A new RBC poll suggests that while both younger and older Canadians worry about balancing savings goals, younger Canadians struggle more with putting a plan in place.
Royal Bank (TSX:RY) surveyed Canadians aged 18 to 34 and those aged 55 to 69 about their retirement planning ahead of the busy RRSP season.
More than 70% of respondents from both groups say they worry about balancing saving for immediate priorities with putting money aside for retirement.
However, while six-in-10 younger Canadians say they don’t have a plan, about the same number of older respondents said they’ve already got a roadmap in place.
More than half of baby boomers say they had a plan written down, compared with just over one-quarter of younger Canadians.
The banks says around 43% of younger Canadians now have registered retirement savings plans, while 69% of boomers have 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,” said Jason Round, head of financial planning support for RBC Financial Planning.
“Retirement seems like a very remote concept when you’re just beginning your career, buying a home or starting a family.”
The survey was conducted among 1,224 Canadians by Ipsos Reid between Oct. 24 and Nov. 15. It has a margin of error of plus or minus three per cent, 19 times out of 20.
There have been many surveys, reports and warning signs recently that have suggested Canadians, especially those close to retirement, have either not saved enough, are still in debt, or are being forced to work longer.
Banks and other financial institutions are ramping up their surveys on retirement issues ahead of a Feb. 29 deadline for RRSP contributions.