Canadian seniors are increasingly feeling financial pressure as the cost of living continues to rise, and many are finding that their retirement savings and fixed incomes are being stretched further than expected. Recent survey data shows that while helping family members has long been part of life for many older Canadians, it’s now having a much greater impact on retirement security than it did just a year ago. Money.ca
According to the 2025 Aging & Affordability Insights Benchmark Report, about one in three Canadian parents and grandparents continues to financially support adult children or grandchildren, a figure that hasn’t changed significantly from last year. However, the degree of that support — and its impact on retirement savings — has worsened. This year, 76% say that providing financial help cuts into their retirement savings — up from 65% previously. Mortgage Professional
Seniors today are not just helping out with occasional expenses. The report highlights that 67% of seniors providing support now contribute to everyday living costs — a notable increase from 55% last year — and 28% help with rent or mortgage payments, slightly higher than in 2024. Mortgage Professional
Why This Matters
For retirees on fixed incomes, such as pensions, Canada Pension Plan (CPP), Old Age Security (OAS), or income from investments, rising costs of essentials like groceries, utilities, and housing take a larger bite out of monthly budgets. Because inflation often outpaces the cost-of-living adjustments in retirement income streams, many seniors find themselves needing to spend more just to maintain basic living standards. This pressure can reduce the longevity of retirement savings and lead to uncomfortable tradeoffs between helping family and preserving personal financial security. Money.ca
Indeed, more than half of seniors surveyed expressed worry that their savings won’t last through retirement. Many also say they expect to make lifestyle or spending changes in response to financial pressures, such as curbing discretionary spending or reconsidering how much support they can provide to family. Money.ca
Broader Financial Stress for Canadians
While some data suggest that seniors report less daily financial difficulty than younger adults, overall financial anxiety is rising across age groups in Canada. Surveys of broader Canadian households show that many are concerned about inflation and unexpected expenses, which can compound stress even for retirees. Statistics Canada+1
Practical Implications
These trends have several important implications:
- Retirement Savings Are Under Pressure: More seniors are forced to dip into savings earlier than planned, weakening financial resilience.
- Support for Family Has Real Costs: Helping adult children and grandchildren can be emotionally rewarding but financially draining.
- Rising Costs Impact Daily Life: Even if seniors report relatively stable ability to make ends meet, the persistent rise in expenses makes careful budgeting more important than ever.
- Planning and Advice Are Key: As economic uncertainty persists, tools like budgeting, professional financial planning, and strategies to manage income and investments may help seniors protect their financial security.
Conclusion
Canadian seniors are facing a challenging financial landscape. Rising living costs, paired with a desire to support younger family members, is increasingly squeezing retirement savings. While many continue to weather these pressures, the necessity of adapting financial plans — whether through budgeting, adjusting support for others, or seeking professional advice — is becoming clear. Staying informed and proactive can help seniors maintain their quality of life and financial independence throughout retirement.
