More than two-thirds (70 per cent) of millennials say they aren’t saving enough for retirement, while 27 per cent aren’t able to save any money, according to a new survey by Edward Jones Canada.
The survey, which polled more than 1,000 employees aged 18 and older, found millennials were most likely to cite debt (21 per cent), employment situation (13 per cent) and lifestyle (9 per cent) as their most significant obstacles to retirement savings. Among all respondents, the current cost of living (52 per cent) was the top factor impacting retirement.
Read: Half of U.S. employees say they’ve stopped or reduced retirement savings amid rising inflation: survey
Two-thirds (66 per cent) of millennials agreed they’re prioritizing other financial goals — such as paying down debt, buying a home or starting a family — over retirement, compared to 46 per cent of generation X and 40 per cent of baby boomers.
And while nearly three-quarters (72 per cent) of millennials said they’d delay their retirement if it meant maintaining their ideal pre-retirement lifestyle, 38 per cent said they want to retire before age 65.
“We continue to see a decline in defined benefit pensions offered by employers and saving for retirement has become a self-responsibility for Canadians as a result,” said Julie Petrera, senior strategist for client needs at Edward Jones Canada, in a press release. “This is a challenge, especially for millennials who are navigating multiple obstacles that impact their ability to save for their retirement. Having a financial strategy in place that helps them overcome those obstacles to get them on track and keep them on track is so important.”
Read: 58% of Canadian pre-retirees contributing to retirement savings: survey