Retirement? In this economy? How young Canadians can save amid high inflation

The stresses of inflation and stock market downturns have young Canadians feeling exasperated about retiring one day. Here's how you can start saving now.

Twenty-four-year-old Jason Francone has always been pretty good with his money.

“Coupons are my middle name; sales are in my DNA,” he says.

It’s not just the art of bargain-hunting that he’s mastered, though. Francone has also been saving in other ways and working to build wealth since he was a teenager.

But soaring inflation, a hot housing market, interest rate hikes, and a struggling stock market, in combination with his bouncing around from one landscaping job to the next for the last few years, have left Francone nervous about his long-term financial goals, like retirement.

“Inflation and other economic pressures have definitely been a very big burden and a distraction to my savings,” he says.

Francone said his ability to save for retirement is going to be a significant concern until he finds a more stable job. In the meantime, he has stopped monthly deposits going into his savings and investment accounts to help ease some of his financial worries.

Even though it may seem years away, saving for retirement is a top priority among 26 per cent of Canadians aged 18 to 34, a recent survey from the Healthcare of Ontario Pension Plan (HOOPP) found. However, 79 per cent of respondents in that age group say saving for retirement is prohibitively expensive, with 35 per cent yet to save anything for retirement and 37 per cent saying they haven’t saved anything for it in the past year.

Personal finance experts believe the current economic climate will likely cause many young adults financial pain regardless of how careful they’ve been with their money, but won’t necessarily derail their path to retirement altogether.