MoneyFlex

By Alicia Tyler on March 27, 2025
Estimated reading time: 7 minutes

By Alicia Tyler on March 27, 2025
Estimated reading time: 7 minutes

Can Gen Z really afford to retire early? Here are some ways young Canadians can rethink the FIRE approach in today’s economy.

Joe Dominguez and Vicki Robin first kindled the FIRE movement (Financial Independence, Retire Early) in their 1992 book Your Money or Your Life (Penguin Books), encouraging people to save aggressively, live frugally and challenge the bounds of a 9-to-5 work week.

The idea flared up again around 2017, making personal finance headlines and going viral on social media. Minimalism gained traction, and young Canadians sought out work-life balance and financial freedom. Beyond its true adherents, FIRE remains a highly clickable topic. Who isn’t curious about the possibility of retiring decades ahead of schedule?

Generation Z and millennials are all about finding financial independence—not just for early retirement but for flexibility and financial security. But while the aspirations may be there, reality has its own plans. A new study by advisory firm Edward Jones shows Canadians are feeling the pressure of the high cost of living and mounting debt. Fewer Canadians plan to contribute to their retirement savings this year (39%, down from 49%). Young Canadians 18 to 34 show the biggest drop, with just 41% planning to contribute, down 19% from last year.

Calgary-based certified financial planner Russ Dyck says that, in his experience, his Gen Z clients enjoy the work they do. They are less focused on retiring early but instead on building a solid financial foundation for any worst-case scenarios, such as a job loss. They seek some combination of security and flexibility.

So, the question in 2025 is: Is some version of FIRE attainable for young Canadians, or has the rising cost of living turned it into yet another financial pipe dream? Let’s find out.

In 2025, Gen Z and Millennials in Canada are feeling the cost of living climb, making saving and investing a struggle. The dream of home ownership remains a far-fetched goal for many with the average home priced at $670,065—a 1.1% increase from 2024. And rent isn’t........

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