Survey finds under-35s expect longer careers, flexible work and new retirement models
Young Canadians are increasingly abandoning traditional notions of retirement as financial pressures and shifting workplace realities force a generational rethink of long-term planning.
New research from Co-operators found that Canadians under 35 are reassessing both their career timelines and future financial goals, with nearly two thirds believing retirement will look fundamentally different compared with previous generations.
Mounting living costs and a difficult early-career labour market are major contributors to that shift. Hiring among workers under 25 has declined by 30% since 2019, Statistics Canada data shows, creating additional uncertainty at the start of many careers.
As expectations evolve, many young adults anticipate remaining in the workforce longer. Almost half say they will likely need to delay retirement beyond their parents’ timelines, while one third doubt they will ever achieve full financial retirement at all.
Rather than focusing exclusively on a traditional end-of-career milestone, younger Canadians are prioritizing flexibility throughout their working lives. The findings show lifestyle considerations increasingly shaping career decisions, with half identifying flexible scheduling as a defining feature of an ideal role and nearly as many emphasizing strong work-life balance.
Shorter career pauses, often described as ‘micro-retirements’, are also gaining traction. About four in 10 respondents said they want to prioritize enjoying life in the present, and a similar proportion expressed interest in taking periodic breaks from work instead of waiting for a conventional retirement phase.
Jess Baker, EVP and chief retail sales officer at Co-operators, said the data highlights a broader adjustment underway across financial planning strategies.
“This generation is adapting to reality, and financial planning needs to adapt with it. They expect to work later in life and it naturally follows that mental wellbeing, work-life balance and flexibility would become an increased priority,” she said. “They're looking to achieve a different kind of balance to offset that sacrifice.”
Financial stress, however, continues to complicate long-term planning. Fewer than half (44%) of younger Canadians report they can simultaneously cover everyday expenses and save money, while only 38% say they are consistently putting funds aside for retirement — significantly below the 54% saving rate reported among Canadians aged 35 to 44.
The emphasis on managing immediate costs is also weakening financial resilience. Nearly three quarters said saving is tied to improving work-life balance, yet fewer than half believe their current investing habits will ultimately provide lasting financial stability.
Mental health considerations are emerging as another factor reshaping retirement thinking. Among those interested in micro-retirements, psychological wellbeing ranked as the third-strongest motivation, behind travel opportunities and spending time with loved ones.
