The pandemic has led to an increased focus on planning and saving, particularly for young people.
According to a survey from Sun Life Financial Inc., 80% of millennials (aged 24–39) and 89% of gen-Z respondents (aged 18–23) now want to protect their financial future more than ever as a direct result of Covid-19.
That compared with only 61% of gen-X respondents (aged 40–55) and 55% of baby boomers (aged 56 and older).
The pandemic has “highlighted the importance of preparing for the unexpected,” said Oricia Smith, president, Sun Life Global Investments, and senior vice-president, investment solutions, Sun Life Canada.
“Generally, the feeling of wanting to save for the future is more prevalent with older generations,” Smith said in a statement. “Due to the pandemic, we’re seeing a shift in priorities.”
While youngsters may be keen on saving, their enthusiasm comes with a hitch: they’re short on cash.
Sixty per cent of millennials and 74% of gen-Z respondents said they have lost income or employment because of the pandemic, which has made saving for the future more difficult.
“Many young Canadians have been directly impacted by job loss and business closures throughout the pandemic,” said a release from Sun Life. “Those who have not been directly affected continue to fear the possibility of loss of income.”
Sun Life commissioned Ispos to conduct an online survey of 1,000 Canadians aged 18 and older from Jan. 21 to Jan. 25, 2021. Online surveys cannot be assigned a margin of error because they do not randomly sample the population.