Millennials could face the same retirement challenges as seniors today

by | Oct 24, 2016 | News

By: Lia Richardson

Millennials will most likely have to work for the rest of their lives if the economy doesn’t improve, said financial advisor at CIBC.

Jaqueline Herbert said young people should be strongly encouraged to open a Registered Retirement Savings Plan as soon as possible, something the baby boomers didn’t do.

“The main factor for seniors working after retirement is because they haven’t saved enough in their lifetime or have a bad Canadian Pension Plan,” Herbert said.

According to a Statistics Canada study, one in three Canadians were not financially prepared for a retirement plan. Sixty percent had no idea how much money they would need to save in order to maintain their desired standard of living for retirement.

Dental hygiene student at Durham College Kezia Braithewaite,22, said her grandfather is 75 and still runs his own business from home.

Braithewaite said despite the part-time work, her grandfather is only somewhat financially comfortable.

“He’s at the age where he should be retired, but he didn’t save enough, so he continues to work to support the family and that’s another major factor,” Braithwaite said.

Travel and tourism Humber student Gracey Adu, 21, said she’s worried for her future because of the economy.

“It’s so hard to find a job in Toronto, and I’m struggling to even pay for school,” Adu said.

“I don’t want to think about the challenge of saving for retirement.”

Johnathan Chevreau, columnist and author of Victory Retirement Lap said said in a recent CBC interview that seniors will have to work part-time if they can’t afford to live off their plan.

Millennials could be forced into this same semi-retirement.

Chevreau said the world is changing because baby boomers are taking on a semi-retirement and are working part-time jobs after having left their full-time job at the age of retirement.

“If you thought you were going to live until you’re 90, figure out what happens if you live until you’re 100,” he told CBC.