Canadian xennials, those aged 34 to 40, are finding that the pressing expenses of daily life are getting in the way of saving for retirement, according to a new survey by TD Canada Trust.
The survey polled Canadians of all ages, including this micro generation between generation X and millennials. It found that 74 per cent of xennials feel this way, while 70 per cent feel overwhelmed by trying to juggle saving for retirement with more immediate financial concerns such as monthly bills, paying off credit cards and other personal debt, mortgage payments, childcare, home maintenance and student debt.
“We can all have the best of intentions when it comes to preparing for retirement, but then life gets in the way and we start to feel the retirement savings squeeze,” said Jennifer Diplock, associate vice-president of personal savings and investing at TD Canada Trust, in a news release. “Monthly bills fall due or we are faced with a loan repayment, and that can mean we end up contributing less than we should towards our retirement.”
When asked whether they agree they’re too young to think about saving for retirement, the survey found a notable shift between those aged 18 and 34 (42 per cent) and those aged 34 to 40 (16 per cent).
While many respondents said they’re not able to contribute the amount they would prefer to a retirement savings plan, 77 per cent of xennials said they plan to boost their contributions in the coming five years, the survey found.
But half of xennials describe themselves as feeling uncertain (52 per cent) or unprepared (49 per cent) for their retirement. The survey also indicates that the stresses felt by this age group are reflective of the experience of other Canadians. For instance, while three in five (60 per cent) xennials point to the savings barrier of monthly bills, 62 per cent of Canadians of all age groups share this concern.
“The reality is that we all have to juggle our financial commitments to find the right balance when it comes to preparing for retirement,” said Diplock. “There are simple steps we can take to ease the retirement savings squeeze.”
Read: Majority of Canadians worried about level of retirement savings: survey