Survey respondents said that between mortgages, children and the rising cost of living, it's hard to find the funds to save.Supplied
Saving for retirement can take years, even decades, so it might seem logical that Gen Z – the youngest generation of workers – would feel the most behind in their savings journey. But a recent survey from Manulife tells a different story: It’s millennials that are more worried they are lagging behind.
Manulife’s 2025 report, The 40-year retirement – balancing dollars and dreams, surveyed more than 2000 adult Canadians about retirement. The survey found that 50 per cent of millennials (individuals born between 1981 and 1996) feel that their retirement savings are behind schedule, compared to 34 per cent of Gen Z (born between 1997 and 2021).
“It’s a common assumption that younger people are further behind financially,” explains Fraser Wiswell, head of global retirement participant outcomes at Manulife. “But this study goes beyond the numbers – it looks at how people actually feel about their situation.”
According to Mr. Wiswell, since Gen Z is younger than millennials, they benefit from having more time to save.
“They probably have a little more optimism for the future if they’re just starting out,” he says. “Millennials, on the other hand, are in their peak earning years right now, but they’re likely having to juggle multiple financial priorities. That can make life complicated and saving for the future a real challenge.”
Millennials finding it hard to get started
When asked about how they view their own retirement, many millennial respondents in the Manulife survey expressed pessimism. While their preferred date to retire is 60, on average, they expect to retire later, at 66.
Another common theme is that it’s hard to find the funds to save, between mortgages and supporting children and the rising cost of living. One respondent, when answering a question about their biggest financial concerns, said: “Due to the cost of pretty much everything plus rent and being the sole provider, it is hard to actually save anything.”
“I haven’t really had time to worry about retirement yet,” said another. “Too busy worrying about current things.”
Forty per cent of millennials rate their finances as poor or fair, and only 18 per cent said they feel their finances are very good or excellent.
“I would love to do a lot of hobbies and focus on creative work [in retirement], but I worry for my generation. A lot of people won’t even be able to have secure housing and meet basic needs, forget anything beyond that,” said one respondent.
Millennials with retirement worries may have good reason to be concerned, Mr. Wiswell says. The Manulife report found that while Canadians are living longer than ever, many are retiring earlier than expected. In fact, 44 per cent of the retirees in the survey said they retired earlier than planned, and the top reason cited for that early retirement was health problems.
“You could end up with a short window to save and a potentially long retirement ahead,” Mr. Wiswell says. “Waiting too long means missing out on the power of compound interest – the earlier you start, the more your money can grow. That difference can dramatically shape your long-term financial future.”
Taking steps to get ‘on the right track’
Fortunately, it’s not too late to begin your retirement savings journey, says Mr. Wiswell, even if it can feel daunting at first.
“Start small and start now,” he says. “Getting in the habit of putting money away is really important.”
Mr. Wiswell also encourages millennials to investigate retirement matching programs at their place of employment (where companies will match employee retirement contributions up to a certain amount). “Your contribution comes off the paycheck right away, so you may not really miss it,” he says. “A matching contribution, if it’s available, can work out to be free money.”
Another move to consider is to seek professional advice, Mr. Wiswell says. In the Manulife survey, only 35 per cent of millennials said they have a financial advisor.
He notes that saving for the future doesn’t have to mean sacrificing the present. A healthy budget can make room for short-term goals like travel and discretionary spending alongside long-term savings, and a financial advisor can help clients balance fun and frugality.
“Instead of that spending taking you off track, the fun can be built into the plan,” he says.
With so many competing financial priorities, it can feel challenging to get your long-term savings in order. Mr. Wiswell has one last tip to help get the ball rolling.
“Think about yourself in the future,” he says. “Look at the retirees in your life and set a vision for yourself. That can help you budget with purpose.”
Read the full report at manulifeim.ca/retire/financialresilience
Advertising feature produced by Globe Content Studio with Manulife. The Globe’s editorial department was not involved.