Canadians fear a tougher path to retirement — and plan to assist their children along the way in which

Canadians expect a tougher retirement than their parents

Of all age groups, Millennials have the bleakest outlook, with nearly three-quarters (73%) responding that their retirement plans will likely be tougher to realize than their parents’. Baby Boomers (60%) and Generation Z (61%) were barely more optimistic, with Generation X (67%) falling right consistent with the national average.

Survey respondents weren’t just frightened about their very own retirement – 77% said it will be tougher for future generations to retire. In fact, almost half (49%) expect to assist their children financially. They consider support is needed, despite the fact that 83% of future benefactors expect it to return on the expense of their very own lifestyle in retirement.

Perhaps surprisingly, Canadians on the younger end of the spectrum are most probably to plan to support their children into maturity, with 68% of Generation Z respondents planning to accomplish that. In contrast, only 38% of baby boomers see the necessity to help their adult children save for retirement.

Estate planning might be a part of a retirement strategy

“We are seeing more families thinking beyond their own retirement and planning how their wealth will pass to the next generation,” said Lydia Potocnik, vice chairman and regional director of estate and trust services at BMO Private Wealth, in a press release. “A well-structured, holistic strategy often includes estate planning that can help parents support their children without jeopardizing their own retirement savings.”

Overall, retirement survey respondents who used a financial advisor were satisfied with the recommendation they received: 89% said their advisor helped them achieve their financial goals and 44% strongly agreed.

The study was based on a November survey of 1,500 Canadian adults, weighted by gender, age and region to best represent the Canadian population. The results are considered accurate with an accuracy of two.5 percentage points in 19 out of 20 cases.

How to enhance your retirement provision

To improve your probabilities of a snug retirement at a time of your selecting, BMO recommends you:

• Start planning early: Define goals and establish a savings and investment strategy.
• Practice discipline: Create and follow a budget that treats retirement planning as a daily expense.
• Get skilled advice: Advisors can provide help to develop and monitor your portfolio and recommend strategies that fit your circumstances, risk tolerance and goals.

Remember: You have until March 2, 2026 to contribute to your RRSP and receive an income tax deduction for the 2025 tax 12 months.

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About Michael McCullough

Michael is a financial journalist and editor based in Duncan, BC. He is the previous editor-in-chief of Canadian Business and editorial director of Canada Wide Media. He also writes for The Globe and Mail and BCBusiness.