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Let’s start with a familiar—and slightly ridiculous—scene: a retired couple with $750,000 safely tucked away in investments, quietly nibbling no-name tuna on toast while muttering, “We just can’t afford steak anymore.”
Sound absurd? Sadly, it’s not fiction. Despite having ample savings, many retirees live with perpetual financial anxiety, clinging to their nest egg as if it were their last roll of toilet paper during a pandemic. Meanwhile, they try to survive solely on government pensions, making life unnecessarily stressful and, let’s face it, a bit joyless.
I've wrestled with this as someone who entered retirement earlier than expected. Years in finance taught me how to budget, invest, and plan, but transitioning from saving to spending required a whole new mindset. I learned quickly that being financially “prepared” doesn’t mean you’re emotionally or psychologically ready to spend.
So, what’s going on here?
The Hypothesis: Individuals Prefer Spending Income Rather Than Saving Retirees prefer spending income (pensions or annuities) rather than withdrawing from savings or investment accounts. This isn’t just a quirky behavioural trend—it’s a deeply ingrained bias, and neuroscience supports it.
Research by Michael S. Finke, a professor at The American College and noted researcher in retirement economics, revealed that retirees tend to spend most of their guaranteed income but only withdraw about half of their savings. In his words: “Retirees spend lifetime income, not savings.” The implication is clear: it’s not about how much money you have but how it feels to use it. This is partly due to what behavioral economists call “mental accounting.” We categorize our money into imaginary buckets: income is for spending, and savings are for safekeeping. Unfortunately, this can lead to financially irrational and highly risk-averse behaviors, such as eating cat food while having six figures in a TFSA.
The Neuroscience of Spending Fear Add a little neuroscience, and the story deepens. As we age, changes in the brain, particularly in the prefrontal cortex, can affect how we assess risk and manage uncertainty. This can lead to:
• Increased loss aversion: We more acutely feel the pain of spending or loss.
• Decision paralysis: We delay or avoid withdrawals, even when reasonable.
• Heightened anxiety about the future: We fear running out more than we enjoy spending in the present.
This Fear of Running Out (FORO), which I’ve written about in a previous post, keeps many retirees in a defensive crouch, emotionally hoarding their savings rather than using them to enrich the years they worked so hard to reach.
It’s no wonder money stress impacts us so deeply—our brains are wired that way. From an evolutionary perspective, our minds are designed to fear scarcity because running out of resources once posed a real danger. When we perceive that threat today, whether it’s a dip in our investments or rising grocery bills, our brain shifts into fight-or-flight mode and begins releasing cortisol—the stress hormone that heightens our anxiety.
Then our amygdala, that little alarm system in our brain designed to protect us from danger, can’t differentiate between a financial crisis and a sabre-toothed tiger. So, it reacts similarly, nudging us toward quick, often irrational decisions. Sometimes that means freezing and doing nothing; other times, it leads to panicking and regretful choices. Understanding how our brains function under financial stress allows us to step back, breathe, and make better, calmer decisions—ones that serve us, not scare us.
Retirement can be wonderfully freeing—no more commutes, no more meetings—but let’s be honest: it also comes with a significant shift in financial responsibility. Without that steady paycheck, it’s completely normal to feel uneasy about how you'll manage your money, especially when unexpected expenses arise.
Sure, there are mindset tools and mental prep strategies that can help ease that existential “What now?” feeling before retirement. But let’s be specific—here are the real, concrete financial stressors that keep many retirees awake at night:
• Not Enough Income: One of the biggest fears? Your savings won’t stretch far enough to support the life you want—or handle surprises.
• Healthcare Costs: As we age, medical expenses climb. It’s not just the big stuff, either. Even prescriptions and dental bills can blow a hole in your budget.
• Market Ups and Downs: A stock market dip can uniquely affect retirees. Observing your investments fluctuate can cause genuine anxiety regarding your income, especially in today’s “trade war” environment.
• Inflation: We all feel it. The gradual rise of higher prices erodes your purchasing power, making that carefully saved nest egg feel less secure.
• Living Longer Than Planned: It's both a blessing and a challenge. If you're healthy and living well into your 90s (and many do), the big question becomes: will your money last as long as you do?
Here’s the good news: when you acknowledge these risks and build a plan around them, you exchange fear for control. And with power comes clarity, confidence, and significantly less stress. That’s when you can truly enjoy retirement—on your terms. How to Flip the Script: Make Savings Feel Like Income So, how can retirees overcome this psychological hurdle?
Here are 3 powerful strategies:
1. Create Artificial Income Streams Turn a portion of your savings into predictable, automatic income. This could mean:
• Setting up regular monthly withdrawals from an RRIF
• Purchasing an annuity
• Utilizing a bucket strategy, in which one portion of savings is maintained in a cash-like account to replicate a paycheck
When money shows up like a salary, you’re more likely to feel permission to spend it.
2. Use Home Equity as a Back-Up Income Source A secured line of credit (HELOC) or a reverse mortgage can serve as a “Plan B” or income buffer. Knowing that the funds are available can alleviate anxiety, whether you use them or not.
3. Involve Family in Income Planning Sometimes, the best way to reframe a spending decision is through conversation. Adult children or trusted advisors can help develop a spending strategy that feels both secure and reasonable.
Families can be invaluable in helping you design:
• Emergency funding plans for unexpected expenses like healthcare
• Gifting strategies (Want to help the kids or grandkids? Do it while you’re alive to see the joy!)
• Income simulations replacing a regular paycheck
Open conversations can also help uncover mismatched expectations. For instance, some older adults worry that spending their savings will leave less of an inheritance for their children, which might cause disappointment. But in many cases, their children would much rather see their parents use that money to care for themselves and enjoy their retirement years.
The great irony of retirement? The hardest part isn’t building wealth; it’s allowing yourself to enjoy it. So, let’s retire the notion that frugality is forever. Replace the guilt of spending with the confidence of an income strategy. And if you're facing your savings with trepidation, remember: cat food may be a pantry staple for your pet, but it’s no reward for 40 years of hard work.
Retirement isn't merely a financial phase—it’s a shift in mindset. That shift begins when we stop hoarding and start living.
Chances are, you have seen the ups and downs in the financial markets, which can really cause seniors a lot of anxiety when looking at those portfolio statements. Add to that the ripple effects of the Canada-U.S. trade war, and it’s more essential than ever to have a Plan B.
The Trade War Is Personal The Canada-U.S. trade tensions may appear to be a political issue, but their repercussions are directly impacting kitchen tables across the country. Inflation is increasing the cost of everyday essentials, while investments—on which many retirees depend for income—are suffering. For those who cannot easily re-enter the workforce, this situation is more than just inconvenient. It’s stressful.
Withdrawing investments during a market dip can permanently reduce your savings. Meanwhile, rising prices on everything from apples to arthritis medication stretch fixed incomes thinner than ever. This isn’t just about budgeting anymore —it's about building a wise financial safety net.
Plan B Matters More in Retirement You’ve worked hard to reach this point. Retirement should be about freedom, not fear. However, having a backup plan is essential since there are limited ways to generate new income. Think of Plan B as your financial airbag — something you hope you never need, but you're grateful it's there when life encounters a bump. And let’s be honest: even the most well-padded retirement can use a little backup when the economy’s doing somersaults.
The Simple Economics of Cashflow Managing your finances boils down to a straightforward equation: money in versus money out. Think of it as balancing a seesaw—on one side, you have your income (cash in), and on the other, your expenses (cash out). For seniors, especially those on a fixed income, keeping this balance is crucial.
Boosting Your Income Even in retirement, there are ways to add a little extra to your “money in” side. This could be through part-time work, turning a hobby into a small business, or renting out unused space in your home. Every additional dollar earned can provide more breathing room in your budget.
Another option for many Canadians, is right under their feet—their homes. Home equity can be a powerful tool, giving them access to funds without selling or downsizing.
Here are some practical options you may want to consider:
Home Equity Line of Credit (HELOC): If you qualify, a HELOC offers flexible access to funds and charges interest only on the amount you use. It’s perfect for short-term needs or emergency access. Remember, you’ll need to make monthly payments and provide proof of income to qualify.
Manulife One is a creative and customizable solution that combines your mortgage, income, and savings into a single account. It allows you to borrow against your home with greater flexibility. Payments are required but can be made within the available limit. Qualifying is similar to a HELOC.
Reverse Mortgage: For homeowners aged 55 and older, a reverse mortgage allows you to access your home equity without the need for monthly payments. The loan is repaid when you sell or move, providing you with freedom and cash flow while remaining in your home.
These tools can help ensure you're not forced to withdraw from investments during market downturns, letting your money recover while you stay comfortable.
Trimming Your Expenses On the flip side, reducing your “money out” can be equally, if not more, effective. Perhaps you have subscriptions you no longer use for streaming services or mobile phone plans. Or you find you are purchasing too many items at the store because you aren’t preparing a list. Or you are dining out multiple times a week. Remember, every dollar you don’t spend is a dollar saved. Let’s unpack this a bit more, looking at this from a tax perspective
Understanding the After-Tax Advantage of Cost Reduction For seniors supplementing their income with part-time work, it’s crucial to recognize that reducing expenses can be more impactful than earning additional income, primarily due to the effects of taxation.
For example, let’s consider part-time income at a marginal tax rate of 30%.
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• To have an extra $100 in your pocket after taxes, you’d need to earn approximately $142.86 before taxes. This is because 30% of $142.86 is $42.86, leaving you with $100 after tax.
• Conversely, if you reduce your expenses by $100, you effectively save the full amount. There’s no tax on money you don’t spend.
Why This Matters: Every dollar saved is equivalent to more than a dollar earned when considering taxes. This means that focusing on cost-saving measures can be a more efficient strategy for improving your financial situation than seeking additional taxable income.
3 Major Strategies to Help You Cut Costs Budgeting: Prioritize identifying and eliminating unnecessary expenses. Regularly review subscriptions, dining habits, and utility plans to find areas where you can cut back.
Smart Shopping: Utilize discounts, loyalty programs, and bulk purchasing options to reduce spending on essentials.
Tax Planning: Be aware of how additional income might affect your tax bracket and eligibility for income-tested benefits. Sometimes, earning more can inadvertently reduce certain government benefits.
Saving Smart – Some Tips to Get Started Your Plan B doesn’t have to focus solely on earning more income or borrowing. Sometimes, the best backup plan begins with cutting the extras. Think of it as being retro cool — just like you were before it became trendy.
Tip #1: Rethink Dining Out - A Once-A-Week Treat, Not a Routine I love to dine out. It’s great to leave the cooking to someone else, especially after a busy day. But this is also one of the fastest ways to drain your budget. In Toronto, the average cost of a casual dinner for two with wine is around $90–$120. Opt for a more upscale spot? You’re likely looking at $150+ after tax and tip.
Savings Tips • Cutting out one dinner per week could save approximately $400–$500/month or $5,000–$6,000/year.
• Think about hosting a monthly dinner with friends at home where everyone brings a dish. You’ll still enjoy social time—but for a fraction of the cost. Or maybe try organizing a game night. Perhaps it’s euchre or cribbage, or maybe charades they all have something in common (they don’t require a monthly fee). Organize a potluck to bring people together. Twister might be off the table (unless your chiropractor is on standby), but laughter and connection are always in season.
• Also think about how you can share resources. From ride-shares to splitting bulk grocery purchases with a neighbor, the old-school approach of sharing is making a comeback. It’s like carpooling, but with avocados and streaming passwords.
Tip #2 Review Your Subscriptions - What are you Really Using? Have you already binge-watched all the episodes of your favourite shows, but you are still paying for streaming services you haven’t used in months? Then it’s time to cancel some subscriptions. According to the Convergence Consulting Group The average Canadian household now spends $70–$90/month on streaming and digital services (Netflix, Disney+, Prime Video, Spotify, etc.).
Many people are paying too much for mobile. According to the CRTC, the average Canadian pays $64/month for mobile service. Seniors who negotiate can often reduce this to $35–$45/month—a 30–40% savings.
Savings Tips: • Audit Your Subscriptions: Write down every monthly and yearly subscription you have. Even cutting or optimizing 2 or 3 could save $30–$50/month.
• Cancel subscriptions you don’t use often. You can always resubscribe later. Instead of paying for four platforms and using a few, consider rotating through them one at a time. You’ll be surprised at how quickly you can catch up on your favorites. Many streaming platforms also offer free trials or cheaper, ad-supported versions.
• Call Your Mobile Phone & Internet Carrier Once a Year. Most people don’t realize how much loyalty can cost them. New customers often get much better deals than long-standing ones. When you call, here are some questions to ask:
“Am I on the best plan for my usage?”
“Are there any promotions I qualify for?”
“Can I get a loyalty discount?”
“Do you offer special discounts for seniors?”
Keep in mind there are also senior-specific mobile plans from carriers like Zoomer Wireless, Public Mobile, or SpeakOut.
• Don’t be shy about taking your business elsewhere. Carriers don’t want to lose subscribers and have special offers designed to make you want to stay. You’d be surprised how quickly they "find" a discount.
Savings Tip #3: Don’t Throw Out Those Flyers and Coupons With inflation pushing up grocery prices, shopping smart matters more than ever. According to Statistics Canada, the average Canadian household now spends $1,065/month on groceries. So, it may be time to pay attention to those grocery store flyers you used to throw out. While Canadian data on potential savings is limited, US studies show that flyers and couponing can reduce costs by 10–25% for groceries and other household items if used consistently.
Savings Tips: • Use apps like Flipp or visit sites like Smart Canuks to find online flyers you may have missed.
• Sign up for loyalty cards to access extra discounts. One of the most popular savings programs, PC Optimum, offers frequent discounts and helps you collect points at Shoppers Drug Mart and Loblaws. Also, remember to swipe loyalty cards at the pump; many gas retailers offer discounts that can add up.
• Consider shopping at stores like Walmart, which have pricing-matching policies for identical items you find advertised elsewhere.
Saving Tip #4: Cut the “Daily Habits” That Add Up Remember, it’s not just the big expenses—it’s the daily ones that sneak up on you. Let’s look at a few “seemingly small” indulgences as examples:
• 3 Starbucks Grande Lattes ($6.45 + tax) x 3 days/week = $1,137/year
• Take-Out Lunch (for $12 + Tax) x 3 days/week = $2,115/year
That’s over $3,000/year in “small” daily purchases!
Savings Tips: • Prepare Meals in Advance: Cooking larger portions and planning for leftovers can minimize the temptation of ordering takeout. Planning meals and shopping with a list can prevent impulse purchases and reduce food waste.
• Embrace the Home Café Trend: Investing in a quality coffee maker and brewing your own coffee can add joy to your day but also reduce your costs.
• Set a Food Budget: Establishing a clear budget for dining out and groceries helps you track expenses and make more mindful spending decisions. Try allocating specific amounts to avoid overspending.
Saving Tip #5: Leverage Senior Discounts if you are 60+ From transit to museums to groceries and drugstores, there are dozens of businesses that offer 10–20% off for seniors—but they don’t always advertise it. Many stores also have a set day of the week for seniors' discounts. Consider this: A $50 weekly purchase with 20% off saves $10—over $500/year.
Savings Tips: • Shoppers Drug Mart has a 20% Seniors Day on Thursdays (for those 65+)
• Rexall offers a 20% discount on Tuesdays
• Many major retailers (e.g., Canadian Tire, Sobeys) offer senior discounts that vary by location—ask at checkout. Cineplex has special pricing for seniors plus seasonal promos like $5 Tuesdays if you want to take the grandkids with you.
Saving Tip #6: Mind Your Utilities and Insurance Reviewing these bills once a year can result in hundreds of dollars saved. Consider switching to time-of-use electricity plans, which are offered in most areas. Check to see when cheaper rates are offered during off-peak hours, and look at using appliances such as your clothes dryer on off-peak hours. You can also lower your insurance premiums by looking at options such as raising your deductible (if you’re comfortable with the risk). Also, look at rates offered by providers for “pay as you drive” insurance, especially if you aren’t using your car a lot. Also, if you are not bundling your home and auto insurance, you may be missing out on some savings.
Saving Tip #7: Buy & Sell Online Many items we need can be found for a fraction of the cost used on platforms such as Facebook Marketplace and Kijiji. And remember, buying a used item also saves on tax. Many retirees have extra furniture, tools, collectibles, or tech they don’t need. It's now easier than ever to declutter and turn these unused items into extra cash.
It’s All About Small Changes and Big Rewards Recessions are hard on everyone, but especially on those living on fixed incomes. The good news is that there are plenty of smart, manageable ways to reduce expenses without giving up all the good things in life. By becoming a more conscious consumer and checking in on your spending habits once or twice a year, you can save thousands of dollars annually—money that can be redirected toward travel, gifts for grandkids, or, if nothing else, it just may calm your nerves.
Another Tip: Don’t Wait — Timing Matters If this trade war continues, housing values may dip, which means the equity you can access could shrink. Getting your Plan B in place now ensures you lock in flexibility and peace of mind before things tighten up. Remember, it’s easier to get approved for a HELOC or reverse mortgage when you don’t urgently need it. It's better to set it up and keep it on standby than to wait until it’s too late.
Talk It Out Stress develops in silence. Speak to family and friends about your concerns. They may not have all the answers, but they’ll provide emotional support — and possibly assist with paperwork or technical hurdles.
If you have senior loved ones, check in and ask how they’re feeling about rising costs and uncertainty. These conversations go a long way and might even lead to better solutions.
This trade war isn’t solely about economics. It involves peace of mind, dignity, and stability in retirement. While it may not be the type of Plan B that preoccupies the younger generation, it is equally important — perhaps even more so.
So, take a breath. Make a plan. Get creative with your budget, and look at ways to save. Tap into your home equity if necessary, and don’t hesitate to ask for help. With the right Plan B, you can face the future with confidence — and perhaps even enjoy a little fun along the way.
Here's a handy checklist to help you get started.
Quick Wins Checklist ❏ Cancel one unused subscription
❏ Call your mobile carrier for a better deal
❏ Bring lunch instead of dining out 1x/week
❏ Use a coupon or flyer on your next grocery trip
❏ Look for a senior discount before you pay
❏ Brew your coffee at home 3 days this week
❏ Research potential discounts on your car insurance (bundling or pay-as-you-drive options)
❏ Use your clothes dryer or other appliances during off-peak hours to save on electricity
Don’t Retire … Re-Wire!
Sue
In a recent case that left many “All Shook Up," a Missouri woman attempted to defraud the Presley family by claiming ownership of the iconic Graceland estate. Most stories involving “The King” make for good reading, and they also hold an important lesson for homeowners. This bold scheme is a stark reminder that fraud knows no boundaries—whether you live in a mansion or a modest home, fraudsters can and will target anyone.
The Graceland Fraud Attempt Lisa Jeanine Findley, a 53-year-old from Missouri, orchestrated a plan to defraud Elvis Presley’s family of millions by attempting to claim ownership of Graceland. She falsely alleged that Lisa Marie Presley had used Graceland as collateral for a $3.8 million loan that remained unpaid at the time of her death in 2023. To support her claims, Findley fabricated loan documents and filed fraudulent foreclosure notices, threatening to auction the estate if the supposed debt wasn’t settled.
Riley Keough, Lisa Marie’s daughter and heir to Graceland, challenged these claims in court, asserting that no such loan existed and labeling the foreclosure attempt as fraudulent. The court sided with Keough, blocking the sale and prompting Findley to withdraw her claims. Subsequently, Findley was arrested and charged with mail fraud and aggravated identity theft. She pleaded guilty in February 2025 and faces up to 20 years in prison, with sentencing scheduled for June 18, 2025.
Lawrence v. Maple Trust - A Canadian Fraud Attempt Closer to home, in 2006, Toronto homeowner Susan Lawrence fell victim to a similar scheme. Fraudsters transferred the title of her fully paid-off home into their names and registered a fraudulent mortgage with Maple Trust. Lawrence only discovered the fraud when she attempted to access her home equity.
After an initial ruling forced her to bear the mortgage debt, she appealed. The Ontario Court of Appeal reversed the decision, ruling that the lender should bear the loss, not the innocent homeowner. The case took nearly two years to resolve and cost Lawrence an estimated $50,000 to $100,000 in legal fees—not to mention the emotional and financial stress.
Lessons for Homeowners about Fraud This case highlights several critical lessons for homeowners:
1. Be Vigilant Against Fraudulent Claims: If fraudsters can attempt to steal Graceland, they can target your home too. Monitor your property records for unauthorized changes.
2. Don't Divulge Sensitive Information: Fraudsters can use social engineering tactics to piece together important information you share and use it to forge or alter property ownership records etc. Be careful with what you share, especially with strangers.
3. Regularly Monitor Property Records: Periodically checking public records for any unauthorized liens or claims against your property can help detect and address fraud early.
Online credit reporting services such as Credit Karma offer free apps and email alerts that can help you spot potential fraud.
4. Beware of Contracts: Watch out for deceptive practices employed by certain rental companies, leading to unexpected financial obligations and complications. Using deceptive, high-pressure sales tactics, these companies can leave homeowners burdened with property liens after signing contracts for appliances like furnaces, air conditioners, and water heaters. If you are faced with this, don't rush the process. Do some additional research and/or take the next step below.
5. Consult Legal Professionals: If you are pressured to sign a contract, receive dubious claims, or receive foreclosure notices, seek advice from qualified legal professionals to navigate the situation effectively.
4. Secure Title Insurance: Title insurance protects homeowners against potential defects in the title, including fraudulent claims. It’s a crucial safeguard that can prevent significant financial loss.
Let’s unpack this last point about Title Insurance.
What is Title Insurance: Your Best Defence Title insurance is a safeguard for homeowners, protecting them against potential issues related to the ownership of their property. This insurance ensures that the homeowner is shielded from financial loss if any unforeseen problems with the property’s title arise. Title insurance is a policy that protects property owners and lenders against financial loss resulting from defects in a property’s title. These defects can include unknown liens, encroachments, zoning violations, or even fraud that may have occurred before the homeowner acquired the property. Unlike other insurance types that cover future events, title insurance addresses past events that could affect property ownership. Why is Title Insurance Necessary? Purchasing a property is often the most significant investment individuals make. Title insurance provides peace of mind by ensuring the property’s title is clear and free from unforeseen issues. Without this protection, homeowners could face legal disputes or financial losses if a problem with the title emerges after the purchase. For instance, if a previous owner’s unpaid taxes or undisclosed heirs come forward claiming ownership, title insurance would cover the legal fees and potential losses associated with resolving these issues.
The Cost of Title Insurance in Canada In Canada, the cost of title insurance varies depending on factors such as the property’s value and location. Typically, premiums for residential properties range from $250 to $500. However, the cost can increase for higher-valued properties. This premium is a one-time payment made during the closing process and remains valid for as long as the homeowner owns the property.
Providers of Title Insurance in Canada Several reputable companies in Canada offer title insurance. Some of the prominent providers include:
FCT (First Canadian Title) Stewart Title Please note: None of the providers above are sponsored links.
How to Check if You Have Title Insurance If you’re uncertain whether you have title insurance, consider the following steps:
1. Review Your Closing Documents: Examine the paperwork you received during the property’s purchase. Look for any mention of title insurance policies.
2. Contact your real estate lawyer: The legal professional who helped with your property purchase should have records showing whether title insurance was obtained.
3. Contact Title Insurance Providers: Most Title Insurance companies maintain issued policy records. Contacting them directly can help confirm whether a policy exists for your property.
Homeowners Without a Mortgage: A Higher Risk Group If you’re a homeowner who owns their property outright, you can be at a higher risk concerning title-related issues. Why? Fewer parties (such as lenders) monitor the property’s status when no mortgage is in place. By contrast, when a mortgage is involved, most lenders today, as a rule, require title insurance to protect their investment, indirectly safeguarding the homeowner as well. However, some homeowners might overlook obtaining title insurance without a lender's mandate. This leaves you more vulnerable to potential title defects or fraudulent claims against your property.
Real estate fraud is not a problem reserved for the wealthy—any homeowner can become a target. Securing title insurance and staying vigilant is the best way to protect your property and your financial future. It's such an important topic, I'll be sharing more tips on title insurance in future posts. After all, as Elvis might say, “What I say is true; if it could happen to the King, it could happen to you.”
Don’t Retire … Re-Wire!
Sue
