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Rising cost of living forcing many Canadians to delay retirement savings, IG Wealth Management report finds
February 27, 2025
The rising cost of living is pushing retirement saving down the priority list of Canadian workers, according to a new report from IG Wealth Management.
The financial planning company’s annual retirement study found that 80 per cent of respondents had difficulty saving for retirement because of the rising cost of living, with 56 per cent indicating that they had put off saving as a result of financial pressures.
Meanwhile, 46 per cent said they were prioritizing spending on their current lifestyle ahead of saving for retirement, so that they could pay off debts or enjoy their life now, among other reasons.
Other notable findings from the survey included:
- The average non-retired Canadian allocates 12 per cent of their income for retirement, 67 per cent for basic living expenses and 20 per cent for leisure activities;
- 47 per cent of non-retired Canadians expect to retire before 65, while one-third anticipate working later to afford basic living expenses, supplement income, or maintain social connections; and
- 38 per cent of respondents hoped to prioritize travel in retirement, with 17 per cent expecting to continue working part-time or consulting. A further 33 per cent plan to focus on hobbies and interests.
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