For Diane Clark in Regina, playing cards at a seniors home was not how she intended to spend her retirement, but due to rising costs and limited income, that’s changed.
“We don’t travel anymore, we don’t buy as good of food as we used to buy, basically, and we stick at home a lot,” the 75-year-old told Global News in an interview.
She said the 2008 financial crisis caused a big hit to her pension, which was invested in a bank, as it did for many people. That, coupled with post-COVID-19 pandemic inflation, left many retirees with limited lifestyles.
When asked what she would tell Canadians looking ahead to retirement, she had four words: “Save, save and save.”
A recent poll from CIBC shows amid economic changes, including inflation and the increased cost of living, about 66 per cent of Canadians are changing their plans for when they retire.
As a result, some retirees are looking to save more, while those already retired told CIBC they’re cutting back on planned travel or leisure activities, reassessing investments and adjusting their budget.
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Financial planners say now is the time for soon-to-be retirees to get their finances in place.
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“Look at an actual budget, and part of that budget should include retirement savings and making sure we’re taking advantage of all the different registered plans,” said Jamie Golombek, the managing director of CIBC tax and estate planning.
Of those polled, more than 70 per cent say they anticipate having to work during their retirement either through a phased or semi-retired approach, with some working well past the retirement age of 65.
Golombek said some survey respondents plan to bring in income through either a part-time job or a gig economy job.
“They’re absolutely terrified about outliving their savings and becoming a burden on their family,” said Rudy Buttingol, president of the Canadian Association of Retired Persons (CARP).
That worry about being unable to live on just retirement savings has groups like CARP calling for changes to legislation for retirement plans.
The federal government has a mandatory withdrawal at 71 for registered retirement savings plans (RRSP), when they must be either withdrawn, transferred to a registered retirement income fund (RRIF) or used to purchase an annuity. According to the federal government, when you withdraw funds from an RRSP, the issuer will withhold tax, while transferring to an RRIF or using it to purchase annuity will not see tax withheld. It notes, though, that you may have to pay tax on the income when you start receiving RRIF payments.
CARP says the 71-year-old withdrawal age forces some seniors who are still working to receive income that would better benefit them later in life.
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According to the National Institute on Ageing, 90 per cent of Canadians also start receiving their Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) at or before they turn 65.
The CPP or QPP can be received as early as age 60 or as late as 70, but while it may seem appealing to take it out sooner, you will actually receive a smaller monthly amount than if you wait until you’re 70. At 70, the government says you reach your maximum monthly amount possible, so that can be the best time to withdraw.
“If you wait from age 60 to age 70, you’ll more than double this pension, which is guaranteed for life, it’s inflation indexed and it’s … a great deal when you do the math. It’s almost like an arbitrage opportunity because the incentives are so good,” said Bonnie-Jeanne MacDonald, the research director of the National Institute on Ageing.
MacDonald added that it’s why people should get informed about their options, though governments should also work to clarify information so Canadians are the most informed before they retire.
Meanwhile, with the expected increase in life expectancy in Canada, Diane Clark says if she could do it again, she’d change her approach to retirement — which is something she advises Canadians to do now.
“Save way more money than we did and invest differently,” Clark said.
© 2025 Global News, a division of Corus Entertainment Inc.
