Transcript: Avoid these Gen X retirement traps

[Upbeat music playing]

[Two people hiking down a rocky mountain trail]

[Segment title that reads “Avoid these Gen X retirement traps” appears over a group of friends sitting around a bonfire in the backyard of a cottage]

[On-screen text introduction of Melissa Leong, Personal Finance Expert]

According to research, Gen Xers are struggling to save for retirement. More than half of Gen Xers across North America said in a survey that they will be retiring later than they would like. So here are a few reasons why they are having a tough time saving for retirement. 

>> Yadullah: I don’t think I’m in a position to retire anytime soon. 

>> Victoria: I don’t spend. I can’t spend because we don’t have the extra money to spend. 

>> Yadullah: We live in an age of frequent job losses. There’s a lot of job insecurity across a lot of industries. It’s hard to save. If you do, you know, have a job loss, then you have to dip into your savings. So it’s hard to save. 

>> Andrew: The daycare costs for our two kids, if you add them together, is actually more than the cost of our mortgage, which is absolutely crazy. I mean if we could take those daycare costs and put them towards our retirement savings, that would be a game-changer.  

>> Victoria: You know what, I think… we think of that day and we dream about it, and we think “oh we’re going to be so rich when we save the money on daycare.” Yes, we will save. I dream about it.

[Someone turning up the radio volume dial in a car]

[Segment title, “There’s never enough time,” appears over time-lapse of a busy city intersection at night]

[On-screen text introduction of Jennifer Hubbard, Financial Planning & Advice, CIBC]

>> Jennifer: The other day I was driving home, and there was somebody speaking on the radio, and it felt like they were talking to me. They were talking about that person who has absolutely no time in their day…

[A group of women having coffee together at a restaurant] 

…the typical Gen Xer who’s busy focusing on everybody else…

[A multi-generational family taking a walk in a park with their dog] 

…that they don’t take the time to focus on themselves… 

[A couple sitting inside a tent, pouring coffee while their kids are outside playing soccer]

…their own dreams, their own aspirations and their long-term plans.  

[Split screen of Jennifer on one side, and a woman holding a coffee mug while looking out a window on the other]

And they really asked us, all of us… 

[Split screen of Jennifer on one side, and a couple with their two young children on a boat on the other]

…who just focus on everybody else all the time… 

[Split screen Jennifer on one side, and a close-up a woman drinking coffee and typing on her laptop]

…to spend an hour to commit the time to setting up a savings plan… 

[On-screen text that reads, “Commit the time to set up a savings plan”]

…to paying ourselves first, and really talking to an advisor about our dreams for the future.  

[On-screen text that reads, “Talk with an advisor about your future”]

[Segment title, “Split Priorities,” appears over a couple sitting on lounge chairs at a beach, holding hands]

[On-screen text introduction of Rubina Ahmed-Haq, Personal Finance Expert]

>> Rubina: Make retirement savings a priority, before you do a home renovation… 

[A couple looking at a blueprint together in their home while it is being renovated]

…before you go on a vacation… 

[A bird’s-eye view of a beach on a tropical island]

…even before you put money into your kids’ education fund. 

[Students walking on campus]

[Split screen of Rubina on one side, and a couple sitting on top of a mountain, gazing into the horizon on the other side]

[On-screen text that reads, “Save for retirement first”]

You have to save for retirement first. 

[On-screen text, “The Golden Rule 10%,” appears over a senior couple having breakfast at their kitchen table]

Now the golden rule is: put 10% of your before-tax income away. But if you’re worried that you’re not saving enough, use tools that are available to you, like a retirement calculator. 

[Split screen of Rubina on one side, and a close-up of someone using a calculator on the other]

[On-screen text that reads, “Retirement calculator”]

[Split screen of Rubina on one side, and the CIBC Retirement Calculator web tool on the other]

Plug in all your numbers to see what your retirement income will look like if you continue along that pace that you’re at today. If you’re not happy with it, put some more money in. If you’re happy with it, then you know you’re on the right track.  

[Segment title, “Spending everything you make,” appears over a woman sitting at her desk doing some calculations on her calculator and laptop]

>> Jennifer Hubbard: It’s so important to super-size your savings.  

[On-screen text, “Supersize your savings,” appears over a group of people having a meeting in a boardroom]

If you get a pay increase, why not save more? 

[On-screen text in a box that reads: “Pay increase”]

If you get a bonus and you’re living comfortably on what you’re making, why not put that into savings as well? 

[On-screen text in a box that reads: “Bonus”]

It’s so, so important that you save what you can today…

[A couple embracing each other, standing next to their motorcycle while looking out at the sea and mountains]

…so that it grows into the nest egg of your dreams in the future. 

[Segment title, “Lifestyle inflation,” appears over the interior of a modern living room and kitchen]

>> Rubina: One of the easiest traps for Gen Xers to fall into is lifestyle inflation, and social media doesn’t help. Don’t try to keep up with the Jones’.  

[A woman in an oversized sunhat relaxing in a swimming pool]

Just because someone else got a swimming pool…

[A couple with their two kids placing luggage into the trunk of their car in their driveway]

…someone else went on holiday…

[A white car driving on an empty road on the countryside]

…or someone else bought a brand new car… 

[A couple with their two kids taking a selfie surrounded by autumn leaves in a park]

…it doesn’t mean you can afford to do the same. 

[Split screen of Rubina on one side, and a couple going through paperwork together]

[On-screen text that reads: “Base your decisions on your situation”]

You really have to make all your decisions based on your personal finances; otherwise you’re always going to be in debt.

>> Melissa Leong: If you’re behind in the savings game, it’s not too late to get your retirement back on track. Break down your money goals into manageable milestones and control what you can when it comes to budgeting, savings and investing.  

[FP and CIBC logos appear over a couple sitting inside a tent, pouring coffee while their kids are outside playing soccer]

[Disclaimer reads, “The CIBC logo is a registered trademark of CIBC, used under license.”]

[Music fades out]