SINGLE CANADIANS STRUGGLING TO SAVE, SEE RETIREMENT AS A DISTANT GOAL: CO-OPERATORS SURVEY

The "single's tax" is real - over 45% of Canadians agree that retirement will be near impossible for singles, but tailored financial advice can bridge the gap

TORONTO, Feb. 19, 2025 /CNW/ - Financial confidence is growing, but this isn't translating to a better idea of retirement for one group: singles. A new survey from Co-operators shows that Canadians are feeling more confident in their finances compared to previous years' surveys (37% in 2025 versus 35% and 33% in 2024 and 2023) but the long-term outlook is murkier for singles. This begs the question - is there a singles tax on retirement?

Survey responses appear to say 'yes.' Many singles are still struggling to balance everyday costs, giving them a bleak perspective on their financial future and impacting their ability to save. Just under half of all singles (45%) view saving for retirement as a near-impossible task – a view conceded by 40% of all Canadians who don't think most single people can realistically save enough money to retire on their own.

"While we're happy to hear people are beginning to feel more financially secure, the data shows younger generations are still vulnerable, and unable to balance the cost of living and saving for retirement," said Jess Baker, EVP and Chief Retail Sales Officer, Co-operators. "There has been an assumption the young and single are living carefree — that's clearly not the case. We need to make sure financial advice reflects the unique challenges these individuals face."

According to the survey from Co-operators, nearly half (44%) of all singles are putting less than $25 per month aside for saving and investing, and over a third (35%) have less than $5,000 saved for retirement in total.

"There shouldn't be a penalty for being single, but it's clear having a partner, someone who shares your financial goals and works with you to achieve them, is a factor in Canadian financial security and resilience," says Baker. "People need community - and tailored advice and planning is one of the most easily accessible and powerful ways to address that gap when it comes to your finances."

Over a third of Canadians (37%) identify as single – a little less than half (43%) of whom are living with roommates and family members. Many Canadians (64%) agree that these singles are resigned to living with friends or family later in life to manage expenses.

No one should be left behind.

One-in-three (36%) of single Canadians fear they'll never be financially able to retire. Leading up to this year's RRSP contribution deadline, Baker offers the following advice:

• Maximize your RRSP contribution: Many singles are opting for a TFSA (57%) while RRSPs are being underutilized (29%). Yet these provide considerable tax benefits that can help with long-term financial planning.
• Community counts: Sharing goals and pooling resources isn't just for couples. Multi-generational families – and chosen families – can be an effective alternative with the right plan and tools in place.
• Work with an advisor: The survey from Co-operators highlighted that individuals who work with a financial advisor, single or otherwise, put more away monthly for retirement. A trusted financial advisor can support investing and insurance to balance your current needs against long-term goals.
• A holistic approach: You want to have a nest-egg, but that doesn't mean it should all go in one basket. Financial security requires a combination of tools like budgeting, short-term and long-term savings like RRSPs and TFSAs, and having protection in place to keep your plan on track.

About the survey

A total of 1,500 adult residents from across Canada were surveyed online between January 10 to 15, 2025. The sample was randomly drawn from Leger's web panel of potential survey respondents. Post-stratification weights were applied to the sample based on 2021 census population figures to ensure representation by province, age and gender. An associated margin of error for a probability-based sample of this size would be +/-3%, 19 times out of 20.

About Co‑operators

Co‑operators is a leading Canadian financial services co-operative, offering multi-line insurance and investment products, services, and personalized advice to help Canadians build their financial strength and security. Co‑operators has more than $64 billion in assets under administration and has been providing trusted guidance to Canadians since 1945. The organization is well known for its community involvement and its commitment to sustainability. Currently a carbon neutral organization, Co‑operators is committed to net-zero emissions in its operations and investments by 2040, and 2050, respectively. Co‑operators is also ranked as a Corporate Knights' Best 50 Corporate Citizen in Canada. For more information, please visit: www.cooperators.ca.

Co-operators Media Relations:
media@cooperators.ca   

SOURCE The Co-operators Group Limited