Canadians Fear Tougher Retirement, Ready to Help Adult Children

Canadians are entering this year’s RRSP season with a noticeably cautious outlook. According to BMO’s recent Retirement Survey, roughly two-thirds of respondents believe saving and investing for retirement will be harder for them than it was for their parents.

Canadians expect a tougher retirement than their parents

Generational views vary, with younger adults reporting the greatest concern. Nearly three quarters of millennials (73%) say their retirement will be more difficult to achieve than their parents’ was. Gen X aligns with the national average at 67%, while baby boomers (60%) and Gen Z (61%) express slightly less pessimism.

The unease isn’t limited to personal expectations: 77% of respondents think it will be tougher for future generations to secure a comfortable retirement. Almost half (49%) anticipate having to provide financial help to their children, and the majority of those prospective helpers—83%—expect that doing so will reduce their own standard of living during retirement.

Interestingly, the youngest adults in the survey are the most likely to plan on supporting their children financially into adulthood: 68% of Gen Z respondents expect to help, compared with just 38% of baby boomers who say the same. These differences reflect shifting family dynamics, rising costs, and changing career trajectories that many households now face.

Estate planning as part of a broader retirement strategy

“We are seeing more families thinking beyond their own retirement and planning for how wealth will be passed on to the next generation,” said Lydia Potocnik, vice-president and regional director, estate and trust services for BMO Private Wealth. “A well-structured, holistic strategy often includes estate planning, which can help parents support their children without compromising their own retirement security.”

Estate planning can take different forms—wills, trusts, and clear beneficiary designations among them—and can be designed to balance support for family with protection of the retiree’s own income needs. When done thoughtfully, it reduces surprises, clarifies expectations among heirs, and helps preserve financial independence during retirement years.

Most Canadians who used a financial advisor reported positive experiences: 89% said their advisor helps them meet financial goals, with 44% strongly agreeing. Professional guidance can be especially valuable when navigating complex priorities like balancing retirement savings, intergenerational support, tax planning, and estate considerations.

The survey was conducted in November among 1,500 Canadian adults, with results weighted by gender, age and region to reflect the national population. The findings carry a margin of error of plus or minus 2.5 percentage points 19 times out of 20.

How to improve your retirement readiness

To strengthen the likelihood of retiring comfortably and on your own terms, BMO recommends a few practical steps. These suggestions are straightforward, actionable, and relevant whether you’re just starting to save or are approaching retirement:

• Start planning early: Set clear goals for the kind of retirement lifestyle you want and calculate how much you’ll need to save. Early planning gives you time to take advantage of compound growth and to make course corrections as circumstances change.
• Practice financial discipline: Treat retirement savings like a recurring bill. Regular contributions—whether to an RRSP, TFSA, or workplace plan—build a reliable habit and can smooth out market ups and downs over time.
• Seek professional advice: A qualified advisor can help you build and monitor a diversified portfolio, reassess risk tolerance as you age, and recommend tax-efficient strategies and estate-planning tools suited to your situation.

Remember: You have until March 2, 2026 to contribute to your RRSP and claim a deduction on your 2025 income tax return.