Younger Canadians have higher expectations about retirement than older Canadians, according to a poll.
The CIBC poll finds that 30% of respondents between the ages of 18 and 24 say they expect to live better in retirement than they do today, a number that falls to 17% for those who are 25 to 34. And expectations continue to drop with age, with only 3% of those ages 55 to 64 thinking they will live better in retirement than they do now.
Despite their optimism, younger Canadians are less likely to have started saving. Forty percent of 18- to 24-year-olds and 23% of 25- to 34-year-olds say they have not yet started saving for retirement, compared with just 16% of Canadians overall.
The poll results suggest that, although younger Canadians are positive about their future retirement plans, they may be relying too much on time to meet their retirement goals and not taking necessary actions now that could help them realize their goals.
“Time is on the side of younger Canadians who have many years to retirement, but that’s only an advantage if you take action and use those years to start accumulating savings,” says Christina Kramer, CIBC’s executive vice-president, retail and business banking. “While it’s not surprising that younger Canadians are optimistic about how they expect to retire, the fact that so many people nearing retirement aren’t as hopeful speaks to the importance of having a financial plan in place earlier on.”
The poll also revealed that the majority (58%) of Canadians believe it is still possible to put money away each month and retire in their 60s, particularly 18- to 24-year-olds (71%) and, to a similar extent, 25- to 34-year-olds (68%).