HOOPP and Abacus Data's 2025 Canadian Retirement Survey
Nearly 60 per cent of working Canadians believe they’ll never be able to retire, according to a new survey from the Healthcare of Ontario Pension Plan (HOOPP) — reflecting how anxiety and financial instability are reshaping retirement planning across the country.
That fear is taking a toll. The annual survey, released Tuesday, also found that 44 per cent of Canadians say their mental health has worsened because of geopolitical instability. Many reported feeling anxious, fearful and sad about their finances, with concerns intensifying over the past year.
After a long bull-market run that increased the size of many people’s nest eggs, the notion of a comfortable retirement has been upended by a storm of economic forces. More Canadians are putting off saving, scaling back plans or questioning whether they’ll be able to retire at all.
“I feel like history is repeating itself, only worse,” said Alison Smith, a 50-year-old banking professional in the Greater Toronto Area. “I just don’t have enough. I don’t have enough private savings to survive by the time I retire.”
Ms. Smith lost her job during the 2008 financial crisis, and even though she was able to find another job, she is still concerned about how her savings will stand up to recent market swings. “It’s going to be time to pay the piper pretty soon, and I think we’re all feeling the pressure,” she said of her Gen X peers.
The survey by HOOPP, which manages pension investments for more than 478,000 members at more than 700 employers in Ontario’s hospital and health care sector, found that almost half of Canadians haven’t set aside any money for retirement in the past year. Thirty-nine per cent say they’ve never saved for retirement at all. More than a third say geopolitical instability has already affected their travel plans, with many Canadians delaying or cancelling their trips to the United States.
The findings were based on a survey of 2,000 Canadians aged 18 and older from April 11 to 16, 2025.
Even for Canadians who have managed to squirrel away some savings, the stress remains.
“When the markets are down, they recover faster than a retiree’s confidence returns,” said Adam Chapman, a certified financial planner based in London, Ont. “The markets come back, but the retirees are still ultra-hesitant and anxious.”
Mr. Chapman said that while portfolio values may have stabilized, his phone keeps ringing. Many of his retiree clients are overwhelmed, not just by the memory of recent market dips, but by the barrage of news about tariffs, interest rates and global instability.
“They’re having a hard time following the news that’s happening, with announcements changing week to week, sometimes day to day,” he said.
Mr. Chapman points out a technical term in financial planning for what many retirees are going through: “sequence of returns risk.”
It refers to the risk of a market downturn in the first few years of retirement — a period when retirees begin to draw down their portfolios. If the market drops early on, losses can compound faster than if the same dip happened later in retirement.
But Mr. Chapman says that only tells part of the story.
“That just looks at the numbers,” he said. “It doesn’t look at what’s the emotional effect of a down market in the first couple of years for a retiree who just retired. People are feeling insecure and not confident.”
That emotional effect is rippling through even the best-laid retirement plans, he said, prompting some to question whether they should have retired in the first place.
Jennifer Rook, vice-president of strategy, global intelligence and advocacy at HOOPP, said the emotional toll is reflective of the times.
“People are living longer, and we’re in uncertain times,” she said. “Just the very concept of retirement is hard for people to think about right now.”
Mr. Chapman recommends that soon-to-be retirees and those already retired prioritize not just financial planning, but emotional support. That could mean speaking with a mental-health professional or working with a financial adviser who understands the psychological toll that retirement can take, he said.
Some advisers and firms are recognizing this growing need. Many now pursue additional training to better support clients through the emotional side of retirement, including grief, fear and uncertainty about the future.
“Really good financial planners and financial advisers go way beyond the math when the math doesn’t work,” Mr. Chapman said.
A friend of mine who is a really good financial advisor says his number one job is being a psychologist, consoling and reassuring his clients through these news-driven turbulent times.
People get very emotional with money and that often leads them to do stupid things at the wrong times.
Admittedly, we are human, not algorithmic machines trading markets every second of the trading day so when the S&P 500 goes down 20% after Trump's Liberation Day, you bet people are calling their financial advisors to get out of the market.
More worrisome, Gigi Suhanic of the National Post reports more Canadians are relying on a home to fund their retirement despite the risks:
A majority of Canadians believe that owning a home is a critical part of their retirement strategy and the number of them relying on the sale of their home to help them retire continues to rise, according to a major pension plan, even though there are issues with that strategy.
Sixty-two per cent of people surveyed by the Healthcare of Ontario Pension Plan (HOOPP) said homeownership is “a key part of their retirement strategy, either as a financial investment or a source of stability in retirement.”
Forty-four per cent of people said they were depending on the sale of their home to put a retirement fund in place, up from 42 per cent last year and 38 per cent in 2023.
“When people are younger, they have to save for two key assets in life, one being a house and one being retirement,” Jennifer Rook, HOOPP’s vice-president of strategy, global intelligence and advocacy, said. “As the house becomes more expensive, you are kind of forced to choose a little bit more. What we are seeing is people are really still striving for the house and putting stock in (it).”
One-third of homeowners said they would remortgage their homes to fund their retirement — the first time HOOPP asked that question in the seven years of the survey.
But the survey uncovered risks associated with relying on selling a house for retirement.
“If you’re relying on that as your retirement asset, that plan is a lot less certain than it was when you embarked on that path many years prior,” Rook said.
HOOPP said 65 per cent of homeowners who are working say they are worried that they will still have a mortgage by the time they are ready to retire, up from 51 per cent in 2024 and 45 per cent in 2023.
On a more positive note, 48 per cent said they worried about being able to afford their current or future mortgage payments, compared to 52 per cent last year.
But 62 per cent of non-homeowners doubt they will ever be able to purchase a home based on current interest rates, a similar number to last year.
At the time of last year’s survey, interest rates were at their most recent peak of five per cent before the Bank of Canada started cutting. Rates now stand at 2.75 per cent.
The survey said younger generations are more likely to be banking on homeownership to fund their so-called golden years, with 55 per cent of those aged 18 to 34 saying they are going to rely on their home to “set them up for retirement,” compared to half of those aged 35 to 54 and 41 per cent of those aged 55 to 64.
“When you’re young, you think of things differently than you do as you get a bit older,” Rook said. “But it might also speak to the availability of a pension.”
Perhaps that’s why 88 per cent of those surveyed by HOOPP said they would be willing to contribute regular instalments to a defined-benefit pension plan, which is structured to guarantee payments for life once you stop working.
HOOPP also said Canada’s frayed relations with the United States was the top concern weighing on Canadians’ minds and affecting their financial planning, with 67 per cent “very concerned” about it, but that increased to 71 per cent for those near retirement.
Inflation and general economic uncertainty were also among the top concerns of those surveyed.
Overall, planning for retirement is still hard for many people, with the survey painting “a grim picture” of Canadians’ retirement preparedness: 66 per cent of unretired Canadians said they will need to continue working later in life to financially support themselves; 15 per cent of retired people said they didn’t have savings when they stopped working; and more than one-third said they have less than $5,000 in savings.
Abacus Data conducted the survey of 2,000 adults for HOOPP from April 11 to 16. The survey has a margin of error of 2.19 per cent 19 times out of 20.
Jennifer Rook, HOOPP’s vice-president of strategy, global intelligence and advocacy is absolutely spot on: “When you’re young, you think of things differently than you do as you get a bit older, but it might also speak to the availability of a pension.”
What do all these retirement surveys show? They show many Canadians are living paycheck to paycheck and cannot afford to retire.
An increasing number of the lucky ones that own a home will remortgage their home to afford retirement and that's become the de facto national retirement plan for a large subset of the population with no access to a defined-benefit plan.
For the ones that do not own a home, the situation is dire.
It's a slow motion retirement nightmare for most Canadians and it's taking its toll on their mental health.
No doubt, Old Age Security and Guaranteed Income Supplement (GIS) will help many low-income Canadian retirees get by during their retirement years but the key phrase here is (barely) "get by” (helps top out their CPP/ QPP benefits).
The economic effects of more and more Canadians unable to retire or retiring with little to no savings are profound.
I have a conservative friend of mine who agrees with me, every Canadian working 25+ years deserves a decent DB pension plan, it's ridiculous that our politicians are not taking appropriate actions to make this a reality but like everything else in Canada, there are powerful vested interests that want to maintain the status quo.
The folks at HOOPP understand the value of a good pension and they've been at the forefront advocating for better pensions for all the population.
Why? What do they care? They boast of having one of the best DB pension plans in the world and can literally ignore this issue.
But it's an important policy issue for them and since they are healthcare professionals, they understand the mental, physical and financial toll of retirement insecurity, a bit akin to food insecurity.
So we should commend them for advocating for better pensions for all.
Below, here is the executive summary and key findings from the seventh annual Canadian Retirement Survey that HOOPP and Abacus Data put out:
Executive Summary
The Healthcare of Ontario Pension Plan (HOOPP) partnered with Abacus Data on the seventh annual Canadian Retirement Survey, conducted in the spring of 2025. This public opinion tracking survey examines Canadian individuals’ retirement savings behaviour within the current economic environment, and the personal, societal and economic issues impacting their retirement security.
The results of this year’s survey highlight the importance Canadians place on achieving financial security in retirement, even amid mounting affordability concerns and global economic uncertainty. Nearly nine-in-10 Canadians would choose to pay 9% of their salary, with contributions matched by their employer, into a defined benefit pension plan in exchange for a secure lifetime income in retirement. This consensus is consistent across all age groups.
This sentiment persists despite significant economic uncertainty, which has left many Canadians prioritizing their daily expenses over saving for retirement. Those especially struggling include Canadians who do not own a home and homeowners with rising mortgages due to rate increases at renewal, casting doubt on homeownership as a path to a secure retirement.
Key findingsAffordability issues hurt Canadians retirement
As Canadians navigate broad economic uncertainty and affordability challenges, most (77%) are worried about the negative impact of inflation on their ability to afford their daily expenses and 60% say they have no disposable income.With many struggling to keep up, the top concerns for Canadians are Canada–U.S. relations (67%) and the cost of daily living (67%). Other concerns include:
- economic uncertainty (65%)
- housing affordability (60%)
- having enough money in retirement (56%)
Canadians are particularly worried about the impact of geopolitical uncertainty, including global trade tensions, on:
- the increasing cost of living (61%) and housing (54%)
- their retirement savings (46%)
- losing their jobs (33%)
Rising expenses and economic uncertainty have hurt Canadians’ retirement savings and outlook. Fifty-nine per cent of unretired Canadians do not think they will ever be able to retire due to their financial situation. Half (49%) have not set aside any money for retirement in the past year and 39% have never saved for retirement.
The economic challenges facing Canadians have also taken a toll on their well-being, leaving them more likely to feel anxious (52%, +7 pts from 2024), fearful (48%, +6) and sad (47%, +6) about their finances.
Many see homeownership as part of a retirement plan, despite challenges
Despite the challenges posed by a lack of affordable housing and a struggling housing market, nearly two-thirds (62%) of Canadians view homeownership as a key part of their retirement strategy, either as a financial investment or a source of stability in retirement.As part of their strategy, half (50%) of unretired homeowners plan to rely on the sale of their home to set themselves up for retirement. Yet only 30% of Canadians who do not own a home say they have enough money coming in to save, and 62% are worried about the impact of interest rates on their ability to buy a home.
Meanwhile, a growing proportion of unretired homeowners are concerned about their ability to pay off their mortgage so they can retire when planned (65%, up 14 pts from 2024). In fact, 66% of homeowners with a mortgage say their payments have increased in the past year or are expected to go up within the next 12 months. Of this group:
- 78% agree the increase has meant or will mean cutting back in other areas to continue to afford their housing.
- 78% agree the increase has or will reduce their ability to save for retirement.
Non homeowners struggling, less prepared for retirement
With affordability top of mind for many, more than a third (36%) of Canadians report having less than $5,000 in savings, including for retirement, and one-in-five (20%) have no money saved. Those who do not own a home are significantly more likely to have less than $5,000 saved (57% vs. 19% of homeowners).The rising cost of rent is also a concern for most (84%) non-homeowners. In fact, the top financial priority for non-homeowners is paying rent (66%), while homeowners are more likely to focus on saving for retirement (54%). Only 38% of non-homeowners selected saving for retirement as a priority.
This may help explain why unretired homeowners are twice as likely as non-homeowners to have ever saved for retirement (71% vs. 36%).
Notably, the results suggest having a workplace pension can help Canadians save more, regardless of homeownership. Just 13% of homeowners and 50% of non-homeowners with pensions reported having less than $5,000 in savings, compared with 33% of homeowners and 66% of non-homeowners without retirement benefits.
Canadians see pensions as key to retirement security
Conclusion
Canadians continue to face rising prices, rents and mortgages, leaving many concerned about how these challenges could affect their futures:
- 66% of unretired Canadians expect to continue working in retirement to support themselves financially.
- 49% of all Canadians are concerned about outliving their retirement savings and 46% expect their quality of life to decrease in retirement.
Having a pension improves Canadians’ outlook. Canadians with a defined benefit (DB) pension are most likely to agree they will be able to meet their financial needs in retirement (59%), followed by 55% of those with a defined contribution pension and 30% of those without retirement benefits.
Most Canadians also recognize the value pensions provide, with nearly two-thirds (62%) agreeing that amid global uncertainty, workplace pensions are of greater value for individual contributors.
Underscoring this, an overwhelming majority of Canadians (88%) would choose to pay 9% of their salary, with contributions matched by their employer, to a DB pension plan in exchange for a lifetime income in retirement. Canadians of all ages see the value of a DB pension and would opt-in if they could, including:
- 82% of those aged 18 to 34
- 88% of those aged 35 to 54
- 92% of those aged 55 to 64
- 93% of those 65+
Amid mounting affordability challenges, broad economic uncertainty and ongoing trade tensions, most Canadians are prioritizing their daily expenses over saving for retirement. Those who do not own a home, as well as homeowners with rising mortgage payments, are especially worried about the impact of their housing expenses on their ability to afford day-to-day expenses.
Remarkably, these difficulties have not diminished Canadians’ desire to contribute to a defined benefit (DB) pension plan in order to receive a secure, lifetime income in retirement. This reflects Canadians’ understanding of the importance of retirement security, and the value of a DB pension for workers.
The findings suggest Canadians understand the societal value provided by pensions and believe more workplaces should offer these benefits:
- 83% of Canadians agree it is in everyone’s best interest for more people to have better retirement savings.
- 78% agree companies have a responsibility to offer a pension plan that workers can access for adequate retirement income.
- 73% agree that regardless of economic conditions, companies could afford to offer workers good pensions if they wanted to.
These findings are based on an online survey of 2,000 Canadians aged 18 and older from April 11 to 16, 2025. A random sample of panelists was invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners typically use double opt-in survey panels, blended to reduce potential skews in the data from a single source. The margin of error for a comparable probability-based random sample of the same size is +/- 2.19%, 19 times out of 20. The margin of error will be larger for data that is based on sub-groups of the total sample. The data were weighted according to census data to ensure the sample matched Canada’s population according to age, gender, educational attainment and region. Totals may not add up to 100 due to rounding.
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