Mar 17, 2026
How much money will you need to retire comfortably in Canada? The question is top-of-mind for millions of Canadians — and for a growing number of them, it's tied to a very specific fear: No matter how much they save, it won't be enough.
New survey data confirms that anxiety is widespread, persistent and getting more complicated. The 2025 CPP Investments Retirement Survey, released in October 2025, found that 59% of Canadians are afraid of running out of money in retirement (1). While the fear of running out of money seems to have ticked down slightly for some Canadian pre- and post-retirees — down slightly from 61% in 2024 (2) — the underlying pressures haven't eased. What’s worse is that for many Canadians, the retirement numbers most are are aiming for keep moving further out of reach.
But there's real reason for hope. Understanding your financial needs, having a solid plan and knowing the role the Canada Pension Plan (CPP) can play in your retirement income can go a long way toward easing this anxiety.
Let's look at what the data says — and what you can do about it.
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Retirement anxiety is still widespread — and now it has a price tag
In 2025, the average Canadian believed they'd need $1.7 million saved for retirement, according to a BMO 2025 retirement poll (3). In 2019, Canadians reported that a retirement fund of $1.3 million was sufficient, while estimates were closer to $1.5 million in 2024 (4).
These numbers aren't just anxiety — they reflect a real shift in how Canadians understand what retirement actually costs. At the same time, more than three-quarters of Canadians (76%) say they're worried they won't have enough money in retirement due to rising prices, and 63% say inflation has already limited their ability to save (5).
The most striking figure may come from the Healthcare of Ontario Pension Plan's (HOOPP) 2025 Canadian Retirement Survey, where 59% of unretired Canadians confessed that they don't believe they'll ever be able to retire given their current financial situation. What’s worse is that half of these respondents didn’t set aside any money for retirement in the past year (6).
Younger Canadians are most worried when it comes to outliving their retirement savings
While it may be somewhat understandable if Canadians closest to retirement expressed anxiety about sufficient savings, the data released by CPP Investments makes it clear that fear of outliving savings is felt most by younger Canadians.
Canadians aged 28 to 44 are particularly concerned, with 66% expressing this fear (7). On the surface this may be surprising, but when you realize the financial constraint faced by this demographic, this anxiety makes sense. Most Canadians in this age group are typically juggling mortgage payments, student loan debt and the cost of raising families, all while trying to save for a future that feels far away.
Young Canadians aged 18 to 24 face a different kind of stress. According to the CPP Investments survey, 68% of respondents in this age group say they feel significant anxiety about making the wrong financial decisions. That figure declines steadily with age, falling to 29% among those 65 and older.
A lack of a retirement plan is a key driver of this anxiety. Among non-retirees without a plan, 59% say they need to earn more money before they can save for retirement, and 49% say they need to pay down debt first.
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Women are more concerned about lack of retirement savings
According to the 2025 CPP Investments survey, 63% of women reported worrying about running out of money in retirement, compared to 55% of men. That gap reflects several systemic realities: the gender pay gap, career interruptions for caregiving and the fact that women, on average, live longer than men.
The result is a retirement landscape in which women face greater financial risk and tend to feel less confident in their ability to save enough to last through retirement.
Financial stress is a year-round problem, not just a retirement issue
As the CPP Investments data shows, retirement anxiety doesn't exist in isolation.
FP Canada's 2026 Financial Stress Index — a national survey of more than 2,000 Canadians conducted by Leger — found that money remains the leading source of stress for Canadians, with 43% reporting it as their top concern (8).
Among the financially stressed, 46% cited saving for retirement as a key driver. Grocery prices (64%) and inflation (54%) continue to rank as the top external pressures weighing on Canadians' finances.
This stress doesn’t mean Canadians are passive about taking steps to achieve their financial goals. Approximately, the FP Canada shows that 85% of Canadians say they're taking active steps to reduce their financial stress — up from 82% in 2025. Of those trying to reduce their expenses, approximately half still blame the high cost of living for preventing them from taking control of their finances.
Despite all the doom and gloom around retirement savings and stress, there is one standout finding (9): Canadians who work with a financial professional are significantly less likely to name money as their top source of stress (34%) compared to those who don't (48%).
How the Canada Pension Plan (CPP) can help
One piece of the retirement puzzle that many Canadians underestimate is the CPP. According to the 2025 CPP Investments survey, 73% of Canadians plan to, or already do, rely on CPP for part of their retirement income — and 71% say they're proud that Canada has a retirement fund like the CPP.
The CPP provides a lifelong, inflation-indexed income stream — meaning it adjusts with the cost of living every year. For 2026, the maximum monthly CPP retirement pension for someone starting to receive benefits at age 65 is almost $1,508, though the average monthly payment is approximately $850, depending on contribution history and when you start collecting.
CPP contributions are also increasing. The Year's Maximum Pensionable Earnings (YMPE) for 2026 is $74,600 — up from $71,300 in 2025 — and a second earnings ceiling of $85,000 now covers additional contributions under the CPP enhancement that began in 2019.
Not only does income from CPP help Canadians build a comfortable retirement, but knowledge about the nation’s pension plan and how it works does a lot to quell anxiety. According to CPP Investments data, 73% of Canadians who are very familiar with the CPP feel confident about their retirement finances — compared to just 21% of those who are not familiar with it.
Michel Leduc, senior managing director and global head of Public Affairs and Communications at CPP Investments, put it plainly in the recent report: "Running out of money in retirement is a deeply rooted concern, but Canadians already have a dependable foundation in the CPP — one that provides lifelong, inflation-protected benefits."
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Tips for Canadians to boost their financial confidence
If you're part of the majority who worry about running out of money in retirement, there are practical steps you can take to improve your financial outlook.
#1. Start planning early and save consistently
The sooner you begin saving for retirement, the more time you have to build a substantial nest egg. Even if you can only contribute small amounts, at first, remember that consistency matters. Take advantage of employer retirement plans, contribute regularly to Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) and set clear annual savings goals.
#2. Diversify your income sources
The CPP is a solid foundation, but it works best when it's part of a broader income strategy. Consider layering in additional savings vehicles such as RRSPs, TFSAs and employer pension plans. This mix of income sources gives you more flexibility and more resilience when you retire. If you have access to a workplace pension — particularly a defined benefit plan — the HOOPP data shows it dramatically improves your ability to save: just 13% of homeowners with a pension had less than $5,000 in savings, versus 33% of those without retirement benefits (10).
#3. Set clear financial goals
Not sure how much you’ll need in retirement? Start by estimating your future expenses. Think about your lifestyle, potential healthcare costs and any big plans you might have for your retirement years, such as travel or hobbies. This will help you set a clear savings target that aligns with your long-term goals. Once you have a target, reverse-engineer a savings plan to match it. A Certified Financial Planner (CFP) or Qualified Associate Financial Planner (QAFP) can run this calculation with you and account for inflation, longevity and tax efficiency.
#4. Seek financial advice
Many Canadians feel uncertain about how much they need for retirement — and that uncertainty is expensive. The FP Canada data is consistent: Canadians who work with a financial professional are less stressed, less likely to lose sleep over money and more hopeful about their futures year over year. A financial adviser can help you assess your savings, recommend investment strategies and build a plan tailored to your needs.
#5. Review and adjust your plan regularly
Life changes and so should your financial plan. Review your retirement strategy periodically and make adjustments as needed. Whether it’s a change in your income, an increase in your living expenses or a shift in your financial priorities, staying on top of your plan will ensure you remain on track.
Why confidence is key
One of the most important findings from the CPP Investments survey is that confidence plays a major role in successful retirement planning. The survey shows that Canadians with a financial plan feel significantly less anxious about outliving their savings. Having a plan in place empowers people to take control of their financial future and helps them stay focused on long-term goals, despite short-term economic uncertainties.
The fear of running out of money in retirement is real — and the data shows it's widespread across age groups, genders and income levels. But it's not inevitable. By understanding what you'll actually need, diversifying your income sources, taking full advantage of the CPP and working toward a clear financial plan, you can close the gap between anxiety and confidence.
The best time to start was yesterday. The second best time is today.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CPP Investments: 2025 (1, 7); CPP Investments: 2024 (2); Money.ca: The $1.7 million retirement gap (3); Investment Executive (4); BMO (5); HOOPP (6, 10); FP Canada (8, 9)
Romana King is the Senior Editor at Money.ca. She writes for various publications, and her book -- House Poor No More: 9 Steps That Grow the Value of Your Home and Net Worth -- continues to be an Amazon bestseller. Since its publication in November 2021, this book has won five awards, including the New York CPA Society's Excellence in Financial Journalism (EFJ) Book Award in 2022.
