Half (48%) of Millennials Place Home Ownership among Financial Priorities, but only 28% have put Money Towards it in Past Year

Millennials Prefer TFSAs (48%) to RRSPs (30%)

The author(s)

  • Sean Simpson SVP, Canada, Public Affairs
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Toronto, ON, February 8, 2018 — The results of the 28th annual RBC RRSP Poll conducted by Ipsos has revealed that while Millennials (aged 25 to 34) place home ownership and retirement savings among their top financial priorities, many haven’t put any money towards that goal in the past year.     

Asked to rank their top financial priorities, nearly half (48%) include home ownership among their top-three priorities. But only three in ten (28%) Millennials say that in the past twelve months they’ve put money towards that goal. The disconnect between Millennials’ financial goals and what they’re doing to achieve them is evident in other areas as well. The chart below highlights the proportion of Millennials who place each priority among their top three, and the percent who have put money towards that goal in the past year.

Top-three financial priorities

These data suggest that Millennials are coming up short (vis a vis their priorities) when it comes to saving for the future, such as for home ownership, retirement, and supporting aging parents, but are generally aligned when it comes to payments to reduce debt, savings for a rainy day, investment portfolios and saving for their child’s education. It appears that many are putting money towards some things that they indicate isn’t a priority, such as just trying to keep their head above water and home renovations.

In other words, the data suggest that Millennials are doing a better job paying down debt and saving for more immediate needs, and less well at having their eye further down the road.

Examining in more detail the challenging aspect of saving for their future, only 50% of Millennials have an RRSP. Moreover, given the opportunity to put money into either an RRSP or a TFSA, the strong preference among this group is towards TFSAs (48%), not RRSPs (30%), while two in ten (22%) don’t know what their choice would be, underscoring a sense of uncertainty about these two options.

 

About the Study

These are a selection of findings of the 28th annual RBC RRSP Poll, conducted by Ipsos from November 9 to 16, 2017 on behalf of RBC Financial Planning, through a national survey of 2,000 Canadians aged 18+ who completed their surveys online. Where appropriate, attitudes and opinions are tracked back to previous years’ surveys. Quota sampling and weighting are employed to balance demographics to ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll is accurate to within ±2.4 percentage points had all Canadian adults been polled. The credibility interval will be wider among subsets of the population, such as among Millennials aged 25-34 (± 5.9 percentage points). All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

 

For more information on this news release, please contact:

Sean Simpson
Vice President, Canada
Ipsos Public Affairs
+1 416 324-2002
[email protected]

 

About Ipsos Public Affairs

Ipsos Public Affairs is a non-partisan, objective, survey-based research practice made up of seasoned professionals. We conduct strategic research initiatives for a diverse number of Canadian American and international organizations, based not only on public opinion research, but elite stakeholder, corporate, and media opinion research.

Ipsos has media partnerships with the most prestigious news organizations around the world. In Canada, Ipsos Public Affairs is the polling partner for Global News. Internationally, Ipsos Public Affairs is the media polling supplier to Reuters News, the world's leading source of intelligent information for businesses and professionals. Ipsos Public Affairs is a member of the Ipsos Group, a leading global survey-based market research company. We provide boutique-style customer service and work closely with our clients, while also undertaking global research.

 

About Ipsos

Ipsos is an independent market research company controlled and managed by research professionals. Founded in France in 1975, Ipsos has grown into a worldwide research group with a strong presence in all key markets. Ipsos ranks fourth in the global research industry.

With offices in 88 countries, Ipsos delivers insightful expertise across five research specializations: brand, advertising and media; customer loyalty; marketing; public affairs research; and survey management.

Ipsos researchers assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media and they measure public opinion around the globe.

Ipsos has been listed on the Paris Stock Exchange since 1999 and generated global revenues of €1,782.7 million in 2016.

The author(s)

  • Sean Simpson SVP, Canada, Public Affairs

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