A group of Canadians say they are more than half a million dollars short of their individual retirement savings goal.
The sandwich generation—those ages 45 to 64 who are caring both for their aging parents and for their own children—has saved just $258,000, which is $560,000 less than what they feel they need to have for retirement, according to a BMO Nesbitt Burns study.
On a regional basis, the average amount Canadians think they need to save to have an ideal retirement lifestyle varies by province. Quebecers think they need to save an average of $447,000, while British Columbians say they’ll require $1,131,000.
And the amount Canadians have saved for retirement varies by region. Atlantic Canadians have saved the least amount for retirement ($166,000), while Albertans have saved the most ($491,000).
Fifty-five percent of the sandwich generation are currently caring for their children, aging relatives or both. And almost one-third are currently taking care of a parent or older relative.
Thirty-nine percent of this cohort are concerned that being in the situation of caring for others will impact their ability to meet key financial goals, including saving for retirement.
“There’s a sense among those in the sandwich generation that they’re getting squeezed and are being forced to balance a plethora of financial priorities, from paying down their mortgage to saving for their child’s education, to saving for retirement,” says Sylvain Brisebois, regional manager with BMO Nesbitt Burns.
The stress that comes with caring for children and aging relatives, balancing a career and generally keeping up with daily tasks can make it hard to focus on the future and saving for retirement, he adds.
The study also finds that 76% of the sandwich generation feel that the stress of everyday living—such as working, taking care of family, paying household bills, helping older relatives, etc.—is having an impact on their ability to meet long-term financial goals.
“This cohort grew up generally doing things much on their own. Much of what they have accomplished—getting an education, building their career, buying their first house—was done without the help of others,” Brisebois explains. “However, it’s clear they need assistance when planning and prioritizing finances for the future.”
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