More Canadians feel more confident in their finances, but single individuals continue to face challenges in planning for retirement, including underinsurance.
A Co-operators survey found that 37% of Canadians feel financially secure in 2025, an increase from 35% in 2024 and 33% in 2023. However, long-term financial stability remains a concern for single individuals, many of whom struggle to balance daily expenses with retirement savings.
The survey highlighted gaps in financial protection. According to the survey, many singles are underinsured, leaving them vulnerable to unexpected expenses that could disrupt long-term savings. Insurance plays a key role in financial security, helping individuals manage risks and maintain stability amid illness, job loss or other unforeseen circumstances.
Among single respondents, 44% put less than $25 per month toward savings and investments, while 35% have less than $5,000 saved for retirement. Without a financial safety net, a sudden expense could significantly impact their ability to retire comfortably.
"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," said Jess Baker, executive vice president and chief retail sales officer at Co-operators. "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."
Insurance products such as disability, critical illness, and life insurance can help singles manage financial risk. Without a second income to rely on, an unexpected medical issue or loss of employment could have a more significant financial impact.
The Co-operators survey results also indicated that 45% of singles find it nearly impossible to save for retirement, while 40% of all Canadians believe most single people cannot realistically save enough 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 Baker.
"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."
For singles, financial planning goes beyond saving; it requires risk management and protection strategies to safeguard long-term security. Incorporating insurance into a retirement plan can help ensure financial stability, even amidst unexpected challenges.
