Millennials are more confident about affording “ideal” retirement.
TORONTO — Millennials are more optimistic about their ability to afford their ideal retirement lifestyle than boomers, according to a study by the BMO Financial Group.
BMO’s Registered Retirement Savings Plan (RRSP) study compared how Millennials (aged 18-34) and Boomers (aged 50-68) feel about retirement from both a financial and psychological perspective. It shows that 47% of the youngsters are optimistic compared to just one-third (35%) of Boomers.
Millennials say they would need more than $400,000 (average) saved to live their ideal retirement lifestyle. This is $60,000 more than Boomers feel they need.
So far the younger cohort reports an average of $15,194 saved as RRSPs. Boomers have $65,394 saved.
The top worry for both Millennials (40%) and Boomers (44%) is not having enough saved to do all the things they want to do.
Other worries include:
• Declining physical abilities and mobility (38% Millennials; 43% Boomers).
• Poor health and/or the prospect of dying (38% Millennials; 24% Boomers).
• Spending more money than they had planned (27% Millennials; 22% Boomers).
• Being bored (29% Millennials; 19% Boomers).
The survey was conducted by Pollara with an online sample of 1,303 Canadians, including 803 non-retirees aged 18-64 and 500 retirees of any age.