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.
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The cost-of-living squeeze
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 cheap either, at an average $2,152 a month (expect higher figures in major cities).
This keeps home ownership out of reach for many, forcing more young Canadians to rent or stay at home longer. Not only could grocery prices go up another 5% this year but residents of eastern Ontario and Quebec could wind up paying $15,000 more for necessities, like food, housing and utilities than last year as inflation, housing shortages, a weaker dollar, and global tensions—including the U.S.’s implementation of 25% tariffs—drive up costs.
Young Canadians are feeling the financial squeeze. A survey by the Healthcare of Ontario Pension Plan found that 69% of Canadians under 35 are most concerned about the costs of day-to-day expenses, while 51% report living beyond their means—and not by choice. With student debt also holding them back, many struggle to save for the future, delaying milestones like home ownership and growing retirement savings.
More than one way to FIRE
Given those bleak statistics, Dyck says strict FIRE isn’t feasible for most Canadians.
