The Profiles of Retirement investor research survey revealed details about the financial lives of Canadians 50 years of age and older. It included participation from both retirees and people who have not yet retired. The results provide insights on the financial expectations and realities of living in retirement.
On this page you’ll find
- How prepared are Canadians for retirement?
- Top financial concerns about retiring
- What differences were found between retirees and pre-retirees?
- Differences between retirees compared to pre-retirees
- How prepared are Canadians over age 50 for financial emergencies?
- How prepared are people for health issues that may arise with aging?
- How satisfied are Canadians in retirement?
- Seniors and the OSC
How prepared are Canadians for retirement?
Profiles of Retirement found that while most retired Canadians said they were in a financially strong position, 15% of retirees rated their financial situation as poor. And almost one third of retirees reported their monthly expenses in retirement are higher than they expected. Those with lower incomes are more likely to have unexpectedly high expenses.
Seniors are living longer, so their money needs to last longer. More people are also carrying mortgage debt into their retirement years. Economic realities and impacts of aging may conflict. Many people need to work to cover essential monthly expenses, but health issues can emerge that make retirement necessary. For some people, choosing to continue working is not an option.
Profiles of Retirement provides valuable insights into the expectations and experiences of retirees and pre-retirees. Identifying and addressing the needs of older investors is a priority for the OSC. The results of the survey help inform OSC’s regulatory and operational work in support of seniors.
Read the full report Profiles of Retirement
Top financial concerns about retiring
Many Canadians worry about retirement. It is a big life change to prepare for. The most common financial concerns for both retirees and pre-retirees were:
- Sustained high inflation rates (62% pre-retirees, 56% retirees).
- Running out of money during retirement (57% pre-retirees, 37% retirees).
- Increased housing and rental costs (53% pre-retirees, 39% retirees).
- Unexpected health-care costs (49% pre-retirees, 43% retirees).
Concern about potential events was higher among younger pre-retirees, women, households with lower annual income, non-investors and those with investment under $250,000.
Retirement planning is about managing your money so you can make the most of your retirement years. Find out more about the financial steps you can take to prepare for retirement.
If you’re getting closer to retirement, you may be thinking about how your cash flow may change compared to your working years. Try the Retirement Budget Calculator to compare your income and expenses in retirement.
What differences were found between retirees and pre-retirees?
Profiles of Retirement found that working Canadians over age 50 may not retire as comfortably as those who are already retired.
Compared to retirees, those who are not yet retired have less savings and more debt. Pre-retirees are more likely to expect to rely on their own savings or on income from a home sale. They are less likely to have a work-related pension plan. They are also less likely to have a financial plan. And, almost one quarter of pre-retirees rated their financial situation as poor.
Pre-retirees were more uncertain than retirees about what their expenses would be in retirement. About a third of pre-retirees may not be saving enough. Just over half of pre-retirees (52%) said they plan to use personal savings and selling investments for retirement, 40% would use investment income, while 36% plan to use their spouse’s pension plan and 24% intend to use money from selling or downsizing their homes. And pre-retirees were more likely to consider selling or downsizing their homes.
Differences between retirees compared to pre-retirees
| Retirees | Pre-retirees | |
| Rate their financial situation as poor | 15% | 24% |
| Do not have any investment products | 34% | 37% |
| Rely (or will rely) on a CPP or QPP | 85% | 78% |
| Rely (or will rely) on OAS and GIS | 73% | 64% |
| Rely (or will rely) on a work-related pension plan | 51% | 36% |
| Have sold or downsized their home (retirees) or will consider selling or downsizing their homes (pre-retirees) | 9% | 24% |
Learn more about sources of income in retirement.
Knowing how much income you can expect from your Registered Retirement Savings Plan (RRSP) can help you plan for your retirement. Try the RRSP savings calculator.
How prepared are Canadians over age 50 for financial emergencies?
In life, it is wise to expect the unexpected — and prepare for it. That is particularly true when it comes to your finances. The survey found that both retiree and pre-retirees may not be prepared for financial emergencies. And the experiences of some survey participants amplify the need to have an emergency fund.
Almost half of retirees had an unexpected event occur that significantly impacted their finances — the most common event being a long-term disability. And about half of pre-retirees had an event occur leading up to retirement that impacted their ability to save.
Retirees with lower incomes were also more likely to have unexpectedly high expenses and to lack the resources to save and plan for their retirement. One of the best ways to cope with unexpected financial changes is to have an emergency fund. Learn more about preparing for financial emergencies.
How prepared are people for health issues that may arise with aging?
Just as aging is a natural process, it’s also natural for you to believe your health will remain fine in your retirement years. And you are not alone in that belief. The Profiles of Retirement survey found many Canadians are not preparing financially for the possibility of physical or cognitive decline. But just like having an emergency fund, there are things you can do to be ready in case your health circumstances change.
The survey found three top areas where people had not put in place financial protections:
- Power of attorney for property – A power of attorney is a legal document. It gives someone else — in certain defined situations — the legal ability to act and make decisions for you. Find out more about appointing a power of attorney. The survey found 60% of retirees and 43% of pre-retirees had not appointed a power of attorney.
- Trusted Contact Person – Your financial advisor is required to ask you about adding a Trusted Contact Person to your account. A Trusted Contact Person essentially serves as your emergency contact. Learn more about naming a Trusted Contact Person. The survey found 71% of retirees and 83% of pre-retirees had not appointed a Trusted Contact Person.
- Unexpected costs – Changes in your health can occur suddenly and at any time. It’s wise to look ahead and plan for the unexpected so you can make the most of the resources available to you. Find out more about planning for long-term care. The survey found 61% of pre-retirees who are currently saving for retirement had not considered unexpected costs related to health or long-term care in their planning.
What could motivate your retirement planning? Find out by reading Encouraging Retirement Planning through Behavioural Insights.
How satisfied are Canadians in retirement?
Despite the concerns in some areas, there is good news in the survey. Most retirees are satisfied with retirement, and pre-retirees have positive expectations and look forward to retirement.
- 77% of retirees are enjoying retirement and 67% of pre-retirees are looking forward to retirement.
- 70% of retirees say their standard of living is the same as or better than it was before they retired. 65% of pre-retirees expect their post-retirement standard of living to be the same or better than their current standard.
The majority of Canadians 50+ are retired (59%). The median household investment of survey participants was between $250,000 and $500,000. The median income for both retirees and pre-retirees is between $60,000 and $100,000, though the mean for pre-retirees is higher.
Retirees reported receiving government pension plan benefits (either QPP: 86% or CPP: 83%), and Old Age Security (73%). Most pre-retirees also expected to receive these benefits, with some expecting to draw from them at age 65 and some sooner which may not be financially optimal in some cases.
The survey of 1,500 Canadians 50 years of age or older included 878 Canadians currently retired and 622 Canadians not yet retired. Fieldwork was conducted from March 1 to April 18, 2023.
Seniors and the OSC
Profiles of Retirement sheds light on the fastest growing demographic in Ontario and the results provide important insights into the expectations and experiences of retirees and pre-retirees.
Identifying and addressing the needs of older investors is a priority for the OSC. The survey is a follow up to the Retirement Readiness: Canadians 50+ survey in 2016.
These surveys help inform the OSC’s regulatory and operational work in support of seniors and build on the OSC’s Seniors Strategy. The strategy set out a plan to ensure the needs of older people are met by Ontario’s securities framework. It was called a critical first step and a crucial road map to address the unique risks facing older investors by financial industry associations and stakeholder groups representing seniors across Canada. The retirement surveys, like Profiles of Retirement, are part of ongoing implementation of Seniors Strategy objectives.
Key elements of the strategy included:
- Conducting research on challenges older investors face and examining behavioural barriers.
- Developing a responsive regulatory framework to address issues of financial exploitation and cognitive impairment among older investors.
- Enhancing education and outreach to provide tools and resources for older investors, their families, caregivers and financial advisors.
- Breaking down silos and working with partners to design policies and programs for seniors.
The strategy also looked at enhanced protections for older and vulnerable investors in Canadian securities regulation. Encouraging investors to appoint a Trusted Contact Person to their investment account is an example of an enhanced protection for older investors. It creates a framework for financial advisors to place a temporary hold on a client’s investment account if they are concerned their client is being financial exploited or may have diminished mental capacity to make financial decisions.
To assist advisors and the financial industry in working with older or vulnerable investors, the OSC created white label materials (resources that can be adapted and branded by firms). They cover topics such as spotting the signs of financial exploitation and working with older clients.
