Jun. 8: BEST OF THE BLOGOSPHERE 

June 8, 2026

Avoid these common retirement regrets

You’ve given back your ID badge and parking pass and company mobile phone – the party’s been and gone, and work is finally in the rear-view mirror.

What could possibly go wrong?

Well, writes Daniel Liberto for Money.ca, there are half a dozen common “retirement regrets” that the newly retired are reporting.

He acknowledges that “the dream of early retirement is powerful: more freedom, more time, more life. For many Canadians, they’re working towards a plan to step away from the daily grind before the traditional age of 65 — but sometimes, the leap happens faster than planned.”

And while things can often work out fine, they also may not, he warns.

Not saving enough

“Having more free time quickly loses its appeal when it comes with constant financial anxiety. Among the most common complaints from early retirees is that savings and other retirement income don’t stretch nearly as far as they expected,” Liberto reports.

He cites a recent BMO study that found 36 per cent of Canadians “are worried they won’t have enough money to support their retirement because prices continue to climb.”

It’s almost like compounding but in reverse, he explains. “The number of years your savings need to support you keeps growing, while the time you have to contribute keeps shrinking. What felt like a comfortable nest egg at 58 may feel very different at 78.”

OK, so keep saving before and after retirement is our takeaway.

Underestimating costs (especially healthcare)

Many folks figure their retirement spending will be the same as it was before they retired, notes Liberto.

“What they often underestimate is the long-term cost of inflation and another financial risk: The loss of employer-provided supplemental benefits covering prescriptions and other medical needs,” he warns. “According to Statistics Canada, approximately 66.8 per cent of employed Canadians have workplace medical or dental benefits through their main employer. When those benefits disappear at retirement — particularly for those leaving before age 65 — the financial gap can be significant,” he adds.

Be aware of this, he suggests, and consider getting private coverage if your workplace benefits end when you retire. Find out what your province or territory covers in advance, when it comes to drugs and other costs.

Down the road, long-term care costs can be huge. While provinces “subsidize” long-term care, it is not free. Costs start around $2,000 a month for a private room and can be far higher depending on the level of care you need, he warns.

So, the second regret is not considering post-retirement care costs in your planning efforts.

Claiming CPP too early

Many of our friends took the Canada Pension Plan (CPP) as soon as possible, at age 60 – even while still working. This decision can lead to regret, the article suggests.

Liberto notes that “claiming (CPP) before the standard age of 65 comes at a steep price. Payments are permanently reduced by 0.6 per cent for every month you collect before age 65, up to a maximum reduction of 36 per cent if you start at 60. On the other hand, if you defer CPP past age 65, payments increase by 0.7 per cent a month — or 8.4 per cent annually — for a maximum increase of 42 per cent if you wait until age 70.”

“Like CPP, Old Age Security (OAS) can be deferred up to age 70, increasing payments by 0.6 per cent each month, for a potential increase of 36 per cent,” he reports.

“It may be worth discussing with a financial advisor whether using personal savings and delaying CPP and OAS would be beneficial to max out your lifetime government pension income,” he adds, noting that some advisors suggest you spend your registered retirement savings plan (RRSP) money first before starting government benefits.

Skipping long-term care insurance

You may regret not considering long-term care insurance, the article continues.

“The Canadian Life and Health Insurance Association (CLHIA) notes that long-term care (LTC) insurance policies are available in Canada and can help offset the costs of care that government programs don’t cover — approximately 22 per cent of the total cost. Considering the rising demand and growing wait lists for subsidized LTC, financial planners are recommending exploring coverage options while premiums are still manageable,” Liberto writes.

Missing structure, purpose and social connection

“Academic research shows that leaving the workforce early is often accompanied by a reduction in social networks and mental engagement, both of which are strongly associated with overall well-being,” he reports.

“Financial advisers and retirement coaches encourage people on the verge of retirement to develop a concrete plan — not only for their finances, but also their time, social connections and sense of purpose,” he adds.

Difficulty re-entering the workforce

Many of us, writes Liberto, assume (perhaps incorrectly) that if post-work life isn’t affordable, we can just head back to work.

“Age discrimination in Canadian workplaces is a documented challenge. According to a study by Indeed Canada, 14 per cent of all Canadian workers perceive their age as a barrier to employment — a figure that doubles to 28 per cent among those aged 65 and older. A separate report from Access Work Service estimates that approximately 60 per cent of Canadians aged 45 and older have experienced workplace age discrimination,” he warns.

This article raises some very important points that most near-retirees aren’t thinking about. The focus is usually on savings.

If you don’t have a retirement savings program through work, and aren’t sure how to go about saving on your own, the Saskatchewan Pension Plan may be just what you need to get your savings plan going.

You can contribute any amount up to your RRSP limit and can as well transfer in any amount from other RRSPs you may have. This will consolidate your retirement nest egg. SPP will take your savings and grow them in our professionally managed, low-cost pooled fund. At retirement, income options include the security of a lifetime monthly annuity payment, or the flexibility of the Variable Benefit.

Check out SPP today!

Join the Wealthcare Revolution – follow SPP on Facebook!

Money.ca

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