BMO Survey: Majority of Canadians Say Rising Costs Negatively Affecting Retirement Plans
- 74% say rising inflation has increased concerns about having enough money saved for retirement
- Three-in-ten (30%) do not know how long their money will last in retirement
- 15% of Canadians planning to retire outside of Canada, with majority expecting a lower cost of living
TORONTO, Feb. 17, 2026 /CNW/ - Inflation isn't just driving up everyday costs - it's eroding Canadians' confidence in their retirement plans, according to the latest BMO Retirement Survey. Nearly three quarters (74%) say rising prices have heightened concerns about having enough savings to support them in their 'golden years', while two thirds (66%) report inflation is already affecting their ability to save and invest for retirement, according to the data. The findings underscore growing uncertainty as Canadians struggle to balance immediate expenses with long-term financial security.
"Inflation is a threat to retirement savings, but it doesn't have to derail our clients' plans," said Brent Joyce, Chief Investment Strategist, BMO Private Wealth. "The key is to stay invested and take a proactive approach. By incorporating inflation assumptions into comprehensive financial plans, we help Canadians understand how their portfolios can perform over decades - not just years. With disciplined investing and expert guidance, clients can ensure their money grows faster than inflation and supports the lifestyle they've envisioned."
Putting A Dollar Figure on Household Inflation
Among respondents who said inflation was having a negative impact on their finances, the survey asked them to estimate how much extra they were spending on necessities. Nearly half (47%) reported an additional $100 to $300 per month, while about one third (34%) said their monthly expenses have increased by more than $300.
To manage these costs, they are adjusting their retirement savings strategies in different ways:
- 31% are contributing less to retirement savings
- 27% are cutting back on spending to maintain their savings contributions
- 17% have postponed retirement savings entirely
How Long Will My Money Last?
The BMO survey asked Canadians how long they believe their retirement savings will last after they stop working; the results illustrate a gap in Canadians knowledge of retirement preparedness. The largest group (30%) said they just do not know how long their money will last before it runs out. Among those who provided an estimate, 22% believe their savings will last 10 to 19 years and only 13% believe their nest egg would last over 30 years.
"Comprehensive financial and wealth planning is essential to providing clarity - especially when navigating complex and ever‑changing variables like inflation. A customized, holistic wealth planning approach helps clients understand how these factors interact and what savings and investment strategies are required to meet their long‑term retirement goals," said Paul Lalonde, Head of Wealth Planning, BMO Private Wealth Canada. "By modelling a range of possible futures and tailoring strategies to each client's circumstances, we help transform uncertainty into confidence. In the end, thoughtful planning provides the peace of mind Canadians need as they look ahead to retirement."
Canadians Looking Abroad for More Affordable Retiring Options
While many Canadians expect to stay where they currently live, about three in ten plan to move to another city and half of those intend to relocate to another country. Among the Canadians considering an international move, 58% expect living costs to be lower, and 32% anticipate costs will be significantly lower. In contrast, 30% of respondents believe retiring abroad to their destination of choice will be more expensive, suggesting that saving money is not the only motivation for moving away from Canada in retirement.
Regionally, Ontarians are the most likely to envision their retirement years in another country, while those in Quebec are the least likely:
- Ontario: 18%
- British Columbia: 16%
- Saskatchewan and Manitoba: 16%
- Alberta: 13%
- Atlantic Provinces: 12%
- Quebec: 11%
Helpful Retirement Tips
For Canadians planning for retirement and looking to maximize RRSP savings, BMO offers the following tips:
- Start planning early: Define retirement objectives and long-term financial goals to determine appropriate investing and savings strategies.
- Practice discipline: Manage spending, review budgets, and maintain continuous savings plans as a regular expense. Adjust contributions as needed based on monthly budgets.
- Contribute securities to an RRSP: Contributions don't have to be in cash; securities can be transferred "in-kind" to a qualified RRSP.
- Seek professional advice: Advisors have the expertise to monitor portfolios and recommend strategies based on financial circumstances, risk tolerance, and long-term goals.
For more on Retirement Savings Tips and Strategies, click here.
Study Methodology
This study was conducted by Pollara Strategic Insights with an online sample of 1,500 adult Canadians between November 4th and 10th, 2025. Results from a random sample of this size can be considered accurate to within ±2.5 per cent, 19 times out of 20. Results have been weighted by gender, age, and region, using the latest census data, to be representative of the Canadian population.
Disclaimers
This message is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual's investment objectives, risk tolerance and professional advice should be obtained with respect to any circumstance.
"BMO (M-bar roundel symbol)" is a registered trademark of Bank of Montreal, used under licence.
About BMO Financial Group
BMO Financial Group is the seventh largest bank in North America by assets, with total assets of $1.5 trillion as of October 31, 2025. Serving clients for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to approximately 13 million clients across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and stronger communities.
SOURCE BMO Financial Group
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