High Living Costs Push Canadians to Delay Home Purchases and Retirement Savings

Canadians are postponing long-term milestones — from buying a home to saving for retirement — as they struggle to keep pace with everyday expenses, according to new national data.

A recent survey by Willful, a Canadian online estate-planning platform, highlights how financial strain has widened the gap between what people intend to do and what they can actually afford.

“There’s a real disconnect between intention and action,” said Erin Bury, Willful’s co-founder and CEO. “Most of us want to tick those financial boxes, but for many, it’s simply not feasible.”

Majority Delaying Long-Term Goals

The Angus Reid poll, conducted in early October 2025 with over 1,500 respondents, found that 58% of Canadians have delayed at least one major goal this year due to economic pressures.

These goals include saving for retirement, paying off debt, writing a will, getting married, and purchasing homes or vehicles.

Another Ipsos study earlier this year also identified inflation and affordability as Canadians’ top concerns — a consistent trend over the past several years.

Housing and Savings Under Strain

Government briefing materials prepared in September revealed that low-income households continue to face limited access to affordable housing, while many middle-class renters are postponing home purchases longer than expected.

Nearly half of Canadians (46%) reported dipping into savings to cover rising daily costs — putting long-term financial milestones even further out of reach.

Confidence Drops as New Pressures Emerge

When asked about financial optimism, respondents gave an average score of 46%, down from 52% in 2024.

Bury noted that the economic narrative has shifted:

“A year ago, we were focused on inflation and high interest rates. Now, it’s mortgage renewals, job insecurity, and tariffs — all of which impact household finances in different ways.”

The Bank of Canada’s benchmark interest rate, which stood at 4.25% in September 2024, has since fallen to 2.25%.
While this has eased payments for some, other costs continue to climb, limiting the overall relief.

Rate Cuts Offer Only Partial Relief

About 31% of respondents said recent rate cuts have not improved their ability to manage debt or qualify for new credit.

“A rate cut helps if you have a variable-rate product,” Bury said. “But for many Canadians, the difference might just be a few dollars — or none at all.”

She added that daily essentials like groceries, gas, and childcare leave little room for savings:

“It’s the big-ticket items — mortgages, car loans — that are hardest to manage, especially with ongoing renewals.”

The Bottom Line

Even as borrowing costs ease, high living expenses continue to reshape Canadians’ financial priorities.
Families are cutting back, tapping into savings, and delaying milestones that once defined financial stability.

“It’s not just about making ends meet,” Bury said. “It’s about finding space to plan for a future that feels increasingly out of reach.”