Millennials more optimistic than boomers about retirement

It appears that with time on their side, millennials are more optimistic than boomers about retirement.

According to a BMO Financial Group study 47 per cent of Millennials are optimistic about their ability to afford their ideal retirement lifestyle, compared to just a third (35 per cent) of Boomers.

Further, millennials reported that they feel they would need, on average, more than $400,000 saved to live their ideal retirement lifestyle. This is $60,000 more than boomers feel they need.

The study revealed the retirement savings targets, as well as the RRSP savings to date for both age groups:

• Millennials reported they would need an average of $441,610 saved for retirement and currently have an average of $15,194 saved in their RRSPs.
• Boomers cited they would need an average of $385,184 saved for retirement and currently have an average of $65,394 saved in their RRSPs.

"Considering how much time millennials have to save for retirement, their confidence in their ability to reach their target makes sense," said Chris Buttigieg, senior manager of wealth planning strategy at BMO Financial Group. "However, they should definitely take heed of any lessons learned from their parents on what works and what doesn't with saving for retirement. They should also make sure that they have a financial plan that will help keep them on track."

Buttigieg also noted that being much closer to retirement would cause boomers to be less optimistic about reaching their financial goal. However, they remain more excited at the prospect of being retired than millennials. According to the study, one-third (32 per cent) expressed feelings of anticipation and excitement, compared to only 22 per cent of millennials.