45% of Canadians admit biggest mistake is not saving enough—here's how poor financial decisions can derail retirement plans

Delayed retirement dreams

Retirement is supposed to be the golden phase of life — a time to reap the rewards of decades of hard work. However, for a growing number of Canadians, financial regrets are making that dream seem increasingly out of reach.

According to Money.ca, nearly half of surveyed Canadians (46.4%) say past financial mistakes have made saving difficult, while 37% struggle with lingering debt.

Millennials, in particular, are feeling the brunt of these financial setbacks with more than a third (41%) of Canadians aged 30 to 44 reporting that their past financial decisions have delayed key life events such as paying off debt or making major purchases, such as buying a home or paying down student or car loan debt. These delays have a domino effect, often pushing retirement goals further into the future.

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Biggest regret: Not saving enough

While some might assume that risky investments or poor stock market choices are the primary financial regrets, research found that the biggest financial misstep is much simpler: Not saving enough. Nearly 45% of Canadians admitted that failing to build adequate savings was their greatest financial regret. This shortfall in savings means many Canadians are unprepared for unexpected financial emergencies, let alone the costs associated with retirement.

Compounding this issue is the rising cost of living and homeownership. With housing prices expected to increase by 4.7% this year, those who have yet to enter the market are finding it even harder to accumulate wealth and establish financial security. For those hoping to retire comfortably, a lack of assets such as home equity and personal savings can lead to prolonged working years or a significant reduction in post-retirement lifestyle quality.

Path to financial recovery

Despite the daunting reality of financial regrets, many Canadians are taking proactive steps to regain control. The Money.ca study revealed that 52.4% of millennials are adjusting their budgets and implementing financial strategies to recover from past mistakes. Additionally, women are more likely to cut discretionary spending (40.5%), while men are more inclined to alter their investment strategies (17%).

Another key approach to recovery is seeking professional financial guidance. While only about 20% of respondents currently seek advice from financial professionals, experts stress that financial literacy programs, budgeting workshops, and retirement planning services can play a pivotal role in helping individuals make informed decisions and avoid repeating past mistakes.

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Is recovery possible?

While the road to financial stability after past mistakes may be long, it is not impossible, although confidence in recovery is not universal. Just over 1 in 5 Canadians (21%) express doubt about their ability to rebound from financial setbacks, with 6.1% feeling extremely uncertain about their financial future.

Financial experts recommend a multipronged approach for those looking to turn their situation around: automating savings contributions, setting clear retirement goals, and leveraging financial planning tools such as high-interest savings accounts and robo-advisors. By taking control of their financial future today, Canadians can work toward a more stable and fulfilling retirement, despite past missteps.

Bottom line

Financial regrets are a common burden, but they do not have to define one’s future. Whether it’s restructuring budgets, seeking professional financial advice, or making strategic investment adjustments, Canadians can take steps to mitigate the long-term impact of their past money mistakes. The key is to act early, stay disciplined, and prioritize savings to ensure that retirement dreams are not permanently derailed by financial missteps of the past.

Sources

1. Money.ca: Canadians' biggest financial regret: How past mistakes affect life milestones (Feb 20, 2025)

2. CREA: CREA Updates Resale Housing Market Forecast for 2025 and 2026 (Jan 15, 2025)