(rick/Flickr)

Canadian millennials expect to live better than parents in retirement: study

Study questions ‘unrealistic expectations’ of young Canadians

An new study released Monday shows a disconnect between millennials’ financial realities and retirement expectations.

The study, conducted by Angus Reid Institute, finds one-in-three Canadians (32 per cent) have put off saving for retirement because of their debt. Millions more – especially those under the age of 40 – have put off buying a home (18 per cent), getting married (8 per cent), having children (7 per cent) or moving out of their parents’ homes (5 per cent).

Millennial Money: Don’t let Instagram envy get you into debt

Despite relatively few young Canadians reporting job stability or having more than $25,000 saved, they seem to be looking toward retirement with surprising optimism, the study found.

Young people are more likely to view their debt as significant and – though they mostly feel this debt is manageable – more than four-in-ten Canadians ages 26-37 say they have put off saving for retirement because of it.

At the same time, on average the youngest Canadians expect to retire earlier and live better in retirement compared to their elders.

Roughly one-third of older Canadians expect to struggle to make ends meet during retirement, and anticipate relying on funds from the government or work pensions.

Meanwhile, younger Canadians are more likely to expect to use personal retirement savings to do everything they want after concluding their careers.

“How young Canadians plan to achieve this expected level of comfort in retirement is an open question,” the study said.

Overall, the study found more than three-quarters of Canadians are carrying debt.

For every dollar of disposable income, Canadians reported owing about $1.78 to creditors, for a collective total of more than $2 trillion.

The study suggests this debt is causing notable financial strain for more than four-in-ten people in the country.

Just 12 per cent of Canadians said they have an amount in the bank that meets or exceeds their personal goal.



karissa.gall@blackpress.ca

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Left, Rowena Leivo early on in her volunteer career with the South Surrey/White Rock Food Bank. Right, Leivo in the food bank Tuesday. (Contributed photos)
After 34 years, ‘The Boss’ retires from South Surrey Food Bank volunteer gig

Rowena Leivo, 90, spent a third of her life volunteering at the food bank

Do you have someone you would like to thank? Or maybe something to get off your chest? Email your rose or rotten tomato to edit@surreynowleader.com.
Roses and Rotten Tomatoes (Oct. 22, 2020)

Our weekly collection of compliments and complaints sent in by readers

Surrey RCMP cruisers outside a Newton townhouse Tuesday night. (Photo: Shane MacKichan)
UPDATE: Toddler in hospital, woman dead following stabbings at Surrey townhouse

Police say two-year-old was among victims found at townhouse complex in the 12700-block of 66 Avenue

A reminder to students at Surrey’s Strawberry Hill Elementary to physically distance during the COVID-19 pandemic. (Photo: Lauren Collins)
Diamond School in Surrey reporting COVID-19 exposure

INTERACTIVE TABLE: Search for schools, organize by exposure dates

Matthew Campbell, director of the Fraser Valley Regional Food Bank, stands amongst a large amount of non-perishable food and household items being stored inside the Pacific Community Church. This year’s ‘Halloween For Hunger’ food drive, put on by students at Clayton Heights, will go to benefit the Fraser Valley Regional Food Bank. (Photo: Malin Jordan)
Clayton Heights Secondary kicks off annual ‘Halloween for Hunger’ event

Students to collect much-needed items for food bank

Provincial health officer Dr. Bonnie Henry presents modelling of COVID-19 spread in B.C., March 25, 2020. (B.C. government photo)
B.C. sets another COVID-19 record with 203 new cases

up to 1,766 active cases in B.C., two more deaths

RCMP. (Phil McLachlan - Black Press Media)
British Columbia man dies during ski trip near glacier west of Calgary

Kananaskis Public Safety and Alpine Helicopters responded around 2:30 p.m.

Prime Minister Justin Trudeau arrives on Parliament Hill in Ottawa on Monday, Oct. 19, 2020, following a week-long break for the House of Commons. THE CANADIAN PRESS/Sean Kilpatrick
One crisis after another for Trudeau since last federal election one year ago

It has been a year of unprecedented calamity and crisis

Rio Tinto Alcan’s aluminum smelter at Kitimat competes against producers in the Middle East and Russia that have no carbon tax. (Rio Tinto)
B.C. carbon tax highest in Canada, export industries unprotected

B.C. NDP, B.C. Liberals say they’re looking at exemptions

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

In this file photo, snow is seen falling along the Coquihalla Highway. (Liam Harrap/Revelstoke Review)
Weather statement issued for Coquihalla, Hwy 3, as arctic front approaches

The early season snowfall expected to hit Fraser Valley, Friday, Oct. 23

(Pixabay)
Vancouver teacher suspended after swearing, touching students and complimenting underwear

McCabe touched students, including rubbing their backs and necks, touching their hair and hugging them

The website Chigoby is among eight scam online retailers that have been identified by the Better Business Bureau. The site was fraudulently using an Abbotsford residential address, but has since switched to one in Poland.
8 scam online-shopping websites fraudulently use Abbotsford address

Better Business Bureau says victims lost hundreds for non-existent or poor-quality products

Most Read