Good morning. And happy October. It’s officially spooky season, so prepare to get scared about the thing that keeps us all up at night: Am I saving enough?

We’ve all seen the headlines about Gen Z’s saving habits, and their apparent impending doom. But in my coverage, I’ve tried to make one thing clear: This generation is actually very financially savvy.

Last year, I reported that Gen Zers are contributing more to their RRSPs than millennials did at the same age, according to Statistics Canada. In 2023, the median RRSP contribution among Canadians under 25 was $1,880, more than 20 per cent higher than what millennials contributed in 2009, even after adjusting for inflation.

But a new report from the insurance agency Canada Life adds an interesting wrinkle. It finds that Gen Z employees are withdrawing from their RRSPs 12 per cent more often than millennials did at the same age, and 42 per cent more than Gen X.

That doesn’t mean young people aren’t saving for retirement. Rather, the report explores why they may be more willing (or forced) to tap those savings early. One explanation is financial nihilism, which is the belief that because the future is increasingly uncertain, there is no benefit in sacrificing today to save for decades from now.

What really caught my attention, though, was what this could mean beyond Gen Z’s own retirement accounts. The report argues that lower long-term savings could eventually mean less capital available for investment, greater reliance on public assistance, lower consumer spending in retirement and more people staying in the workforce longer. Not to mention it affects career trajectories and skill distribution.

In other words, this isn’t only a Gen Z problem. It could eventually become an employer, government and economic problem, too.

Are employers thinking about this? Have conversations about younger workers’ retirement preparedness come up at your organization? Let me know at mraman@globeandmail.com.

Canadian insolvencies have climbed back to pre-pandemic levels, but how Canadians deal with their debt has changed. Nearly four in five insolvent Canadians now choose consumer proposals over bankruptcy, allowing many to keep assets while repaying a negotiated portion of their debt.

How a couple with different money habits managed a $1-million inheritance

The numbers: Christopher and Jacqueline, both nearing 50, inherited almost $1-million after Jacqueline’s parents died. The Toronto couple are government workers with pensions and have a university-aged daughter.

The strategy: They used the inheritance to pay off their mortgage, max out both of their TFSAs and contribute to a spousal RRSP, while giving their daughter $10,000. The remaining few hundred thousand dollars stayed invested in Jacqueline’s name, balancing Christopher’s instinct to save with her desire to maintain control over her inheritance.