TD survey finds that 78 per cent of Millennials are not saving for retirement because they
don't earn enough
TORONTO, Nov. 25, 2015 /CNW/ - According to a recent TD survey, younger
Canadians have big dreams for their retirement years - whether it's
travelling, buying a vacation property or starting a business - but
most recognize they're not saving enough to turn those dreams into
While more than half of Millennials (57 per cent) surveyed would ideally
like to retire by the time they turn 60, only a quarter (27 per cent)
think that's a realistic possibility, with most (70 per cent) expecting
to have to work well into their 60s or even their 70s, according to a
recent TD survey. The survey also found nearly 60 per cent of
Millennials want to take their first big trip when they're retired, and
Millennials are more likely than any other age group to want to buy
their first vacation home after retiring (25 per cent vs. the national
average of 13 per cent, respectively).
"It's important to start saving as early as possible to help ensure you
can retire when you want and be able to live the lifestyle you've
planned," said Lee Bennett, Senior Vice President, TD Wealth Financial
Planning. "Whatever your retirement goals may be, start by putting each
of them in order of importance and assigning a timeframe, which will
help you build a savings plan. Think of what you'd regret most if you
couldn't afford it when you retire and build a road map that will help
get you there."
The survey notes Canadians under the age of 34 are the least likely to
be thinking about or putting money aside for retirement, with just over
half (52 per cent) surveyed making contributions to their retirement
savings, compared with more than two-thirds (69 per cent) of those aged
34 to 50 and 64 per cent of those in their 50s and 60s.
Linda MacKay, Senior Vice President, Retail Savings and Investing at TD
Canada Trust, adds that Millennial Canadians are the most likely to say
they're not saving for retirement because they don't earn enough or
because they're saving for other, more immediate, things. She notes
that with a little bit of know-how they can start building up a
"Some employers may offer a form of employer-matching of contributions
to a personal retirement savings plan, and younger workers should be
taking full advantage of these programs as they are among the best ways
to save for retirement," said MacKay. "Canadians should also consider
setting up an automated savings plan to regularly transfer funds into
retirement savings accounts. A few dollars on a regular basis can
quickly add up to a nice sum of money down the road."
According to the TD survey, more than one-third (36 per cent) of
Millennials don't know whether their employer offers to match employee
contributions to an RSP. And where companies do offer to match some or
all of the employees' RSP contributions, only 58 per cent of
Millennials are taking part in the program, compared with
three-quarters (77 per cent) of Gen-X Canadians and 87 per cent of
those aged 51 and older.
"If you don't know what retirement savings options your employer offers,
you might be missing out on money that could help you to retire at a
time of your choosing, so you can do the things you've always wanted to
do," MacKay said. "And if you find out that you don't have a company
retirement savings option there are lots of personal savings plans you
can choose from to fit your budget and specific needs."
MacKay offers the following additional tips to help you get started
saving for retirement:
Set up an Automatic Savings Plan that automatically transfers funds into your retirement savings. Start
with a small amount you can easily afford, and then increase it as your
income goes up or your spending goes down.
If you receive a bonus or other unexpected income, it is alright to set
aside a small amount to treat yourself, but you should consider putting
the bulk of the extra money into your savings.
Consider which product works best for you - a Retirement Savings Plan (RSP) will help to reduce your taxable income, and the growth earned is
non-taxable as long as it remains in the RSP. A Tax-Free Savings Account (TFSA) allows your savings to grow tax free, and you don't pay taxes on
the investment income or growth earned in a TFSA, even upon withdrawal.
Look for accounts with perks. For example, TD's Simply Save feature enables you to automatically transfer a selected amount of money
into your savings account each time you use your debit card, offering
an easy way to save for the future without having to change your
Need some professional know-how? Talk with a financial advisor about your retirement plans and the best options to help you get there.
For more tips on how to save, or to book an appointment online, visit tdcanadatrust.com.
About the TD Changing Face of Retirement Survey
The TD Poll surveyed 2,115 respondents 18 years or older (of which 613
were between 18-33 years of age and considered Millennials) from across
Canada and was conducted using an online methodology by Environics
Research between Friday, October 30th and Thursday, November 5th, 2015.
About TD Canada Trust
TD Canada Trust offers personal and business banking to more than 11.5
million customers. We provide a wide range of products and services
from chequing and savings accounts, to credit cards, mortgages and
business banking, plus credit protection and credit travel medical
insurance, as well as advice on managing everyday finances. TD Canada
Trust makes banking comfortable with award-winning service and
convenience through 24/7 mobile, internet, telephone and ATM banking,
as well as at over 1,100 branches, with convenient hours to serve
customers better. For more information, please visit: www.tdcanadatrust.com. TD Canada Trust is the Canadian retail bank of TD Bank Group, the
sixth largest bank in North America.
About TD Wealth Financial Planning
TD Wealth Financial Planning is a division of TD Waterhouse Canada Inc.,
a subsidiary of The Toronto-Dominion Bank.
SOURCE TD Bank Group
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