Canadians between 18 and 34 place more importance on retirement than their elders, revealed by the National Bank Retirement Index
The most recent instalment of the National Bank Retirement Index survey* has revealed a substantial increase in the importance 18-34-year old Canadians place on retirement, a first since the Index was launched in 2009, with the overall score rising from 7.1 to 7.6 out of 10. The degree of importance young adults place on retirement is even higher than their counterparts in the 35-49 and 50-64 age brackets, who produced scores of 7.1 and 7.5 respectively.
Interestingly, 18-34-year old Canadians also claim to be much more confident regarding financial issues, with a Retirement Index score that has risen from 4.6 to 5.1 out of 10 since the survey carried out in summer 2010.
Although this level of confidence regarding retirement is still low, the fact that it is rising has resulted in a greater commitment during the current RRSP season. This year, 39% of Canadians from 18 to 34 plan to contribute to an RRSP by the end of February, up from 35% in 2009. Furthermore, young Canadians plan to make a more substantial contribution to their RRSP on average ($5,167) than their counterparts in the 35-49 and 50-64 age brackets, who plan to contribute $4,186 and $5,032 respectively.
In addition, 57% of respondents in the 18-34 age bracket intended to contribute as much or more than they did in 2009.
In another change, more than half of all Canadians age 18 to 64 plan to invest all or most of their RRSP contribution in mutual funds (compared to 44% in 2009). In contrast, 56% of Canadians 65 and over who intend to contribute to an RRSP will invest all or most of their funds in principal-protected solutions.
According to the survey, 43% of investors who opt for principal-protected solutions plan to use a combination of variable- and fixed-rate GICs.
To assess your level of confidence regarding retirement or learn more about our various investment solutions and awareness tools**, go to www.nbc.ca/retirement.
* Survey of 1,554 respondents across Canada conducted by Saine Marketing for National Bank Financial Group from November 5 to 25, 2010.
** IFIC Investor Education Award winner at the most recent Canadian Investment Awards ceremony.
About National Bank of Canada
National Bank of Canada is an integrated group that provides comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. National Bank offers a full array of banking services, including retail, corporate and investment banking. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. National Bank has over $145 billion in assets and, together with its subsidiaries, employs 18,322 people. The Bank’s securities are listed on the Toronto Stock Exchange (NA:TSX). For more information, visit the Bank’s website at www.nbc.ca. To access National Bank Financial Group’s financial education portal, visit www.clearfacts.ca.
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