Retirement Planning Gap: Only 34% of Canadians Plan Ahead

The retirement planning gap in Canada is not about saving. It is about time. CPP Investments manages the Canada Pension Plan (CPP) fund. Its new survey shows most of us know people live longer. Yet only about one in three Canadians plans for a retirement that could last decades. So what did the study find, and what can we do about it?

Retirement Planning Gap: What the CPP Investments Survey Found

The 2026 CPP Investments Retirement Survey came out on October 28, 2026. According to the official release, 76% of Canadians know people are living longer. However, only 34% have a retirement plan that thinks about how many years they may need to cover.

Saving is common, but planning is not. Three in four Canadians (75%) have put money aside for retirement. Still, only 42% have a financial plan. Another 34% are saving with no plan at all.

Innovative Research Group ran the online poll from August 27 to September 8, 2026. It reached 5,141 adults outside Quebec. The results were then weighted to match Canada’s population.

Many Canadians Cannot Guess How Long Retirement Will Last

The Financial Post shared more detail from the study. Four in 10 people have never talked about how many years of retirement they need to plan for. Also, 45% of people still working could not estimate how long their retirement might last.

Those who did guess gave a median of 20 years. Yet they believe their money will only cover about half that time. That is the heart of the retirement planning gap.

Confidence is low, too. Only 15% of workers said they have enough money to fully fund retirement. Meanwhile, 59% said they were unsure.

A New Retirement Longevity Index Tracks Confidence

CPP Investments has run this survey every year since 2023. This year, it added a Retirement Longevity Index. The index has two parts:

• Confidence Score: how secure people feel about paying for a long retirement.
• Preparation Score: the steps people have taken, such as saving, making a plan and thinking about time.

Canadians scored just 44 out of 100 on confidence, as the Financial Post reported. They scored 4.2 out of 10 on preparation.

The good news is that action pays off. People who took more steps had an average confidence score of 58. In contrast, those who took few or no steps scored only 35.

“Living longer changes the way we need to think about retirement,” said Michel Leduc of CPP Investments. “Putting money aside is an important start,” he added. He said planning also means thinking about how long retirement could last.

Why Longevity Matters for Retirement in Canada

Living to 100 is no longer rare. The Financial Post, citing Statistics Canada, said Canada had 10,105 centenarians as of July. That is up from 7,237 in 2016. Over the same time, the share of people aged 65 and older grew to 20% from about 16%.

Average life expectancy in Canada is 82.7 years. The average retirement age is now 65, up from 62 in 2003. So a person who retires at 65 could need income for two decades or more.

Fear of running short is real. In the survey, 61% worry they will outlive their savings. In addition, 45% said they would not have enough money if they lived to 100.

Money Stress Is Rising

About 34% of Canadians report high day-to-day money stress, up from 31% in 2025. That share jumps to 47% for households earning under $50,000.

Worry about choices is growing as well. The Financial Post said 55% fear making “the wrong decisions” about money. That is up from about 50% last year.

How CPP Knowledge Narrows the Retirement Planning Gap

The study found a clear link between knowing the CPP and feeling ready. Among people very familiar with the CPP, 77% are confident their savings will last. By comparison, only 22% of those unfamiliar or unsure feel the same.

Yet few people know the basics. Only 30% know CPP payments are linked to inflation. That means payments rise with living costs. Also, just 53% know payments reflect their years of contributions and average earnings.

Knowing about inflation protection seems to help a lot. Among those who know it, 63% feel confident their money will last. Only 21% of them report high stress about retirement planning.

What the CPP Pays Today

According to Canada.ca, the maximum CPP pension at age 65 was $1,507.65 a month in January 2026. The average at 65 was $858.34 a month in July 2026. Your own amount depends on when you start, how long you paid in and your earnings.

For a look at what may change next year, see our guide to the Canada Pension Plan 2027 increase.

Is the CPP Fund Safe?

Many people wonder if the CPP will be there for them. The plan should stay financially sustainable for at least 75 years. That is the view of the Office of the Chief Actuary of Canada. At June 30, 2026, the CPP Fund held $863.6 billion, the release said.

Steps to Close Your Own Longevity Gap

The survey shows that small steps can lift confidence. Here are simple moves we can all make:

• Pick a time frame. Plan for a long life, not an average one. Think about income into your 90s.
• Check your CPP estimate. Sign in to My Service Canada Account to see your contributions and estimate.
• Map all income sources. List the CPP, workplace pensions, savings and investments in one place.
• Use free tools. The government’s Canadian Retirement Income Calculator can help you see the full picture.
• Review tax-smart accounts. Our TFSA and RRSP strategies guide explains the basics.
• Get advice if needed. A licensed planner can help turn savings into a real plan.

Fewer workplace pensions also put more weight on personal plans. We covered that trend in Canada retirement planning and fewer pensions.

A Role for Employers

Employers can help, too. Frank Switzer of CPP Investments spoke to Benefits Canada. He said employers should make longevity “a more explicit part of retirement education.” He added this is better than only looking at how much workers save.

Final Thoughts on the Retirement Planning Gap

The retirement planning gap is clear. Most Canadians save, but far fewer plan for how long that money must last. The study shows that people who plan, and who understand the CPP, feel much more confident. November is Financial Literacy Month in Canada, so now is a good time to start. Pick a long time frame, check your CPP estimate and build a plan that fits your life.

FAQs

What is the retirement planning gap in Canada?

It is the gap between saving and planning. Most Canadians save, but only 34% plan for how long retirement could last, according to CPP Investments.

Who ran the 2026 CPP Investments Retirement Survey?

CPP Investments hired Innovative Research Group. It polled 5,141 Canadians outside Quebec from August 27 to September 8, 2026.

Are CPP payments linked to inflation?

Yes. CPP payments are adjusted for inflation and paid for life. Yet only 30% of Canadians in the survey knew this.

How much does the CPP pay at age 65?

Canada.ca lists a maximum of $1,507.65 a month in January 2026. The average at 65 was $858.34 a month in July 2026.

How can I close my own retirement planning gap?

Plan for a long life, check your CPP estimate and list all income sources. Free government tools and a licensed planner can also help.

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Disclaimer: This article is for informational purposes only and is not financial advice. Always do your own research or consult a licensed financial advisor before making investment decisions.