The results of RBC’s annual Financial Independence in Retirement Poll
has revealed that while millennials overlap with previous generations in terms of their life goals, they face challenges when it comes to financing those goals.
According to the poll, 48% of millennials aged 25-34 cited home ownership as a top financial priority. However, only 28% said they put money toward that goal in 2017.
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The survey also found issues with regards to building their nest eggs. Forty-six per cent of millennial respondents said they also considered retirement savings as a top financial priority, but only 38% actually set aside money for that last year.
RRSPs seemed to be an overlooked vehicle among the group, as 50% of respondents said they didn’t have one. When asked what they would do if they couldn’t afford to contribute to both an RRSP and a TFSA, 48% said they’d prioritize a TFSA, while 30% said they’d choose an RRSP.
“TFSAs offer a great savings vehicle, but millennials can't overlook RRSPs, particularly as they move into their 30s,” said Richa Hingorani, senior director of Digital Strategy with RBC Mutual Funds Distribution & RBC Financial Planning.
Members of Generation Y did relatively better at addressing another financial concern: debt. Even though only 47% included debt reduction or elimination among their priorities, 51% actually set money aside toward that objective.
“Millennials have their eye on the ball – they're saving for immediate needs,” Hingorani said. “We'd suggest it's now time they look a bit farther down the road, to save for their future needs too.”
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