Canadians fear a tougher road to retirement—and plan to help their kids along the way

Canadians are going into this year’s RRSP season in a somewhat pessimistic mood. Two-thirds say it will be more difficult for them to save and invest for their retirement than it was for their parents, according to BMO’s latest Retirement Survey.

Canadians expect a tougher retirement than their parents

Of all age groups, millennials have the gloomiest outlook, with nearly three quarters (73%) responding that their retirement plans will be harder to fulfill than their parents’. Baby boomers (60%) and Gen Z (61%) were somewhat more optimistic, with Gen X (67%) right at the national average.

Survey respondents weren’t just worried about their own retirements—77% said providing for retirement would be harder for future generations. In fact, almost half (49%) expect to help their children out financially. They feel that support is necessary, even though 83% of those benefactors-to-be anticipate that it will come at the expense of their own standard of living in retirement.

Perhaps surprisingly, Canadians at the younger end of the spectrum are most likely to foresee supporting their children into adulthood, with 68% of Gen Z respondents planning to do so. By contrast, just 38% of baby boomers see the need to assist their adult children with saving for retirement.

Estate planning can be part of a retirement strategy

“We are seeing more families thinking beyond their own retirement and planning for how wealth will be passed on to the next generation,” said Lydia Potocnik, vice-president and regional director, estate and trust services for BMO Private Wealth, in a release. “A well-structured, holistic strategy often includes estate planning, which can help parents support their children without compromising their own retirement security.”

By and large, respondents to the Retirement Survey who used a financial advisor were content with the advice they are receiving, with 89% saying that their advisor helps them meet their financial goals and 44% strongly in agreement.

The study was based on a November poll of 1,500 Canadian adults, weighted by gender, age and region to best represent the Canadian population. The results are considered accurate within 2.5 percentage points 19 times out of 20.

How to improve your retirement readiness

To improve your chances of retiring comfortably at a time of their choosing, BMO recommends you:

• Start planning early: Define goals and determine a saving and investment strategy.
• Practice discipline: Make and follow a budget that treats retirement savings as a regular expense.
• Seek professional advice: Advisors can help you devise and monitor your portfolio and recommend strategies to match your circumstances, risk tolerance, and goals.

Remember: You have until March 2, 2026 to contribute to your RRSP and obtain an income tax deduction for the 2025 tax year.

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