Fewer Canadians to Contribute to Retirement Savings Amid High Cost of Living: Poll

A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto, on Jan. 23, 2015. Reuters/Mark Blinch

An increasing number of Canadians say they are unable to save for retirement, with just 39 percent saying they plan to contribute to their RRSP this year, down from 49 percent in 2024.

According to the polling data from Edward Jones Canada, which surveyed 1,528 Canadians in January, the diminishing RRSP contributions reflect the “economic pressures faced by Canadians, particularly in the face of high living costs and debt burdens.”

“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 for client needs at Edward Jones.

Just 15 percent surveyed said they plan to contribute the maximum amount to their RRSP, which was down from 21 percent in 2024. The decline was larger with young Canadians, with just 41 percent of those aged 18 to 34 planning to contribute at all, down from nearly 60 percent in 2024.

While 26 percent of those polled said they face no barriers to saving for their retirement, only 15 percent of millennials and 10 percent of those in Generation Z agreed with this statement.

Young people were more likely to cite barriers to saving in RRSPs, such as not knowing where to start without trusted financial advice, which was cited as a reason by 14 percent of millennials and 15 percent of Gen Z. Other young Canadians, 15 percent of millennials and 21 percent of Gen Z, said that retirement feels too distant to plan for at the moment.

The largest barrier to saving for retirement, according to 39 percent of those polled, was insufficient income, high cost of living, and the need to repay debt.

The survey also found “alarming” results that 20 percent of Canadians do not have a specific strategy for retirement. A total of 51 percent said they rely on income and budget to dictate how they contribute, while 22 percent said they rely on advice from financial advisers.

Edward Jones Canada noted that Canadians are eligible to contribute up to 18 percent of their previous year’s earned income to their RRSP, to a maximum of $31,560. The 2024 deadline for contributing is March 3, 2025.

Canada has been facing a cost-of-living crisis since 2020, when high inflation and housing costs, higher interest rates, and lower productivity began to eat away at many Canadians’ savings. Many food banks have also reported higher usage levels in recent years, with a Food Banks Canada report from October 2024 finding usage has risen 90 percent since 2019.

The report also found that one-in-five Canadians who use food banks are employed, while 40 percent are on social assistance or disability support, and 7.7 percent of those accessing food banks are seniors.

A Feed Ontario report from late 2024 also found that nearly 40 percent of food banks in the province have been forced to reduce the amount of food they provide for users, following two years of “unprecedented” surge in demand. The organization said the number of unique individuals accessing food banks in the last two years has increased by 73 percent.