Dec.15: BEST FROM THE BLOGOSPHERE 

December 15, 2025

Two-thirds of millennials fear running out of money in retirement: CPPIB study

About two-thirds (66 per cent) of millennials worry they’ll run out of money in retirement.

That’s one of the findings of a recent survey carried out by the Canada Pension Plan Investment Board, reported on by Serah Louis for the Financial Post.

The fear may be driven in part by a lack of retirement planning by 28- to 44-year-olds, the article notes, citing front burner worries like “a tough job market and troubles affording home ownership.”

It’s not just millennials who are worrying, the article adds, noting that the CPPIB survey found 59 per cent of all respondents had that same worry about their retirement income drying up too early.

The article quotes CPPIB’s Frank Switzer, managing director of communications, as noting that respondents in the 18-34 age bracket placed things like “career building (53 per cent) and homeownership (47 per cent) ahead of retirement savings.”

The unemployment rate, the article continues, is higher for young people than it is for the general population. While the overall unemployment rate is about 7.1 per cent, the rate for those aged 15-24 is more than double that rate at 14.7 per cent, the article adds, citing data from Statistics Canada.

That’s the highest youth unemployment rate since 2010, excluding the COVID-19 years of 2020 and 2021, the Post reports.

Switzer tells the Post that CPP is designed to replace “about a quarter of a typical wage,” and is designed to help “supplement people’s savings to cover everyday costs in retirement.”

“The average payment for a new retirement pension (at age 65) in July came to $848 a month, while the maximum came to $1,433 a month,” the article notes.

However, the article continues, you must be working to contribute to CPP. “Younger Canadians can’t start accumulating funds towards this benefit until they secure a job,” the article explains, again quoting Switzer.

Alarmingly, over half (55 per cent) of respondents said they don’t have a retirement plan, the Post reports – most said they are too focused on paying off debt and trying to earn more money to be saving for retirement.

But those surveyed believe they will need $60,000 annually in retirement income, up from $55,000 a year ago, the article explains. Switzer tells the Post that inflation “seemed to be the number one cause of people’s anxiety” about their finances.

The article makes a key point. People think they may need $60,000 a year in retirement. CPP provides a good, but modest benefit that, at best, is $1,433 per month. That’s quite a gap.

If there is a pension or retirement program at your workplace, be sure to sign up and contribute to the max. If not, the Saskatchewan Pension Plan may be the savings partner you’ve been looking for.

SPP is open to any Canadian who has registered retirement savings plan (RRSP) room. You can contribute any amount up to your RRSP limit, and can transfer in any amount from other RRSPs to consolidate your nest egg.

SPP then does the hard part for you – investing your hard-saved dollars in a low-cost, professionally managed pooled fund. At retirement, your options include a lifetime monthly SPP annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Financial Post

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