The idea exploded again around 2017, becoming a personal finance headline and becoming popular on social media. Minimalism gains appeal, and young Canadians seek work-life balance and financial freedom. Apart from true advocates, fire remains a highly clickable topic. Who is not curious about the possibility of retirement decades early?
Gen Z and millennials are all about finding financial independence, not only for early retirement, but also for flexibility and financial security. But while a desire may exist, reality has its own plans. Canadians are feeling the pressure of high living and increasing debt costs, a new study by consulting firm Edward Jones shows. Canadians plan to contribute to retirement savings this year (39%, below 49%). Young Canadians aged 18 to 34 showed the biggest decline, with only 41% of the program contributing, down 19% from last year.
Russ Dyck, a certified financial planner based in Calgary, said his Gen Z clients love the work they do, according to his experience. They are not too focused on early retirement, but rather have a solid financial foundation for any worst-case scenario, such as unemployment. They seek a combination of security and flexibility.
So the question for 2025 is: Can young Canadians achieve some version of the fire, or will the rising cost of living turn it into another financial daydream? Let’s find out.
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Cost of living squeeze
In 2025, Gen Z and Canadian millennials are feeling the cost of climbing, making savings and investment struggling. For many, the dream of home ownership remains a far-fetched goal, with an average home price of $670,065, an increase of 1.1% over 2024. Rents are not cheap either, with an average of $2,152 per month (the number is expected to be higher in major cities).
For many, this makes home ownership unreachable, forcing more young Canadians to rent or stay at home. Not only can grocery prices rise 5% this year, but residents in eastern Ontario and Quebec may pay $15,000 for essentials, such as food, housing and utilities, as inflation, housing shortages, weaker dollars and global tensions, including the U.S. implementing 25% collection fees.
Young Canadians feel financial pressure. The Ontario Pension Plan healthcare survey found that 69% of Canadians under 35 are most worried about the expenses of their daily expenses, while 51% report life beyond their means rather than by choice. As student debt also hinders them, many have worked hard to save for the future, delaying milestones such as home ownership and retirement savings.
Various ways to fire
Given those bleak statistics, Dyke said strict fires are not feasible for most Canadians.
