Despite the decades between them, the attitudes of both young and old Canadians towards retirement and financial priorities are strikingly similar, according to RBC’s 22nd Annual RRSP Poll.
The majority of Canadians aged 18-34 (82%) and 55-69 (91%) said that if they run out of savings in retirement, the notion that they could rely on their families to take care of them held little appeal.
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Perhaps not surprisingly, there remains a gap between these age groups when it comes to financial planning. Six-in-ten young Canadians have no plan at all for retirement, compared to the 59% of older Canadians who do.
Of the 40% of the younger generation who said they had a plan, these plans are only in their heads. This is only the case with 21% of boomers.
In addition, more than half (52%) of boomers report that have they fully fleshed out and recorded plans, while only 28% of younger Canadians can admit to the same.
“We always advise our clients to have a written plan, as this allows them to map out their progress and then take action,” says Jason Round, head of financial planning support, RBC Financial Planning.
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As the annual RRSP contribution deadline approaches, making plans for the future is more top of mind for both younger and older Canadians, but those aged 18-34 still trail boomers in RRSP ownership and contribution rates.
Less than half (43%) of younger Canadians now hold RRSPs, well behind the 69% of boomers with RRSPs.
“We know it’s difficult for younger Canadians to think about a time when they will stop working and they’ll be looking to their RRSPs for income,” noted Round. “Retirement seems like a very remote concept when you’re just beginning your career, buying a home or starting a family. What both younger and older Canadians can visualize, however, is a future they hope to enjoy on their own terms.”