Gen Z and retirement: how young Canadians are saving and redefining the end of work
Gen Z Canadians are saving and investing at higher rates than older cohorts, but many view retirement as financial independence rather than stopping work.
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By Torontoer Staff
Gen Z Canadians appear to be saving and investing at higher rates than previous generations, and they are also rethinking what retirement looks like. For many in their twenties, the goal is financial independence, not a conventional retirement that ends paid work at 65.
That combination of disciplined saving and a different goal for later life could change how young people plan for the future, even as high housing costs and labour-market uncertainty make long-term planning difficult.
How much are Gen Z saving and investing?
Recent data point to stronger saving habits among Gen Z. Analysis of the National Payroll Institute’s 2025 Annual Survey of Working Canadians by Canada’s Financial Wellness Lab found Gen Z workers saved an average of 11 per cent of each paycheque, higher than millennials at 9 per cent and both Generation X and baby boomers at 8 per cent. About 30 per cent of Gen Z respondents reported saving $10,000 or more in the past year.
Surveys also show higher investing activity. A 2024 TD Bank survey found 68 per cent of Gen Zers consistently invest annually, a greater share than other age groups in that sample.
Rethinking retirement
Many young Canadians reject the conventional model of retirement as a full stop at age 65. A 2024 Wealthsimple survey reported 74 per cent of respondents aged 25 to 44 said that model is outdated. At the same time, 41 per cent said they are motivated to retire well before 55, but not necessarily to stop working. They want time and choice to pursue small business, consulting, non-profit work, creative projects or passion pursuits.
If I want to change a career, move to a different city or start a side hustle, do I have enough buffer to be able to make those choices?
Vriti Panwar, lead advisor for wealth management, Wealthsimple
That idea, financial independence as freedom to choose, shapes how younger savers view long-term goals. For some, the priority is flexibility rather than a fixed retirement date.
How Gen Z are building savings
Young Canadians use a combination of small regular contributions, automated investing and early exposure to financial education. Alec Jeffery, 27, says early contributions set up compounding that he left untouched through university, then increased when he earned more.
I just want to give myself infinite flexibility.
Alec Jeffery, 27
Jeffery describes a simple budgeting structure where a fixed proportion of earnings covers expenses and the remainder goes directly to savings. He credits family lessons and small, regular contributions into a TFSA index fund for establishing the habit.
Where Gen Z learn money skills
Financial education for Gen Z often comes from social media and peer networks as much as formal advice. Toronto-based financial educator Deidre Cross, who runs Ohh You Budget, says many followers are hearing basic concepts for the first time, including emergency funds and high-interest savings accounts.
You don’t know what you don’t know.
Deidre Cross, founder, Ohh You Budget
Cross recommends starting small and building habit. That mirrors advice from young savers in Canada: automate contributions, keep them modest if needed, and treat investing as a routine rather than a one-off project.
Practical steps for young savers
- Start small and automate: set up monthly transfers to a TFSA or high-interest savings account.
- Prioritise an emergency fund before taking on higher-risk investments.
- Use index funds or low-cost ETFs for long-term investing and keep contributions consistent.
- Seek advice: talk to a financial adviser or use reputable online resources to build a plan.
- Frame goals around flexibility: decide how much buffer you need to change careers or reduce hours.
Young savers often report that small, regular actions matter more than finding the perfect strategy. As one recent graduate put it, saving even a few dollars a week makes a difference over time, and the key is to start.
What this means for retirement planning
High saving rates among Gen Z and a focus on financial independence suggest a shift in how retirement will be approached. Expect plans that prioritise flexibility, partial work, and earlier transitions into project-based income rather than a complete exit from the labour force.
For individual savers, the practical takeaway is straightforward: begin now, automate, keep contributions steady and define retirement on terms that reflect personal goals. Small habits started in your twenties can expand future options and reduce the pressure to conform to an outdated retirement timeline.
Gen Zpersonal financesavinginvestingretirement
