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So long early retirement, the golden years now start after 65, with only 26 per cent of Canadians planning to retire before then, according to a new report by investment managing firm Fidelity Investments Canada ULC.

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The study, which interviewed 2,000 Canadian over the age of 45, found that the average age of retirement in Canada has risen from 61 in 2005 to 65 in 2025. And that age may continue to increase, with 46 per cent of pre-retirees considering postponing their retirement due to the rising cost of living.

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The higher cost of retirement is helping drive the delay, with pre-retirees stating they need over a million dollars ($1,020,000) to retire comfortably today. Twenty years ago, that target was $447,000, which equates to $685,000 in 2025 when adjusted for inflation.

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Most Canadians agree that retirement today is more complex than it was then, with 85 per cent believing that it’s about transitioning to flexible work arrangements or passion projects rather than stopping work completely.

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There’s also a large gap between Canadians’ views on retirement. Over 80 per cent of retirees have a positive outlook compared to only 59 per cent of pre-retirees, a historic low.

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Almost 60 per cent of pre-retirees are afraid that they won’t be able to meet their shorter-term financial goals, a significant jump from 40 per cent in 2022.

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Overall, Canadians nearing retirement said their top concerns are inflation, the current turmoil in world politics and poor economic growth.

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“Canadians tell us that retirement planning has become more complex, with factors such as global political uncertainties affecting financial stability,” Peter Bowen, vice-president of tax and retirement research at Fidelity Canada, said in a press release.

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Those concerns are leading to an increase in generational wealth transfers, with 60 per cent of pre-retirees and 55 per cent of retirees wanting to pass on a significant portion of their wealth while they are still alive to help the next generation achieve their financial goals with an early inheritance.

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