Retirement is hitting later for most Canadians. A new study shows the average age has now landed at 65, a jump from 61 just two decades ago. That shift tells a bigger story about money stress, changing job views, and a new idea of what retirement even means.

Only 26% of Canadians plan to retire before 65, according to the 2025 Fidelity Retirement Report. For many, leaving work early feels unrealistic. Soaring living costs and higher life expectancies are nudging people to hold on to their paychecks a little longer.

The days of packing it in by 60 are over for most. Many now say 65 is just the start of winding down, not the finish line. Some will keep working part-time or shift into easier roles just to stay afloat.

Cotton Bro / Pexels / Back in 2005, Canadians aimed to retire with around $685,000, at the age of 61. Today, they believe they need $1.02 million to feel secure.

That is nearly twice the inflation-adjusted figure from twenty years ago, reflecting just how expensive life has become.

Rising Costs Delay Retirement Plans

Almost half of pre-retirees say they are thinking about staying in the workforce longer. Their biggest reason? The rising cost of everything from groceries to housing. Even those who saved well are hesitant to quit too soon.

This delay isn’t always a choice. Many feel stuck. They see their savings shrink in value while everyday prices keep rising. Retirement feels more like a moving target than a fixed age.

Retirement is no longer seen as a clean break. A huge 85% now picture it as a shift into more flexible or meaningful work. For some, that means part-time gigs. For others, it is chasing passion projects they never had time for before.

This mindset shift is practical, too. Many worry they will outlive their savings. By staying lightly employed, even after 65, they stretch their resources without sacrificing purpose or routine.

Inflation is Driving Big Fears

More than half of Canadians approaching retirement feel anxious about money. Inflation, global instability, and a shaky economy make it hard to plan ahead. Some don’t trust that they will even hit their short-term financial goals.

This uncertainty wears people down. They hesitate to make firm plans or quit jobs they might need to go back to.

Half of working Canadians expect to lean on the gig economy after retirement. That could mean consulting, freelancing, or app-based work. It helps cover costs and keeps them active without full-time pressure.

However, millennials and Gen Z see retirement differently. Many don’t think 65 should be a fixed marker. They want more flexible options that let them explore passion-driven careers or part-time roles well into their older years.

Freepik / Just 24% of single Canadians feel confident in their retirement savings, compared to 32% of those with partners.

It is harder to save on a single income and manage risks alone. Without a second income or shared expenses, solo retirees often need more savings to feel safe. They may also face higher healthcare or housing costs without support from a partner.

Home Equity Plays a Big Role

For 62% of Canadians, their home is their biggest retirement asset. They plan to downsize, rent it out, or sell and live on the proceeds. It is a common plan, but not without stress. About 65% worry they will still be paying off a mortgage at retirement.

That kind of debt changes the picture fast. Instead of freeing up cash, housing costs can keep people tied to full-time work longer than expected.