Many Canadians in the sandwich generation (those aged 45 to 64) are more than $500,000 short of their retirement savings goals, says a new BMO Nesbitt Burns study.
The study is the second in an annual series that’s examining the retirement readiness of a specific generation. Last year’s study examined Baby Boomers (those born between 1945 and 1964) and found, on average, they’re more than $400,000 short of their ideal retirement savings goals.
According to this year’s study, more than half (55%) of the sandwich generation are currently caring for their children at the same time as they’re caring for their aging relatives. As a result, 39% are worried they won’t meet their future financial goals.
“Those in the sandwich generation [say] they’re getting squeezed [between] paying down their mortgages, saving for their children’s educations [and] saving for retirement,” among other responsibilities, says Sylvain Brisebois, regional manager at BMO Nesbitt Burns.
One of the main problems, adds the study, is about 40% of investors in the sandwich generation lack financial plans.
Regional breakdown of results
|Region||Average amount needed for ideal retirement lifestyle||Average amount currently saved for retirement||Average gap between amount saved & amount needed for retirement||% caring for children, aging relative or both||% who say stress is impacting long-term saving|
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