New research reveals concerns over retirement readiness, RRSP benefits
Canadians are uneasy about their retirement planning with concerns around their levels of preparedness and how they should be utilizing registered accounts.
A new national survey from Edward Jones Canada, published today (Feb. 18), suggests that even though respondents may be wrestling with doubt, they are not stepping away from saving. However, seven in ten say they associate negative emotions with contributing to a Registered Retirement Savings Plan (RRSP).
Confusion tops the list, cited by 40 per cent. Meanwhile, 37 per cent are uncertain whether they are making the most of available RRSP benefits, and 36 per cent worry their savings won’t be enough to sustain them in retirement.
The emotional disconnect mirrors knowledge gaps around how RRSPs function. Just 56 per cent understand the value of tax deductions tied to contributions. Slightly more than half (55 per cent) say they comprehend the tax consequences of withdrawals, and only 53 per cent feel confident about what occurs when an RRSP matures.
Understanding improves somewhat when it comes to deadlines. Two thirds (66 per cent) report clarity around annual contribution cut-offs — the highest literacy score among all RRSP-related topics — but awareness fades beyond that point.
"What we're seeing is a generation that knows they need to save for retirement but lacks the confidence that they're doing it right," said Julie Petrera, Director of Financial Planning at Edward Jones Canada. "The good news is that discomfort often signals readiness to seek help and learn."
Financial strain
Financial strain continues to weigh heavily. Forty-two per cent identify pressures such as insufficient income, elevated living costs and debt repayment as their primary obstacle to retirement saving — up from 39 per cent a year earlier.
This year, 41 per cent say they plan to deposit funds into their RRSP, closely tracking last year’s 39 per cent. Fifteen per cent expect to max out their contributions, unchanged year over year. Meanwhile, the share of Canadians who say they simply cannot afford to contribute has edged down slightly to nine per cent from 10 per cent in 2025.
“It’s important to remember that an RRSP is an account, not a complete retirement plan,” said Petrera. “Retirement planning is deeply personal, and our financial advisors provide tailored advice to help Canadians, across generations, determine if an RRSP fits into their broader goals and develop a holistic plan to help them on their path to financial fulfillment.”
Negative emotions are most prevalent among younger adults, with 84 per cent of those aged 18–34 reporting concerns. That compares to 75 per cent of Canadians aged 35–54 and 54 per cent of those 55 and older.
Knowledge gaps
Knowledge gaps are also more pronounced among younger cohorts. Only 36 per cent of respondents aged 18–34 say they understand what happens when an RRSP reaches maturity. That rises to 50 per cent among those aged 35–49 and 69 per cent among Canadians 55 and over.
Despite the anxiety, younger Canadians are showing renewed intent to save. Nearly half (48 per cent) of adults aged 18–34 plan to contribute this year — up from 41 per cent last year and closer to the 58 per cent reported in 2024. Among Canadians aged 35–54, contribution plans remain essentially flat at 59 per cent compared to 60 per cent last year.
Only 24 per cent of Canadians overall say they face no barriers and feel on track for retirement. That drops sharply among younger adults: just nine per cent of those 18–34 and 15 per cent of those 35–54 describe themselves as barrier-free and prepared. By contrast, 45 per cent of Canadians aged 55 and over report no obstacles — a significant jump among those nearing retirement.
Access to professional guidance may be a contributing factor. Nearly half (48 per cent) of Canadians aged 55+ have a dedicated financial advisor, compared with 24 per cent of those aged 35–54 and just 13 per cent of those aged 18–34.
The deadline for 2025 RRSP contributions falls on March 2, 2026. Eligible Canadians can contribute up to 18 per cent of prior-year earned income to a maximum of $32,490 for the 2025 tax year, plus any unused carry-forward room, subject to pension adjustments.
