Nov 1, 2026
Most Canadians know they should save for retirement — and most do. A crucial question often gets ignored: how long does that money need to last?
A new survey from the Canada Pension Plan Investment Board (CPP Investments) — the organization that invests the Canada Pension Plan Fund on behalf of more than 22 million Canadians — suggests many of us haven’t answered it. While 3 out of 4 Canadians know we’re living longer, only about 1 in 3 has a retirement plan that budgets for all those extra years.
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That gap matters. A retirement that stretches years longer than planned can quietly bleed dry a nest egg that looks solid on paper. Yet the Canadians who do plan for a longer life report feeling far more secure, and some of the most useful first steps cost nothing.
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Why isn’t saving enough to protect a long retirement?
Why isn’t setting money aside enough? Because saving and planning aren’t the same thing. According to the 2026 CPP Investments Retirement Survey, 75% of Canadians have set money aside for retirement, but only 42% have a financial plan for it. And 34% are saving with no plan at all.
The real difference shows up in how confident people feel. The survey’s new Retirement Longevity Index found that Canadians who’ve taken more steps to prepare scored an average of 58 out of 100 on confidence, compared with 35 for those who’ve taken few or no steps.
Averages can also be misleading. In its report The Longevity Dividend, CPP Investments notes that the bigger challenge isn’t average lifespan but how widely lifespans vary. Some retirees will live well past the average.
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Who is most likely to feel the squeeze?
So, which Canadians are feeling the heat the most? Day-to-day money stress is climbing: 34% report high stress, up from 31% in 2025. That rises to 47% among households earning less than $50,000.
Women also face a steeper climb. In last year’s survey, 63% of women worried about running out of money in retirement, compared with 55% of men. CPP Investments flagged a tough combination: lower lifetime earnings, time away from work to care for family and the reality of living longer.
Middle-income earners have the most riding on the CPP. For anyone making between $50,000 to $70,000 a year, it can make up 50% to 70% of retirement income.
How much does understanding your CPP really help?
Does understanding your CPP matter? The survey says yes. Among Canadians very familiar with the CPP, 77% are confident their savings will last, compared with 22% of those unfamiliar with it or unsure.
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But basic knowledge is thin. Only 30% knew CPP payments are linked to inflation, and just 53% knew payments reflect years of contributions and average earnings. Those details really count when retirement stretches on: having a pension guaranteed for life that adjusts for inflation gives you built-in insurance against running out of cash.
The Office of the Chief Actuary of Canada, which reviews the plan’s finances, projects the CPP will remain financially sustainable for at least the next 75 years.
Could delaying CPP help your money last longer?
Timing your CPP can help act as a hedge against a long life. According to the Government of Canada, you can start your pension anywhere between ages 60 and 70. If you start early, it permanently reduces payments by 0.6% a month, up to 36% at 60. Waiting past 65 permanently increases them by 0.7% a month, up to 42% at 70.
In this example, a pension of $1,000 a month at 65 would grow to $1,420 a month if started at 70, before annual inflation adjustments.
Delaying CPP isn’t for everyone. If you need cash now, face health issues, or must drain savings to get by, claiming earlier makes sense.
What to do now
- Check your CPP estimate. Log in to your My Service Canada Account to review your contribution history and projected pension
- Plan beyond average life expectancy. Stress-test for extra years, especially if you’re a woman or longevity runs in your family.
- Map every income source. Add up CPP, Old Age Security (OAS), any workplace pension and withdrawals from your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA)
- Make CPP timing a deliberate choice. Compare starting at 60, 65, and 70 based on your health, savings, and other income
- Get a second opinion. A financial planner can stress-test whether your money lasts into your 90s
You don’t need to predict how long you’ll live — just build a plan that works if you outlive your expectations. As Michel Leduc, senior managing director and chief public affairs officer at CPP Investments, puts it: “Living longer changes the way we need to think about retirement.”
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Amy Tokic is an SEO content editor for Money.ca. She holds a B.A. in Communications from the University of Windsor. Amy is an award-winning author and has been writing professionally for 15 years, publishing articles in the lifestyle and health sectors.
