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Stuck in the middle: RBC poll finds Canadians struggle to address children's education, aging parents and own retirement needs
By: PR Newswire
Jan. 23, 2013 05:00 AM
TORONTO, Jan. 23, 2013 /CNW/ - Canadians (aged 18 to 54) are concerned that their ability to save for retirement will be impaired both by saving for their children's education (48 per cent) and by taking care of their aging parents (36 per cent), according to the 23rd Annual RBC RRSP Poll.
Despite the potential strain of these family priorities on their retirement savings, more than half (57 per cent) of Canadians aged 18 to 54 say their parents' retirement experience has shaped their expectations of retirement.
"While Canadians may see their parents' retirement experience as a model for what to expect, the reality is that their retirement may not be the same, particularly if they are part of the sandwich generation with both aging parents and school age children," said Amalia Costa, head, Retirement Strategies, RBC. "Canadians know that juggling competing financial priorities creates enormous strain on both time and money. A financial advisor can make it easier to develop a retirement plan to balance your financial commitments and family life."
Retirement will likely look different for the next generation of retirees, as employer-sponsored pension plans become more rare. The RBC poll found that one-quarter (26 per cent) of Canadians (aged 18 to 54) expect a pension income from an employer to be their primary source of income in retirement and, similarly, fewer than one-in-five (18 per cent) of them have a defined benefit pension plan.
"The growing demands on time and money can make meeting retirement goals a challenge, but Canadians don't have to do this on their own," added Costa. "Taking the time to meet with a financial advisor is one of the best investments you can make in your financial future. An advisor can help review your financial priorities; understand your income sources and your savings and investment options - all to help make your retirement goals a reality."
Costa provides the following practical advice to help you live for today and save for tomorrow:
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