Sisi Chan

Millennials are worried about retirement. Is it too late to start saving?

Dream of Retirement Among Canadians: According to a BMO survey, retirement seems elusive for most millennials. Over 70% express constant worry about their future post-working years, a concern echoed by other generations as well.

Gen X and Gen Z’s Anxiety: Retirement anxieties aren’t exclusive to millennials. Gen X, Gen Z, and even Boomers register substantial percentage rates of the same concerns, underlining the universal need for effective retirement planning.

Retirement Planning Advice: Financial planner Laura Whiteland suggests managing current lifestyle expenses to secure future finances. Similarly, Paul Lalonde highlights the significance of individual goals and objectives in retirement planning.

Smaller Retirement Nest Egg and Early Planning: Experts emphasize the need for early retirement planning. Since a comfortable retirement depends on lifestyle, costs, and income sources, starting early becomes crucial.

The Importance of Saving Habits: Embracing the golden rule of ‘paying oneself first’ and a regular saving habit is advocated as a crucial step towards effective retirement planning. Lalonde suggests a disciplined approach to cultivate the habit of saving.

Retirement Saving Strategies: Experts recommend using RRSP and TFSA along with FHSA to begin saving for retirement and a first home. They explain the differing purposes of RRSP and TFSA, facilitating informed financial decision-making.

Retirement Planning Tools: Choices made at present significantly affect future finances for Gen X homeowners, as asserted by McCabe. Prioritizing account types based on income and the benefits of contributing to RRSP and TFSA are discussed to help make informed decisions.

Conclusion: Concluding on a reassuring note, Whiteland advises against panic over retirement planning. The key lies in starting early and strategizing wisely for a secure future.