Boomers may be Canada’s wealthiest generation ever — but Gen X, millennials and Gen Z may still have a chance to catch up

Meanwhile, TD Asset Management notes that baby boomers, born between 1946 and 1964, control almost 50% of Canada’s total wealth — while millennials, despite making up the largest share of the labour force, hold just 10% (2).

So how did boomers get here? Real estate appreciation was one way — boomers bought homes when prices were modest, and those properties generated wealth over the years. Many retirees received defined benefit (DB) pensions, something far less common today. And boomers hit their prime earning years during one of the longest stock and bond market rallies in history.

However, despite their edge, not all boomers emerged wealthy. And younger generations have advantages of their own. A comfortable retirement may still be within reach for all — if each generation leans into its strengths. Here’s what different generations can do to secure their financial futures.

Baby boomers

Baby boomers may hold more wealth than any generation in Canadian history, but it isn’t evenly spread out. TD Asset Management confirms that while boomers collectively hold close to half of Canada’s wealth, a large portion of that is concentrated at the top of the income ladder.

For boomers who are still working, timing is everything — especially when it comes to Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. You can start collecting CPP as early as age 60 — but for every month you delay past age 65, your benefit increases by 0.7% (8.4% each year), meaning those who wait until 70 receive up to 42% more each month for life (3).

OAS payments begin at age 65 but can be deferred until age 70, increasing by 0.6% every month you defer — up to 36% more after five years (4). For boomers still in good health, delaying both CPP and OAS can add hundreds of dollars monthly in permanent, inflation-indexed income that will never run out.

Boomers should also consider the strategic benefits of downsizing. If a family home has appreciated significantly — as many have across major Canadian markets — unlocking that equity could give retirement savings a boost, reduce ongoing carrying costs and right-size living expenses to match retirement income.

Among boomers yet to retire, the 2026 BMO Retirement Survey found that 27% of those who are still employed say they don’t plan to stop working at all (5). For many, staying in the workforce — even part time — serves a dual purpose: it generates income that can be directed into a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) and it delays the need to draw down existing savings.

Gen X

Generation X may have drawn the shortest straw when it comes to retirement. This cohort — roughly those born between 1965 and 1980 — entered the workforce just as many private-sector employers were phasing out defined benefit (DB) pensions. They became the first generation to rely on defined contribution plans, where the savings burden falls entirely onto the worker.

However, the numbers aren’t exactly encouraging. StatCan data shows Gen X household wealth grew at the fastest pace of any other cohort in the second quarter of 2025. But your wealth written on paper doesn’t always mean you’re ready for retirement.

A 2025 Canadian Retirement Survey by Healthcare of Ontario Pension Plan (HOOPP) found that 59% of unretired Canadians don’t believe they’ll ever be able to retire due to their financial situation (6). More explicitly, the BMO 2026 Retirement Survey found that 20% of Gen X who responded say they don’t believe they’ll ever be able to retire (5). Many are also caught in the so-called sandwich generation squeeze — supporting aging parents while still raising children.

What can Gen Xers do? Maxing out RRSP and TFSA contributions is the most important starting point. The 2026 RRSP contribution limit is $33,810 — or 18% of the previous year’s earned income, whichever is less — and any unused contribution room from that carries forward (7). That carry-forward is a lifeline for anyone who couldn’t contribute in previous years, perhaps when income was lower. Additionally, the TFSA limit sits at $7,000 for 2026, with a cumulative lifetime limit of $109,000 for those eligible since 2009 (8).

Tackling debt is equally urgent. Gen X households aged 46 to 55 carry the highest average non-mortgage debt of any age group — $34,564 as of Q4 2024, according to Equifax Canada (9). Dragging that into retirement is a fast track to financial stress. Paying it down right away, along with getting a handle on future health-care costs, is how Gen X closes the retirement gap before it’s too late.

Millennials

For Canadian millennials — generally those born between 1981 and 1996 — debt is the biggest thing standing between them and a comfortable retirement. And the numbers paint a pretty bleak picture.

Millennials and Gen Z together carried $1.1 trillion in outstanding credit balances as of Q4 2024 — a 10% jump from the year before, according to TransUnion Canada (10). The average non-mortgage debt for each Canadian consumer hit $21,931, with debt-to-income ratios remaining high. Meanwhile, disposable income for millennials crept up to just 1.7% year-over-year in Q2 2025, compared to 3.9% for all households — making it harder to chip away at debt and save for retirement at the same time.

Meanwhile, the bar for retirement savings keeps climbing. The BMO 2026 Retirement Survey found that Canadians believe they need an average of $1.7 million to retire comfortably. Millennials tend to set the highest retirement targets: Many estimate they’ll need around $2.1 million in savings (11).

However, more than one-third (36%) of Canadians say they’re unlikely to meet their retirement savings target (5).

The good news: Millennials who are young enough to still have two or three decades of earning ahead of them have two of the most powerful financial tools available — time and compounding growth. Automating savings — directing even a small, fixed percentage of each paycheque into an RRSP or TFSA — removes the decision-making tension that can lead to missing contributions.

Trying to pay down debt and building retirement savings at the same time is a lot to juggle — and that’s exactly where a financial adviser comes in handy. A study by IG Wealth Management found that, generally, people who work with a financial professional to prepare for retirement are more likely to reach their goals (12).

For millennials raising children, the Registered Education Savings Plan (RESP) is worth taking note of. The federal government kicks in a grant of up to $500 a year — 20% on the first $2,500 you contribute annually — which can take some future financial pressure off and help keep your retirement savings intact (13).

Gen Z

Data shows the youngest generation of Canadian adults may be the most financially self-aware of all. The National Payroll Institute’s 2025 Annual Survey of Working Canadians by Canada’s Financial Wellness Lab found that Gen Z workers are saving an average of 11% of each paycheque — a higher proportion than any other generation. Gen X and boomers averaged 8%, while millennials saved 9% (11). A 2024 TD Bank survey also found that 68% of Gen Z Canadians invest consistently each year — the highest rate of any demographic (14).

Meanwhile, StatCan data confirms that Gen Z contributed a median amount of $1,880 to their RRSPs in 2023 — 20% more than millennials were contributing at the same age in 2009 (15).

Motivated savers have one enormous advantage: compound growth. The earlier money is invested, the longer it has to multiply. For example, a Gen Z investor who started contributing at 22 and remained consistent throughout their working years will have accumulated dramatically more than a peer who started 10 years later — even if the late starter contributed more each year.