Canadians saving for retirement, but confidence still low: report

While more Canadians are saving for retirement and joining workplace pension plans, many remain confused, anxious and underprepared for life after work, according to two recent reports.

Currently, 70% of Canadians report negative emotions about RRSP contributions, reports Edward Jones. Among them, 40% say they feel confused, 37% are unsure they are maximising their RRSP opportunities, and 36% are worried they are not contributing enough for a financially secure retirement.

Understanding of RRSP mechanics is relatively weak, according to the same report. In fact, fewer than six in 10 (56%) respondents understand the value of tax deductions and 55% grasp the tax implications of withdrawals. Only 53% feel confident about what happens when an RRSP matures, while 66% say they understand the annual contribution deadline.

“What we’re seeing is a generation that knows they need to save for retirement but lacks the confidence that they’re doing it right,” says Julie Petrera, director of financial planning at Edward Jones Canada. "The good news is that discomfort often signals readiness to seek help and learn.”

Employers should become more proactive when it comes to preparing workers for retirement, as many are unprepared for post-work life, according to a previous report.

Intent to contribute

According to Edward Jones Canada’s survey of over 1,500 Canadian adults – conducted in January – RRSP contribution intentions remain steady despite mounting financial strain.

More than two in five (41%) Canadians plan to contribute to an RRSP this year, compared with 39% last year; 15% intend to contribute the maximum, and 9% say they cannot afford to contribute, down slightly from 10% in 2025.

Financial pressure is still the biggest barrier, with 42% citing insufficient income, high cost of living or debt repayment, up from 39% a year earlier.

According to Edward Jones Canada, negative emotions are most common among younger adults, with 84% of those aged 18–34 reporting negative feelings about RRSP contributions, compared with 75% of those 35–54 and 54% of those 55 and older. Only 36% of adults 18–34 feel confident about what happens when an RRSP matures, versus 50% of those 35–49 and 69% of those 55+.

Also, 48% of those aged 18–34 plan to contribute to an RRSP this year, up from 41% last year and approaching the 58% reported in 2024, while contribution plans among those 35–54 remain stable at 59%, compared with 60% in 2025. However, only 9% of those 18–34 and 15% of those 35–54 say they face no barriers and feel on track for retirement, compared with 45% of Canadians aged 55 and over.

According to the same study, 48% of those 55+ have a dedicated financial advisor, compared with 24% of those 35–54 and just 13% of those 18–34, suggesting access to advice is closely linked to feeling prepared. 

Rising prices are shaking Canadians’ confidence in their ability to retire comfortably and pushing many to dial back on long‑term saving, according to another study.

Retirement preparedness in Ontario

In Ontario, workplace pension membership increased by more than 200,000 people in 2025, an average of 549 new members per day compared with 2024, according to data from the Financial Services Regulatory Authority of Ontario (FSRA).

From those numbers, more than 175,000 people joined defined benefit plans (up 6%) and more than 58,000 joined defined contribution plans (up 9%).

Previous FSRA research found that eight in 10 respondents have not fully developed a retirement plan and 66% have not calculated how much money they will need in retirement.

One in two cannot recall the last time they spoke to someone about saving, and 50% of pension members do not read their annual pension statement, based on a survey of 1,000 adult Ontarians conducted in 2024.

“It’s always encouraging to see more people participating in workplace pension plans because they provide such a strong foundation for retirement,” says Andrew Fung, FSRA’s executive vice president, pensions. He also warns that “a pension is not a complete retirement strategy” and must be integrated with government benefits, retirement savings plans and personal savings.

The 2025 RRSP contribution deadline is March 2, 2026, and Canadians may be eligible to contribute up to 18% of the previous year’s earned income, to a maximum of $32,490 for the 2025 tax year, plus unused carried‑forward room, subject to pension adjustments.

Here’s how HR can help employees plan for retirement.

How to prepare an employee for retirement

Preparing for an employee’s retirement should begin well before they give their formal notice of retirement, according to Citations Canada. The organisation shares the following simple steps to guide your company:

1. Have the conversation early – Create a culture where employees feel comfortable discussing their future retirement plans.

2. Share resources and tools – Sharing contact information for local retirement professionals can be helpful.

3. Encourage retiring employees to participate in knowledge‑transfer and mentorship initiatives.

4. Tailor a transition strategy for the retiring employee, including timelines, key responsibilities and a formal exit process with dates.

5. Celebrate their achievements – Meaningful gestures like retirement parties, appreciation letters or thoughtful gifts acknowledge their dedication and celebrate the value of their contributions.

“Retirement marks a significant milestone in an employee’s professional journey, reflecting years of dedication and achievement,” says Citations Canada. “Preparing employees for retirement is more than a formality. The way your organization prepares for this achievement shows your current workforce that all employees are valued and ensures employees can retire with confidence and clarity.”