Why Canada’s Tech Growth Matters for Your Retirement Plan

Canadian tech stocks have quietly been on fire. In Q2 2025, the S&P/TSX Information Technology sub‑sector surged 14%, nearly doubling the broader TSX Composite’s 8% return. Standout names like Lightspeed and Shopify led the way, and Celestica posted a staggering 76% gain in just one quarter, thanks to its pivot into AI infrastructure.

For retirees and pre‑retirees, this isn’t just a market headline. It’s a signal that the makeup of your portfolio and the way you plan your withdrawals may need a second look.

The Forces Driving Canada’s Tech Boom

AI and Data Infrastructure

Artificial intelligence isn’t hype anymore, it’s driving billions of dollars in new contracts and revenue growth. Companies like Celestica are building the hardware and systems powering AI data centers across North America.

Global Talent and Innovation

Canada’s tech hubs in Toronto, Vancouver, and Montreal are drawing global talent through programs like the Global Talent Stream. Startups like Cohere (AI) and Photonic (quantum computing) are expanding into markets like the UK and Europe, proving Canadian companies can compete globally.

Major Infrastructure Investment

Telus alone has committed $70 billion over five years to expand AI data centers and rural broadband, laying the groundwork for Canada’s next wave of digital growth.

Why This Matters for Retirement Planning

Growth vs. Income

Most retirees rely on dividend income from banks, utilities, and pipelines. Tech stocks? They’re growth-focused, not income-heavy. That means higher upside potential but less predictable cash flow for your lifestyle needs.

Volatility and Concentration

Even in a record quarter, nearly half of Canadian tech stocks were flat or negative. Returns are concentrated in a few names, which can amplify gains, but also losses.

Global Risk and Currency Exposure

As Canadian tech firms expand into the U.S., UK, and Europe, investors face new risks: exchange rate swings, trade policy changes, and geopolitical shocks that can ripple through portfolios.

How Optiml Helps You Balance Tech Growth and Security

Optiml doesn’t just show you today’s portfolio value, it stress‑tests thousands of future scenarios. What happens if tech soars for five more years? What if there’s a sudden correction? We help you:

• Model growth vs. income trade‑offs
• Simulate market corrections and see the impact on withdrawals
• Blend dividend‑paying sectors with tech for balanced cash flow
• Update assumptions as global markets and tax policies evolve

Action Plan: 5 Steps to Take

• Review your tech exposure: Do you own Shopify, Lightspeed, or Celestica? How much of your savings are tech‑tilted?
• Stress‑test your plan: Run optimistic and conservative scenarios to see how much risk you’re carrying.
• Balance growth with dividends: Consider pairing tech with dividend payers for steady income.
• Watch for policy risks: Trade disputes, tariffs, and currency shifts can affect Canadian tech stocks.
• Update regularly: Revisit your plan as markets and personal goals change, don’t rely on a five‑year‑old projection.

The Bottom Line

Canadian tech is no longer a niche play, it’s driving market returns. But its boom‑and‑bust nature means it shouldn’t replace your dividend payers. The key is balance: capture upside without sacrificing security.

Curious how Canadian tech growth could change your retirement outlook? Model your plan with Optiml and stress‑test your future in minutes.