60 Percent of Canadians Express Doubts Over Ever Being Able to Retire: Survey

Nearly 60 percent of working Canadians are convinced retirement will forever be beyond their reach and more than 40 percent harbour anxiety or fear about their financial circumstances, a new survey suggests.

The results from the Healthcare of Ontario Pension Plan and Abacus Data survey reflect a growing worry among Canadians about their ability to secure a comfortable retirement and save for the future.

The annual survey released this week found that 59 percent of respondents are worried they will never be in a financial position to retire and 66 percent noted that they would probably need to work even after retiring to support themselves financially.

“Rising expenses and economic uncertainty have hurt Canadians’ retirement savings and outlook,” the report said, noting that worries for the future have had an impact on the mental health of a large share of Canadians.

Forty-four percent of those polled said their mental health has worsened because of geopolitical instability. Fifty-two percent reported feelings of anxiety about their finances, up 7 percent since the 2024 survey. An additional 48 percent reported feelings of fear and 47 percent  said they were sad about their financial situation, both an increase of 6 percent since 2024.

Many Canadians lack the financial resources to save for retirement, according to the survey’s findings.

Sixty percent of those surveyed said they have no disposable income because all of their earnings are allocated to paying for essentials like housing and food.

The survey also indicated that 49 percent of those surveyed had not set aside any funds for retirement during the past year, while 39 percent reported that they had never saved for retirement.

The survey respondents noted the inability of Canadians to save for retirement is influenced by the daily living costs, economic uncertainty, inflation, housing costs, and reductions in government health-care services.

Fifty-five percent of Canadians reported living paycheque to paycheque, an increase from 48 percent in the 2023 survey.

Trade War Worries

The findings of the survey indicate that Canadians are also apprehensive about the ongoing trade dispute with the U.S. and global instability.

Sixty-seven percent of those surveyed expressed that they were “very concerned” about Canada-U.S. relations.

Apprehension about the repercussions of the trade war between the two nations is most pronounced among seniors 65 and older, but also ranks as a primary economic concern for Canadians in the 55 to 64 age group.

Those aged 35 to 54 identified the cost of day-to-day living as their top concern while those in the 18 to 34 age bracket listed housing costs as their biggest worry.

A large majority of all age groups are worried geopolitical instability will have an impact on the cost of living. Sixty-one percent said they are concerned it will cost more for groceries and other household bills.

The potential ramifications of U.S. tariffs and persistent conflicts across the globe have transformed the financial management approaches of some Canadians as well. The survey indicated that 22 percent of respondents were setting aside additional savings due to geopolitical uncertainty.

“When Canadians are feeling even more uncertain about the future as they are now, pensions can offer more certainty about the future,” Abacus Data CEO David Coletto said in a press release. “Policy makers and employers should be taking a closer look at this now, more than ever.”

Pensions

A large majority of respondents said pension plans should be a priority. A total of 81 percent said all working Canadians should have a pension that guarantees a percentage of their working income in retirement.

An additional 78 percent said companies have a responsibility to offer a pension plan that workers can access for retirement income and 73 percent agreed that companies could afford to offer workers good pensions if they wanted to, regardless of economic conditions.

Pensions aside, survey respondents also viewed homeownership as a “key part” of their retirement strategy.

Sixty-two percent of survey respondents said owning a home is a good financial investment or a source of stability in retirement. Fifty percent of non-retired homeowners said they plan to sell their property to set themselves up for retirement, according to the survey.

The survey also discovered that 65 percent of individuals who have yet to retire and are still managing a mortgage are apprehensive about their ability to pay it off in time for their intended retirement. This marks an increase from 51 percent in 2024 and 45 percent in 2023.

The survey’s findings are based on an online poll of 2,000 Canadians aged 18 and older between April 11 and 16.