According to the most recent Aging in Canada survey, about one in four Canadian seniors has less than $5,000 in retirement savings. This startling finding highlights a widespread challenge: many older adults are reaching or already in retirement with minimal savings to rely on during unexpected expenses or rising living costs.Country 600 CJWW
This limited savings buffer is particularly worrying because most seniors live on fixed incomes — such as the Canada Pension Plan (CPP), Old Age Security (OAS), or personal pensions — that may not keep pace with inflation or cover unexpected costs. The survey’s director noted that low savings not only make it difficult to pay for emergencies but also increase the risk that seniors will rely on credit or struggle to meet basic needs.Country 600 CJWW
Saving Has Become Harder Due to Inflation and Expenses
The struggle to save isn’t limited to the oldest Canadians. Broader national data show that inflation and rising living costs have forced many Canadians — including seniors — to adjust or delay their retirement plans. In a recent BMO survey, 76 % of Canadians said inflation has restricted their ability to save for retirement, even though many are increasing their contributions to registered plans like RRSPs.Wealth Professional
While contributions to retirement accounts have reached record highs, that doesn’t necessarily translate to meaningful savings for seniors in or near retirement. Many older Canadians find their everyday costs — groceries, utilities, housing, transportation — eating into their ability to set money aside. This means that even lifelong savers can see retirement funds erode or stagnate relative to expenses.Wealth Professional
Income Often Isn’t Enough to Save
Other research shows that while many Canadians over age 50 feel their income is sufficient, only about one-third are able to save with that income. That suggests that even if seniors are making ends meet, there’s often little leftover to put into savings or investments.Wealth Professional
This lack of saving capacity reflects broader economic trends — including lower pension coverage in the workforce and insufficient retirement planning for many years prior to retirement. Combined with high living costs and the expectation of needing more savings (many Canadians now believe they’ll need well over $1 million to retire), these pressures contribute to persistent anxiety about financial security.Money.ca
Who Is Most Affected?
The survey noted that women, renters, and those in poor health are most likely to have minimal savings. These groups often face additional financial barriers, such as wage gaps, higher housing costs, or medical expenses, which can make saving even more difficult.Country 600 CJWW
Looking Ahead
For many Canadian seniors, saving remains a major struggle. Limited retirement savings combined with rising costs, inflationary pressures, and longevity risk means that a significant proportion of older Canadians may need to rethink how they manage finances in later life — whether that means downsizing, delaying retirement, relying more on government benefits, or seeking financial planning support.
Ensuring seniors have enough savings for retirement continues to be a critical economic and social issue that affects quality of life, independence, and peace of mind in Canada’s aging population.Country 600 CJWW
