Twenty-two per cent of Canadian parents with children under 18 are saving equally for their own retirement and their children's post-secondary education, according to a new poll commissioned by Edward Jones Canada. However, seven out of 10 parents are choosing one over the other - or none at all.
Fifteen per cent of parents with children under 18 at home are favouring their child or children's education over their own savings, putting aside little or nothing for their retirement.
On the other hand, nearly 26 per cent of parents are primarily saving for retirement and only saving a little for post-secondary school for their child or children.
Another 26 per cent say that they are not saving for retirement or for their child or children's post-secondary education.
According to CanLearn, an online Government of Canada resource, in 2015 an average year of tuition will cost more than $12,000 for those who stay at home and more than $21,000 for students that choose to move away from home. Tuition is expected to increase an average of $2,000 to $3,000 every five years. For those who decide to pursue a 4-year honours degree away from home in 2015, the cost could be approximately $84,000.
Meanwhile, when it comes to retirement, Edward Jones suggests that it's a prudent idea for investors to assume that they'll likely need between 70 and 90 per cent of pre-retirement income to maintain a current standard of living in retirement.
