Survey highlights growing retirement strain and intergenerational financial tension for Canadian households
Canadian investors increasingly see retirement as a steeper climb than past generations did, with widespread concerns about saving and growing wealth amid rising financial pressures.
According to the newly-released BMO Retirement Survey, roughly two thirds (67%) of respondents say it will be harder for them to accumulate sufficient retirement savings compared to what their parents experienced. This view is most pronounced among Millennials, with 73% saying they expect greater difficulty funding retirement than previous generations. Gen X respondents follow closely at 67%, while 61% of Gen Z and 60% of Boomers share the same concern.
Anxiety extends beyond personal finances to the outlook for future generations. More than three-quarters (77%) of Canadians believe retirement will be even more challenging for those who follow them. Boomers are the most concerned at 82%, followed by Millennials at 78%, Gen X at 75% and Gen Z at 67%.
“With uncertainty around the cost of living and what retirement will look like in the future, it's natural for Canadians to feel anxious about whether they're saving enough,” said Paul Lalonde, Head of Wealth Planning, BMO Private Wealth Canada. “A trusted advisor can help cut through the complexity, create a clear financial plan, and help give people the confidence that they're taking the right steps - no matter where they're starting from.”
The survey also points to mounting intergenerational financial pressure with almost half of respondents saying that they plan to provide financial support to their adult children, even though many acknowledge this could negatively affect their own retirement plans. Younger generations are the most likely to expect to help: 68% of Gen Z and 58% of Millennials anticipate providing support, compared with 42% of Gen X and 38% of Boomers.
“We are seeing more families thinking beyond their own retirement and planning for how wealth will be passed to the next generation,” said Lydia Potocnik, Vice-President and Regional Director, Estate and Trust Services, BMO Private Wealth. “Intergenerational wealth transfers have become a critical part of financial planning. A well-structured holistic strategy often includes estate planning, which can help parents support their children without compromising their own retirement security.”
Despite growing unease, confidence in professional advice remains high. Almost nine in 10 Canadians say their financial advisor helps them work toward their goals, with 44% strongly agreeing.
“BMO Private Wealth is also leveraging advanced AI-driven insights to help all of our client facing professionals deliver more personalized, proactive guidance,” said Craig Meeds, Head, Wealth Advice Canada, BMO Private Wealth. “By combining human expertise with intelligent technology, we can better anticipate client needs and support long-term planning with greater confidence.”
