Canadians’ outlook on retirement has dropped over the last decade, with 82 per cent having a positive attitude 10 years ago compared to 71 per cent last year, said Peter Bowen, vice-president of tax and retirement at Fidelity Investments Canada, during a session at Benefits Canada’s 2026 Defined Contribution Plan Summit.
Sharing the results of the investment manager’s annual retirement report, he noted the biggest dichotomy occurs when respondents are split into retirees and pre-retirees, with the latter group having a much more negative view. Focusing on pre-retirees, 84 per cent of respondents said cost of living is having a negative impact on their retirements, followed by poor economic growth, the current turmoil in world politics, stock market volatility and interest rates.
The result is that nearly half (46 per cent) of pre-retirees said they’re planning to retire later than originally planned. “People know markets will go bump,” said Bowen. “They know they need an extra buffer for savings to help deal with it. And one of the responses to that is retiring later.”
There are five key risks to retirement, he said, citing longevity, inflation, asset allocation, withdrawal rates and health. People don’t have control over most of these risks, he added, except for the withdrawal rate and asset allocation.
Fidelity’s annual retirement study found the average amount pre-retirees believe they need for a comfortable retirement is $93,000 per year, with government transfers providing roughly $36,500 of that year. Assuming a four per cent withdrawal rate, said Bowem, an individual needs to save $1.42 million — or $1.1 million for a five per cent rate.
“What do Canadians think they need to generate that extra $57,000? Just over a million. And they’re not even at that point, of course, on average. They aren’t saving enough based on what they think they’ll have and they’re definitely not saving enough based on what the math tells us they’ll need. So how do we get there?”
Read: Survey finds Canadians estimate they need an average of $976,835 to retire
He also pointed to the importance of asset allocation, referring to another 2025 Fidelity report that surveyed financial advisors and record keepers. It posed a scenario of a 65-year-old client who’s about to retire and wants to transfer their $500,000 DC plan to the firm. The client is healthy, has a medium risk tolerance and the only option is to invest in equities and fixed income.
Between 2016 and 2025, the proportion of equities suggested rose from 54 per cent to 62 per cent. “The equity component that advisors are using has gone up. It’s longer lifespans that’s primarily driving this. . . . You need to reflect the fact that, at age 65, there’s still a 30-year planning horizon, maybe longer.”
Indeed, Canadians are living longer and retiring later, so they need more of a buffer, said Bowen. “As you think about the plan choices for your members, think about how you best set them up for success.”
Read more coverage from the 2026 DC Plan Summit.