Survey says many young Canadians believe retirement will look different for their generation
One in three young Canadians do not think they will ever be able to financially retire – and nearly half expect to work longer and retire later than their parents.
New survey data from Co‑operators finds that young Canadians, defined as those under 35, are fundamentally redefining their long‑term financial aspirations and the concept of retirement.
Two‑thirds (65 percent) say retirement will look different for their generation, and hiring of workers under 25 has dropped 30 percent since 2019, according to Statistics Canada.
Cost‑of‑living challenges and a difficult entry‑level job market are reshaping how this group approaches long‑term career and retirement planning.
Almost half (49 percent) of young Canadians think it will be financially necessary to work longer and retire later than their parents, while a third (33 percent) do not think they will ever be able to financially retire at all. In response, they are shifting their focus to life‑long flexibility and mental wellbeing.
While compensation remains important, half say their ideal job is one with a flexible schedule (50 percent) and a strong work‑life balance (48 percent).
Near‑term quality of life also weighs heavily.
Roughly four in 10 (38 percent) of young Canadians want to prioritize living their lives now, and about the same proportion (40 percent) say they find the idea of micro‑retirements – short, intermittent career breaks – appealing.
Mental health ranks as the third‑highest motivation for considering micro‑retirements, behind travel and spending time with loved ones.
This generation is “adapting to reality,” and financial planning needs to keep pace, said Jess Baker, EVP and chief retail sales officer at Co‑operators.
She said many expect to work longer, so “mental wellbeing, work‑life balance and flexibility” matter more, and they are “looking to achieve a different kind of balance to offset that sacrifice.”
At the same time, many young Canadians are struggling to meet near‑term financial priorities.
Less than half (44 percent) report they can cover basic expenses and set aside money for savings, and only just over a third (38 percent) report regularly saving for retirement, compared with more than half (54 percent) of Canadians aged 35–44.
As daily costs take priority over long‑term planning and short‑term flexibility, financial resilience – the ability to withstand unexpected shocks like job loss or emergency expenses – has become increasingly strained.
Nearly three‑quarters (72 percent) are saving or wanting to save to improve work‑life balance, but less than half believe their current investing habits will provide financial stability.
Baker said rising financial stress is “compounding an already difficult path to financial security” for this generation. They are trying to make the right choices but “face barriers at every turn,” she said.
In her view, advice now has to be “about more than long‑term goals and retirement,” with advisors working to cut uncertainty and stress and support Canadians as they build security and flexibility throughout their lives.
Ahead of the 2026 RRSP contribution deadline, Baker offers three key pieces of advice.
First, “Save with intention, no matter the amount: Consistent, early saving is crucial for building financial stability and achieving your desired work-life balance. The amount is far less important than establishing the habit.”
Second, seek out help: young Canadians whose investments are managed by a financial advisor are more likely to feel positive about their general financial situation than those without an advisor (54 percent vs 39 percent).
For those struggling with mapping their savings to their aspirations, Baker says a financial advisor is the best place to start.
Finally, consider goal stacking: a financial advisor can transform the overwhelming task of saving into a series of actionable steps, each one building confidence and demonstrating tangible progress, helping to alleviate financial uncertainty and the stress and burnout experienced by many young Canadians.
