Boomers think they can retire on $385,000

Millennials are more optimistic about affording retirement than baby boomers are, says a BMO survey.

While 47% of millennials (people aged 18 to 35) surveyed believe they’ll be able to afford their ideal retirements, 35% of boomers do.

Read: 5 ways to understand millennial clients

Further, millennials say they need an average of $441,610 saved to live their ideal retirement lifestyle. This is $60,000 more than boomers feel they need.

This optimism may be misplaced. Remind clients that over a 30-year retirement, $441,610 works out to $14,720 per year before inflation, while $385,184 is only $12,839 per year. In 2015, CRA’s basic personal amount is $11,138.

Millennials report having an average of $15,194 in their RRSPs. Baby boomers say they currently have an average of $65,394 in their RRSP.

As Advisor’s Katie Keir writes, millennials want advisors to help them build wealth, but they’ll seek you out differently than their parents did.

“They’ll check you out online before meeting you. And, the paper suggests they’ll often compare many different firms and planners, regardless of whether or not they know you through their parents or friends.”

Read more here.

Also read:

Big firms identify Gen Y’s key traits

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.