Are childless couples less confident about retirement?

One might think that a couple without kids could have more money to save for retirement than their neighbours with a full house.

However, writes Freschia Gonzales for Benefits and Pension Monitor, recent survey results suggest otherwise.

“Employees without children report the lowest confidence in reaching their retirement savings goals, trailing parents by a wide margin,” she writes.

Citing data from the 2026 Annual Retirement Study from the Allianz Center for the Future of Retirement, Gonzales reports that “54 per cent of Americans without children feel confident they will meet their retirement savings goal, compared with 72 per cent of those with children.”

There’s an important asterisk to this finding, her article continues. It’s not necessarily the more the merrier when it comes to kids.

“Confidence also slips as families grow, with 74 per cent of parents with one or two children feeling confident against 66 per cent of those with three or more,” she reports.

But let’s get back to that central question. Wouldn’t not having kids free up more cash to stash for the future?

Gonzales explains the thinking behind the numbers.

She quotes Allianz’s Kelly LaVigne as noting that “not having children, and the expenses that come with them, does not automatically mean a person has a plan to save.”

“Parenthood often forces tough conversations about money. Without that catalyst, too many Americans may be moving forward without a strategy,” LaVigne states in the article.

Another fact to consider, reports Gonzales, is that the study “found 62 per cent of Americans without children do not have a written financial plan, compared with 42 per cent of those with kids.”

Could this suggest that parents worry more about their money than non-parents? Let’s read on.

“About three in five Americans without children, 61 per cent, say they cannot think about saving for retirement because they are managing daily expenses versus 53 per cent of parents,” reports Gonzales.

Money’s too tight to mention for the non-parents?

“Rising costs weigh more heavily on the same group: 71 per cent worry the cost of living will prevent them from enjoying retirement, against 64 per cent of parents; 66 per cent worry about affording long-term care, against 60 per cent; and 54 per cent say housing costs will limit their ability to save, against 47 per cent,” writes Gonzales.

But the parents surveyed saw specific obstacles to saving, the article continues.

“Paying for children’s education keeps 29 per cent of parents from saving as much as they would like, and childcare costs keep 27 per cent from doing so. Parents are also more likely to cite credit card debt, at 40 per cent, and car loan debt, at 25 per cent, as obstacles to retirement saving,” the article notes.

The article recommends parents consider getting professional financial help so that they can carve out more money from their budget for long-term retirement savings.

A final thought from Gonzales’ interesting article – “nearly half of Americans, 48 per cent, say they considered or would consider the challenge of saving for retirement as a significant factor in whether to have children. Millennials were far more likely to weigh it, at 64 per cent, than Gen Xers at 41 per cent or boomers at 18 per cent.”

As one who is fast approaching a 70^th trip around the sun, this writer cannot stress the importance of putting something — anything — away for your retired self while you are still young and working.

If you have any sort of retirement program through work, be sure to sign up and contribute to the max. If you don’t, and you are not sure how to go about investing for retirement, then the Saskatchewan Pension Plan may be the savings partner you’ve been looking for.

You provide the savings dollars – you can choose any amount up to your annual registered retirement savings plan (RRSP) limit. SPP does the heavy lifting, investing your hard-saved dollars in our pooled, low cost, professionally managed funds.

In addition to making regular contributions during the year, you can transfer any amount from other unlocked RRSPs you may have to SPP, consolidating your nest egg.

When you reach the finish line of work, you’ll have such income options as receiving a lifetime monthly annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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