As the cost of living climbs and retirement expectations evolve, Canadians are adjusting their financial goals to reflect a new reality. According to Fidelity Canada’s 2025 Retirement Report, the dream of a $1 million retirement is no longer just for the ultra-wealthy — it’s increasingly seen as a necessity. The report, which marks its 20th year, paints a picture of shifting priorities, longer life spans, and a growing awareness that retirement isn’t what it used to be.
Retirement Expectations Have Doubled in Two Decades
Fidelity’s 2025 findings reveal that pre-retirees aged 45 and older now believe they need at least $1,020,000 to retire comfortably. That’s more than double the $447,000 benchmark from 2005 — which, when adjusted for inflation, equates to around $685,000 today. The data clearly illustrates how rising living costs and longer retirements are redefining what “comfortable” really means.
| Year | Expected Retirement Savings | Adjusted for Inflation (2025) |
|---|---|---|
| 2005 | $447,000 | $685,000 |
| 2025 | $1,020,000 | N/A |
Why Retirement Feels More Complex Than Ever
A striking 88% of survey respondents agree that retirement today is far more complex than it was 20 years ago. Canadians are not just thinking about living off their savings — they’re navigating inflation, market volatility, longer life spans, and intergenerational financial support.
This complexity is reflected in how Canadians view retirement itself. Rather than envisioning a full stop to work, 85% say retirement includes flexible work or pursuing passion projects. It’s a shift from the traditional definition of retirement, with many people reimagining this phase of life as a “next chapter” rather than a conclusion.
Emotional Divide Between Retirees and Pre-Retirees
While 81% of current retirees feel good about their retirement, only 59% of pre-retirees share that optimism. Many are understandably worried about whether they’ve saved enough — especially in uncertain economic times.
Inflation, political instability, and sluggish economic growth are top concerns. Nearly half of pre-retirees (46%) say they might delay retirement beyond their original plans due to financial uncertainty. Retirement age has already crept up from 61 in 2005 to 65 in 2025, and only 26% of current pre-retirees expect to retire before 65.
The Value of Financial Planning
One of the most consistent findings in the report is that those who work with financial advisors — especially those with a written plan — feel more confident about their financial futures. That structure can provide a roadmap amid market turbulence and shifting personal goals.
However, the report also highlights disparities: women and immigrants reported feeling less optimistic about retirement. This underscores the need for personalized financial strategies and more inclusive planning tools.
Canadians Are Thinking Beyond Their Own Retirement
Interestingly, many Canadians aren’t just planning for themselves. They’re also factoring in the financial well-being of their children and even grandchildren. Supporting adult children or helping launch the next generation is becoming part of the retirement plan.
As Michelle Munro from Fidelity Investments Canada explains, this newer version of retirement includes more travel, longer lifespans, and a broader view of financial legacy. Canadians are not just saving for their golden years — they’re investing in their families’ futures.
Planning for retirement in Canada has clearly evolved. The million-dollar mark has become a new benchmark for many, but that figure alone doesn’t capture the full picture. With proper planning, a flexible outlook, and a clear understanding of personal goals, Canadians can adapt to the challenges of modern retirement.
FAQs:
Why do Canadians now believe they need over $1 million to retire?
Rising costs of living, inflation, longer lifespans, and broader retirement goals (like supporting family) are all contributing to higher retirement expectations.
Has the average retirement age changed in Canada?
Yes, the average age of retirement has increased from 61 in 2005 to 65 in 2025.
Do people feel better about retirement if they have a financial advisor?
Yes, those with a financial advisor and a written financial plan feel more prepared and confident about retirement.
