Fewer than one in five young adults in Canada has spoken with a financial professional about retirement planning, according to a new report.
BMO Research Institute, Toronto, published this finding in a summary of results from a study, Broadening the Approach to Preparing for Retirement. The report examines examined attitudes on retirement among young adults between the ages of 18 and 34.
The study finds that three in four young adults (76%) have discussed retirement planning with someone. But few (17%) have spoken with a financial professional. By comparison, more boomers tend to consult financial professionals (41%).
Most young adults have spoken about retirement planning in passing only (40%) or with family or friends (37%).
The research also concludes that the youngest generation of adults is the least prepared for retirement because their retirement is the furthest away.
In total, 41% of adults ages 18-34 want to retire before age 60 as compared to 8% of boomers ages 55 and over.
Nearly 6 in 10 (57%) of young adults and 78% of boomers 55 and over are prepared to retire between the ages of 60 and 69. Just two percent of young adults anticipate retiring at age 70 or later as compared to 14% of boomers.
Although the study finds that only a few individuals attend retirement planning seminars, these events seem to have the greatest impact on motivating young adults to take action. Only 19% of those under 35 (versus 43% of those 55-plus) have attended a retirement planning seminar.
When asked whether they are saving for retirement, nearly one-third (27%) of young adults say they have not saved for retirement. More than half (52%) are contributing an employer-sponsored retirement plan.
More than a third (36%) of young adults are contributing to other savings or a company pension plan (31%).