Economic challenges are forcing more Canadians to delay retirement savings, with RRSP contributions declining
Fewer Canadians plan to contribute to their RRSPs this year, as economic pressures impact retirement savings.
According to new polling data from Edward Jones Canada, only 39 percent of Canadians intend to contribute to their RRSPs in 2025, a sharp decline of 10 percentage points from the previous year.
The drop in RRSP contributions highlights financial challenges faced by Canadians, including high living costs and debt burdens.
The survey found that only 15 percent plan to contribute the maximum amount to their RRSP, down six percentage points from 2024.
Younger Canadians, aged 18-34, are experiencing the most significant decline, with just 41 percent planning to contribute, a notable decrease from nearly 60 percent last year.
Meanwhile, one in ten Canadians report being unable to afford investing in their RRSPs, consistent with last year’s findings.
When asked about the primary barriers to retirement saving, 39 percent of respondents pointed to financial challenges such as insufficient income, high living costs, 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.
She noted that while a well-defined plan helps overcome financial barriers, many Canadians acknowledge they lack a specific retirement savings strategy. This, she added, highlights the need for comprehensive financial guidance that balances short- and long-term priorities.
While 26 percent of Canadians say they face no barriers and are on track to saving for their ideal retirement, this outlook is less common among younger generations.
Only 15 percent of Millennials and 10 percent of Gen Z share this confidence.
Instead, younger Canadians are more likely to cite barriers such as lacking trusted financial advice (14 percent of Millennials, 15 percent of Gen Z) or believing that retirement is too far away to plan for now (15 percent of Millennials, 21 percent of Gen Z).
The survey also found gender differences in retirement saving priorities. Women are slightly more likely than men to prioritize affording healthcare costs (85 percent vs. 80 percent) and pursuing personal goals (76 percent vs. 71 percent).
Meanwhile, men are somewhat more likely to emphasize supporting dependents (55 percent vs. 48 percent of women). Despite similar planning priorities, men are more likely than women to contribute to their RRSPs this year (43 percent vs. 36 percent).
Despite financial hurdles, Canadians recognize the importance of financial resilience in retirement. The survey found that 84 percent want to account for inflation and cost-of-living adjustments while retired.
The same percentage hopes to maintain their current lifestyle throughout retirement, while 83 percent cite affording healthcare costs as a top priority.
However, many Canadians lack a clear retirement savings strategy.
One in five (20 percent) say they do not have a specific plan, while 51 percent rely on their income and budget to determine contributions.
Another 22 percent seek financial advisor guidance. Gen Z is notably more reliant on advice from family or friends, with 28 percent reporting this as their primary source of guidance.
The 2024 RRSP contribution deadline is March 3.
Canadians may be eligible to contribute up to 18 percent of their previous year's earned income, to a maximum of $31,560, plus any unused carried-forward room, subject to pension contribution adjustments.
| Between January 23 and 28, Pollara Strategic Insights conducted an online survey with 1,528 adult Canadians, 18 years of age or older. A representative sample of this size is considered accurate to within ±2.5 percent, 19 times out of 20. The results reflect the Canadian population, as they have been weighted using the latest StatsCan data. |
