Friday, May 20th, 2011

Stats Can Study Says High Tuition Fees Hurt Retirement Savings

Retirement Savings

Record high tuition fees are forcing families to choose between education or saving for retirement.

Statistics Canada says Canada’s Low income families can save for college/ university or retirement. Not both.

According to their latest study, a mere 20 per cent of families from the lowest income quintile said they’ve put aside savings for both retirement and their children’s college or university. This is compared to 80 per cent from the highest income quintile.

“Canadians know the costs of post-secondary education and save what they can,” said David Molenhuis, National Chairperson of the Canadian Federation of Students.

“The problem for low-income families is not a lack of financial knowledge, but rather insufficient resources to save.”

When it comes to choosing between education and retirement, five percent of the high income families said they’ve saved for education but not retirement. On the other side of town, 26 per cent of low income families chose education over retirement, while 21 per cent went the other way around.

“Record high tuition fees are forcing families to choose between the educational aspirations of their children and saving for retirement,” added Molenhuis.

“Forcing families to choose between education for their children and retirement security is unfair and threatens Canada’s future economic prosperity.”

Ryan Leclaire
Author: Ryan Leclaire
Ryan has been writing for 7 years and has been featured in Chatelaine, Canadian Living and Cottage life.
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