Many Canadians in the sandwich generation (those aged 45 to 64) are more than $500,000 short of their retirement savings goals, says a new BMO Nesbitt Burns study.
The study is the second in an annual series that’s examining the retirement readiness of a specific generation. Last year’s study examined Baby Boomers (those born between 1945 and 1964) and found, on average, they’re more than $400,000 short of their ideal retirement savings goals.
Read: Pre-retirement clients may need reality check
According to this year’s study, more than half (55%) of the sandwich generation are currently caring for their children at the same time as they’re caring for their aging relatives. As a result, 39% are worried they won’t meet their future financial goals.
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“Those in the sandwich generation [say] they’re getting squeezed [between] paying down their mortgages, saving for their children’s educations [and] saving for retirement,” among other responsibilities, says Sylvain Brisebois, regional manager at BMO Nesbitt Burns.
Read: Boomers worry about outliving savings
One of the main problems, adds the study, is about 40% of investors in the sandwich generation lack financial plans.
Regional breakdown of results
Region | Average amount needed for ideal retirement lifestyle | Average amount currently saved for retirement | Average gap between amount saved & amount needed for retirement | % caring for children, aging relative or both | % who say stress is impacting long-term saving |
National | $818,000 | $258,000 | ($560,000) | 55 | 76 |
Atlantic | $839,000 | $166,000 | ($673,000) | 64 | 83 |
Quebec | $447,000 | $180,000 | ($267,000) | 47 | 64 |
Ontario | $876,000 | $227,000 | ($649,000) | 61 | 82 |
Prairies | $581,000 | $247,000 | ($334,000) | 51 | 77 |
Alberta | $970,000 | $491,000 | ($479,000) | 53 | 72 |
B.C. | $1,131,000 | $317,000 | ($814,000) | 56 | 77 |
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