How Much Do Canadians Need to Retire? Early Planning Rises as Confidence Declines

Younger Canadians Are Planning Earlier

While retirement targets are rising, planning is starting earlier.

CIBC data shows that Canadians now begin planning for retirement at an average age of 30, with many intending to retire around age 61.

Generational differences are clear:

• Boomers typically started saving in their early 30s
• Gen X began around age 30
• Millennials start at approximately 29
• Gen Z begins as early as 24

Financial experts attribute this shift to growing awareness of inflation, rising living costs, and student debt burdens. Younger Canadians recognize that early planning allows them to benefit from compound growth over decades.

Starting earlier provides flexibility, adaptability and long-term stability — particularly in uncertain economic environments.

Confidence Is Falling

Despite higher targets and earlier planning, confidence in achieving retirement goals is weakening.

More than one-third of Canadians say they are unlikely to meet their retirement savings target — a noticeable increase from the prior year.

Savings behavior also varies significantly:

• Many Canadians save less than financial planners recommend
• A meaningful share contribute only small monthly amounts
• Only a minority consistently exceed suggested savings thresholds

Rising living costs and inflation remain the top concerns. Many respondents say high prices are directly affecting their ability to save.

A Growing Group Doesn’t Plan to Retire

Perhaps most striking is a shift in mindset: a meaningful portion of Canadians say they do not plan to retire at all.

Across generations:

• Some Boomers who have not yet retired say they intend to continue working
• Roughly one in five Gen X respondents indicate they may never retire
• Millennials and Gen Z show similar hesitation

Retirement, once considered a predictable life stage, is increasingly viewed as optional — or financially uncertain.

What This Reveals About Canadian Retirement Planning

Taken together, the data reveals a paradox:

• Canadians believe they need more money than ever to retire
• Younger generations are taking planning more seriously
• Yet overall confidence is eroding

Retirement is no longer simply age-based. It has become strategy-based.

The key variable is no longer just income — it is planning, time horizon and asset growth.

AiF has consistently emphasized that investing earlier creates structural advantages. The earlier capital is put to work, the more time and compounding can reduce pressure later in life.

In today’s environment, retirement confidence is shaped not only by how much Canadians think they need — but by when they start preparing.