Insight and Help

2025 Critical Warning: Retirement Planning in Canada Changes

Jun 13, 2025

Retirement planning in Canada is no longer as simple as “saving enough money” – nowadays, it’s difficult to retire with peace of mind without $1 million CAD and a house. This is not an exaggeration, but a true reflection of the recently released Canadian Retirement Trends Report 2025. With high inflation, uncertain economic prospects, and fluctuating real estate values, retirement planning in Canada has become far more complex: to achieve a calm retirement, Canadians now require substantial savings and property security.

The report, published by Fidelity Investments Canada ULC, offers Canadian residents more comprehensive insights and advice on retirement planning in Canada.

Main findings at a glance:

🔹 Retirement preparations become more complicated
88% of respondents say retirement is harder now than 20 years ago. Declining housing affordability highlights why thoughtful retirement planning in Canada is critical. Those over 45 estimate they need $1.02 million CAD to retire decently—a sharp rise from $447,000 in 2005, and $685,000 in today’s dollars.

🔹 “Full retirement” is outdated
85% plan to ease into semi-retirement or pursue projects instead of quitting work cold turkey.

🔹 Generational gap in optimism
While 71% feel positive about retirement, only 59% near retirement share that optimism, compared to 81% of current retirees. Major concerns include inflation, global instability, and weak economic growth.

🔹 More people delay retirement
46% may postpone retirement due to rising costs. The average retirement age has increased from 61 in 2005 to 65 now; only 26% plan to retire before 65.

Wealth transfer Grows in Importance

Families increasingly consider supporting future generations as part of their retirement planning in Canada: 60% of prospective retirees and 55% of current retirees plan to pass on wealth during their lifetime—but most haven’t discussed it formally with family or agents. Expected inheritances correlate strongly with home prices:

Region	Expected Inheritance
British Columbia	$1.35 million CAD
Ontario	$1.18 million CAD
Prairie Provinces	$460,000 CAD
Quebec	$330,000 CAD
Atlantic Region	$250,000 CAD

The impact of cost increases on retirement timing (%):

British Columbia: 56%
Prairie Provinces: 55%
Ontario: 46%
Atlantic Canada: 43%
Quebec: 34%

Specific group differences:

Among women, only 54% of prospective retirees are optimistic, compared to 66% of men. Among those born overseas, 59% are concerned that supporting children will affect their retirement timeline, versus 31% of those born in Canada.

Written financial plan = greater confidence

90% of those with a written plan feel prepared for retirement; only 55% without one share that confidence. Those who worked with an agent also report higher confidence and investment willingness. “In an environment of growing economic and geopolitical uncertainty, it’s critical to have a clear, actionable financial plan,” says Peter Bowen, vice president of Fidelity Canada.

Conclusion

Canadians’ retirement paths are being redefined. Retirement planning in Canada now demands tailored strategies combining savings, property, and family considerations—not a one-size-fits-all approach.

If you’d like trusted retirement planning customized to your needs, please book a free consultation with Ai Financial’s retirement planning team today.