Annual IG Wealth Management Retirement Study: Rising Costs and Competing Priorities Challenge Canadians' Retirement Readiness

• Almost half of non-retired Canadians prioritize spending on their current lifestyle rather than saving for retirement
• An overwhelming 80 per cent say the rising cost of living makes it difficult to save for retirement
• Three-quarters believe their generation may not retire as comfortably as current retirees

WINNIPEG, MB, Jan. 21, 2025 /CNW/ - According to IG Wealth Management's ("IG") annual retirement study, nearly half (46 per cent) of non-retired Canadians prioritize spending on their current lifestyle in place of saving for retirement, mainly due to paying off debts (38 per cent) or preferring to enjoy their life now (18 per cent).

Although many have clear aspirations for their retirement years—including travel, part-time work and consulting—rising costs, debt and financial pressures continue to challenge their ability to save.

The study, conducted in partnership with Pollara Strategic Insights, found that:

• Four-fifths (80 per cent) of respondents say the rising cost of living makes it difficult to save for retirement, while over half (56 per cent) have put off saving due to financial pressures.
•  Almost half (47 per cent) expect to retire before 65, but one-third anticipate working later to afford basic living expenses, supplement income, or maintain social connections.
• Despite financial pressures, two-fifths (38 per cent) of respondents hope to prioritize travel in retirement, while 17 per cent envision working part-time or consulting, and one-third (33 per cent) plan to focus on hobbies and interests.
• On average, non-retired Canadians allocate 12 per cent of their income for retirement, but spend 67 per cent on basic living expenses and 20 per cent on leisure activities.

"Rising costs and mounting debt repayment challenges often undermine Canadians' ability to save for retirement," said Christine Van Cauwenberghe, Head of Financial Planning at IG Wealth Management. "However, with our integrated financial planning approach, we empower our clients to strike the perfect balance – enjoying, and funding, life today, while building a secure and confident path toward retirement."

The Value of Financial Advice 

The study also revealed a concerning gap in financial advice, with only one-third of non-retired Canadians reporting that they work with a financial advisor. Of those who do, the majority state that their advisor helps them balance enjoying life today while saving for retirement (76 per cent) and personalizes advice to match their needs (91 per cent).

These findings reinforce an important opportunity for advisors to help close the gap in seeking professional advice, empowering more Canadians to achieve their retirement goals.

"No two retirements are alike. With help from a financial advisor, Canadians can build a personalized retirement plan tailored to their unique needs to help manage today's financial pressures with their desired retirement lifestyle," concluded Ms. Van Cauwenberghe.

About the Pollara Study

This study was conducted in December 2024 with an online sample of 1511 Adult Canadians who are 18+ years and are not retired. Online surveys cannot be assigned a margin of error, however, as a guideline, a probability sample of this size carries a margin of error of ± 2.5%, 19 times out of 20. Data has been weighted using the most current gender, age, & region Census data, to ensure the sample reflects the actual population of adult Canadians.

About IG Wealth Management

Founded in 1926, IG Wealth Management ("IG") is a Canadian leader in delivering financial planning with approximately $140 billion in assets under advisement as of December 31, 2024. For more than 95 years, IG has been focused on improving the financial well-being of Canadians so they can confidently embrace all of life's possibilities. Through a network of advisors located across the country, IG provides approximately one million clients with personalized advice, comprehensive financial planning, insurance and mortgage services and professionally managed investment solutions. IG is a member of IGM Financial Inc. (TSX: IGM), part of the Power Corporation group of companies and one of Canada's leading diversified wealth and asset management organizations with approximately $270 billion in total assets under management and advisement as of December 31, 2024. For more information, visit ig.ca

SOURCE IG Wealth Management

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