Aug 6, 2026
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Add us on GoogleMany Canadians nearing retirement are tightening their budgets as rising costs and economic uncertainty continue to weigh on their financial plans.
A new EQ Bank survey found that 69% of homeowners aged 45 and older have reduced their spending because they’re worried about retirement affordability, while 53% say recent economic uncertainty has negatively affected their retirement savings over the past year.
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“Today more than ever, older Canadians are facing growing financial pressure as they approach retirement,” said Daniel Rethazy, executive vice-president of Personal Banking at EQ Bank, in a statement.
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Retirement worries are changing spending habits
The EQ survey suggests retirement concerns are already influencing everyday spending decisions.
Among respondents, 39% said they’ve cut back on groceries, while the same share reported spending less on small treats and discretionary purchases. Others said they’ve reduced charitable donations (30%), hobbies and leisure activities (28%) and, perhaps most notably, necessary healthcare services such as dental care, vision care or physiotherapy (14%).
Those findings paint a picture of Canadians making difficult trade-offs well before retirement begins.
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The ‘sandwich generation’ is feeling the strain
For many Canadians in their 40s and 50s, retirement planning isn’t happening in isolation.
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The survey found 68% of homeowners aged 45 to 54 are financially supporting children, adult children, aging parents or other family members. Among them, 58% said those responsibilities have directly affected their ability to save for retirement or feel financially secure.
The findings underscore the growing pressure on the so-called “sandwich generation,” many of whom are trying to balance today’s financial obligations with tomorrow’s retirement goals.
“Historically, Canadians counted on a more predictable pathway to retirement, which has rapidly changed and left many searching for options to adjust their plans accordingly,” said Zamina Walji, vice president of decumulation businesses at EQ Bank, in a statement.
More homeowners are looking at their biggest asset differently
The survey also suggests many Canadians are beginning to think differently about the role their home could play in retirement.
More than half (56%) of respondents said much of their wealth is tied up in their home rather than available in cash or savings, while 31% said home equity either already is, or is expected to become, an important source of retirement income.
At the same time, 60% said they’d like a better understanding of the financial options available to them in retirement, suggesting many homeowners are still weighing how best to fund the next stage of their lives.
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Walji said the traditional retirement model no longer reflects the reality facing many Canadians.
“As Canada’s retirement income gap grows, reverse mortgages are emerging as a powerful, underused solution to unlock housing wealth and help older Canadians age in place,” she said.
While reverse mortgages are one option, homeowners may also consider strategies such as downsizing or accessing equity through a home equity line of credit (HELOC), depending on their financial circumstances.
Regardless of the approach they choose, the survey points to a common theme: for many Canadians preparing for retirement, the focus is shifting from simply building savings to finding practical ways to make those savings, and their other assets, last.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
