Inflation is shaking Canadians’ confidence in retirement, with nearly three-quarters saying rising prices have increased their concerns about having enough money saved, according to a new BMO survey.
The BMO Retirement Survey, conducted by Pollara Strategic Insights in November 2025, polled 1,500 adult Canadians online. It found that 74 per cent of respondents say rising inflation has heightened concerns about retirement savings, while 66 per cent say it is already affecting their ability to save and invest.
For HR professionals and business leaders, the findings point to growing financial stress among employees — a factor that research consistently links to reduced productivity and engagement at work.
The cost of rising prices
Among respondents who said inflation was negatively affecting their finances, nearly half (47 per cent) estimated they were spending an extra $100 to $300 per month on necessities. About one-third (34 per cent) said their monthly costs had risen by more than $300.
That added pressure is changing how Canadians approach saving for retirement:
- 31% are contributing less to retirement savings
- 27% are cutting spending to maintain their current contribution levels
- 17% have stopped retirement savings altogether
Canadians unsure how long savings will last
The survey also exposed a significant knowledge gap: 30 per cent of Canadians said they simply do not know how long their retirement savings will last once they stop working.
Among those who offered an estimate, 22 per cent believed their savings would last 10 to 19 years. Only 13 per cent felt confident their nest egg would hold for more than 30 years — a concern given that Canadians are living longer.
“Comprehensive financial and wealth planning is essential to providing clarity — especially when navigating complex and ever-changing variables like inflation,” said Paul Lalonde, Head of Wealth Planning, BMO Private Wealth Canada. “By modelling a range of possible futures and tailoring strategies to each client’s circumstances, we help transform uncertainty into confidence.”
One in six Canadians eyeing retirement abroad
About 15 per cent of Canadians are considering retiring outside the country. Among those weighing an international move, 58 per cent expect living costs to be lower abroad, and 32 per cent anticipate costs to be significantly lower.
Not everyone is moving for financial reasons, however. Thirty per cent of those considering a move abroad said they expect it to be more expensive than staying in Canada, suggesting lifestyle and other factors also play a role.
Regionally, Ontarians are the most likely to consider retiring abroad (18 per cent), while Quebecers are the least likely (11 per cent).
What employers and workers can do
BMO recommends several steps for Canadians working to shore up retirement savings, including starting planning early, maintaining consistent contributions, and seeking professional financial advice. The bank also notes that RRSP contributions can be made using securities rather than cash — an option many savers may not be aware of.
“Inflation is a threat to retirement savings, but it doesn’t have to derail our clients’ plans,” said Brent Joyce, Chief Investment Strategist, BMO Private Wealth. “The key is to stay invested and take a proactive approach.”
For employers, the data underscores the value of financial wellness programs and education as part of the broader employee benefits offering — particularly as economic uncertainty continues to weigh on workers.
The BMO Retirement Survey was conducted by Pollara Strategic Insights with an online sample of 1,500 adult Canadians between Nov. 4 and 10, 2025. Results are considered accurate to within plus or minus 2.5 percentage points, 19 times out of 20.
