Advisors needed as 67% of Canadians lack retirement plans and face massive income knowledge gaps
The landscape of Canadian retirement has undergone a tectonic shift, leaving a generation of workers to navigate their golden years without the safety net of guaranteed employer backing.
According to the newly-released 2026 IG Wealth Management Retirement Study, the three-decade-long phase-out of defined benefit plans has reached a critical tipping point, creating a massive opportunity (and responsibility) for the financial advisory community.
Currently, less than half (48%) of non-retired Canadians possess any form of workplace pension, the study reveals, and even among those fortunate enough to have one, a quarter are completely unaware of their plan’s specific mechanics.
As the responsibility for funding retirement moves from the corporate ledger to the individual, the study reveals a startling lack of preparedness among the public with just 11% of non-retirees able to quantify the annual income required for their retirement while two thirds have failed to stress-test their financial strategy against inflation, market volatility, or healthcare costs. Only 33% have a formal retirement plan paired with active savings.
"The decline of defined benefit and contribution pension plans has fundamentally shifted the burden of retirement planning on to individuals in recent years," said Christine Van Cauwenberghe, Head of Financial Planning, IG Wealth Management. "Our data shows that while Canadians recognize this shift, many still lack a clear picture of what they need to save – and how to convert their savings into a 'personal pension plan'. This environment underscores the critical importance of working with a financial professional to develop a disciplined, personalized planning approach to ensure retirement readiness."
The research indicates that 53% of Canadians harbor negative emotions regarding retirement, often feeling too far behind to even start. This emotional paralysis is compounded by a lack of basic financial literacy with only 40% of respondents understanding the nuances of OAS, RRIFs, or retirement taxation.
"This growing pessimism not only reflects their financial uncertainty but also creates a cycle of inaction, as anxiety becomes a major barrier to take meaningful steps toward improving their retirement outlook," observed Van Cauwenberghe.
For the 36% of Canadians currently utilizing professional advice, the outlook is significantly brighter. These clients report high satisfaction levels, noting that advisors are essential for coaching, risk education, and plan optimization.
As the DIY retirement era proves to be a struggle for the majority, the demand for sophisticated, holistic planning has never been higher. Van Cauwenberghe concluded: "An advisor can help build a retirement plan that accounts for taxes, longevity, income sources, and risk – the pieces most people struggle with on their own. In a world without guaranteed pensions, advice is one of the strongest tools Canadians have."
