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!

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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!

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Are your retirement plans on a solid footing? Here’s how to check

Writing for Money.ca, Vishesh Raisinghani reports that five key benchmarks can help us all to see how we’re doing with our retirement plans.

He begins by citing recent research from FP Canada that found that “almost half (42 per cent) of people say concerns about rising costs and falling short on savings weighs heavily on their overall well-being.”

Despite that “completely normal” level of concern, he continues, there are ways to gauge your retirement readiness. “If you’ve hit a few key milestones, it may be a sign that your retirement is more secure than it may feel.”

Let’s review the five benchmarks he identifies in the article.

Have you paid off your home, he asks.

About 30 per cent of “mature households… now carry mortgage debt,” he notes. That’s a big change from the past, when most retirees “entered retirement mortgage-free.”

“That’s why entering retirement without a mortgage is such a powerful position to be in. If you’ve managed to pay off your primary residence before retiring, you’ve removed one of the biggest expenses from your budget — and given yourself more flexibility, stability and well-being than a sizeable portion of your peers.”

How, he continues, is your overall health?

While our universal healthcare system provides us free access to many health services, it’s not all free, he points out. “Prescription drugs, dental care, vision care, mobility aids and home care often involve out-of-pocket costs — especially for seniors without employer benefits,” he notes.

The healthier you can be in retirement, the better things will be, he explains.

“If you’re in relatively good shape, you’re likely to face fewer unexpected expenses and enjoy more choice over how and where you spend your time and money,” writes Raisinghani, adding that “good health doesn’t guarantee a stress-free life, but it does put you in a stronger position than many of your peers.”

A third good benchmark is that you are “living below your means,” he writes.

“Research and industry surveys consistently show that keeping spending in check is one of the biggest challenges retirees face, particularly as costs for housing, food and services continue to climb. Financial planners often note that retirees who underestimate expenses early on may feel pressured to make up for it later, when there’s less flexibility to adjust income,” he writes.

“If your spending has stayed lower than you planned — or you’ve built enough of a margin to absorb higher costs without stress — you’re doing something incredibly right,” he points out.

Next, he asks, are your children all living independently?

“Having financially independent children is a meaningful milestone. If your kids are covering their own living costs independently, you’re in a stronger position to focus on your own needs, goals and security,” he advises.

Finally, do you have a “margin of safety” with your planned retirement income?

“Most people carry a mental ‘magic number’ for retirement — the amount they believe will cover their lifestyle so they feel content. In Canada, that number varies widely depending on housing costs, health, family responsibilities and whether income will also come from sources like the Canada Pension Plan (CPP), Old Age Security (OAS) or workplace pensions,” he explains.

“Having a margin of safety — even a modest one — can make a significant difference. If your retirement savings are larger than what your plan says you strictly need, you’re better positioned to handle market turndowns, higher living costs or unexpected expenses without panicking. That cushion can also give you more freedom in how you draw income, adjust spending or delay big purchase decisions,” he concludes.

This is solid advice. Our late Uncle Joe used to always advise – and he did this well into his 80s – to try and live on 90 per cent of your income and put the rest away in savings. He saw savings as a lifelong pursuit, rather than something done only in the run-up to retirement.

If you are saving on your own for retirement, or want to augment any existing retirement savings program you have through work, the Saskatchewan Pension Plan is definitely worth checking out.

SPP handles the tricky part of investing your savings for the long term, growing every dollar in our professionally managed, low-cost, pooled fund. At retirement, your options include drawing a lifetime monthly income via an SPP annuity, or opting for the more flexible Variable Benefit.

Check out SPP today – the made-in-Saskatchewan retirement savings solution for all Canadians.

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A record number of those aged 65+ are still in the workforce: Vanguard study

As our regular foursome tees off each week, we have two fully retired players in their 60s, and two still working part-time, now 66 and counting.

That sure wasn’t the case when our parents retired. But according to an article by Christy Bieber, writing for Money.ca, a record 15 per cent of grandma/grandpa-aged over-65ers are still working away after normal retirement age.

Her article quotes a U.K. study by Vanguard which “points to a shift toward phased retirement. While the study is British, Canadian trends are similar: more older adults are working for pay and retiring later,” she writes.

Vanguard calls this a significant change, she writes. “Retirees no longer want to quit working cold turkey. They want to retire gradually for a mix of financial and social reasons. Unfortunately, while this may be the dream for many, it’s not always the reality,” she continues.

Her article cites a 2024 study from Manulife that found “47 per cent of Canadian retirees ended their careers earlier than they had planned. Future workers must be prepared in case it turns out their ideal vision for retirement ends up being just an illusion. In 2023, 15 per cent of those 65 or older were in the labour force — a record — showing rising later-life work, but not everyone can phase out on their terms.”

The Vanguard study found that only 24 per cent of respondents had the “cliff-edge view of retirement, working one day and then retiring on the next,” she writes.

“Instead, most professionals either plan to scale back hours slowly at their existing job (27 per cent), `mostly’ stop work on a set date (21 per cent), or switch to a different job (14 per cent). The reasons cited include not feeling ready to completely retire, to top up their income and social reasons,” reports Bieber.

This lines up, she continues, with a recent Government of Canada Survey of Older Workers which found “that 47 per cent of retirees would work part time during retirement if they’re able to.”

This is a thoughtful article. Years ago, while working at another pension plan, we worked on a guide book for “unexpected” retirements – the steps you would need to take to get your pension started earlier than expected, perhaps due to layoffs, or a profound change in your health. Not everyone, we thought at the time, will be able to continue working right up until their pre-planned, chosen retirement date.

If you are saving on your own for retirement, the Saskatchewan Pension Plan is a flexible savings partner. You decide how much to contribute to SPP – you can ramp up your contributions if you are earning more at work, but can also ramp them down if you switch, for example, to part-time work.

You can start receiving retirement income from SPP as early as age 55, and must begin receiving income by the end of the year in which you turn 71. So those aiming for an early retirement can access funds early, and those working on through their 60s can choose to access their SPP income later.

Your retirement income options include the security of a monthly lifetime annuity payment, or the more flexible Variable Benefit.

Check out SPP today!

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We frequently write, in this space, about good ideas to help boost your long-term retirement savings.

But what about the opposite – bad retirement decisions that can hurt or hinder your efforts? Using the theory that we often learn the most from making mistakes, Save with SPP scoured the Interweb to drum up some bad retirement ideas to avoid.

Let’s start with the Money.ca website, where Michelle Robertson discusses a half-dozen common retirement planning mistakes Canadians too frequently make.

The first, she explains, is “not having a plan.”

“Driving to retirement with no plan is like a trip to a mystery location with no map. You have no idea where you will end up,” she warns. “A plan shows if you’re investing enough to be ready at your desired retirement age. The more time and clarity you have, the easier it is to reach your goals,” she continues.

And for those who think their house will provide the retirement income they need, she suggests that “you can’t eat your house in retirement.”

“People see their house as an investment. They expect to use its equity in retirement. But, you can’t access your home’s equity if you live in it without borrowing your equity from the bank (for the second time),” she writes.

A third, classic mistake Robertson warns us about is to “take too much debt into retirement.”

“Debt is debilitating at any stage of life, but especially in retirement. It will quickly erode your retirement income,” she explains.

In an article published by GoBankingRates, Yaël Bizouati-Kennedy provides a few more bad ideas to watch out for.

First mistake, the article notes, is “starting your savings journey late.” The article quotes money and financial coach Adeola Monofi as saying “by starting early, you can leverage the power of compounding interest and allow your investments to grow significantly over time. Make it a priority to start saving for retirement as soon as possible, even if it means making small contributions initially.”

Another red flag is underestimating retirement expenses, the article continues. Healthcare costs can rise when you’re older, the article notes, as can the cost of housing, travel, hobbies and other leisure activities.

A third mistake is thinking that Canada Pension Plan (CPP) and Old Age Security (OAS) benefits will be enough to fund your retirement, the article notes.

“While programs like the CPP and OAS provide valuable income, they may not cover all your retirement needs,” Monofi is quoted as stating in the article. She tells GoBankingRates that these government benefits should be augmented by personal savings in “registered retirement savings plans (RRSPs), tax-free savings accounts (TFSAs), real estate, permanent life insurance and other investment vehicles suitable for your circumstances.”

Last word goes to Canadian Essence, who list, in an article by Ash Kaushik, some of the worst advice people can be given about retirement.

“Invest in only safe options, like bonds,” is one such piece of advice, the article reports.

“Bonds are risk-free, but if you’re obsessed with them – it’s counterproductive. Retiree funds have to keep up with inflation and a well-diversified portfolio comprising stocks can deliver higher long-term returns. Don’t play it too safe and you’ll fall short on your financial expectations,” the article warns.

Another bad bit of advice, the article continues, is that idea that if you haven’t saved enough, “you can always work longer if you’re not ready.”

“You shouldn’t rely on working longer to save money. Unexpected illness, unemployment or a caregiver need can lead to you retiring before you have any choice,” the article cautions.

“Retirement will be just like your vacation,” is our final bit of bad advice presented in the article.

“Retirement sounds simple enough, like a one-week vacation but it’s often not. Even all the free time feels a little unenjoyable if you don’t plan how to remain active, productive and be on track. So, don’t be surprised if you’re expecting a vacation-like lifestyle, but haven’t considered how you’ll spend your time or how you’ll cope with changes in your daily routine,” the article tells us.

Having left full-time work more than 10 years ago, this writer can attest to the truth of the “retirement is like a vacation” comment. It’s more like it is always the weekend, which is still good but a little different than being on a trip.

If you haven’t got going on your retirement savings yet, and don’t belong to any sort of retirement savings plan through your work, there’s an option out there for you that is worth considering – the Saskatchewan Pension Plan. SPP is an open, voluntary defined contribution pension plan that any Canadian can join.

You decide how much you want to save, and SPP does the rest, investing your savings dollars in a low-cost, professionally managed pooled fund. At retirement, among your options are a lifetime monthly annuity payment or the more flexible Variable Benefit.

Check out SPP today!

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