Gen Xers have the most modest retirement ambitions of all four working generations, and they are also the ones who are most likely to be saving.
A poll conducted by Scotiabank asked Canadians how much they think they will need to fund their retirement. Baby Boomers indicated that they will need the most, saying that they require an average of $840,702 to live comfortably after they stop working. Second came the Millennials aged between 18 and 34 who anticipate needing an average of $778,346.
Respondents aged 45 to 54 in the Sandwich Generation thought they would need $719,043, while Gen Xers aged 35 to 44 had the most modest retirement savings goals and think they will need an average of $653,148.
"Millennials and the Boomer generation are also closely aligned when it comes to their attitudes around investing and saving; with 34% of both demographics considering themselves both savers and investors," reads the report. "However, according to the survey, while the average Canadian begins to save around the age of 26, most do not begin to invest until closer to 30, citing entering the workforce and parental encouragement as the main reasons to begin investing."
Boomers and Millennials
Despite having the lowest target savings amount, Gen Xers were the group most likely to be saving: 74% of Gen X respondents said they were currently putting aside money for their retirement, followed closely by the Sandwich Generation at 73%. Only 61% of Boomers were saving for retirement, and just 56% of Millennials had started setting money aside.