Annual IG Wealth Management Retirement Study: Decline in Guaranteed Employer Pensions Leaving Many Canadians Underprepared for Retirement

Annual IG Wealth Management Retirement Study: Decline in Guaranteed Employer Pensions Leaving Many Canadians Underprepared for Retirement

• Less than half of non-retired Canadians have an employer-sponsored pension plan
• Just 11 per cent know how much annual income they'll need in retirement
• Only one third have a retirement plan

WINNIPEG, MB, Feb. 3, 2026 /CNW/ - According to IG Wealth Management's (IG) annual retirement study, a major generational shift is re-shaping how Canadians approach retirement – and many are struggling to keep up.

Around 30 years after large employers began phasing out defined benefit (DB) pension plans, today's Canadians are heading into retirement without the same level of guaranteed income of previous generations – less than half (48 per cent) of non‑retirees have a workplace pension plan, whether it be DB or defined contribution (DC).

The study, conducted in partnership with Pollara Strategic Insights, also found that:

• A quarter of employer pension holders do not know the details of their plan, including whether it is DB or DC.
• Only one-third (33 per cent) of non-retired Canadians have a retirement plan and savings.
• Just 11 per cent of non-retired Canadians know how much annual income they will need in retirement, while half (49 per cent) say they simply do not know at all.

"The decline of defined benefit and contribution pension plans has fundamentally shifted the burden of retirement planning on to individuals in recent years," said Christine Van Cauwenberghe, Head of Financial Planning, IG Wealth Management. "Our data shows that while Canadians recognize this shift, many still lack a clear picture of what they need to save – and how to convert their savings into a 'personal pension plan'. This environment underscores the critical importance of  working with a financial professional to develop a disciplined, personalized planning approach to ensure retirement readiness."

Significant Knowledge Gaps and Emotional Strain Persist

As reliance on personal savings grows, understanding key income sources matters more than ever. Yet Canadians report limited knowledge of fundamental tools. Only two-fifths have an understanding of Old Age Security (OAS), a Registered Retirement Income Fund (RRIF), or how retirement income is taxed. Further, the study found that few have factored inflation, health‑care costs, market downturns, or longevity risk into their retirement plans – and more than two-thirds (67 per cent) have not stress‑tested their plan against any major economic or financial risk.

Compounding these knowledge gaps is a growing emotional strain around retirement. Half (53 per cent) of non-retired Canadians express negative feelings about retirement, reporting that they are behind in their savings and unsure they will be able to afford to retire at all. "This growing pessimism not only reflects their financial uncertainty but also creates a cycle of inaction, as anxiety becomes a major barrier  to take meaningful steps toward improving their retirement outlook," observed Ms. Van Cauwenberghe.

Financial Advice Critical to Retirement Readiness

Only one third (36 per cent) of Canadians currently work with a financial advisor. Among those who do, large majorities say their advisor helps optimize their retirement plan (87 per cent), educates them on financial risks (83 per cent), coaches them toward their goals (82 per cent), and keeps them on track (84 per cent).

"An advisor can help build a retirement plan that accounts for taxes, longevity, income sources, and risk – the pieces most people struggle with on their own," added Ms. Van Cauwenberghe. "In a world without guaranteed pensions, advice is one of the strongest tools Canadians have."

About the Pollara Study

The Retirement Planning Study was conduct by Pollara Strategic Insights, on behalf of IG Wealth Management and consisted of an online survey conducted with 1,350 adult Canadians who are not retired.  The study was conducted from January 9^th to 14^th, 2026.  Results from a random sample of this size can be considered accurate to within ±2.7%. 19 times out of 20. Results have been weighted by gender, age and region, using the latest census data, to be representative of the population as a whole.

About IG Wealth Management

Founded in 1926, IG Wealth Management ("IG") is a Canadian leader in delivering financial planning with approximately $158 billion in assets under advisement as of December 31, 2025.  For more than 95 years, IG has been focused on improving the financial well-being of Canadians so they can confidently embrace all of life's possibilities. Through a network of advisors located across the country, IG provides approximately one million clients with personalized advice, comprehensive financial planning, insurance and mortgage services and professionally managed investment solutions.  IG is a member of IGM Financial Inc. (TSX: IGM), part of the Power Corporation group of companies and one of Canada's leading diversified wealth and asset management organizations with approximately $310 billion in total assets under management and advisement as of December 31, 2025. For more information, visit ig.ca.

SOURCE IG Wealth Management