Millennials are saving more for retirement

Contributions to RRSPs from Millennials have increased by 87% since 2016, a recent BMO study found. How should these new supersavers best manage this money?

Andrew Willis 1 February, 2019 | 6:00PM

Many Millennials have had extended stays with their parents, squeezed out of a red-hot housing market and sequestered to the basement to save up a down payment for their own home. They’re almost there, or at least well on their way.

The average RRSP account held by Millennials is now at $28,821, 87% higher than $15,377 in 2016, according to Bank of Montreal (BMO)’s annual RRSP Study. This far outpaces Baby Boomers, who saw RRSP account increases of only 30% over the same time period.

“The Millennials around my office – they’ve grown up,” says Robert Armstrong, Vice President, Multi Asset Solutions, BMO Global Asset Management, adding that low unemployment rates are raising confidence levels across the board. They have more disposable income today to diligently stow away.

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Andrew Willis

Andrew Willis  Andrew Willis is a content editor for Morningstar.ca.