If you’re a millennial, chances are you’ve thought about whether you’re putting enough money away to eventually retire comfortably.
And while saving for the future might be on your mind, actually finding the money to do so is another story.
According to Haventree Bank’s recent Millennial Money Report, just 42 per cent are able to put money away every paycheque, while eight per cent don’t contribute to savings or investments at all.
A total of 1,000 Canadians aged 30 to 45 were surveyed by Angus Reid about their financial habits, including how much they save, where they keep their money, and when they expect to retire.
The report found that 30 per cent of millennials save no more than $2,000 annually, while 16 per cent manage to put away between $5,000 and $9,999. Just 22 per cent are able to save more than $10,000 a year, a notable achievement given the rising cost of living.
The report also states that 15 per cent of young Canadians say they’re unable to invest, and 10 per cent are unable to save any money.
What’s holding them back from planning for their futures?
More than half (55 per cent) of respondents cited a lack of disposable income as their biggest obstacle to saving more. Another 16 per cent pointed to debt.
It also seems to matter where Canadians live.
As Daily Hive previously reported, more than 60 per cent of Alberta millennials admitted they’re saving less than $5,000 annually. Meanwhile, 24 per cent don’t think they’ll ever be able to fully retire, putting Alberta among the provinces with the highest share of people who feel that way.
In B.C., 23 per cent of millennials said they don’t believe they’ll ever be able to retire.
Just 46 per cent of B.C. respondents said they expect to be financially ready to retire by age 65, while 32 per cent said they’re simply trying to cover their current costs, leaving little room for long-term financial planning.
There’s also a noticeable gender divide when it comes to saving.
The report found that men (48 per cent) are more likely to save money every paycheque than women (38 per cent).
The gap is even wider when it comes to how much they’re saving. A quarter of men (25 per cent) save $10,000 or more annually, compared with 19 per cent of women.
Women are also more likely to not invest at all. Nearly one in five (19 per cent) said they can’t currently invest, almost double the proportion of men (10 per cent).
These findings echo wider concerns about Canadians’ financial well-being. A separate report from Willful recently found that 40 per cent of Canadians feel they’re worse off financially than they were a year ago.
At the end of the day, millennials understand the importance of saving for the future. The challenge lies in finding enough money left over — after paying rent or mortgage and other important monthly bills — to actually make those retirement dreams a reality.