Less than half of non-retired Canadians have an employer-sponsored pension plan, leaving many unprepared for retirement as the country faces a major generational shift in retirement planning, according to IG Wealth Management’s annual retirement study.
The study found 48 per cent of non-retirees have a workplace pension plan, whether defined benefit or defined contribution. The research, conducted in partnership with Pollara Strategic Insights, surveyed 1,350 adult Canadians who are not retired between Jan. 9 and 14.
Only 33 per cent of non-retired Canadians have a retirement plan and savings. Just 11 per cent know how much annual income they will need in retirement, while 49 per cent say they do not know at all.
“The decline of defined benefit and contribution pension plans has fundamentally shifted the burden of retirement planning on to individuals in recent years,” said Christine Van Cauwenberghe, head of financial planning at IG Wealth Management. “Our data shows that while Canadians recognize this shift, many still lack a clear picture of what they need to save.”
A quarter of employer pension holders do not know the details of their plan, including whether it is defined benefit or defined contribution.
Knowledge gaps around retirement income
Only two-fifths of Canadians understand Old Age Security, registered retirement income funds, or how retirement income is taxed, according to the study.
Few have factored inflation, health-care costs, market downturns, or longevity risk into their retirement plans. More than two-thirds have not stress-tested their plan against any major economic or financial risk.
Half of non-retired Canadians express negative feelings about retirement, reporting they are behind in their savings and unsure they will be able to afford to retire at all.
“This growing pessimism not only reflects their financial uncertainty but also creates a cycle of inaction, as anxiety becomes a major barrier to take meaningful steps toward improving their retirement outlook,” said Van Cauwenberghe.
Financial advisors improve retirement planning
Only 36 per cent of Canadians currently work with a financial advisor. Among those who do, 87 per cent say their advisor helps optimize their retirement plan, 83 per cent say they educate them on financial risks, 82 per cent say they coach them toward their goals, and 84 per cent say they keep them on track.
“An advisor can help build a retirement plan that accounts for taxes, longevity, income sources, and risk — the pieces most people struggle with on their own,” said Van Cauwenberghe. “In a world without guaranteed pensions, advice is one of the strongest tools Canadians have.”
IG Wealth Management has approximately $158 billion in assets under advisement as of Dec. 31, 2025, and provides services to approximately one million clients through a network of advisors across the country.
