Financial pressures in the present

IG Wealth Management found four-fifths (80%) of respondents say the rising cost of living makes it difficult to save for retirement, while over half (56%) have put off saving due to financial pressures.

Additionally, almost half (47%) expect to retire before 65, but one-third anticipate working later to afford basic living expenses, supplement income or maintain social connections.

Despite financial pressures, two-fifths (38%) of respondents hope to prioritize travel in retirement, while 17% envision working part-time or consulting, and 33% plan to focus on hobbies and interests.

On average, non-retired Canadians allocate 12% of their income for retirement, but spend 67% on basic living expenses and 20% on leisure activities.

Three-quarters believe their generation may not retire as comfortably as current retirees.

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Much needed financial advice for Canadians

The survey also found only one-third of non-retired Canadians reporting that they work with a financial advisor. Of those who do, the majority state that their advisor helps them balance enjoying life today while saving for retirement (76%) while also personalizing advice to match their needs (91%).

"No two retirements are alike. With help from a financial advisor, Canadians can build a personalized retirement plan tailored to their unique needs to help manage today's financial pressures with their desired retirement lifestyle," Van Cauwenberghe said.

Survey methodology

This study was conducted in December 2024 by Pollara Strategic Insights with an online sample of 1,511 Canadians aged 18 years and older and not retired.

Sources

1. IG Wealth Management: Annual IG Wealth Management retirement study: Rising costs and competing priorities challenge Canadians’ retirement readiness (Jan 21, 2025)

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Nicholas Sokic Contributor

Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.

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