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

The anxiety around retirement cuts across generations, with 67 per cent of all respondents saying retirement planning will be more difficult than it was for their parents.

The dream of one day retiring seems elusive for most Canadians but especially, it seems, for millennials, with a new BMO survey showing more than 70 per cent of them worry it’ll be harder to retire than it was for their parents.

The anxiety around retirement cuts across generations, with 67 per cent of all respondents saying retirement planning will be more difficult than it was for their parents. However, this fear was most pronounced among millennials (73 per cent).

Gen X expressed similar anxieties, with 68 per cent saying they will have a harder time setting up retirement than previous generations.

Nearly six in 10 Gen Z (61 per cent) and boomers (60 per cent) felt the same.

A good way to know how much money you’re going to need in retirement is to look at your current lifestyle expenses and slash that to about 70 per cent, financial planner Laura Whiteland said.

“If we said, OK, you could live at 70 per cent of your current lifestyle expenses, that’s generally a good rule of thumb. You’re going to be similarly well off,” she said.

This is partially because in retirement, you cut down on employment-related expenses and are living a generally more tax-efficient life, she said.

However, a one-size-fits-all goal doesn’t work for everyone, said Paul Lalonde, head of wealth planning at BMO Private Wealth Canada.