Edward Jones Canada Survey: Canadians are Struggling to Save for Retirement

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RRSP contributions decline across all age groups, with younger Canadians and women saving less

TORONTO, Feb. 18, 2025 /CNW/ - Canadians' ability to save for retirement is taking a significant hit. New polling data from Edward Jones Canada shows only 39 per cent of Canadians plan to contribute to their RRSP this year, marking a sharp 10 point drop from 2024 survey figures.

These diminishing RRSP contributions underscore the economic pressures faced by Canadians, particularly in the face of high living costs and debt burdens. In fact:

• Fifteen per cent plan to contribute their maximum amount to their RRSP, a drop of 6 points from the previous year.
• Younger Canadians (aged 18-34) are experiencing a notable decline, with just 41 per cent planning to contribute, down from almost 60 per cent last year.
• One-in-ten Canadians indicate they cannot afford to invest in their RRSP at all, in-line with 2024 results.

When it comes to the single biggest barrier Canadians face in saving for retirement, more than one-third (39 per cent) point to financial challenges caused by insufficient income, high cost of living and debt repayment.

"Amid economic uncertainty, it's clear that Canadians are prioritizing their current expenses and putting retirement planning on the back burner" said Julie Petrera, Senior Strategist, Client Needs at Edward Jones. "And despite the crucial role a well-defined plan plays in overcoming financial barriers, many Canadians admit to not having a specific retirement savings strategy, underscoring a need for comprehensive financial guidance that balances short- and long-term financial priorities."

While a quarter of Canadians (26 per cent) say they don't face any barriers and are on track to saving for their ideal retirement, this is not the case for all generations. Only 15 per cent of Millennials and 10 per cent of Gen Z say the same. Rather, younger Canadians are most likely to cite barriers such as not knowing where to start without trusted financial advice (14 per cent of Millennials, 15 per cent of Gen Z) or that retirement feels too distant to plan for now (15 per cent of Millennials, 21 per cent of Gen Z).

When comparing priority of retirement saving of women vs. men, women are slightly more likely to prioritize affording healthcare costs (85 per cent vs. 80 per cent of men) and pursing personal goals (76 per cent vs. 71 per cent of men), while men are somewhat more likely to emphasize the importance of supporting dependents (55 per cent vs. 48 per cent of women). Although they share similar retirement planning priorities, they are not showing the same commitment to their RRSP contribution with men more likely to contribute this year (43 per cent vs. 36 per cent of women).

Despite these hurdles, Canadians recognize the importance of being financially resilient in retirement. For example:

• A significant 84 per cent identify being able to account for inflation and cost of living adjustments while retired.
• Similarly, 84 per cent want to be able to maintain their current lifestyle for the length of retirement.
• Affording current or future healthcare costs is also top of mind for Canadians, with 83 per cent noting this is an important priority.

When it comes to determining how much to save for retirement, an alarming one-fifth (20 per cent) of Canadians report not having a specific strategy. Approximately half (51 per cent) say they rely on their income and budget to dictate their contribution, while 22 per cent rely on advice from financial advisors. Looking at age cohorts, Gen Z shows a distinct reliance on family or friends for guidance (28 per cent).

"At Edward Jones, we recognize that money is a thing, but it's not everything," says Petrera. "That's why we work with clients to understand all of their unique priorities-both immediate and long-term-and then help them establish a plan to address all their goals."

The 2024 RRSP deadline is March 3, 2025. Canadians could be eligible to contribute up to 18 per cent of their previous year's earned income, to a maximum of $31,560 plus unused carried forward room (subject to any pension contribution adjustments). Click here for more information.

Online Polling MethodologyBetween January 23 to 28, 2025, 1,528 adult Canadians, 18 years of age or older participated in the online survey by Pollara Strategic Insights. A representative sample of this size would be considered accurate to within ±2.5%, 19 times out of 20. Results have been weighted using the latest Stats Can data to be representative of the Canadian population.

About Edward Jones CanadaEdward Jones is a full-service investment dealer which provides a range of investment products, services, and solutions to retail investors. We have more than 870 financial advisors in Canadian communities from coast-to-coast. A member of the Canadian Investment Regulatory Organization and the Canadian Investor Protection Fund, the firm is also a participating organization in the Toronto Stock Exchange. For more information, visit edwardjones.ca.

SOURCE Edward Jones