BMO's survey shows 76% of Canadians worry about retirement funds, with RRSP contributions hitting record highs
BMO’s 15th annual Retirement Survey reveals that most Canadians are concerned about their retirement savings.
The survey reports that 76 percent worry they will not have enough money due to rising prices, while 63 percent say inflation over the past year has restricted their ability to save.
Canadians now estimate they will need $1.54m to retire, a decrease from $1.67m in 2023.
Despite these concerns, RRSP contributions have reached record highs. The average contribution in 2025 is projected to be $7,447, reflecting a 14 percent increase from last year’s $6,512 and surpassing the pandemic peak of $6,822 in 2021.
“Many Canadians continue to show resilience, making saving and investing in their retirement a top priority,” said Brent Joyce, chief investment strategist and managing director at BMO Private Investment Counsel.
He emphasized that a well-designed portfolio can help mitigate inflationary pressures while considering factors like investment time horizon and risk tolerance.
Joyce also suggested that investors consult an advisor to explore strategies for reducing inflation’s impact on their portfolio.
Among the 63 percent of Canadians who say rising prices have affected their ability to save, many have adjusted their financial strategies in four ways:
- Cutting other expenses to maintain retirement savings
- Reducing contributions to their retirement funds
- Planning to work beyond their initial retirement age
- Postponing retirement savings entirely
“Inflation is a major concern for Canadians,” said Robert Kavcic, senior economist at BMO, noting that the post-pandemic price spike highlighted its impact on spending, investment, and savings.
He emphasized that inflation should always be a key factor in retirement planning and suggested that investors concerned about rising prices consider seeking guidance from a financial professional.
BMO suggests several strategies to help Canadians maximize their retirement savings and RRSP contributions:
Start early: Defining retirement objectives and financial goals can help identify the best savings and investment strategies.
Stay disciplined: Monitoring budgets and maintaining continuous savings plans allow for adjustments based on financial needs.
Consider in-kind RRSP contributions: Investors can contribute securities instead of cash, known as an “in-kind” transfer, to a qualified RRSP investment.
Seek professional advice: Financial advisors can provide tailored strategies and monitor portfolios to optimize savings and investments.
