Just one-half of young workers are saving for retirement: Poll

18 to 34 year olds more focused on debt repayment and buying homes than RRSPs
|hrreporter.com|Last Updated: 02/11/2011

Many young workers haven't begun taking steps to save for retirement, according to an RBC survey.

The poll, now in its 21st year and conducted by Ipsos Reid, found 45 per cent of Canadians in the 18- to 34-year-old age bracket haven't set aside money for retirement.

And just 39 per cent of this age group has a registered retirement savings plan (RRSP), a five-percentage point drop from 2009 and the lowest percentage in nearly 10 years.

But overall, the number of Canadian adults with plans rose to 61 per cent, from 54 per cent in 2009.

On a list of financial priorities, young Canadians placed retirement savings seventh, at 26 per cent, found the poll.

Their top concerns were making regular debt repayments, at 56 per cent, saving for a rainy day, at 45 per cent, and buying a home, at 44 per cent.

However, younger Canadians with an RRSP are active savers, found the poll. This group is most likely to maximize their contributions, with a third saying they will take full advantage of the plan this year.

About 35 per cent of Canadians say they make regular weekly or bi-weekly contributions to their RRSPs, with the younger generation making up almost half of this group.

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