Young Canadians want to save for retirement despite high cost of living: survey

A survey by the Healthcare of Ontario Pension Plan found that 51 per cent of Canadians under 35 said they would forego a job with higher pay for a better pension.

Despite the high cost of living making it harder to set aside money after expenses, a recent survey indicates Gen Z and millennial Canadians still want to start saving for retirement.

And even with the Bank of Canada’s most recent announcement on Sept. 6 stating it was holding its key interest rate steady at 5.0 per cent, financial pressures haven’t subsided after previous multiple hikes.

The Healthcare of Ontario Pension Plan survey, commissioned by Abacus Data, also indicates Canadians under 35 recognize the value of a workplace pension plan to prepare for their golden years — with 51 per cent stating they’d forego a job with higher pay for a better pension.

“If you’re under the age of 35, people say, ‘Oh, you’ve got 30+ years before you’ve really got to worry about retirement.’ But we know that particularly those that don’t have a workplace pension, they’re going to have to figure this out on their own. And that means starting as soon as they possibly can,” said Abacus Data chair and CEO David Coletto.

Coletto also said while this survey is conducted annually with similar results, what surprises him is that even with high-priced housing, inflation, and previous interest hikes, this remains the case.

The survey also reveals 51 per cent of respondents under 35 say they’re living beyond their means — and it’s not by choice. Within this, 69 per cent of Canadians under 35 say they’re most concerned about daily living costs, 67 per cent say their main concern is inflation, and 65 per cent indicate their biggest worry is housing affordability.

But to save is to have money left over to put aside. These hurdles are where the challenge lies for many, including for Halton, Ont., millennial father, Owen Devine, who participates in a workplace Registered Retirement Savings Plan (RRSP) matching program.

“I’m not putting away as much as I should,” he said. “Maybe if you cobble together, like all of the employer matching for myself and my wife and whatever projected living expenses will be at retirement, we’re probably hitting that goal.”