Gen X, boomers on same retirement page

Generation X and their baby-boomer parents are on the same wavelength when it comes to retirement and saving for it, according to new research by Investors Group.

Results of a new poll probing the retirement mindset of Gen Xers found that 58% have a clear vision of their life during retirement and how they will be spending their time. This is in line with an earlier survey by the Investors Group that found 66% of baby boomers saying they have a clear retirement vision.

The two generations also display similar approaches to saving and investing for retirement. Sixty-one percent of Gen Xers have RRSPs and of those, 85% plan to contribute the same or more in the upcoming tax year. This compares to 62% of boomers who have RRSPs and 79% of those who will be contributing the same or more to their RRSPs this year.

“Gen X and boomers may have some differences, but it appears the apple doesn’t fall far from the tree in financial planning,” says Debbie Ammeter, vice-president, advanced financial planning with Investors Group.

According to the research, Gen Xers plan to spend much of their retirement years enjoying the same activities as their parents. Like boomers, travel scores highest on the list of retirement pleasures for Gen X with 68% saying they plan on traveling. Surprisingly, spending time with family (57%) rates higher as a retirement pastime for Gen Xers than it does for boomers (46%).

And Gen Xers are not unrealistic when it comes to how their retirement years will be funded. Sixty-two percent believe they will have to pay their own way with 51% also expecting to fund their own medical and personal care.

Boomers have very similar views with 60% saying they will have to fund their retirement and 56% expecting to pay for their own care.

In fact, 25% of Gen Xers expect government funds won’t play a large role in their retirement income and see 21% RRSPs as the more important income source. Only 3% expect inheritance to be a primary source of retirement income.