A majority of Canadians are worried they will not have enough money to retire because of inflation, a new survey from BMO has found, with respondents on average expecting they will need $1.54 million to retire.
According to BMO’s annual retirement survey of 1,500 Canadians, 76 per cent of respondents are worried they won’t have enough money in retirement due to rising prices. Another 63 per cent of Canadians say rising prices over the last year have hampered their ability to save for retirement.
For those who said inflation has limited their ability to save for retirement, BMO says they have adjusted by cutting other spending, putting less into retirement savings, plan to work longer or have put off retirement savings completely.
“Inflation is a major concern for Canadians, and the spike in prices as the economy emerged from the pandemic is a stark reminder rising prices can affect spending, investment and savings plans,” Robert Kavcic, senior economist at BMO, said in a news release.
“Inflation should always be a major consideration when saving and investing for retirement and if investors have concerns about how rising prices may impact their retirement savings, it might help to seek guidance from a financial professional.”
Still, while inflation has raised concerns for many when it comes to saving for retirement, the amount Canadians expect they will need has gone down compared to previous years. Last year, BMO’s survey found that Canadians on average believe they would need $1.7 million at retirement.
Although price concerns are weighing on them, Canadians are managing to save more for their retirement. BMO says average contributions to Registered Retirement Savings Plans have gone up, rising 14 per cent from last year to $7,447. That’s also above the average contribution record of $6,822 set in 2021, when the COVID-19 pandemic saw savings rates go up.
The survey of 1,500 Canadian adults was conducted online by Pollara between Nov. 8 and Nov. 18. While a margin of error could not be calculated on a non-probability sample, for comparison purposes, a sample of 1,500 respondents would have an estimated margin of error of +/- 2.5 per cent, 19 times out of 20.
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on X @alicjawithaj.
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Poll points to ‘sharp’ drop in RRSP contributions this year: Edward Jones
Respondents cited expenses, debt repayment and insufficient income as barriers to saving
A smaller proportion of Canadians will be contributing to their RRSPs this year, based on poll results from Edward Jones Canada.
In an online survey of 1,528 Canadian adults conducted between Jan. 23 and Jan. 28 by Pollara Strategic Insights, 39% of respondents said they planned to contribute to their RRSPs — a “sharp” 10-point drop from last year, a release from Edward Jones Canada said.
Of younger respondents (aged 18 to 24), 41% said they planned to contribute to their RRSPs, down from 60% last year.
(The survey made no mention of whether respondents would contribute to their TFSAs instead.)
The survey further found that only 15% of respondents planned to contribute the maximum amount to their RRSPs, a drop of six percentage points year over year.
Canadians are eligible to contribute up to 18% of their previous year’s earned income, to a maximum of $31,560 for the 2024 tax year, plus unused carried forward room (subject to any pension contribution adjustments).
About four in 10 respondents (39%) said insufficient income, living expenses and debt repayment were barriers to saving for retirement.
“Amid economic uncertainty, it’s clear that Canadians are prioritizing their current expenses and putting retirement planning on the back burner,” said Julie Petrera, senior strategist, client needs with Edward Jones, in the release. “[M]any Canadians admit to not having a specific retirement savings strategy, underscoring a need for comprehensive financial guidance that balances short- and long-term financial priorities.”
About one-fifth of respondents (20%) said they had no specific savings strategy, and only about one-quarter (26%) said they were on track to saving for their ideal retirement.
Less than one-quarter (22%) said they relied on advice from financial advisors.
The polling industry’s professional body, the Canadian Research Insights Council, says online surveys can’t be assigned a margin of error because they don’t randomly sample the population.
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Canadians Reveal Retirement Savings Goal – BMO Survey Shows Surprising Number
Home – Canada – Canadians Reveal Retirement Savings Goal – BMO Survey Shows Surprising Number
The BMO Retirement Savings Survey reveals that the average retirement savings goal for Canadians is $1.7 million. Despite challenges like rising costs of living, many Canadians are striving to reach this target. Learn how to build a retirement plan that can help you meet your goals through.
Canadians Reveal Retirement Savings Goal: When it comes to retirement, Canadians are aiming higher than ever before. A 2025 BMO Retirement Savings Survey reveals surprising insights about how much Canadians plan to save for their retirement. Despite increasing financial pressures, a large number of Canadians are targeting $1.7 million in retirement savings. This number is significantly higher than what many may have expected, especially when considering the challenges associated with rising housing costs, inflation, and stagnant wages. But what does this goal mean for Canadians’ long-term financial planning, and how can they realistically achieve it?
In this article, we will explore the findings of the BMO Retirement Savings Survey, discuss the main factors influencing Canadians’ retirement goals, and provide actionable advice on how to close the gap between the average savings goal and actual savings.
As the BMO Retirement Savings Survey shows, Canadians are setting high goals for their retirement savings, with many aiming for $1.7 million. While this goal may seem out of reach for some, it is achievable with careful planning, consistent savings, and smart investments. By starting early, maximizing tax-advantaged accounts, and focusing on reducing debt, Canadians can improve their chances of meeting their retirement goals and securing a financially stable future.
According to the BMO Retirement Savings Survey, the average goal for Canadian retirement savings has reached $1.7 million. This figure may seem eye-popping, especially given the financial challenges many Canadians face today. Rising housing costs, student debt, and overall economic uncertainty have made it harder for people to set aside large amounts for the future. Yet, this goal reflects a growing awareness of how much Canadians need to maintain their lifestyle post-retirement without depending solely on government benefits.
The $1.7 million target isn’t just a random number; it’s a response to some of the rising concerns about retirement. Canadians today are living longer, facing higher healthcare costs, and looking for ways to maintain a comfortable lifestyle. For many, the goal of $1.7 million is a way to achieve financial independence, secure their healthcare needs, and maintain their standard of living.
Interestingly, respondents from Ontario have set the highest retirement savings goal of $1.9 million, which could be due to the higher costs associated with living in cities like Toronto and Ottawa.
While Canadians have set ambitious savings goals, the actual amount many have saved for retirement paints a different picture. On average, Canadians have saved approximately $200,000 for retirement, which is far below the $1.7 million goal. This highlights a gap between goals and reality, indicating that many Canadians may face challenges in reaching their target retirement savings.
This survey shows that while Canadians are aware of the need for retirement savings, the actual amount saved is not enough to meet their lofty targets.
Several factors are contributing to the gap between savings goals and actual savings. From high living costs to insufficient financial education, there are a number of challenges Canadians face as they attempt to build retirement wealth.
The cost of living has increased dramatically in many parts of Canada, particularly in urban areas. Cities like Vancouver, Toronto, and Montreal are known for their high housing costs, which leave little room for retirement savings. Young Canadians, in particular, are struggling with student loans, high rents, and the cost of raising children, which makes it difficult to prioritize retirement.
Although more Canadians are saving for retirement, many still lack a solid understanding of how to invest and plan for the future. The survey found that only 45% of Canadians felt confident in their knowledge of retirement planning. A lack of financial education can lead to missed opportunities for Canadians to grow their savings through investments such as RRSPs and TFSAs.
For many Canadians, short-term financial needs often take precedence over long-term savings. Issues like credit card debt, student loans, and mortgage payments can make it difficult to consistently contribute to retirement savings accounts. The survey found that 55% of Canadians feel they cannot afford to save aggressively for retirement because of immediate financial obligations.
While the $1.7 million goal may seem ambitious, there are concrete steps Canadians can take to increase their chances of achieving their retirement target. It’s important to start early, invest wisely, and stay disciplined in your savings approach. Below are some actionable strategies to help you get on track:
The earlier you start saving for retirement, the easier it will be to reach your financial goals. Even small contributions to a RRSP or TFSA can grow over time due to the power of compound interest. If you’re young, even saving a small amount every month can have a huge impact on your retirement savings decades down the road.
Consistency is key when it comes to retirement savings. Setting up automatic contributions to your retirement accounts ensures that you’re consistently putting money away for the future. Try to increase your contributions over time as your income grows, and make sure to take full advantage of your employer’s pension plan if available.
In Canada, there are several tax-advantaged savings options, such as RRSPs and TFSAs. These accounts allow your investments to grow without being taxed, which can significantly accelerate your savings. If possible, try to max out your contributions to these accounts each year to take full advantage of the tax benefits.
While saving is important, investing your money is crucial to growing your wealth. Consider a diversified portfolio of stocks, bonds, and other investments to maximize returns over the long term. If you’re unsure where to start, consulting a financial advisor can help you develop an investment strategy that fits your risk tolerance and goals.
Reducing high-interest debt, such as credit card balances, can free up more money for savings and investment. Paying off student loans and mortgages can also relieve financial stress and allow you to contribute more to your retirement accounts.
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Achieving the $1.7 million target is possible, but it will require careful planning, consistency, and a disciplined approach to saving. While many Canadians are currently falling short of their savings goals, the BMO survey highlights a growing awareness of the need for retirement savings. With the right mindset and strategic planning, Canadians can work towards meeting their goals, even if the $1.7 million target feels out of reach right now.
By maximizing tax-advantaged accounts, investing wisely, and prioritizing savings, Canadians can make significant progress toward achieving their retirement aspirations.
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Canadians Reveal Retirement Savings Goal
The Surprising Goal: $1.7 Million
How Much Have Canadians Actually Saved?
Factors Affecting Retirement Savings Goals
What Can Canadians Do to Achieve Their Retirement Goals?
Will Canadians Be Able to Reach Their Retirement Goals?
FAQs On Canadians Reveal Retirement Savings Goal
Why This Goal is So High
Survey Insights:
1. Rising Cost of Living
2. Lack of Financial Literacy
3. Short-Term Financial Pressures
1. Start Saving Early
2. Contribute Regularly
3. Maximize Tax-Advantaged Accounts
4. Invest Wisely
5. Focus on Reducing Debt
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| Key Information | Details |
|---|---|
| Survey Date | 2025 |
| Total Respondents | 1,500 Canadians |
| Average Retirement Savings Goal | $1.7 million |
| Percent Saving for Retirement | 70% of Canadians |
| Retirement Age Target | 65 |
| Region with Highest Goal | Ontario |
| Official Source | BMO Financial Group |
