Canadians seek to redefine retirement years

TORONTO, ON (April 11, 2024) - Canadians’ views on retirement are shifting dramatically away from the traditional, according to a new survey^* by Wealthsimple, highlighting the impacts of the rising cost of living and longer life expectancies, along with evolving ideas on work-life balance. ​ 

Three-quarters of Canadians (74 per cent) between the ages of 24 and 44 say the conventional approach to retirement — halting work at age 65 to enjoy a life of leisure — is an outdated concept, according to a national Leger survey commissioned by Wealthsimple. 

The study reflects ambition among many Millennials and GenZ Canadians for a modern form of retirement that allows the pursuit of personal and professional passions throughout their adult lives. It’s no longer a linear career path to eventual retirement, but a hybrid mix of work, travel, volunteering and entrepreneurial pursuits (or all of the above).

Fulfilling these ambitions can seem like a daunting task. Even as day-to-day life becomes less affordable, factors that supported previous generations on their path to retirement – such as buying a home or receiving employer-sponsored pensions – are not as accessible to Canadians today. Roughly 60 per cent of working Canadians do not have access to a workplace pension.

Despite these challenges, Wealthsimple believes achieving modern retirement goals is possible with the right financial advice, prioritization and personalized planning, offering Canadians the opportunity to approach retirement on their own terms. 

“This new outlook on retirement is motivated by more than a challenging economic climate,” says Mike Katchen, CEO of Wealthsimple. “It’s a new perspective on the future driven by younger generations. They are looking for flexibility, personalization and control over their future, rather than feeling controlled by conventional wisdom.”

In the survey, 41 per cent of 25-to-44-year-olds say they are motivated to retire well before age 55 so they can chase bigger ambitions related to small business, consulting, not-for-profit, a passion project or creative pursuit, reinforcing a growing desire to work to live — or at least, not living to work for someone else. 

Given the shift in generational views on retirement, it's no surprise younger Canadians are turning to more self-directed investing options to support their long-term financial goals. Assets in Wealthsimple’s self-directed products have doubled in the last year. More than half of 25-to-44-year-olds in the survey said they can’t conceive of having the savings to retire in the conventional sense, and look at investing as a way to help them live their lives, their way. 

Wealthsimple is helping Canadians on their personalized path to retirement by ensuring their money is working hard for them through access to simple, digital investing tools and advice. Building a personalized financial plan, consistent contributions to managed and self-directed investing accounts, and tax planning can all help investors take control of their financial future, which is why one in five Canadians under 40 uses Wealthsimple to manage their money. 

The findings from the Wealthsimple survey underscore a significant shift in the retirement aspirations of young Canadians, reflecting a desire for flexibility, personalization, and a redefined approach to financial planning:

^{*Online survey of 1,501 Canadians conducted from February 5-13, 2024}

_{About Wealthsimple}

_{Wealthsimple is one of Canada’s fastest growing and most trusted money management platforms. The company offers a full suite of simple, sophisticated financial products across managed investing, do-it-yourself trading, cryptocurrency, tax filing, spending and saving. Wealthsimple currently serves 3 million Canadians and holds over $30-billion assets. The company was founded in 2014 by a team of financial experts and technology entrepreneurs, and is headquartered in Toronto, Canada. To learn more, visit www.wealthsimple.com.}

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