Retirement planning is a crucial aspect of financial well-being, yet a recent survey by Edward Jones Canada reveals that many Canadians, particularly younger generations, face significant barriers to saving for their ideal retirement.

The Retirement Readiness Gap

While 26% of Canadians report being on track with their retirement savings and facing no significant obstacles, this confidence is notably lower among younger generations. Only 15% of millennials and a mere 10% of generation Z feel they are on track, highlighting a concerning gap in retirement preparedness.

Among the challenges cited by younger Canadians, 14% of millennials and 15% of generation Z struggle with knowing how to start saving, while 15% of millennials and 21% of generation Z feel that retirement is too far off to prioritize planning. This delay in early financial planning can have long-term consequences, making it crucial to educate and empower younger individuals to take action now.

Different Priorities: Women vs. Men

The survey also highlights gender differences in retirement priorities. Women are slightly more likely to prioritize affording health-care costs (85% compared to 80% of men) and pursuing personal goals (76% vs. 71%). Meanwhile, men are somewhat more likely to focus on supporting dependents (55% vs. 48% of women). These findings underscore the importance of personalized retirement strategies that align with individual goals and responsibilities.

Financial Resilience: A Common Goal

Despite the challenges, Canadians recognize the importance of financial resilience in retirement. A significant 84% of respondents said they consider inflation and cost-of-living adjustments when planning for retirement, and the same percentage aim to maintain their current lifestyle post-retirement. This suggests that while barriers exist, there is a strong awareness of the need for long-term financial security.

How Are Canadians Saving?

One of the most striking findings from the survey is that 20% of Canadians do not have a specific strategy for retirement savings. Instead, 51% rely on their income and budget to determine contributions, while only 22% seek advice from financial advisors. Given the complexity of retirement planning, working with a financial expert can provide tailored strategies to maximize savings and investment opportunities.

The Importance of a Solid Retirement Plan

With inflation, economic uncertainties, and shifting job markets, having a well-structured retirement plan is more important than ever. Whether you’re just starting your career or nearing retirement, taking proactive steps today can help secure a financially stable future.

At Butterfly Benefits, we help individuals and businesses design comprehensive benefit plans that support long-term financial wellness. From retirement savings strategies to health and wellness benefits, we ensure our clients are equipped for a secure future. Contact us today to learn how we can help you plan for retirement with confidence.