A trio of reports highlight uneven retirement readiness across Canada
Canadians are putting more money into retirement accounts and signing up for workplace pensions in greater numbers, but new research suggests many still lack a clear picture of what they will need to stop working and whether they are on track to get there.
Three snapshots from T. Rowe Price, CIBC and Ontario’s pension regulator point to a paradox with households making tangible efforts to prepare for life after work, while confidence in retirement readiness remains fragile, particularly in the face of inflation and economic uncertainty.
Canadian-specific findings from T. Rowe Price’s Global Retirement Savers Study reveals that nearly half of workplace savers say they are contributing as much as they can afford to their employer plans, but only around four in 10 believe those contributions, combined with employer matching, will be sufficient to fund a comfortable retirement.
The survey, conducted in mid‑2025 across five countries, highlights both engagement and unease among Canadian plan members. Awareness and use of target date funds – a common default option in defined contribution plans – remain limited, even though these structures are designed to simplify investment decisions as retirement approaches.
Canadians nearing retirement are less likely than younger peers to assume they will stop working at a specific age, and more likely to envision at least some employment in retirement. That pattern suggests many older savers are already thinking in terms of phased retirement, whether by choice or necessity.
Economic anxiety is shaping those views. More than half of Canadian respondents expect a recession within the coming year, and a significant share report being very concerned about inflation, ahead of other risks such as market volatility or unemployment.
“There is a real need for holistic advice that goes beyond investment selection,” said Jessica Sclafani, global retirement strategist at T. Rowe Price. “Our Global Retirement Savers Study highlights significant opportunities for organizations sponsoring retirement plans, and their advisors and consultants, to support Canadians in achieving their retirement goals.”
Retire at 61?
A separate CIBC poll finds that Canadians on average aim to retire at about age 61 and are largely staying the course with long‑term strategies: three quarters say their investing approach has not changed.
Canadians also appear to be starting earlier. Across generations, the average reported age to begin saving for retirement is 30, with Gen Z targeting retirement at 59, millennials and Gen X at 61, and boomers having retired or planning to retire at 63.
Even so, confidence is lacking. Only 41 per cent of those surveyed believe they will have enough saved to support the lifestyle they want in retirement.
“Saving for retirement is one of the most important financial commitments that a person will make,” said Carissa Lucreziano, vice‑president, financial planning and advice at CIBC. She stressed the importance of having a plan, using available tools and meeting an adviser regularly to help ensure “a comfortable future.”
About two thirds report owning an investment portfolio. Among those contributing, almost half say they are directing more money to tax‑free savings accounts, compared with about one‑third prioritizing registered retirement savings plans, and the remainder splitting contributions. Flexibility on withdrawals and the ability to contribute at any stage of life, including after retirement, are key reasons respondents cited for favouring TFSAs over RRSPs.
Workplace pensions
Meanwhile, new data from the Financial Services Regulatory Authority of Ontario (FSRA) shows momentum in workplace pension participation.
Membership in provincially regulated plans increased by about 200,000 people in 2025 compared with 2024, with participation in defined contribution arrangements up 9 per cent.
The gains coincide with the province’s fourth annual Pension Awareness Day, an initiative aimed at encouraging workers and employers to pay closer attention to how pensions contribute to broader retirement security.
Beneath the headline growth, however, FSRA’s earlier research points to a substantial planning deficit. Eight in 10 respondents had not fully developed a retirement plan, two‑thirds had not calculated how much money they will need, and half could not recall the last time they spoke to anyone about saving for retirement. Another 50 per cent of pension members admitted they do not read their annual pension statement.
“It’s always encouraging to see more people participating in workplace pension plans because they provide such a strong foundation for retirement,” said Andrew Fung, FSRA’s executive vice‑president, pensions. “But a pension is not a complete retirement strategy.”
FSRA’s latest campaign distils its message into three themes it calls the “keys to retirement security”: understanding how a pension earns and pays benefits, staying engaged by reviewing statements and communicating with plan administrators, and planning ahead by integrating workplace pensions with government programs, registered plans and personal savings.
How to help clients
For wealth professionals, the data reinforce several priorities:
- Put planning ahead of products. Both the CIBC poll and FSRA research show that many Canadians do not have a written plan or even a clear estimate of income needs in retirement. Encouraging clients to articulate goals, timelines and spending assumptions may do more to build confidence than focusing solely on investment choices.
- Translate pensions into retirement income. As Ontario’s experience shows, more workers are covered by workplace plans, but many do not understand how those benefits will integrate with CPP/QPP, OAS, RRSPs, TFSAs and non‑registered assets. Helping clients read pension statements, model different retirement ages and coordinate contributions across vehicles can close that gap.
- Address inflation and recession fears directly. With more than half of T. Rowe Price’s Canadian respondents expecting a recession and many very concerned about inflation, advisers may need to spend additional time on scenario testing, longevity risk and the role of guaranteed or more stable income sources in retirement.
- Meet clients where they are on advice preferences. The T. Rowe Price study finds a clear preference for human advisers and one‑on‑one consultations, particularly among older savers and women. That suggests demand for personalized guidance remains strong even as digital tools proliferate.
