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With trade tensions heating up, and headlines full of tariffs and economic uncertainty, many Canadians are understandably anxious about their financial security, both now and into the future. You might assume the biggest threat to your retirement savings today would be a downturn in markets, higher inflation or even outright job loss. But surprising new research points to yet another risk factor: your LinkedIn feed.
A study published last month in The Journal of Consumer Affairs asks if social media is “the new retirement advisor” and found that individuals who frequently turn to social media, particularly networking sites such as LinkedIn, Facebook, and X (formerly Twitter), are significantly more likely to borrow from their retirement accounts. On the surface, that might not sound alarming, but accessing retirement savings prematurely can severely undermine your long-term financial health, especially if done impulsively. What’s particularly interesting, and counterintuitive, is that platforms such as Instagram and YouTube, which are usually criticized for showing unrealistic highlight reels of extravagant lifestyles, weren’t the main issue.
Instead, professional networking sites, where peers regularly share news of promotions, job changes, bonuses and even early retirements, were found to drive more impulsive financial behaviours. Why would LinkedIn pose such a hidden risk to your retirement? Unlike Instagram, where envy might trigger immediate spending on clothes, cars or vacations, networking sites provoke a different type of anxiety. Seeing professional connections announce promotions, impressive new job titles or early retirements can create pressure to match perceived career and financial achievements.
If you feel like you’re falling behind professionally, you might be tempted to dip into retirement savings to alleviate immediate financial stress or to invest in opportunities promising quick career advancements. Job loss or even the fear of unemployment magnifies this risk. The same study highlighted that financial anxiety stemming from job insecurity significantly increases both social-media usage and impulsive financial decisions.
In other words, when layoffs loom, people tend to spend more time scrolling through LinkedIn and similar platforms, heightening anxiety by continuously comparing themselves to peers who appear financially secure. Ironically, the very time you’re most vulnerable is when you’re also most likely to make financial moves that could hurt your long-term stability. This isn’t just theoretical – it’s timely.
A separate Canadian study looking at the early months of the COVID-19 pandemic and the impact on household finances (the study looked at data for Quebec households) found that job loss dramatically increased the likelihood of dipping into retirement savings for those newer to the work force. Among workers aged 25 to 34 who lost their jobs, 16.2 per cent withdrew from RRSPs , while 13.
8 per cent withdrew from TFSAs. Older workers aged 55 to 64 who lost their jobs were slightly less likely to withdraw funds from registered accounts: 11 per cent from RRSPs, and 13.9 per cent from TFSAs.
Raiding retirement savings earlier in a career could have larger negative impact down the road. What are some of the takeaways from the research? First, become aware of your emotional reactions when scrolling through professional platforms. If you find yourself feeling anxious or inadequate about your career status or financial progress, it’s probably time to log off or at least limit your exposure.
Second, prioritize credible financial advice over impulsive decisions driven by peer comparison. Social media is excellent for connection and networking, but can be poor as a source for financial guidance, especially when emotions run high and the advice lacks context of your individual situation. Understanding the real, long-term consequences of prematurely accessing retirement accounts can help build resistance to social-media-driven impulses.
Many Canadians underestimate the true cost of borrowing against their retirement savings, from lost investment growth and potentially lost contribution room and tax consequences of withdrawals. Finally, if you’re currently navigating job uncertainty, be mindful of why you’re spending time on networking platforms and focus on actionable steps such as updating your resume, reaching out directly to trusted contacts, and exploring professional development opportunities offline. Doomscrolling on LinkedIn and other networking-focused apps is a thing, too – it’s not just something that happens on Instagram and TikTok.
The bottom line: During economic turbulence, your networking and news feeds might be subtly influencing your financial decision making at the expense of your long-term financial security. Recognize the difference between useful networking and destructive financial comparison. Protect your retirement by managing how and when you interact with professional social media.
Preet Banerjee is a consultant to the wealth management industry with a focus on commercial applications of behavioural finance research..
