Survey links low savings, income gaps to delayed retirement for Canadians over 50
Almost half of Canadians over 50 who are still working now say they cannot afford to retire when they want to — while roughly one in five have saved $5,000 or less for retirement.
That is the picture emerging from the National Institute on Ageing’s (NIA) 2025 Ageing in Canada Survey, supported by Manulife, and it has direct implications for plan sponsors and asset managers.
According to the NIA, the share of Canadians aged 50+ who believe they can afford to retire at their desired time fell from 35 percent in 2022 to 29 percent in 2025, while those who say they cannot afford to retire on schedule rose from 37 percent to 43 percent over the same period.
Among working Canadians 50+, 22 percent report retirement savings of $5,000 or less, excluding property and workplace pensions.
Manulife says these findings are consistent with its Financial Resilience and Longevity Report, which found that 48 percent of Canadians are behind schedule on retirement savings.
That report came from Manulife Group Retirement, within Manulife Wealth & Asset Management, which provides investment, financial advice, and retirement plan services.
The NIA frames this against a demographic shift.
It reports that Canadians aged 50 and older now make up 38 percent of the population, about 15.7m people, and notes that Canada is on the verge of becoming a “super‑aged” nation, with more than one in five residents over 65.
The Institute points out that retirement could last up to 40 years for some, increasing the strain on a system built around Old Age Security, the Guaranteed Income Supplement, and the Canada/Quebec Pension Plans, supplemented by workplace pensions, registered savings, TFSAs, home equity and other assets.
Income adequacy data in the survey underline how uneven that foundation is.
The NIA reports that in 2025, 38 percent of Canadians 50+ say their income is “good enough to save,” 39 percent say it is “just enough to avoid major problems,” and 22 percent say it is not enough — either “stretched” or “having a hard time.”
That inadequate‑income group has edged down from 26 percent in 2022, but still represents more than one in five older Canadians.
Adequacy improves with age: 55 percent of those 80+ describe their income as “good enough to save,” compared with 29 percent of those 50–64 and 43 percent of those 65–79.
The NIA reports that men are more likely than women to say their income is sufficient, and that 48 percent of homeowners report adequate or higher incomes, versus 20 percent of renters.
It also finds that 31 percent of older Canadians name the rising cost of living as their top financial concern as they age, while 16 percent single out running out of money, with that worry notably higher among those approaching retirement, renters and those with lower education.
A separate measure, the Material Deprivation Index, tracks whether households can afford 11 basic items and activities.
The NIA reports that 20 percent of Canadians 50+ in 2025 could not afford at least two of those items — its threshold for a poverty‑level standard of living — down slightly from 22 percent in 2024.
Deprivation is highest among those aged 50–64 (29 percent), women (23 percent), people in fair or poor health (35 percent), renters (36 percent), and those without a high school diploma (35 percent).
The Institute highlights a five‑point drop in the share unable to afford regular dental care, from 16 percent in 2024 to 11 percent in 2025, and links that timing to the rollout of the Canadian Dental Care Plan for low‑ and middle‑income adults without coverage.
The survey also draws a clear line between income security and access to health care.
The NIA reports that 68 percent of Canadians 50+ have a regular primary care provider in 2025, up from 62 percent in 2022, and that 86 percent needed health services in the previous year.
Of those who needed care, 70 percent say they received it when required, up from 64 percent in 2024. Access is not evenly distributed.
Those who describe their income as “good enough to save” are far more likely to report getting needed care than those whose income is “not enough and stretched” or “not enough and having a hard time.”
Barriers include difficulty getting appointments, long wait times, referral challenges, cost, and local availability.
Manulife points out that Canadians aged 50–64 are the least connected to primary care and the least likely to access care when needed, even though many are still in the workforce.
It argues that “building a longer health span starts early” and links this to partnerships that support women, families, mental health and physical activity as ways to promote prevention and timely access to care.
The NIA’s wider findings on wellbeing add context for sponsors shaping plan design and decumulation guidance.
It reports that positive feelings about ageing have declined from 63 percent in 2022–23 and 62 percent in 2024 to 57 percent in 2025, while negative feelings have risen to 39 percent.
It also finds that 57 percent of Canadians 50+ feel somewhat or very lonely and 43 percent are at risk of social isolation, levels unchanged since 2022.
“Longevity isn't just about adding years to life -- it's about adding life to those years,” said Mark Hazelden, interim executive director of the National Institute on Ageing.
He added that the survey shows “too many Canadians are experiencing poor health or financial insecurity as they age” and that improving health span requires addressing those gaps early.
