A growing number of working Canadians are heading toward retirement without the security of a workplace pension, according to a new national survey that highlights widening gaps in retirement preparedness and financial knowledge.
IG Wealth Management’s latest annual retirement study found that only 48 per cent of non-retired Canadians currently have access to an employer-sponsored pension plan. The firm says the decline reflects long-term changes in how companies support retirement, with many large employers gradually stepping away from traditional pension models.
That transition began roughly 30 years ago and has left today’s workforce with fewer guarantees than previous generations enjoyed. As a result, individuals are increasingly responsible for building their own retirement income.
“The responsibility for retirement planning has shifted dramatically onto individuals,” said Christine Van Cauwenberghe, head of financial planning at IG Wealth Management, in a statement accompanying the report. She noted that while many Canadians are aware of this change, a large portion still lack clarity around how much they need to save or how to turn savings into reliable retirement income.
The online survey, conducted between Jan. 9 and Jan. 14 among 1,350 Canadian adults, paints a concerning picture. Only about one-third of respondents said they have both a retirement plan and savings in place. Just 11 per cent know how much annual income they will need once they stop working, while nearly half admitted they have no idea at all.
Even among those with employer pensions, knowledge gaps persist. About one in four respondents with a workplace plan said they were unsure whether their pension was defined benefit or defined contribution, or did not understand the plan’s details.
The study also found limited understanding of government and retirement income tools. Only around 40 per cent of respondents said they understand programs such as Old Age Security, Registered Retirement Income Funds, or how retirement income is taxed.
Risk planning is another weak area. Few Canadians have factored in inflation, health-care costs, market downturns, or the possibility of living longer than expected. Nearly two-thirds said they have never stress-tested their retirement plans against major economic or financial shocks.
Beyond the financial gaps, the survey points to rising emotional strain. More than half of Canadians who have not yet retired reported negative feelings about their retirement prospects, saying they worry their savings are insufficient and doubt they will ever be able to retire comfortably.
The report warns that this anxiety can become self-reinforcing. As stress and pessimism increase, many people delay taking action, making the problem harder to solve over time.
Recent data suggests Canadians are also changing how they save. Statistics Canada figures released last April show that in 2023, about 11.3 million tax filers contributed to either a Registered Retirement Savings Plan or a Tax-Free Savings Account. Of those, five million chose to contribute only to a TFSA, compared with 3.8 million who contributed solely to an RRSP, while roughly 2.5 million used both.
The trend suggests a growing preference for flexible, tax-free savings over traditional retirement-focused accounts, even as fewer Canadians have access to pensions and face greater responsibility for funding their own retirement.
