In recent years, the F.I.R.E. movement—short for Financial Independence, Retire Early—has gained traction among Canadians looking to leave the workforce decades ahead of the traditional retirement age. While the dream of stepping away from work in your 40s or 50s is exciting, it also raises a big question: how do you make your money last when you could be retired for 30, 40, or even 50 years?
Over the past century, Canadians have seen their lifespans stretch—many now live well into their 80s—yet the age at which they stop working hasn’t shifted much. That extended retirement phase can put a serious strain on your finances.
According to a recent Reddit survey, Canada’s average expected retirement age is around 64, with nearly half planning to retire before 65—but many also lack confidence in being ready when the time comes. In fact, the average actual retirement age climbed from 64.3 to 65.3 between 2020 and 2024.
Imagine retiring at 55—or even 64—and living into your 80s or 90s. You could be looking at 20 to 40 years of retirement to fund. That’s great for personal fulfillment, but less so for your wallet.
Planning Pays Off
Here’s the hard math: the longer your retirement, the more money you need—either by saving more, investing wisely, or a bit of both. Chasing high-risk investments might seem tempting, but it often backfires. Conversely, saving too much now could mean sacrificing your quality of life today. Balance is key.
Have you chatted about this with your partner? Retirement planning is a team sport. A recent Investment Executive study found that just 23% of couples have fully discussed all aspects of retirement, while 55% only have a general idea, which means most “canoes” are paddling off in different directions.
A financial advisor can help you crunch the numbers to see how even small boosts in your savings—especially when started early—can compound into significant long-term gains. Plus, they can help you navigate retirement vehicles like RRSPs and TFSAs:
- RRSPs: Contributions are tax-deductible now, but withdrawals are taxed later.
- TFSAs: No tax deduction upfront, but money grows and comes out tax-free.
- CPP & OAS: You can start CPP as early as age 60 (at a reduced amount) or defer past 65 to boost benefits. OAS generally begins at age 65.
The Reality Check
Here’s the real concern ( according to Pension Pulse) nearly 49% of Canadians worry they’ll outlive their retirement savings, and 66% expect to keep working even after retirement age just to make ends meet. Successful retirement planning isn’t an impossible task if you start with a good plan and good advice. Contact our office for assistance with making sure you have a wise financial strategy in place to secure your financial future.
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