Young Canadians are fundamentally redefining their long-term financial aspirations and the concept of retirement. New survey data from Co-operators suggests young Canadians, defined as those under 35, see their career trajectory as different from their parents’, with two-thirds (65%) saying retirement will look different for their generation. Cost-of-living challenges, and a challenging entry-level job market – hiring of workers under 25 dropped 30 percent since 2019 (Statistics Canada) – is reshaping how a generation thinks about long-term career and retirement planning.
As a result, they are preparing for the long haul. Half of young Canadians (49%) think it will be financially necessary to work longer and retire later than their parents; a third (33%) don’t think they’ll ever be able to financially retire at all. Grappling with this reality, they’re shifting their focus to life-long flexibility and mental wellbeing. While compensation is important, half of young Canadians say their ideal job is one with a flexible schedule (50%) and a strong work-life balance (48%). This group is also looking for these jobs to support their near-term goals: roughly four in 10 (38%) of young Canadians want to prioritize living their lives now, and about the same proportion (40%) say they find the idea of micro-retirements – short, intermittent career breaks – appealing, explained the company.
“This generation is adapting to reality, and financial planning needs to adapt with it. They expect to work later in life and it naturally follows that mental wellbeing, work-life balance and flexibility would become an increased priority,” said Jess Baker, EVP and Chief Retail Sales Officer, Co-operators. “They’re looking to achieve a different kind of balance to offset that sacrifice.”
Jess Baker
Despite shifting their approach to retirement planning, many young Canadians are still struggling to meet near-term financial priorities, creating a cycle of stress and burnout. Less than half (44%) report they can cover basic expenses and set aside money for savings, and only just over a third (38%) of young Canadians report regularly saving for retirement, compared with more than half (54%) of Canadians aged 35–44, said the report.
“As daily costs take priority over long‑term planning and short‑term flexibility, financial resilience – the ability to withstand unexpected shocks like job loss or emergency expenses – has become increasingly strained. Nearly three-quarters (72%) are saving or wanting to save to improve work-life balance, but less than half believe their current investing habits will provide financial stability,” said Co-operators.
Mental health ranks as the third-highest motivation for considering micro-retirements — behind travel and spending time with loved ones. Day-to-day financial pressures and rising stress continue to prevent many young Canadians from the flexibility they seek, it added.
“The increasing financial stress this generation is experiencing is compounding an already difficult path to financial security. They’re trying to prioritize the right things but face barriers at every turn,” said Baker. “In this new era of financial planning, advice must be about more than long-term goals and retirement. Our advisors are focused on reducing uncertainty and stress, planning for challenges, and supporting Canadians as they build security and flexibility at every stage of life.”
Ahead of the 2026 RRSP contribution deadline, Baker offers the following advice:
- Save with intention, no matter the amount: Consistent, early saving is crucial for building financial stability and achieving your desired work-life balance. The amount is far less important than establishing the habit.
- Seek out help: Those young Canadians whose investments are managed by a financial advisor are more likely to feel positive about their general financial situation than those without an advisor (54% vs 39%). For those struggling with mapping their savings to their aspirations, a financial advisor is the best place to start.
- Consider goal stacking: A financial advisor can transform the overwhelming task of saving into a series of actionable steps – each one building confidence and demonstrating tangible progress. This approach helps alleviate financial uncertainty, or feelings of hopelessness, directly combating the stress and burnout experienced by many young Canadians.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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