Younger Canadians are timid investors when it comes to saving for their retirement, says a recent survey. This is despite the fact they have more time to build wealth than older investors who are closer to retirement.
The poll commissioned by Royal Trust, found that the average first-time RRSP contributor, average age 31, is generally inclined toward conservative, slow-growing investments, like bonds and savings accounts, when it comes to their retirement nest egg.
Only 30 per cent of first-time investors make mutual funds the bulk of their RRSP contributions, compared with 57 per cent for those with more than five years of investing experience.
Savings accounts made up the largest portion of retirement savings for 21 per cent of young investors. Only four per cent of older investors made the same choice.
First time investors were also less likely to consult a financial advisor. Less than half, 47 per cent, of investment beginners visited an advisor, compared with 73 per cent for more experienced investors.