Canadian Xennials — those aged between 34 and 40 — are too overwhelmed by financial obligations to contribute as much as they would like to retirement savings, according to a survey conducted on behalf of the Toronto-Dominion Bank (TD).
Approximately three-quarters (74%) of Xennials — the micro generation born between 1977 and 1983 who neither fit in with Generation X nor millennials — say they aim to allot more money to retirement savings, but other financial obligations take precedence.
For example, Xennials say they’re too overwhelmed by juggling monthly bills (60%), paying off credit cards and personal loans (44%), mortgage payments (33%), child-care costs (24%), home maintenance costs (22%) and repaying school loans (13%).
“We can all have the best of intentions when it comes to preparing for retirement, but then life gets in the way and we start to feel the retirement savings squeeze,” says Jennifer Diplock, associate vice president of personal savings and investing with TD Canada Trust, in a statement. “Monthly bills fall due or we are faced with a loan repayment and that can mean we end up contributing less than we should towards our retirement.”
Although most Xennials know they’re not too young to start saving for retirement — only 16% of this demographic still hold that belief — they’re still not saving as much as they’d prefer. According to the study, 77% of Xennials say they will either start contributing or contributing more to their retirement savings in the next five years.
As a result, many Xennials don’t feel good about their current financial standing. About half of Xennials describe themselves as feeling uncertain (52%) or unprepared (49%) for their retirement.
Furthermore, the survey reveals that Xennials aren’t entirely alone in feeling financially squeezed. For example, although 60% of Xennials say they can’t save money due to monthly bills, 62% of Canadians, overall, say they also share this dilemma.
For the study, TD commissioned Toronto-based Environics Analytics Group Ltd. to conduct an online survey among 2,500 adults from Oct. 26 to Nov. 3. About 558 of survey participants were classified as Xennials.
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