More than half (59 per cent) of generation Z workers and a third (31 per cent) of millennials say they have yet to start saving for retirement, according to a new survey by IG Wealth Management.
The survey, which polled more than 1,500 Canadian workers, found 63 per cent of respondents believe $1 million in savings is enough to retire comfortably. A third (33 per cent) said they don’t know what percentage of their current income they’d need to cover expenses in retirement.
More than two-fifths (44 per cent) said they can retire comfortably as long as they’ve saved enough through a registered retirement savings plan. And two-thirds of respondents reported concerns over the impact of a possible recession on their financial situation and expected their cost of living will be higher in retirement than it currently is.
“The amount one needs to retire comfortably will depend on a variety of factors,” said Christine Van Cauwenberghe, head of financial planning at IG Wealth Management, in a press release. “Unfortunately, people are often misguided by outdated information and may not be getting the full retirement planning help they deserve. With lifestyle expenses and the added concerns surrounding the impact of inflation on financial plans, particularly retirement, Canadians need an individualized retirement plan to determine the number that will meet their unique needs.”