Discover why early planning and smart strategies are key as Canadians face the 40-year retirement
Canadians are living longer than ever, but are their retirement savings built to last 40 years or more?
As the average life expectancy climbs and the number of centenarians doubles, the prospect of a four-decade retirement is no longer a distant scenario—it’s a new reality that plan sponsors and advisors must help workers face head-on.
Recent survey findings reveal that nearly half of Canadian workers feel behind on their retirement savings, and financial stress is taking a measurable toll on workplace productivity.
Employees now spend an average of 5.5 hours each month managing personal finances at work, and one in five report increased financial stress in retirement compared to their working years.
These pressures are not limited to any one generation; from Gen Z to Baby Boomers, concerns about inflation, debt, and healthcare costs are persistent and growing.
The timing of retirement can dramatically impact financial well-being.
Data shows that 44 percent of retirees left the workforce earlier than planned—often due to health or family issues—at an average age of 59.
Early retirees are more likely to experience financial stress, need to fill unexpected financial gaps, and make lifestyle adjustments to cut costs.
In contrast, those who retire as planned or later are less likely to feel financially strained and more likely to have a formal retirement plan in place.
Generational differences shape retirement priorities and readiness.
Gen Zers are focused on day-to-day expenses and home ownership, with only 42 percent prioritizing retirement savings.
Millennials, the largest cohort in the workforce, are struggling to balance current financial demands with future goals, and half feel their retirement savings are behind schedule.
Gen X, often supporting both children and aging parents, faces unique pressures, while Baby Boomers—though more confident—are not immune to financial worries, with 40 percent rating their finances as fair or poor.
Retirees offer candid advice: plan ahead, start saving early, and seek professional guidance.
Many were surprised by how quickly the cost of living changes and how similar their spending levels remained in retirement, just redirected to different expenses.
Several emphasized the importance of having a plan for how to spend their time, not just their money.
For plan sponsors and advisors, the challenge is to create “aha” moments that motivate action across all age groups.
