Advisors juggle rising client anxiety with tougher retirement trade‑offs amid stubborn inflation
Inflation is not just squeezing household budgets – it is shaking Canadians’ confidence that their retirement money will last.
According to the latest BMO Retirement Survey, nearly three quarters (74 percent) say rising prices have intensified worries about having enough savings for their “golden years”, while two thirds (66 percent) report that inflation is already affecting their ability to save and invest for retirement.
The findings point to a clear tension between managing current costs and building long‑term financial security.
Brent Joyce, chief investment strategist at BMO Private Wealth, said “inflation is a threat to retirement savings, but it doesn't have to derail our clients' plans.”
He added that “the key is to stay invested and take a proactive approach,” and said BMO advisers build inflation into long-term plans so clients can see how their portfolios may perform “over decades – not just years” and keep their money growing faster than inflation.
Among respondents who said inflation is hurting their finances, many can quantify the strain.
Nearly half (47 percent) estimate they are spending an extra $100 to $300 per month on necessities, while about one third (34 percent) say their monthly expenses have climbed by more than $300.
Those added costs are feeding directly into retirement decisions: 31 percent are contributing less to retirement savings, 27 percent are cutting back on spending to maintain their contributions, and 17 percent have postponed retirement saving altogether.
The survey also highlights how uncertain many Canadians feel about the durability of their nest eggs.
When asked how long their retirement savings will last after they stop working, the largest group (30 percent) admit they do not know how long their money will last before it runs out.
Among those who gave a number, 22 percent believe their savings will carry them for 10 to 19 years, and only 13 percent expect their savings to last more than 30 years.
Paul Lalonde, head of wealth planning at BMO Private Wealth Canada, said “comprehensive financial and wealth planning is essential to providing clarity – especially when navigating complex and ever‑changing variables like inflation.”
Lalonde said a “customized, holistic wealth planning approach” helps clients understand how these factors interact and what savings and investment strategies they need to meet their long‑term retirement goals.
He added that by “modelling a range of possible futures and tailoring strategies to each client's circumstances,” advisers can help transform uncertainty into confidence.
In the end, he said, thoughtful planning gives Canadians the peace of mind they need as they look ahead to retirement.
Location decisions are also shifting.
While many Canadians expect to stay where they are, about three in ten plan to move to another city and half of that group intend to relocate to another country.
Among those eyeing an international move, 58 percent expect living costs to be lower and 32 percent anticipate they will be significantly lower.
At the same time, 30 percent believe retiring abroad in their preferred destination will be more expensive, suggesting non‑financial motivations are also at play.
Ontarians are the most likely to picture retirement in another country (18 percent), followed by British Columbia and Saskatchewan/Manitoba (16 percent each), Alberta (13 percent), the Atlantic provinces (12 percent), and Quebec (11 percent).
