A CIBC poll conducted by Nielsen finds that Canadians aged 18-24 are 10 times more likely to be optimistic that they will live better in retirement than people aged 55-64.
The poll found that Canadians’ expectations fall dramatically the older you are.
Thirty per cent of Canadians aged 18-24 say they expect to live better in retirement than they do today, a number that falls to 17 per cent for 25-34 year olds.
Expectations continue to drop with age, with only three per cent of those aged 55-64 — the age group who either are close to or retiring from their jobs — thinking they will live better in retirement than they do now.
Despite their optimism, younger Canadians are less likely to have started saving. Forty per cent of 18-24 year olds, and 23 per cent of 25-34 year olds, say they have not yet started saving for retirement, compared to just 16 per cent of Canadians overall.
The poll results suggest that although younger Canadians are positive about their future retirement plans, they may be relying too much on time to meet their retirement goals and not taking necessary actions now that could help them realize their goals.
“Time is on the side of younger Canadians who have many years to retirement, but that’s only an advantage if you take action and use those years to start accumulating savings,” says Christina Kramer, executive vice president, retail and business banking, CIBC.
“While it’s not surprising that younger Canadians are optimistic about how they expect to retire, the fact that so many people nearing retirement aren’t as hopeful speaks to the importance of having a financial plan in place earlier on.”
The poll also revealed that the majority of Canadians (58 per cent) believe it is still possible to put money away each month and retire in their 60s, particularly 18-24 year olds (71 per cent), and to a similar extent, 25-34 year olds (68 per cent).