May 11: BEST OF THE BLOGOSPHERE

May 11, 2026

What steps can you take to avoid running out of money in retirement?

It’s something you think about in the years leading up to retirement – and a concern that sharpens once you are actually retired. Will you run out of savings once you are retired?

Writing for Money.ca Romana King cites research from the 2025 CPP Investments Retirement Survey that found “that 59 per cent of Canadians are afraid of running out of money in retirement.”

While that’s an improvement over the same survey’s 2024 results – where 61 per cent feared running out of money – “the underlying pressures haven’t eased,” King writes. “What’s worse is that for many Canadians, the retirement numbers most aim for keep moving further out of reach.”

King writes that last year, “the average Canadian believed they’d need $1.7 million saved for retirement, according to a 2025 BMO retirement poll.” That’s a jump from the $1.3 million Canadians figured they’d need in 2019, she notes.

The rising retirement savings target indicates a growing level of concern about the rising costs of retirement, King continues.

“These numbers aren’t just anxiety — they reflect a real shift in how Canadians understand what retirement actually costs. At the same time, more than three-quarters of Canadians (76 per cent) say they’re worried they won’t have enough money in retirement due to rising prices, and 63 per cent say inflation has already limited their ability to save,” she points out.

Okay – we worry about running out of money in retirement, and we think we know how much we need to save. But are we actually doing any saving? Let’s read on.

“The most striking figure may come from the Healthcare of Ontario Pension Plan’s (HOOPP) 2025 Canadian Retirement Survey, where 59 per cent of unretired Canadians confessed that they don’t believe they’ll ever be able to retire given their current financial situation. What’s worse is that half of these respondents didn’t set aside any money for retirement in the past year,” King reports.

So what can be done about this? King offers up some ideas.

First, she recommends, start saving – and if you can, start early. “The sooner you begin saving for retirement, the more time you have to build a substantial nest egg. Even if you can only contribute small amounts, at first, remember that consistency matters,” King notes.

Diversification is another smart step to take, she continues.

Government benefits provide “a solid foundation,” but work best “when it’s part of a broader income strategy. Consider layering in additional savings vehicles such as registered retirement savings plans (RRSPs), Tax Free Savings Accounts (TFSAs) and employer pension plans. This mix of income sources gives you more flexibility and more resilience when you retire,” she advises.

Third, have a good idea of what you’ll need to live on in retirement in advance of actually arriving there. “Start by estimating your future expenses. Think about your lifestyle, potential healthcare costs and any big plans you might have for your retirement years, such as travel or hobbies. This will help you set a clear savings target that aligns with your long-term goals,” she notes.

Finally, consider getting some professional savings advice. “A financial adviser can help you assess your savings, recommend investment strategies and build a plan tailored to your needs,” she concludes.

If there isn’t a workplace retirement program available to you, the Saskatchewan Pension Plan is a flexible, reliable and steady retirement savings partner.

With SPP, you decide how much to contribute each year. So you can start small and ramp up savings as your earnings grow. The money you contribute to your SPP account is professionally invested in a large, low-cost pooled fund. When it’s time to retire you will have created another valuable income stream for your future self – one that can come in the form of a lifetime monthly annuity payment, or the more flexible Variable Benefit, among other options.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Money.ca

---

---