Canadians (aged 18 to 54) are concerned that their ability to save for retirement will be impaired both by saving for their children’s education (48%) and by taking care of their aging parents (36%), according to the 23rd Annual RBC RRSP Poll.
Despite the potential strain of these family priorities on their retirement savings, more than half (57%) of Canadians aged 18 to 54 say their parents’ retirement experience has shaped their expectations of retirement.
“While Canadians may see their parents’ retirement experience as a model for what to expect, the reality is that their retirement may not be the same, particularly if they are part of the sandwich generation with both aging parents and school age children,” says Amalia Costa, head, retirement strategies, RBC.
“Canadians know that juggling competing financial priorities creates enormous strain on both time and money. A financial advisor can make it easier to develop a retirement plan to balance your financial commitments and family life.”
Retirement will likely look different for the next generation of retirees, as employer-sponsored pension plans become more rare. The RBC poll found that one-quarter (26%) of Canadians (aged 18 to 54) expect a pension income from an employer to be their primary source of income in retirement and, similarly, fewer than one-in-five (18%) of them have a defined benefit pension plan.
The 23rd Annual RBC RRSP poll was conducted by Ipsos Reid between Oct. 24 and Nov. 27, 2012 via a random sample of 1,225 Canadian adults in the general population (aged 18 and over). A weighted sample of the same size has a margin of error of ±3%, 19 times out of 20.