FINANCIAL REALITIES PUSHING YOUNG CANADIANS TO REDEFINE RETIREMENT PLANNING: CO-OPERATORS SURVEY

Canadians under 35 facing longer working lives want career breaks and a greater focus on wellbeing

TORONTO, Feb. 25, 2026 /CNW/ - Young Canadians are fundamentally redefining their long-term financial aspirations and the concept of retirement. New survey data from Co-operators suggests young Canadians, defined as those under 35, see their career trajectory as different from their parents', with two-thirds (65%) saying retirement will look different for their generation. Cost-of-living challenges, and a challenging entry-level job market – hiring of workers under 25 dropped 30 percent since 2019 (Statistics Canada) – is reshaping how a generation thinks about long-term career and retirement planning.

As a result, they are preparing for the long haul. Half of young Canadians (49%) think it will be financially necessary to work longer and retire later than their parents; a third (33%) don't think they'll ever be able to financially retire at all. Grappling with this reality, they're shifting their focus to life-long flexibility and mental wellbeing. While compensation is important, half of young Canadians say their ideal job is one with a flexible schedule (50%) and a strong work-life balance (48%). This group is also looking for these jobs to support their near-term goals: roughly four in 10 (38%) of young Canadians want to prioritize living their lives now, and about the same proportion (40%) say they find the idea of micro-retirements – short, intermittent career breaks – appealing.

"This generation is adapting to reality, and financial planning needs to adapt with it. They expect to work later in life and it naturally follows that mental wellbeing, work-life balance and flexibility would become an increased priority," said Jess Baker, EVP and Chief Retail Sales Officer, Co-operators. "They're looking to achieve a different kind of balance to offset that sacrifice."

Despite shifting their approach to retirement planning, many young Canadians are still struggling to meet near-term financial priorities, creating a cycle of stress and burnout. Less than half (44%) report they can cover basic expenses and set aside money for savings, and only just over a third (38%) of young Canadians report regularly saving for retirement, compared with more than half (54%) of Canadians aged 35–44.

As daily costs take priority over long‑term planning and short‑term flexibility, financial resilience - the ability to withstand unexpected shocks like job loss or emergency expenses - has become increasingly strained. Nearly three-quarters (72%) are saving or wanting to save to improve work-life balance, but less than half believe their current investing habits will provide financial stability.

Mental health ranks as the third-highest motivation for considering micro-retirements -- behind travel and spending time with loved ones. Day-to-day financial pressures and rising stress continue to prevent many young Canadians from the flexibility they seek.

"The increasing financial stress this generation is experiencing is compounding an already difficult path to financial security. They're trying to prioritize the right things but face barriers at every turn, adds Baker. "In this new era of financial planning, advice must be about more than long-term goals and retirement. Our advisors are focused on reducing uncertainty and stress, planning for challenges, and supporting Canadians as they build security and flexibility at every stage of life."

Ahead of the 2026 RRSP contribution deadline, Baker offers the following advice:

• Save with intention, no matter the amount: Consistent, early saving is crucial for building financial stability and achieving your desired work-life balance. The amount is far less important than establishing the habit.
• Seek out help: Those young Canadians whose investments are managed by a financial advisor are more likely to feel positive about their general financial situation than those without an advisor (54% vs 39%). For those struggling with mapping their savings to their aspirations, a financial advisor is the best place to start.
• Consider goal stacking: A financial advisor can transform the overwhelming task of saving into a series of actionable steps - each one building confidence and demonstrating tangible progress. This approach helps alleviate financial uncertainty, or feelings of hopelessness, directly combating the stress and burnout experienced by many young Canadians.

About the survey

A total of 1,500 adult residents from across Canada were surveyed online between January 6 to 9, 2026. The sample was randomly drawn from Leger's web panel of potential survey respondents. Post-stratification weights were applied to the sample based on 2021 census population figures to ensure representation by province, age and gender. An associated margin of error for a probability-based sample of this size would be +/-3%, 19 times out of 20. 

About Co-operators

Proudly Canadian since 1945, Co-operators is a leading financial services co-operative, offering multi-line insurance and investment products, services, and personalized advice to help Canadians build their financial strength and security. With more than $79 billion in assets under administration, Co-operators is well known for its community involvement and its commitment to sustainability. Currently a carbon neutral organization, Co-operators is committed to net-zero emissions in its operations and investments by 2040, and 2050, respectively. Co-operators is recognized as one of Canada's Top 100 Employers and ranked as one of Corporate Knights' Best 50 Corporate Citizens in Canada.

 For more information, please visit: www.cooperators.ca.

SOURCE Co-operators Group Limited