Canada’s RRSP Program Has Too Many Jobs

Are we borrowing from the future to pay for today?

Feb 19, 2025

7 min

Summary: Since its inception in 1957, the Registered Retirement Savings Plan (RRSP) has been a cornerstone of Canada’s retirement system. However, the RRSP has taken on roles far beyond its original mandate, notably through the Home Buyers’ Plan (HBP) and the Lifelong Learning Plan (LLP). Although these programs provide short-term benefits, they significantly damage the long-term health of Canadians' retirement savings. This article explores how these additional roles are sabotaging retirement savings, highlights statistics about the state of RRSPs today, and discusses the disastrous impact these trends will have on future retirees.

While listening to a recent economic presentation by Don Drummond, TD Bank's Chief Economist at the Mortgage Professionals Canada conference, the following stat stood out to me:

"Median RRSP savings are $146K (RRSPs have been in existence for 6 decades)"

I was stunned by how low this value was. Even with a government pension, in today's economic climate, to achieve a successful retirement, we need more than $146K saved. This prompted me to explore how the average value of RRSPs in Canada could be so low after some of us have had as much as 60 years to save.

The average senior aged 65 in Canada receives $18,197 per year from OAS and CPP. If qualified for GIS, they would receive another $15,186 annually, for a total of $33,338 annually. This isn't much income, especially for homeowners who must pay for property taxes, utilities, upkeep, and maintenance.

How it All Began

At inception, the RRSP was called a Registered Retirement Annuity and was created in 1957. At the time, Canadians could contribute up to 10% of their income to a maximum of $2,500 annually. The goal was to give all Canadians the same tax benefits as members of registered employer-sponsored pension plans.

Benefits of the RRSP Plan

1. Tax-Deferral: Contributions to an RRSP are tax-deductible, which can reduce your tax bill.

2. Tax-Free Growth: Your savings grow tax-free while the money is in the plan.

3. Retroactive: You can carry forward any unused contribution room to future years.

The Multitasking Disaster

Studies show that people are dreadful at multitasking; the same is true of government programs. Here is where the program went wrong. In 1992, the Home Buyer’s Plan (HBP) was made more flexible, which allowed first-time homebuyers to withdraw RRSP funds to buy a house. Then, in 1999, the Lifelong Learning Plan (LPP) was introduced, which permitted withdrawals to pay for education.

The Home Buyers' Plan (HBP) was not introduced in 1957 alongside the Registered Retirement Savings Plan (RRSP) creation. Instead, the HBP was introduced in 1992 as a federal initiative to help Canadians buy their first homes by allowing them to withdraw funds from their RRSPs without tax penalties as long as they met specific conditions. Here's a timeline of crucial HBP withdrawal limits since its inception:

Timeline of HBP and LLP Withdrawal Limits:

1992 - Introduction of the HBP

• Maximum Withdrawal Limit: $20,000 per individual.

• Purpose: To help first-time homebuyers purchase or build a home.

1999 – Introduction of Lifelong Learning Plan (LLP)

• The annual withdrawal limit is $10,000 per individual

• The lifetime withdrawal maximum is $20,000 per individual

2009 - First HBP increase

• New Limit: $25,000 per individual.

• The increase was introduced as part of federal budget changes to reflect rising housing costs.

2019 - Second HBP Increase

• New Limit: $35,000 per individual.

• Announced in the 2019 federal budget to support affordability for first-time homebuyers.

2019 -HBP Enhancement for Life Events

• The HBP was expanded to allow individuals experiencing a marriage or common-law partnership breakdown to participate, even if they were not first-time homebuyers.

2024 - Recent increase

• New Limit: $60,000 per individual.

• The increase was introduced as part of federal budget changes to reflect rising costs.

A Flawed Strategy

The Home Buyers' Plan (HBP) and Lifelong Learning Plan (LLP) were introduced in Canada as tools to make housing and education more accessible. While well-intentioned, these programs effectively allow individuals to borrow from their future retirement savings—a strategy that can have significant negative consequences. Ask any high school economics student, and they will tell you that compromising two of the three main elements (principle and time) in investing growth will lead to a disappointing return. Here is the formula: principle X interest + time = compounded return.

Are We Borrowing From the Future to Pay for Today?

The Problem with the Home Buyers’ Plan (HBP): Addressing Housing Affordability at the Expense of Retirement

The HBP permits individuals to withdraw up to $60,000 from their RRSP to buy a first home.

In an environment of rising house prices, this measure may help buyers cobble together a down payment, but it drains retirement funds. The funds are unavailable to grow tax-free over decades, diminishing the compounding returns essential for retirement security.

The Problem with the Lifelong Learning Plan (LLP): Financing Education by Sacrificing Retirement

The LLP allows up to $20,000 in RRSP withdrawals to fund education, which can help individuals upskill. However, education often doesn’t yield immediate returns, and the withdrawn funds lose their growth potential, including the compounded returns.

Why This Harms Future Retirees

Issue #1: Loss of Compounding Growth

Withdrawals disrupt the power of compounding, which is vital for retirement savings. For example, $35,000 left in an RRSP for 25 years at a 6% annual return could grow to over $150,000. If that same $35,000 were withdrawn 15 years ago and repaid over the same period as required by the HBP program, it would be worth $54,311, a loss of $95,689

Issue #2: Repayment Struggles

While repayments are required, life’s expenses (mortgage, childcare, loans) often make it hard to repay on schedule. Failure to repay means the amount withdrawn is added to taxable income, further reducing the effectiveness of the programs.

Issue #3: Insufficient Savings

Most Canadians are already under-saving for retirement. Encouraging them to dip into their RRSPs exacerbates this shortfall.

Two Different Problems. One Harmful Solution

Housing Affordability

Rising house prices are driven by supply-demand imbalances, speculation, and policy failures—not a lack of down payments. Increasing the HBP withdrawal limit does nothing to address the root causes of affordability, but it may drive prices higher by giving buyers more purchasing power.

Retirement Security

Retirement savings should be preserved and grown to ensure financial stability in later years. Programs like HBP and LLP blur the line between short-term needs and long-term planning.

Why Would our Government Do This?

Political Expediency

Housing affordability and access to education are politically sensitive issues. Allowing individuals to tap into their RRSPs is a cost-neutral policy for the government (unlike direct subsidies or programs). Policies like these help politicians get elected or stay in office. And in proper political form, these policies only tell half the story. Vote for us because we will help you buy your first home, which is a great campaign strategy. Vote for us because we will make it look like we help you buy your first home when, in fact, we will set up a program that will allow you to borrow from yourself at the cost of your retirement, which is political suicide.

Short-Sighted Economic Policies

Policymakers may believe that homeowners and educated individuals are more financially secure, even if their retirement savings are compromised. The logic might be that owning a home or having better job prospects could mitigate future hardship.

Assuming Home Equity is a Safety Net

The government might assume that homeownership ensures financial stability in retirement. However, this overlooks that rising housing costs often mean seniors have high debt levels or are "house rich but cash poor."

The Bigger Problem with the HBP and LLP Programs: No Warnings or Education Given to Canadians

Neither the HBP nor the LLP adequately informs individuals of the long-term consequences of their decisions. To make matters worse, the participants of these programs will likely realize the impact once it is too late to take action. People considering retirement are often in their late 50s to early 60s, past their prime saving years.

Borrowing from retirement accounts may seem like “borrowing from yourself,” but this lost growth can never be recouped. Many Canadians are not well enough informed to assess these trade-offs, leading to decisions that harm their financial future.

In Case You’re Thinking, These Seniors Have Inadequate Savings - But at They At Least their Homes.

The HBP and LLP programs may reflect a government view that seniors would be better off owning a home than relying solely on inadequate savings. But this is flawed for a number of reasons:

A home is not a liquid asset—it cannot pay for groceries or healthcare. Also, Seniors with insufficient retirement savings often need help with financial distress despite owning property. They sometimes need reverse mortgages or sell their homes out of desperation.

An Unfortunate Misguided Solution

Rather than “quick fixes” that appear to solve immediate challenges while creating long-term problems, the Federal government should instead focus on longer-term, systemic solutions

For housing: Governments need to curb speculative investments and provide targeted assistance for first-time buyers. Plus they need to focus on programs that increase housing supply, such as income tax incentives for homeowners to build accessory dwelling units (ADUs). These units could be rented out or used for caregivers. Or adopt a policy allowing first-time home buyers to not pay tax on their first $250,000 of income. First-time home buyers could use the tax savings as a down payment.

For Education: Governments need to expand grant programs and low-interest loans to prevent reliance on retirement funds. This will not only help us increase the number of skilled workers to fill critical gaps in vital sectors such as technology, healthcare engineering and the trades. It will also contribute to a higher GDP and build a more sustainable tax base for future generations.

Encouraging Canadians to steal from their future is not a sustainable strategy. Retirement savings should be viewed as sacred - not a piggy bank for solving unrelated issues.

Don’t Retire … Re-Wire!

Sue

Connect with:

Sue Pimento

Founder | CEO

Focused on financial literacy and retirement strategies. Authoring new book on home equity strategies to help seniors find financial freedom

Pension ReformInterest RatesHome EquityMortgagesReverse Mortgages

Find Experts

Jul 14, 2025

6 min

Ringo Starr Just Turned 85

Yes, Ringo Starr just turned 85. Let that sink in. I read this in the Washington Post and felt like a bag of Beatles vinyl had walloped me. How is this possible? How can the mop-top drummer be 85 when I was dancing to “Yellow Submarine” in bell-bottoms with a brush for a microphone? More urgently: how old does this make me?! Ringo isn’t slowing down. He’s still touring with two bands, making music, flashing that cheeky Liverpudlian smile, and preaching peace and love as if he’s got nowhere else to be. No plans to retire. No plans to fade away. Just a rockstar with a great attitude... and maybe a titanium hip (unconfirmed). This made me realize that, as the birthday candles on my cake now need a fire permit, “attitude” plays a huge role in how we age. Based on the feedback I received from my last post, “What’s Your Brand, Boomer?”, it’s clear that many people are genuinely interested in managing their personal brand as they age. This week, I want to go deeper—because whether you’re 45 or 85, you are Old People in Training. That’s right. Every one of us is aging in real-time, and understanding the stages ahead—either for ourselves or our aging loved ones—helps us walk this path with humour, grace, and fewer surprises. So, here they are: The 8 (Unofficial but Uncannily Accurate) Stages of Aging 1. The Stand-Up-and-Forget-Why Stage (Kicks in around mid-to-late 50s) You walk into a room with purpose, then wonder: was I here to fold laundry, pay a bill, or practice my slow blink? Bonus points if you’re already wearing the glasses you’re hunting for. How it helps: Eases forgetfulness. It’s not early dementia; it’s early distraction. Keep a notebook or use Voice Memos. Or do what I do: shrug, laugh, and keep walking until something jogs the memory (usually coffee). 2. The “Senior? Not Unless There’s a Discount” Stage (Hits in your early 60s) You bristle at the word “senior,” unless it saves you $2.50 at the movies or 15% at Shoppers. Suddenly, age becomes a tool, not a label. How it helps: Celebrate the advantages! You’ve earned them. And remember: owning your age is the new anti-aging remedy. Confidence looks good on everyone. Remember, you are still that age, whether you admit it or not. You might as well save some money! 3. The “Yes, I Really Am That Age” Reminder Stage (Kicks in around 65) You find yourself saying your age out loud like it’s a riddle. "I’m 65. Sixty-five! Isn’t that wild?" You’re still trying to catch up with the numbers, or maybe you’re worried you’ll forget your age. How it helps: Accept the number without letting it define you. It’s not a limit — it’s a launchpad. Bonus: Use it as an excuse to do something you’ve always put off. 4. The Replacement Parts Stage (Hits in the early to mid-70s) Welcome to orthopedic roulette: knees, hips, maybe a shoulder. You collect joint replacements like frequent-flyer miles. Fortunately, modern medicine allows for joint replacements to be performed more quickly than ordering takeout. Still waiting for Staples to offer 3D-printed hips. How it helps: Embrace science instead of fighting it. Biology always prevails! Mobility equals independence. And nothing embodies “active aging” like beating your grandkids at pickleball with a shiny new titanium knee. 5. The “I’ve Run Out of F*cks to Give” Stage (Kicked in the late 70s into the early 80’s) You’ve earned the right to speak your mind—and wear socks with sandals. You say what you want, mean what you say, and anyone who doesn’t like it can take a number. Opinions? Too many! Filters? Deleted. Freedom? Glorious. Friends? Running for cover! How it helps: This is peak freedom. Use it wisely. Advocate, participate, mentor, and model what unapologetic living looks like. You’re the elder statesperson now—be bold, not bitter. 6. The Cataract Conspiracy Stage (Kicks in mid-to-late 70s) Lights appear like halos, and reading menus becomes an Olympic event. But don’t worry—cataract surgery is so common it’s practically an oil change. And voilà: brighter colours, more precise lines, less squinting. Spoiler Alert: You will now be able to see how poor your housekeeping skills are! How it helps: Get your eyes checked. Don’t delay. Seeing clearly again can literally brighten your outlook—and maybe even your attitude. 7. The “Say What?” Stage – The Hard-of-Hearing Stage (Late 70’s+) This one sneaks up like a whisper… which is ironic, because you probably won’t hear it. At some point, for most of us, hearing begins to decline like old payphones and eight-track tapes. It might start with missing parts of conversations in noisy restaurants or asking people to repeat themselves (just once… or five times). Eventually, it’s full-blown “Say what?” territory. Many avoid wearing hearing aids because—let’s face it—they feel like a flashing neon sign that says, "I’m old!" But here’s the real issue: pretending to hear is much worse. It can lead to social withdrawal, isolation, and even strained relationships. And we’re not just making this up for dramatic effect—studies at John Hopkins School of Medicine show that untreated hearing loss is linked to a higher risk of dementia, depression, and cognitive decline. There’s also the loud TV effect—when your neighbours across the street can hear your Netflix queue, it’s time to see an audiologist, not to mention the safety concern: driving with impaired hearing is risky; sirens, honking horns, or even a warning from a passenger might go unnoticed. So, if your “What?” count is rising and your TV volume is climbing towards aircraft-engine decibels, take action. Getting your hearing tested doesn’t mean you’re old—it means you’re informed (and honestly, more enjoyable to be around). Because nothing celebrates “vibrant aging” more than staying connected to the world—and actually hearing it. Stage 8: The Long Goodbye – When Friends Start to Leave the Stage I’ve heard from seniors about Stage 8… and without exception, they say it’s one of the toughest parts of aging. This is the stage when the long goodbye starts—quietly at first, then with increasingly frequent moments. Your phone rings less often. The chairs at the coffee group gradually empty. One day, you realize you’re not just losing friends—you’re outliving them. It’s part of the circle of life, for sure—but no Lion King soundtrack can ease the heartbreak. This stage exposes some of our deepest fears: Will I be next? Who will mourn me? Does anyone even know I’m still here? It’s a time of grief, loneliness, and silent despair. And while you can’t fast-forward through it, you don’t have to walk it alone. If you’re an “Old Person in Training” (which, reminder: we all are), listen up. This stage isn’t just something that happens to others—it’s your future self, waving from down the road. Learning about it now prepares you to guide others through it with grace and to soften your own landing when the time arrives. And if someone you love is already there? This is your cue. Show up. Don’t wait to be invited—grief rarely sends formal RSVPs. Phrases or clichés like “they’re in a better place” won’t suffice here. These are nothing burgers—all bun, no meat—empty calories in a moment that needs nourishment. Show up. Stay steady. Be the evidence that they are still recognized, still cared for, still part of something meaningful. What they truly need is presence, not presents. Time, not timelines. They need to feel they are not alone. Sit with them. Walk with them. Watch Jeopardy in silence if that’s what the day calls for. But whatever you do, don’t disappear. Because one of the most profound gifts we can give in this stage isn’t a cure—it’s companionship. Science Confirms It: Attitude Is a Lifespan Strategy Tongue-in-cheek aside, these aging observations are backed by science: Positive beliefs about aging can extend life by 7–8.5 years. (Source: PubMed – Levy et al.) Optimism correlates with lower heart disease, stroke, and a 70% greater likelihood of reaching age 85. (Source: Harvard Health) Positive mindset boosts recovery, brain health, and resilience after illness. (Source: Harvard Health) So, what can we learn from Ringo? Keep creating – Music, art, businesses, bad poetry. It keeps the brain limber and the soul alight. Stay curious – Sign up for that course. Take the trip. Ask questions. Enrol in the MBA. (Looking at you, 69-year-old rockstars.) Lean into joy – Laugh like nobody’s judging. Dance like your knees aren’t watching. Surround yourself with good vibes – Optimism costs nothing and glows brighter than Botox. Remember, it’s not your age—it’s your outlook. So next time you stand up and forget why you did, just grin and say: ‘I’m aging like a Beatle. Still standing. Still grooving. Still fabulous.” And if you ever need a pep talk, ask yourself: “What would Ringo do?” Don’t’ Retire Re-wire Sue

Jul 3, 2025

5 min

What’s Your Brand, Boomer?

Picture this: a group of women in their 50s and 60s who've collectively decided to stop caring about chin hairs, laundry schedules, and everyone else's opinions. Sound liberating? It should. The New York Times recently profiled Melani Sanders, founder of the "We Do Not Care Club"—a crew of perimenopausal and menopausal women living by one fabulous rule: NO RULES! Their motto might as well be "Chin Hair, Laundry, Your Opinion: We Don't Care." While targeted at a younger demographic, the spirit of this movement resonates loudly among retirees, especially those dancing into their 70s and 80s, with less concern for public opinion and a greater commitment to living life to the fullest. But here's the thing—this "liberation" isn't just about attitude. There's actual neuroscience behind why we become more authentic versions of ourselves (and sometimes more blunt) as we age. Brain Aging & Inhibitory Control Let’s start with the science before we move into sass. Frontal lobe shrinkage: Researchers, including Stephanie Wong, a Research Fellow and Clinical Neuropsychologist, are studying how changes in the brain impact inhibitory control and social cognition as we age. Research shows that as we age, the prefrontal cortex—the brain’s internal social bouncer—begins to shrink. That means less inhibition, more "Oops, did I say that out loud?" moments. Inhibition deficits: Research published in the APA Journal of Neuropsychology shows that older adults find it more challenging to ignore distractions or hold back their impulses. Tasks like "stop-signal" tests reveal a clear decline in impulse control. Disinhibition causes behaviour shifts. Sometimes charming, sometimes awkward. If it's just being unusually honest, that’s one thing. If it's full-on undressing in the produce aisle, it might be time to see a doctor. Particularly with frontotemporal dementia, disinhibition can be a serious warning sign. Emotional Wisdom: Who Cares? Here’s the upgrade part of aging: • Less shame, more self-acceptance. Turns out, as you get older, you care less if Karen from yoga thinks you talk too much. • Socioemotional selectivity theory. As we become aware that time is limited, we stop pretending. Why waste valuable hours pretending to enjoy kale chips or dull book clubs? When to Be Concerned • Normal aging: Some verbal slips, occasional public flatulence, and quirky jokes. • Red flags: Rude outbursts, memory lapses, risky behaviour, and dramatic personality shifts. That might signal more than "aging into your truth." • Impulsivity warning: High impulsivity in older adults can sometimes be associated with early-stage cognitive decline. When uncertain, discuss it—preferably with a professional. TL;DR • Physical: Brain shrinkage leads to fewer filters. • Emotional: Less time means less pretending. • Caution: Disinhibition and cognitive issues suggest it's time for a check-up. Crafting Your Identity After 60 (Before Someone Else Does It for You) Let’s be honest: You already have a brand. Even if you never wrote a tagline or hired a designer, your brand is what people whisper (or shout) about you when you leave the room. It’s how you show up, how you age, and whether you become known as: "The Cranky Codger Complaining About the Price of Lettuce" or "The Glamorous Grandma with a TikTok Following." If you don’t brand yourself, trust me—someone else will. And they might not be as flattering. The Branding Trap of Aging Aging often loosens the filter and tightens the waistband. That’s just biology. But if we’re going to become more blunt, forgetful, and comfortable saying whatever pops into our head, shouldn’t we decide who we want to be first? Instead of becoming The Know-It-All, The Debbie Downer, or The Hovering Grandparent, why not become: • The Mentor • The Lifelong Learner • The Sexy Sensei with Killer Dance Moves And let’s not forget: most of us swore we’d never become our parents. Spoiler alert: unless you act intentionally, you’re heading in that direction, with even worse tech skills. Timing Is Everything (And Also Totally Forgiving) The best time to plant a tree? 30 years ago. The second best? Right after you finish this blog, brush Dorito dust off your fingers, and take action. It’s never too early or too late to develop your personal brand. Think of it as building compound interest, but for your character. Start now before you need a doctor’s note for skinny jeans. Build a Brand That Outlasts Your Wi-Fi Password The goal? Shape a brand that becomes your legacy. Something grandkids remember, communities admire, and mirrors reflect with pride. I’m aiming for Hip, Fit & Financially Free. That means: • Eating like I care • Moving daily • Sleeping like it’s my side hustle • Managing money like I want it to stick around • And fiercely guarding my energy from sugar crashes and toxic people Avoid These Unintentional "Elder Brands" • The Cranky Codger: Complains constantly, hates oat milk, gives paper cuts with sarcasm. • The Sweet Old Lady: Harmless and charming—and almost invisible. So sweet, she could give you cavities. Stands for nothing, falls for everything. • The Know-It-All: Believes Google exists solely to confirm their opinions. • The Nona/Nono: Helicopter grandparenting, over-involved, uses spit to clean your face in public. Attract These Brands Instead: 1. Glammy or Glampa 2. Wise Old Owl 3. Sexy Sensei 4. Unstoppable Opa Tips for Maintaining Youth in Mind, Body & Spirit 1. Hang out with younger people—use their slang, apps, and playlists. 2. Volunteer—Gratitude is more effective than Botox. 3. Mentor—your wisdom is not meant for hoarding. 4. Move every day—your joints might protest now, but they'll thank you later. 5. Protect your energy—eat healthy, sleep well, say no to nonsense. 6. Be mindful of your screen time—doomscrolling drains your spirit. 7. Keep learning—new languages, new tech, and new ways to be awesome. Legacy is the Long Game You don’t need to run marathons at 85 (though if you do, I’ll cheer wildly). But you should ask: "How do I want to be remembered?" Learn Italian at age 70. Take a gap year at 65. Get an MBA at 69 (worked for me!). Write your eulogy and then live it. Age isn’t a liability. It’s your proof of resilience. Now’s your opportunity to demonstrate that to the world. So, what’s your brand, Boomer? Because like it or not, you’ve got one. It’s showing up in every family dinner, work Zoom, golf game, and passive-aggressive Facebook post. The only question is — did you choose it… or did you just inherit the ‘We Do Not Care Club’ starter pack? Maybe we don't care about chin hair, laundry, or your opinion — but we do care about how we’re remembered. That’s your real brand, Boomer. So, you can either define it — or let your grandkids do it for you… and trust me, they’ve already got the group chat ready! So go ahead. Print those business cards that say something fabulous. Brand Strategy at Any Age: Intend it. Live it. Leave it behind. Stay hip. Stay fit. Stay financially free. And stay tuned. There’s more coming next week. Spoiler: There will be laugh lines and a squat rack. Don’t Retire … Re-Wire! Sue

Jun 26, 2025

5 min

The Canadian Housing Market is a Mess

The Social Contract is Broken—And We Forgot to Tell Our Kids There was a time in Canada when the rules seemed straightforward: work hard, stick to the plan, and your kids would have an even better future than you did. That was the unspoken social contract—not legally binding, but deeply believed. A handshake between generations, sealed with maple syrup and mutual optimism. You purchased a modest home, stayed with one employer for 30 years, and retired with a gold watch, a pension, and a house you owned outright. Life wasn’t flashy, but it was fair. And your kids? They would climb even higher. Well… about that! The Housing Market: From Stepping Stone to Stumbling Block Homeownership used to be a rite of passage. Now it feels more like winning The Amazing Race: Toronto Edition. According to Statistics Canada housing data, in 1990, the average Canadian home sold for approximately $215,000. Fast-forward to late 2023–early 2024, and that number has ballooned to around $670,000–$700,000 on average —a more than 200–225% increase in just over three decades. Meanwhile, wages didn’t get the memo. Since 1990, they’ve only doubled. So, while home prices soared, incomes shifted to the kitchen for more instant noodles. It's not just a gap—it’s a canyon. Sure, there was a housing correction in the early ’90s. But if you’re under 40, you’ve never seen a price drop—only stable prices (on a good day). Meanwhile, boomers and older Gen Xers bought homes when down payments didn’t require a GoFundMe page. Boomers Rode the Rocket—Then Pulled Up the Ladder Let’s be honest: we did quite well. If you purchased property in the ’70s, ’80s, or ’90s, you benefited from a wave of equity that transformed retirement into a cruise ship brochure. For many, the house became the largest—and only—source of real wealth. We got used to it. Then we got protective. Then... well, a bit smug. • NIMBYism? Guilty. • Zoning restrictions? Voted yes. • Capital gains reform? Over my arthritic body. • Preferred Pronouns – Me, Myself and I We feared anything that could lower our property values. A 25% correction? Not in my golden years! But that might be what it takes to give our kids a fair shot. We told them to "work hard," then quietly reinforced a game they couldn’t win. We Told Them to Hustle—Then Rigged the Game Today’s young Canadians aren’t lazy; they’re exhausted. They’ve done everything we asked—degrees, careers, even side hustles—and still can’t afford a 500-square-foot shoebox in Toronto without cashing in their RRSPs or moving back into our basements. By the way, they’re doing this—not because they missed us, but because rent is eating up half their paycheque and still asking for dessert. Even worse? Many are looking abroad, not for a gap year, but for an economy in which they can participate—one where they might be able to afford a home and groceries in the same month. If the best and brightest are quietly packing their bags, it’s not wanderlust; it’s a policy failure. There’s now a whole ecosystem catalyzed by everything from consultants to cloud-based software and payment platforms that has aided a global movement of “creative-class” digital nomads. For those who want a more affordable cost of living and have the skills necessary to work remotely, this generation has options to move. In "Intelligent Money," author Chris Skinner envisions a future where AI-powered financial systems won’t just advise against homeownership—they’ll actively discourage it. Why commit to mortgage debt when you can rent flexibly, invest digitally, and maintain liquidity in your life? Not a dream, but a necessity. We told them to pull up their socks. They’re wondering if we sold their shoes. What Happened to Profit Sharing? Remember when companies used to share their success? Microsoft, Google, and yes, still Costco, offered profit-sharing or stock options that turned employees into unexpected millionaires. It wasn’t charity; it was a fair deal. Then gig work emerged, HR departments disappeared, and the only thing we shared was burnout. We need to restore fairness—perhaps even incentivize companies that value loyalty. Renter Equity Accounts: A Radical Concept—Equity You're not building wealth if rent is more than 30% of your income. You’re funding someone else’s retirement. So, here’s a thought: when rent exceeds 30%, why don’t we match the excess—25% to 50%—and deposit it into a locked “Renter Equity Account”? It grows tax-free and can be used for: • A down payment • Retirement savings • Student debt relief • Emergency funds Employers could contribute to REA plans. Governments could provide incentives, and renters could finally receive more than just a rent receipt and a pat on the back. It's Time for Bold, Practical Ideas We can’t rewind to 1990. (Although the fashion world is trying.) But we can fix what’s broken: Let Canadians earn their first $250,000 tax-free, provided it is used for a down payment or to eliminate student loans. That’s helping reduce overall debt. Ensure zoning reform is effective by linking federal infrastructure funding to genuine housing development. Establish public wealth tools - TFSA-style accounts for low-wealth, high-effort Canadians. Forgive student loans for public service, specifically for individuals filling positions such as nurses, teachers, early childhood educators, and tradespeople, with added incentives for those relocating to underserved areas. Invest in them, and they will reinvest in us. What Families Can Do—Right Now No, you can’t rewrite national policy from the kitchen table. (Unless you’re Chrystia Freeland.) But here’s what you can do: Start a down payment fund—consider using a TFSA or an investment account to help your kids build capital. Create an ADU—laneway homes, granny suites, legal basement rentals. Housing and support combined. Access your home equity—HELOCs or reverse mortgages can be lifelines, not luxury options. Create a rent-to-own family plan—turn monthly rent into future equity. Discuss finances—share your successes, warn against mistakes, and share the financial knowledge you’ve gained from hard lessons. An Apology—from the Heart To our kids and to the next generation, we should say we’re sorry. We didn’t plan for this outcome. We assumed the paths we walked would still be open for you, that the same rules would still apply, and that equity would be available to all. We forgot that a contract—even an unspoken one—still needs to be honoured. But it’s not too late. We can speak out. We can share our thoughts. We can change the policies, shift the mindsets, and reopen the doors that have been closed, because the future of this country shouldn’t be something you have to leave to find. Let’s fix this. So, you can stay. And thrive. And lead. Let’s rebuild the contract together. Deal? Don’t Retire … Re-Wire! Sue

View all posts

Canada’s RRSP Program Has Too Many Jobs

Are we borrowing from the future to pay for today?

Sue Pimento

Read More

Ringo Starr Just Turned 85

What’s Your Brand, Boomer?

The Canadian Housing Market is a Mess

You might also like...

Ringo Starr Just Turned 85

What’s Your Brand, Boomer?

The Canadian Housing Market is a Mess