T. ROWE PRICE STUDY REVEALS NEARLY HALF OF CANADIANS ARE SAVING ALL THEY CAN TOWARD RETIREMENT, DESPITE MIXED ECONOMIC EXPECTATIONS AND INFLATION CONCERNS
MWN-AI** Summary
A recent study by T. Rowe Price reveals that nearly half (48%) of Canadian retirement savers are aggressively contributing to their workplace retirement plans, even amid uncertainties regarding economic conditions and inflation. Despite this high level of commitment, only 41% of respondents believe their savings, bolstered by employer matches, will suffice for a comfortable retirement.
The study highlights several critical insights about the retirement saving habits of Canadians. Notably, awareness of target date investments is alarmingly low; just 16% of savers are currently invested in these funds, which automatically adjust their asset allocation as retirement approaches. Additionally, expectations regarding retirement age shift with age – only 34% of savers over 50 anticipate retiring by a specific age compared to 40% of younger savers. Interestingly, nearly 30% of the older demographic expect to work at least part-time during retirement, indicating a shift in traditional retirement views.
Furthermore, human financial advisors are favored, with 30% of Canadians preferring in-person consultations for retirement guidance. This preference is particularly strong among those nearing retirement and female savers. Despite the reliance on workplace retirement plans for financial advice, there remains a significant gap in awareness of educational resources, with about one-third of savers unsure about available support.
Economic outlook is also a significant concern, with 56% of retirement savers fearing a potential recession within the year and 44% expressing considerable anxiety regarding inflation. These findings underscore the need for better educational initiatives and personalized advice from advisors to enhance Canadians' retirement planning and navigate the complexities of investment strategies effectively.
MWN-AI** Analysis
The recently released T. Rowe Price Global Retirement Savers Study sheds light on the Canadian retirement landscape, revealing that nearly half (48%) of Canadians are maximally contributing to their retirement savings. This statistic indicates a strong commitment to retirement planning despite mixed economic expectations and persistent inflation concerns that may undermine financial stability.
As Canadians navigate uncertain economic conditions, marked by a significant portion (56%) anticipating a recession within the year, investment strategies, particularly regarding retirement, must be approached with caution. The study shows that only a modest 41% of participants feel confident that their contributions, along with employer matches, will secure a comfortable retirement. This gap between intention and expectation highlights a pressing need for enhanced financial literacy regarding available investment options, especially the underutilized target date funds which only 16% of savers are currently engaged with.
Financial advisors have a pivotal role to play in guiding these individuals through retirement planning challenges. Notably, 30% of respondents prefer human advisors, valuing personalized engagement, especially among older savers (50+), who may feel overwhelmed navigating investment choices. There lies an opportunity for advisors to bolster their value offerings by educating clients on default investment options and addressing the knowledge gaps in target date funds.
In light of these findings, Canadian savers should optimize their retirement strategies by actively participating in workplace education programs and seeking tailored financial advice. Moreover, as the landscape evolves, advisors should advocate for retirement plans that include comprehensive education and personalized consultations to help clients adapt to ongoing economic shifts. By enhancing awareness and support, we can empower Canadians to achieve their retirement aspirations amidst uncertainty.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Canada NewsWire
Global Retirement Savers Study takes a deep dive into the behaviors and attitudes of Canadian savers
BALTIMORE, Feb. 18, 2026 /CNW/ -- T. Rowe Price, a global asset management firm and a leader in retirement, today announced the Canadian-specific findings from its first-ever Global Retirement Savers Study. The survey results revealed that nearly half of Canadian retirement savers (48%) are contributing as much as they can afford to their workplace retirement plans, though only 41% believe their contributions--together with their employer match--will be enough to ensure a comfortable retirement.
Additional key findings include:
- Awareness of target date investments is low: While target date solutions capture most defined contribution plan contributions, only 16% of Canadian retirement savers indicate that they are invested in a target date fund, a professionally managed investment portfolio that shifts its asset allocation through time as an investor approaches and reaches retirement. The remainder do not believe they are invested in a target date investment (63%) or are not sure how they are invested (21%).
- Retirement expectations shift with age: While most Canadians expect to retire by a certain age, that expectation is lower among savers aged 50 and older (34%), compared to 40% of those under 50. Meanwhile, the expectation of working in retirement is higher among savers 50 and older, with nearly 30% expecting to work at least part-time compared to 18% of those aged 35-49 and 12% of those aged 18-34.
- Human advisors are favored: Canadians show a preference for human advisors (30%), consistent with their peers in the UK (28%) and the U.S. (31%). Additionally, 38% deem one-on-one consultations with financial advisors as most helpful for retirement education, particularly valued by savers approaching retirement (ages 50+) (42%) and women (40%).
- Workplace retirement plans play a key role, yet gaps remain: Canadian retirement savers rely most heavily on the organization managing their workplace retirement plan for financial advice. Opportunity for increased awareness of available resources, however, is significant, with one-third of Canadians (32%) indicating their plan does not offer retirement education or that they don't know what resources are available.
- Economic expectations are mixed: More than half of retirement savers (56%) are bracing for recession in the coming year--a higher percentage than the global average. Additionally, about two-in-five (44%) Canadian retirement savers are very concerned about inflation, surpassing concern related to geopolitical events, interest rates, unemployment and the stock market.
"Our Global Retirement Savers Study highlights significant opportunities for organizations sponsoring retirement plans, and their advisors and consultants, to support Canadians in achieving their retirement goals," said Jessica Sclafani, global retirement strategist at T. Rowe Price. "With many savers expressing uncertainty about investment options, in particular limited awareness of target date funds, and clear demand for personalized guidance, there is a real need for holistic advice that goes beyond investment selection. Advisors and consultants can play a pivotal role in bridging knowledge gaps, tailoring education to different generations, and helping Canadians balance competing financial objectives. Through accessible, relevant support, we can help more Canadians to achieve financial security in retirement."
Wyatt Lee, head of Target Date Strategies at T. Rowe Price, added, "Canadian retirement savers are more likely than their peers in Australia, Japan, the UK, and the U.S. to favor default investment options, especially as they grow older and accumulate more savings. Of the 27% of Canadian savers who explicitly prefer default investments, nearly half (47%) do so because they would rather have a professional determine how their savings are invested. Target date portfolios directly address this need by offering expert oversight and ongoing asset allocation, which should help Canadians feel more confident about their financial future."
The global research surveyed more than 7,000 retirement savers in Canada, the United States, Australia, Japan, and the United Kingdom from June 14 to July 31, 2025.
ABOUT T. ROWE PRICE
T. Rowe Price (NASDAQ-GS: TROW) is a leading global asset management firm, entrusted with managing $1.80 trillion in client assets as of January 31, 2026, about two-thirds of which are retirement-related. Renowned for over 85 years of investment excellence, retirement leadership, and independent proprietary research, the firm leverages its longstanding expertise to ask better questions that can drive better investment decisions. Built on a culture of integrity and prioritizing client interests, T. Rowe Price empowers millions of investors worldwide to thrive amidst evolving markets.
Visit troweprice.com/newsroom for news and public policy commentary.
SOURCE T. Rowe Price Group
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FAQ**
How does T. Rowe Price Group Inc. (TROW) plan to address the low awareness of target date investments among Canadian savers revealed in their study?
What strategies is T. Rowe Price Group Inc. (TROW) considering to enhance the retirement education resources offered through workplace plans, given that 3of Canadians report gaps in available information?
In response to mixed economic expectations, how is T. Rowe Price Group Inc. (TROW) adapting its investment strategies to support Canadian savers who are increasingly concerned about inflation and potential recession?
How does T. Rowe Price Group Inc. (TROW) intend to leverage the preference for human advisors among Canadian savers to improve financial guidance and retirement planning?
**MWN-AI FAQ is based on asking OpenAI questions about T. Rowe Price Group Inc. (NASDAQ: TROW).
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