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Canadians are starting early when it comes to planning for a major life milestone: retirement.
On average, Canadians start planning their retirement at age 30, with plans to retire at 61, a new survey by CIBC released on Wednesday shows.
Many are starting early because of a “growing awareness” about the importance of long-term planning, said Jamie Golombek, managing director of tax and estate planning at CIBC.
“Factors such as rising cost of living, inflation and student debt have prompted many to start thinking about retirement savings earlier than previous generations,” Golombek said.
While the average Gen X Canadian started saving for retirement when they turned 30 and the average boomer started when they turned 33, younger Canadians are starting a lot earlier.
While millennials on average start saving at age 29, for Gen Z, it starts as early as age 24, CIBC data shows.
Starting early can have many advantages, including allowing Canadians to benefit from compound growth, Golombek said.
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This can give them “more flexibility and peace of mind as they move through life’s stages,” he said.
‘Inflation is a threat’ to retirement
A BMO survey released Tuesday shows that inflation and the high cost of living are threatening retirement plans for many Canadians.
Nearly three-quarters (74 per cent) say high prices have raised concerns around retirement and two-thirds (66 per cent) say inflation has already affected their ability to save.
“Inflation is a threat to retirement savings, but it doesn’t have to derail our clients’ plans,” said Brent Joyce, chief investment strategist at BMO Private Wealth, adding that the key to planning for the future is “incorporating inflation assumptions into comprehensive financial plans.”
Simply put, it means assuming your cost of living is going to keep rising into retirement.
Retirement plans are taking a hit from high cost of living, with 31 per cent saying in the BMO survey that they are contributing less to retirement savings and 17 per cent having postponed retirement savings entirely.
Canadians should regularly adjust and review their saving goals, Golombek said.
“It’s also important to factor in expected increases in expenses over time and to use financial projections that account for inflation,” he said.
When it comes to planning your future, there is no such thing as “too early,” Golombek added.
“The earlier Canadians begin, the more options and opportunities they have to build a comfortable retirement. Early planning doesn’t mean setting everything in stone, it’s about establishing good habits, such as budgeting, saving, and investing, which can be adjusted as life circumstances change,” he said.
© 2026 Global News, a division of Corus Entertainment Inc.
