More than a third (36 per cent) of Canadians aged 18 to 25 have already begun planning and saving for retirement, according to a survey by online real estate investment marketplace Fundscraper Capital Inc.
“It’s well documented that generation Z and younger millennials have had it much harder than previous generations when it comes to career opportunities, earning potential and home affordability,” said Luan Ha, Fundscraper’s chief executive officer, in a press release. “From our research though, it appears generation Z is far more savvy than older generations, planning ahead and starting early in order to make the money they do have work for them.”
Despite the head start, however, almost half (47 per cent) of respondents from generation Z said they’re unsure if they’ll have enough money saved for retirement, while 30 per cent said they won’t have enough and just 23 per cent believed they would. In contrast, half (50 per cent) of respondents aged 55 and up said they expect to have enough put aside, while a quarter (26 per cent) were unsure and 24 per cent believed they’ll fall short.
Additionally, the survey found respondents aged 35 and under are shying away from registered retirement savings plans. Of those who are currently saving, close to half (45 per cent) prefer to do so through a tax-free savings account. Although 39 per cent said they’re taking advantage of RRSPs, the number was well below the national average of 51 per cent. Another 22 per cent said they’re investing their savings into a registered education savings plan and seven per cent noted they aren’t using a savings vehicle at all.
Nonetheless, Canadians are weathering the coronavirus pandemic storm, noted the survey, as two-thirds of all respondents reported they’ve stayed the course on their retirement plans and haven’t made any changes to their savings contributions. This number is only slightly lower (59 per cent) for those aged 35 and under.