The report gauged how Gen X and Gen Y feel about their ability to reach key financial objectives in life, including:
Purchasing a home: Overall, 68 per cent of Gen X and Gen Y feel confident that they will have the ability to purchase a home at some point in their lives, with cohorts in
Sending their kids to university/college: Seven in 10 Gen X and Y Canadians who plan to have children expressed confidence in being able to pay for their kids' post-secondary education. However, the reality is that this will be a challenge for many of them given that younger Canadians are choosing to have children at an older age than previous generations. This will result in many Gen X and Y Canadians becoming "parensioners" (retirees/pensioners with limited income and with children who are still young enough to attend a post-secondary institution). This trend, combined with the growing costs of a post-secondary education (it is estimated that the cost of sending a child born in 2013 to university will be as high as
Living comfortably in retirement: Almost two-thirds of Gen X and Y respondents expressed optimism regarding their ability to save enough to live comfortably in retirement. But this sense of confidence is undermined by the fact that many among both groups have not yet started saving for their retirement. Moreover, there are fewer and fewer jobs that come with employer-sponsored pension plans, and Canadians are living longer than ever these days, thereby necessitating the need to budget for a longer retirement. All these factors are making it an uphill battle for both cohorts, as it relates to having enough money for their golden years.
"While it's encouraging that the majority of Gen X and Y are feeling upbeat about achieving key financial goals, the reality is that there are some obstacles that they need to acknowledge and address if they want to accomplish things like home ownership, ensuring their children obtain a post-secondary education and achieving their ideal retirement lifestyle," said
"These generations face challenges that are unique, but there is light at the end of the tunnel," continued
To view a copy of the full report, please visit: www.bmo.com/wealthinstitute.
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