Concerns about Canada-U.S. trade relations are making retirement planning more difficult for Canadians, with many either increasing their savings or stopping contributions altogether due to geopolitical uncertainty, according to new research released Tuesday.
The 2025 Canadian Retirement Survey from the Healthcare of Ontario Pension Plan (HOOPP) and Abacus Data found that 67 per cent of Canadians are very concerned about Canada-U.S. relations, matching concerns about the cost of living and general economic uncertainty.
The trade tensions are having a direct impact on retirement savings behaviour. Twenty-two per cent of respondents said they are putting more money aside in savings due to geopolitical instability, while 18 per cent have stopped contributing to their savings entirely.
“When Canadians are feeling even more uncertain about the future as they are now, pensions can offer more certainty about the future,” said David Coletto, CEO of Abacus Data. “Policy makers and employers should be taking a closer look at this now, more than ever.”
Retirement readiness remains poor
The survey of 2,000 Canadians painted a concerning picture of retirement preparedness across the country. Two-thirds of unretired Canadians said they will need to continue working in their retirement to support themselves financially.
More than one-third of all Canadians have less than $5,000 in total savings, and 15 per cent of retired people had no savings at all when they left the workforce. Over half of Canadians are unable to save for retirement because they are living paycheque to paycheque.
Despite these financial challenges, 88 per cent of respondents said they would contribute nine per cent of their salary to join a defined benefit pension plan where their employer matched contributions.
“Despite the fact that many Canadians are living from paycheque to paycheque and unable to put aside any savings, these difficulties have not diminished Canadians’ desire to contribute to a defined benefit pension plan in order to receive a secure, lifetime income in retirement,” said Jennifer Rook, Vice President of Strategy, Global Intelligence and Advocacy at HOOPP.
Housing central to retirement plans
Housing plays a key role in retirement planning for many Canadians, with 44 per cent of homeowners planning to rely on the sale of their homes to fund their retirement. Another third would remortgage their homes and use those funds for retirement.
However, the survey revealed significant risks in this approach. Sixty-five per cent of unretired homeowners worry they won’t be able to pay off their mortgage in time to retire when they want to, while 62 per cent of non-homeowners are concerned that current interest rates will prevent them from ever buying a home.
Among homeowners who need extra income in retirement, 38 per cent would downsize their homes and 14 per cent would consider a reverse mortgage.
Workplace pension coverage remains limited
The survey found that 41 per cent of people without a defined benefit or defined contribution pension believe it’s unlikely they will ever have a workplace pension plan. However, 73 per cent agree that companies could afford to offer workers good pensions if they wanted to, regardless of economic conditions.
Nearly half of Canadians believe their quality of life will decrease in retirement, highlighting the ongoing challenges many face in preparing for their later years.
The survey was conducted online from April 11 to 16, 2025, with a margin of error of plus or minus 2.19 percentage points, 19 times out of 20. This marks the seventh year that HOOPP and Abacus Data have conducted the Canadian Retirement Survey.
