Nearly a quarter of B.C. millennials don't think retirement is an option
A new report reveals a significant portion of B.C. millennials are concerned about their ability to retire.
Haventree Bank, in partnership with Angus Reid, asked 1,000 Canadians between the ages of 30 and 45 how they handle their money, sending Daily Hive the B.C. breakdown.
It revealed that 23 per cent of B.C. millennials who responded said they don’t believe they will ever be able to fully retire.
Just 46 per cent of B.C. respondents said they “expect to be financially ready to retire by 65.” Thirty-two per cent reported that “they’re just trying to cover costs, with long-term planning off the table.”
“Retirement is the main reason millennials save, but the timeline is stretching,” reads the press release from Haventree Bank.
“Early financial independence also appears less within reach for older millennials, who are less likely to name early financial independence as their main reason for saving and more likely to expect to be ready to retire after 65.”
Another survey from BMO found B.C. residents believe they will need $2.2 million to retire — the highest in the country. Similarly to Haventree, BMO also found that 36 per cent didn’t think they would reach their retirement goals.
But many B.C. millennials are saving and investing
Still, many B.C. millennials are putting money aside, with 58 per cent reporting that they contribute to savings or investments at least once per month, and 30 per cent with each paycheque.
The report found that 18 per cent of B.C. millennials are saving $20,000 or more a year, far above the national number of 10 per cent. Further, 19 per cent of B.C. respondents said they are investing $20,000 or more per year, compared with 12 per cent nationally.
“The findings paint a picture of a generation that understands the importance of planning ahead. Yet despite these consistent saving habits, many millennials remain concerned about their long-term financial future, particularly when it comes to retirement,” reads the report from Haventree.
Despite the significant number of B.C. millennials who are saving a substantial amount each year, there’s also a significant number who aren’t able to do so: 30 per cent of B.C. millennials reported saving less than $2,000 per year, as well as investing less than $2,000 per year.
“Millennials are making informed financial decisions,” said Haventree’s CEO, Fern Glowinsky, in the report. “What’s holding them back isn’t knowledge or willpower. It’s how much is left at the end of the month.”