Toronto, ON – A significant majority of Canadians who have not yet retired believe they will never be financially able to do so, according to a new national survey. The findings, released in April 2025, paint a stark picture of a population grappling with persistent financial strain, rising costs, and geopolitical uncertainties.
The seventh annual Canadian Retirement Survey, conducted by the Healthcare of Ontario Pension Plan (HOOPP) in partnership with Abacus Data, surveyed 2,000 Canadians aged 18 and older between April 11 and April 16, 2025. The results underscore a growing sense of financial vulnerability across the country.
Among unretired respondents, a striking 59 per cent expressed the belief that they will never reach a financial position enabling them to retire. Furthermore, 66 per cent anticipate needing to continue working even after retirement to sustain themselves financially.
The survey points to a fundamental lack of disposable income as a primary barrier to saving. Sixty per cent of respondents reported that all their earnings are consumed by necessities, leaving no money for savings. This challenge is reflected in savings habits: 49 per cent had not set aside any money for retirement in the past year, and 39 per cent admitted to having never saved for retirement at all.
Various factors are cited by respondents for their inability to save, including the escalating day-to-day living costs, pervasive economic uncertainty, inflation, the ongoing housing affordability crisis, and reductions in government healthcare services. The financial squeeze appears to be intensifying, with 55 per cent of Canadians describing their financial situation as living paycheque to paycheque – a noticeable increase from 48 per cent in the same survey conducted in 2023.
Homeownership’s Role in Retirement Strategy
The survey highlighted a significant divide in retirement preparedness based on homeownership status. Among unretired individuals, 71 per cent of homeowners had managed to set aside money for retirement at some point, a stark contrast to only 36 per cent of non-homeowners, the majority of whom reported never having done so.
For 62 per cent of survey respondents, homeownership is viewed as a “key part” of their retirement strategy. Indeed, half of unretired homeowners plan to finance their retirement by selling their property.
However, owning a home doesn’t eliminate financial worries. For those unretired individuals with a mortgage, 65 per cent expressed concern about their ability to pay it off in time for their planned retirement – a figure that has climbed from 51 per cent in 2024 and 45 per cent in 2023. Additionally, 66 per cent of mortgage holders have either experienced an increase in their mortgage payments over the last year or anticipate one in the next 12 months.
Non-homeowners face their own set of anxieties. A vast majority, 84 per cent, are concerned about the rising cost of rent, with 66 per cent of them prioritizing rent payments above all other financial obligations.
Geopolitical Instability and Trade Concerns
Beyond personal finances, Canadians are also deeply concerned about broader global issues, including the ongoing trade relationship with the United States and general geopolitical instability. Sixty-seven per cent of respondents stated they were “very concerned” with the state of U.S.-Canada relations. The potential impact of the trade war between the two nations is a top economic worry for Canadians aged 55 to 64 and is highest among seniors.
The implications of U.S. tariffs and protracted global conflicts are also influencing financial decisions. The survey found that 22 per cent of respondents are increasing their savings as a direct response to geopolitical uncertainty.
In a press release detailing the survey’s findings, David Coletto, CEO of Abacus Data, emphasized the importance of access to pensions as a buffer against such widespread uncertainty. “When Canadians are feeling even more uncertain about the future as they are now, pensions can offer more certainty about the future,” Coletto stated. He added, “Policy makers and employers should be taking a closer look at this now, more than ever.”
Methodology
The survey findings are based on an online survey of 2,000 Canadians aged 18 and older, conducted from April 11 to 16, 2025. Participants were drawn from a random sample of panelists invited from partner panels on the Lucid exchange platform. These partners typically employ double opt-in survey panels, which are blended to mitigate potential data skews from a single source. The margin of error for a comparable probability-based random sample of the same size is +/- 2.19 per cent, 19 times out of 20. It should be noted that the margin of error will be larger for data based on sub-groups within the total sample.
