According to a new study from BMO Financial Group, a majority of Canadians between the ages of 18 and 34 don’t have faith in their ability to save for retirement.
The study reveals that 80% of Canadians in that age group lack confidence in their ability to save for their golden years. Also, 55% said they think they will be either unable or just equally able to achieve their ideal retirement lifestyle, compared with their parents’ ability to do so.
This could be related to the fact that many young people are more concerned about paying down debt than saving for retirement, says Janet Peddigrew, district vice-president, BMO Bank of Montreal. According to the survey, 46% of Canadians between ages 18 and 34 say debt is a primary concern, with just 24% indicating that they are more concerned about retirement savings.
Sources of income
Almost all respondents (94%) say the CPP will play a role in funding for their retirement. Also, 91% expect to rely on their RRSPs. Others think they will get the money from the following sources:
- an employer pension plan (82%);
- retirement income from their spouse (72%);
- other savings (86%); and
- an inheritance (66%).