What Canadians Worry About as They Approach Retirement

Retirement should be a time of freedom — a chance to do what you want, when you want, with the people you care about. Yet, for many Canadians, the years leading up to retirement bring more anxiety than excitement. Surveys consistently show that Canadians are increasingly worried about their financial future, and these worries go far beyond simply “having enough money.”

As someone who has worked with hundreds of retirees over the years, I can tell you this: the numbers matter, but peace of mind matters more. Let’s look at what’s really keeping Canadians up at night as they approach retirement — and what can be done about it.

1. The Fear of Outliving Their Savings

The most common concern among Canadians nearing retirement is outliving their savings. A recent CPP Investments survey found that nearly 60% of Canadians fear they’ll run out of money during retirement. That’s not surprising — people are living longer, spending more years in retirement, and facing increasing costs.

Yet the problem isn’t just longevity. Many people simply don’t have a detailed income plan. In fact, more than half of Canadians don’t have a written retirement plan at all. Without that roadmap, it’s hard to know whether you’re on track. And uncertainty is the biggest source of financial stress.

A proper retirement income plan, one that integrates government benefits, pensions, investments, and spending goals, is the best antidote to that fear.

2. The Rising Cost of Living

Inflation and higher living costs have made planning for retirement far more challenging. The cost of groceries, housing, utilities, and travel has climbed sharply over the past few years, while interest rates have added pressure for those still carrying debt.

A 2024 survey by HOOPP (Healthcare of Ontario Pension Plan) showed that two-thirds of working Canadians say the rising cost of living is hurting their ability to save for retirement. Many feel they’re just treading water.

This is where flexibility and inflation protection become essential in a retirement income plan. Strategies such as staggering withdrawals, structuring income for tax efficiency, and maintaining some growth-oriented investments can help preserve purchasing power over time.

3. Uncertainty About Health and Long-Term Care

Health concerns rank high on the list of retirement anxieties. While Canada’s healthcare system covers much of the basics, many services including prescriptions, dental care, home support, and long-term care come with significant out-of-pocket costs.

As advisors, we need to help clients plan for the “what-ifs.” Setting aside dedicated funds for health expenses, considering insurance options, and ensuring cash flow flexibility can make all the difference later on. The peace of mind that comes from knowing you’re prepared for health-related expenses is invaluable.

4. Not Knowing Where to Turn for Advice

A major reason Canadians feel anxious is that they don’t have the guidance they need. Financial literacy in retirement planning remains low, and many people find the system (CPP, OAS, RRSPs, TFSAs, pensions, etc.) quite confusing and fragmented.

Surveys show that those who understand their sources of income and have a comprehensive plan feel significantly more confident about retirement. That’s why education is just as important as strategy. A good advisor’s job isn’t just to manage investments — it’s to make the entire process clear, structured, and actionable.

5. Maintaining Their Lifestyle

Retirement doesn’t have to mean a lower standard of living — but it does require realistic expectations and planning. Many Canadians worry they’ll have to cut back significantly once the paycheques stop.

In my experience, the best approach is to start by defining what “a comfortable lifestyle” really looks like. For some, it’s travel and freedom; for others, it’s stability and family time. Once you know that, you can structure predictable income to support it.

The goal isn’t just to make the numbers work; it’s to make life work.

6. The Emotional Side of Retirement

Beyond the financial side, there’s the emotional transition. Retirement can mean a loss of identity, structure, or purpose especially for people who’ve spent decades building their careers. It’s one thing to stop working; it’s another to stop feeling useful.

That’s why I always encourage clients to plan for more than just income. Think about how you’ll spend your time, who you’ll spend it with, and what will keep you engaged. Emotional readiness is just as important as financial readiness.

Turning Worry Into Confidence

The good news? Every one of these worries can be addressed with proper planning. When you have a clear income strategy, know where your money will come from, and understand how your plan adapts to inflation, taxes, and longevity, anxiety turns into confidence.

Retirement is not about guessing. It’s about knowing. And knowing comes from having a plan.

Clay Gillespie BBA, CFP, CIM, FCSI
Managing Director, Financial Advisor & Portfolio Manager
RGF Integrated Wealth Management
Ph. 604 732 6551
Fax 604 732 6553
[email protected]
www.rgfwealth.com

Clay Gillespie is a Financial Advisor & Portfolio Manager with RGF Integrated Wealth Management. The views expressed are those of the author and not necessarily those of RGF Integrated Wealth Management, which makes no representations as to their completeness or accuracy.