports initiatives that positively impact cancer research. For more information, visit edwardjones.ca.

SOURCE Edward Jones

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See original content: http://www.newswire.ca/en/releases/archive/November2022/16/c6878.html

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