OTTAWA, May 19 /CNW/ - The rapidly rising cost of post-secondary is
preventing many low-income families from saving for retirement,
according to a study released today by Statistics Canada.
"Record high tuition fees are forcing families to choose between the
educational aspirations of their children and saving for retirement,"
said David Molenhuis, National Chairperson of the Canadian Federation
of Students. "Forcing families to choose between education for their
children and retirement security is unfair and threatens Canada's
future economic prosperity."
Nearly 80 percent of families from the highest income quintile report
saving for both retirement and their children's post-secondary
education. This number plummets to just 20 percent for the lowest
quintile, according to the report. Conversely, while only five percent
of the highest income families saved for post-secondary education and
not retirement, this number grew to 26 percent for the lowest earners -
more than the number that saves for retirement only (21 percent) or
both (14 percent).
The study also found that the higher the level of tuition fees, the more
families saved, demonstrating that Canadians are highly aware of the
costs of higher education. Across the country, Canadians believe that
an education after high school was important or very important, but
savings were correlated directly with the cost of tuition fees and
"Canadians know the costs of post-secondary education and save what they
can," added Molenhuis. "The problem for low-income families is not a
lack of financial knowledge, but rather insufficient resources to
The Canadian Federation of Students is Canada's largest student
organisation, uniting more than one-half million students in all ten
provinces. The Canadian Federation of Students and its predecessor
organisations have represented students in Canada since 1927.
SOURCE Canadian Federation of Students
For further information:
David Molenhuis, National Chairperson: (613) 232-7394