More than one-fifth (22%) of Canadians aged 50 and over had less than $5,000 in retirement savings, according to the National Institute on Aging’s (NIA) 2025 survey on aging in Canada.
While that was a slight improvement from 24% in 2024, the proportion of those who can afford to retire at their desired time has dropped to 29% from 35% in 2022.
About a quarter (26%) of those aged 50 and over saved between $5,000 and $99,999 for retirement and another quarter (24%) saved between $100,000 and $500,000, according to the survey. Only 7% had more than $1,000,000 saved.
NIA’s survey of Canadians age 50 and up, now in its fourth year, encompasses perceptions about aging, access to health resources, retirement readiness and more.
While the think tank at the Toronto Metropolitan University found progress in certain areas, such as improved access to dental care and expanded home supports that support healthy aging, respondents also reported feeling less optimistic about aging. Only 57% reported positive feelings about growing older — the lowest level since the survey began, and down from 62% in 2024.
The survey also found that living conditions for older Canadians are improving, but only slightly. One-fifth of those aged 50 and over face poverty-level standards of living, down from 22% in 2024. Meanwhile, 18% can’t afford a $500 emergency, down from 20%.
In a report accompanying the survey results, NIA made several policy proposals to support healthy aging. It recommends provinces follow Quebec’s example to improve seniors’ financial stability; that the federal government raise the GIS clawback threshold to encourage seniors to work; and reiterated the need for a CPP delay guarantee and to make the Canada Caregiver Credit refundable as soon as possible to help lower income families.
Quebec-style policies protect retirement cash flow
Quebec’s policies have led to stronger retirement financial security and other provinces should consider adopting its practices, according to the NIA.
For starters, the Quebec Pension Plan (QPP) has more generous survivor and disability benefits compared to CPP. The province’s prescription drug insurance program also lowers out of pocket drug costs, freeing up cash flow for other essentials.
The survey found that, across Canada, 48% of homeowners reported having adequate incomes compared to 20% of renters. NIA notes that Quebec prevents renovictions, shielding renting seniors from sudden housing cost increases.
Increase GIS clawback threshold to encourage work
Among older working-aged Canadians (aged 50 to 64), only 58% are employed. This drops to 15% for those 65 to 79 and 4% for those aged 80 and up, according to the NIA. At those age groups, those with a university degree are twice as likely (45%) to work than those with only high school diplomas (23%).
Currently, GIS allows recipients to earn up to $5,000 without reducing payments but claws back 50% on the next $10,000 of earnings. The NIA recommended that the federal government increase the GIS earnings exemption about to $10,000 per year and index it to inflation. This would promote lower income older adults to work, reducing poverty.
In addition, the Canada Disability Benefit (CDB), which stops at age 65, has an earnings exception of $10,000. Canadians with disabilities transitioning from the CDB to GIS would “face a steep drop in allowable earnings simply by turning 65,” the NIA said.
Eliminate CPP breakeven bias
CPP/QPP and old age security (OAS) replace about 40% of the average pre-retirement income. Historically, Canadian retirees relied on workplace pensions, but they have become increasingly rare in the private sector.
Workplace pension is a “key differentiator” in retirement readiness, but only 37.7% of Canadians have a registered pension plan, according to the NIA. Those with a workplace pension plan feel more ready to retire; 36% of pension holders feel they can afford to retire at their target age compared to 11% of those without a pension.
CPP is an annuity and an important part of retirement income. The biggest obstacle to delaying CPP payments, among those who can afford it, is loss aversion. This psychological phenomenon occurs when retirees feel it’s unfair to miss out on CPP income they could have claimed if they died earlier than their breakeven point. The NIA reiterated its call from last year to implement a CPP “money-back guarantee” as a death benefit.
Make the Canada Caregiver Credit refundable
Of those aged 50 and over, 15% are working while being a primary caregiver to a loved one. They have less time to prioritize their own health care and attend medical appointments.
The Canada Caregiver Credit is currently a non-refundable tax credit, but lower income families don’t benefit from this. In the 2021 mandate letter to the former minister of finance Chrystia Freeland, former prime minister Justin Trudeau wanted to this into a benefit refundable up to $1,250.
The NIA wants the current government to accelerate efforts to implement this, and index the refundable amount to inflation.
The NIA’s survey was conducted between June and July, 2025, with 6,001 Canadians aged 50 or over.