According to a recent survey, Millennial workers estimate they will need around $2.1 million for retirement, more than the Canadian average of $1.7 million.
That's what we learn from BMO Financial Group's annual survey released Wednesday, which finds a majority of Canadians say economic conditions are having a negative impact on their ability to save for retirement.
The inflationary context and rising interest rates have weighed heavily on Canadian workers, with 63% of them saying that the current economic situation is having a negative impact on their ability to save.
According to the BMO survey, 62% of Canadians have already contributed or plan to contribute to their Registered Retirement Savings Plan (RRSP) account, while the average expected contribution amount increased from $5,753 in 2022 to $6,512 in 2023 is.
On the other hand, despite this increase in RRSP contributions, compared to the high levels of the previous two years, average savings fell from $144,613 in 2022 to $113,070 in 2023, a decrease of 28%.
The survey highlights the gender gap, as men estimated they needed an average of $2 million for retirement, compared to women whose need was estimated at $1.3 million.
While 37% of Canadians say they are spending less money on retirement savings, almost as many (38%) of Generation Z respondents have chosen to delay retirement planning, according to the institution's financial survey.
“There is no one-size-fits-all retirement plan or number for how much Canadians should save for retirement,” said Nicole Ow, head of personal investing at BMO.
“We encourage people to start planning early and consider all factors that impact their ideal retirement lifestyle, including family responsibilities, health and wellness goals,” she said. She added.