Key trends shaping retirement planning in Canada: Insights from Michelle Munro and Jacqueline Power - June 3, 2026

A written plan is linked to greater confidence

One of the most consistent findings is the relationship between planning and confidence. Canadians who have a written retirement plan are more likely to feel positive about retirement than those who do not. The data shows that 86% of pre-retirees with a written plan express a positive outlook, compared to 54% without one. The benefits extend beyond finances. A written plan is also associated with a greater sense of preparedness across financial, emotional, social and physical needs. In that sense, planning can help bring structure and clarity to what can otherwise feel uncertain. Most of these plans are developed with the support of a financial advisor, highlighting the role that guidance can play in turning long-term goals into a more structured approach.

Uncertainty continues to shape pre-retirement sentiment

Concerns about inflation and geopolitical developments remain top of mind, particularly for those who have not yet retired. These factors continue to influence how confident individuals feel about their financial future. Differences also emerge across groups. Women report higher levels of concern about inflation, which may reflect greater exposure to day-to-day household spending. Regional differences are more limited overall, though Quebec stands out in one area. Individuals in the province report greater concern about housing costs, particularly rent, which may be influenced by lower rates of homeownership relative to other regions.

Advice remains an important part of the planning process

Financial advisors continue to play an important role in retirement planning. Among Canadians who have a written plan, most worked with an advisor to create it. That support often extends beyond building the plan itself. Ongoing guidance can help individuals stay focused during periods of uncertainty, interpret government programs such as the Canada Pension Plan and Old Age Security, and adjust plans as circumstances evolve. The research also highlights that advisors remain a highly trusted source of information, reinforcing their role in helping individuals navigate complex financial decisions.

Retirement is becoming more flexible

The traditional view of retirement as a fixed point in time is evolving. More individuals are choosing to delay retirement or take a phased approach rather than stopping work altogether. Several factors appear to be contributing to this shift. Longer life expectancy can extend the retirement period, while hybrid and remote work have made it easier for some individuals to continue working later in life. For many, working in retirement reflects a combination of motivations. Some are looking to stay active and engaged, while others consider the financial benefits. In practice, both factors often play a role. Participation in post-retirement work is more common among individuals with higher income, higher education and greater asset levels. In many cases, this suggests that continuing to work is a choice rather than a requirement.

Gaps remain in withdrawal planning

While the importance of planning is clear, the research points to a gap when it comes to managing income in retirement. Only 18% of retirees report having a written strategy for how they will draw from their assets. Many take a less structured approach, such as withdrawing funds as needed or without a clearly defined plan. A significant portion of retirees either rely on ad hoc withdrawals or report having no specific approach at all. A smaller group uses more structured methods, including fixed withdrawal rates, though this remains less common. In some cases, these rates are around 5%, which may not reflect individual circumstances such as time horizon, risk tolerance or income needs. Given the range of factors involved, withdrawal strategies often benefit from regular review and adjustment over time.

Government benefits remain part of the conversation

Government programs such as the Canada Pension Plan, Quebec Pension Plan and Old Age Security continue to play a role in retirement income. Confidence in these programs varies. Retirees who are already receiving benefits tend to feel more confident, while those approaching retirement express lower confidence, particularly in relation to Old Age Security. These differences reflect how the programs are structured. For example, CPP and QPP are funded, while Old Age Security is supported through current government revenues. For many individuals, government benefits are only one component of a broader income strategy. The overall mix depends on personal savings, income needs and financial goals.

AI is being used as a starting point

Artificial intelligence is beginning to play a role in how Canadians approach financial planning, though its use remains relatively limited. Among those who use AI tools, the focus is primarily on general learning. Common uses include exploring budgeting, understanding financial news and estimating how much to save for retirement. At the same time, most individuals are not relying on AI to make decisions. Instead, it is often used as a starting point to build understanding before engaging in more detailed conversations, including discussions with a financial advisor.

Conclusion: A more holistic view of retirement preparedness