While Canadians, on average, believe they need $1.7 million in retirement, this amount varies among different generations of employees, according to a new survey by the Bank of Montreal.
The survey, which polled roughly 1,500 Canadians, found millennials believe they need the most money to retire ($2.1 million), followed by generation Z ($1.6 million), generation X and baby boomers ($1.3 million each). On average, men said they need $2 million and women said they need $1.3 million.
Read: Just 69% of Canadians confident in their retirement prospects: survey
Nearly two-thirds (63 per cent) of all respondents said current economic conditions are negatively affecting their ability to save for retirement. Roughly two-fifths (37 per cent) said they’re putting less money towards retirement savings. Notably, 44 per cent of baby boomers said they’re compensating for their reduced ability to save for retirement by working longer than they had planned and 38 per cent of gen-Zers said they’re putting off saving for retirement completely.
Two-thirds (67 per cent) of men said they’re confident they’ll have enough money to retire as planned, while 56 per cent of women said they’re confident they’ll be able to reach their retirement goals.
While the survey found Canadians, on average, plan to retire at age 62, respondents indicated the ideal retirement age is 55, which decreased among millennials (age 53) and gen Z (age 50).
Read: How employers can shift younger workers’ ‘soft saving’ mentality to focus on retirement planning
Meanwhile, a separate survey of 2,000 Canadians by the Royal Bank of Canada found millennials and gen-Xers are similarly concerned about saving for retirement (85 per cent and 82 per cent, respectively) and their financial future (49 per cent and 54 per cent, respectively).
A comfortable retirement was the No. 1 financial goal among millennials (46 per cent) and gen-Xers (56 per cent), followed by building a financial safety net (45 per cent and 44 per cent, respectively), building wealth (42 per cent and 34 per cent) and providing financial stability for their family.
The survey also noted employer-sponsored pension plans were the most popular savings vehicle among millennials (25 per cent) and gen-Xers (26 per cent).
Read: Gen Z workers want to retire at 61, but 99% facing obstacles to saving for retirement: survey