TFSAs now outpace RRSP contributions as 49% of Canadian investors favour flexibility
Most Canadians expect to retire around 61, yet many still have not done the basic work to see if they can afford it.
According to a new CIBC poll, most Canadians plan to retire at 61 and are sticking with their long‑term financial strategies, with 76 percent saying their approach to investing has remained unchanged.
The same poll reports that only 41 percent of Canadians feel confident they will have enough savings to maintain their desired lifestyle in retirement.
As per CIBC, Canadians are taking a more proactive approach to saving, with younger generations starting earlier than older ones.
On average, Canadians begin saving for retirement at age 30, while planning to retire at 61.
Gen Z plans to retire at 59, Millennials and Gen X at 61, and Boomers retired (or plan to retire) at 63.
CIBC says 68 percent of Canadians own an investment portfolio.
Among contributors, 49 percent direct more funds to TFSAs, 32 percent to RRSPs and 19 percent split contributions evenly.
Those favouring TFSAs over RRSPs cite tax‑free withdrawal flexibility and the ability to contribute at any life stage, including post‑retirement.
Among the 32 percent who do not invest, CIBC reports that limited disposable income is the top barrier (63 percent), followed by fear of financial loss (38 percent).
“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 said building a plan and reviewing it regularly can help ensure a comfortable future.
Lucreziano added that “leveraging the right tools, making informed budgeting choices, and regularly meeting with an advisor” can all support retirement ambitions.
She noted that “personal finance isn’t about getting everything right from day one, it’s about progress,” and that “what matters most is getting started and being consistent.”
At the workplace level, the Financial Services Regulatory Authority of Ontario (FSRA) reports that Ontario pension plan membership grew by more than 200,000 people in 2025, or an average of 549 per day, compared to 2024.
FSRA says more than 175,000 people joined defined benefit plans, up 6 percent from 2024, while more than 58,000 joined defined contribution plans, up 9 percent.
As Ontario marks the fourth annual Pension Awareness Day, FSRA is urging workers and employers to look more closely at how workplace pensions fit into long‑term retirement security.
FSRA says this can include reviewing annual pension statements, using online tools to understand financial needs after leaving work, speaking with a Financial Planner or Financial Advisor, and starting or reviewing a retirement plan.
Previous FSRA research shows many Ontarians, with and without pension plans, are not taking basic steps to prepare for life after work.
FSRA finds that eight in 10 respondents have not fully developed a retirement plan, 66 percent have not calculated how much money they will need in retirement, one in two cannot recall the last time they spoke to someone about saving for retirement, and 50 percent of pension members 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.
He warned, however, that “a pension is not a complete retirement strategy.”
He said investors need to understand how their workplace plan fits with government pensions, retirement savings plans and personal savings, and that this is “exactly what Pension Awareness Day is designed to do.”
