Younger Canadians boost RRSP plans despite low literacy and limited access to advice
Canadians say they need to save for retirement – but most still feel confused, anxious and unprepared when it comes to RRSPs.
New data from Edward Jones Canada shows 70 percent of Canadians report negative feelings about RRSP contributions, with confusion the most common emotion at 40 percent.
Many also feel unsure that they’re maximizing their RRSP opportunities (37 percent) or are worried that they are not contributing enough for a financially secure retirement (36 percent).
These emotions closely track with gaps in RRSP literacy.
Just over half (56 percent) understand the value of tax deductions, only 55 percent grasp the tax implications of withdrawals, and barely half (53 percent) feel confident in what happens when a RRSP matures.
Confidence is somewhat stronger around the annual contribution deadline, with two‑thirds (66 percent) saying they understand it – the highest level of financial literacy across all RRSP topics – but clarity drops sharply beyond that.
"What we're seeing is a generation that knows they need to save for retirement but lacks the confidence that they're doing it right," said Julie Petrera, director of Financial Planning at Edward Jones Canada. "The good news is that discomfort often signals readiness to seek help and learn."
Younger adults stand out as the most concerned and least confident.
Negative emotions are highest among those aged 18–34 (84 percent) compared with 75 percent of those 35–54 and 54 percent of those 55+.
Only 36 percent of adults aged 18–34 feel confident in what happens when an RRSP matures, compared to 50 percent of those aged 35–49 and 69 percent of those 55+.
Intentions to save, however, remain resilient.
Overall, 41 percent of Canadians plan to contribute to their RRSP this year, aligning closely with last year’s 39 percent.
Fifteen percent intend to contribute the maximum amount to their RRSP, while nine percent say they cannot afford to contribute – a negligible decline from 10 percent in 2025.
Among 18–34‑year‑olds, 48 percent plan to contribute this year, up from 41 percent last year and moving closer to the 58 percent reported in 2024.
Among those aged 35–54, RRSP contribution plans remain stable (59 percent in 2026 vs. 60 percent in 2025).
Financial pressure remains the biggest barrier holding Canadians back from making RRSP contributions.
More than two‑fifths (42 percent) report financial pressure – insufficient income, high cost of living, debt repayment – as the biggest barrier they face in saving for retirement, up from 39 percent last year.
Perceptions of preparedness diverge sharply by age.
Nearly a quarter of Canadians (24 percent) say they face no barriers and feel on track for retirement, but only 9 percent of those aged 18–34 and 15 percent of those aged 35–54 feel barrier‑free and on track.
In contrast, nearly half (45 percent) of Canadians aged 55+ say they face no barriers, a notable increase among those nearing retirement.
This higher sense of preparedness is most pronounced among age groups with greater access to financial advice.
Nearly half (48 percent) of Canadians aged 55+ have a dedicated financial advisor, compared to nearly a quarter (24 percent) of those aged 35–54 and just 13 percent of those aged 18–34.
Julie Petrera said “it’s important to remember that an RRSP is an account, not a complete retirement plan.” She said retirement planning is “deeply personal,” and advisers work with Canadians of all ages to see whether an RRSP fits their broader goals and to build a holistic plan toward “financial fulfillment.”
The 2025 RRSP contribution deadline is March 2.
Canadians may be eligible to contribute up to 18 percent of their previous year’s earned income, to a maximum of $32,490 for the 2025 tax year, plus unused carried‑forward room, subject to pension adjustments.
