Canadians are starting retirement planning as soon as their 20s. Here’s why
Global News
On average, Canadians start planning their retirement at age 30, with plans to retire at 61, a new survey by CIBC released on Wednesday shows.
Canadians are starting early when it comes to planning for a major life milestone: retirement.
On average, Canadians start planning their retirement at age 30, with plans to retire at 61, a new survey by CIBC released on Wednesday shows.
Many are starting early because of a “growing awareness” about the importance of long-term planning, said Jamie Golombek, managing director of tax and estate planning at CIBC.
“Factors such as rising cost of living, inflation and student debt have prompted many to start thinking about retirement savings earlier than previous generations,” Golombek said.
While the average Gen X Canadian started saving for retirement when they turned 30 and the average boomer started when they turned 33, younger Canadians are starting a lot earlier.
While millennials on average start saving at age 29, for Gen Z, it starts as early as age 24, CIBC data shows.
Starting early can have many advantages, including allowing Canadians to benefit from compound growth, Golombek said.
This can give them “more flexibility and peace of mind as they move through life’s stages,” he said.
