Featured Post from Retire with Equity

The Retirement Games

From Sprint to Marathon, The New Retirement Reality.

May 22, 2025

9 min

Sue Pimento

Have you ever dreamed of being an Olympic athlete? Perhaps you have wondered what it would feel like to stand on that podium in front of the world as your national anthem plays. For most Olympic athletes, the journey begins very early in life. But imagine what it would be like if you started training for this event in your 60s? Read on if you want an edge to discover how to win the Retirement Games and still pass the drug test (let’s face it, peeing is not an issue for many at that age)! Here is your chance to get on the podium at the most crucial game of your life.


On Your Marks, Get Set, Ready, Go!


Retirement was more like a coffee break five decades ago—brief, predictable, and over before your muffin cooled. In 1975, the average Canadian could expect to live about 73.53 years. Fast forward to 2025; we're clocking in at nearly 83.26 years. Even juicier? The lastest research shows half of today's 20-year-olds in Canada are expected to live past 90. 


That’s why we need to think of retirement these days, not as a sprint; instead, it’s an ultramarathon with hills, potholes, and the occasional pulled hamstring. Most of us never expected to be training for it in our sixties, but here we are—so pull up your compression socks and move. The starter's pistol is about to fire, whether you're ready or not!


Surprise! You're Retired


While you may dream of selecting your retirement date like a fine wine, many face the reality of a boxed kind instead. Approximately 6 in 10 Americans retire earlier than they planned. Research from the Transamerica Center for Retirement Studies shows that many individuals experience unexpected early retirement due to personal health issues, employer discretion, or family-related circumstances. https://www.cbsnews.com/news/retirement-age-in-america-62-claiming-social-security-early/


Sometimes, it's a health scare, a loved one’s illness, or a harsh employer downsizing. Nobody whispers the term "ageism," but when companies replace senior employees with younger, more affordable talent (or AI bots), it’s not subtle—it’s math.As Morgan Housel reminds us in his bestseller, The Psychology of Money, "The most important part of every plan is planning for your plan, not going according to plan." Expect the unexpected. Train as if retirement could sneak up on you—because it just might.


Get Fit, Stay Sharp: Health is the First Leg of the Race

Physical and mental health are the fuel for your retirement. The rest doesn’t matter without them; we’re not just talking about lifting weights. (Though, yes, lift some weights.) Regular physical activity provides numerous benefits for older adults, including a reduced risk of dementia and enhanced cognitive function. Exercise can help maintain brain health, reduce mental decline, and even reverse some age-related brain shrinkage. Additionally, physical activity can improve mood, reduce anxiety, and enhance balance and coordination, leading to a better quality of life.


• Strength training enhances bone density, metabolism, and mental health. (Source: Mayo Clinic)

• Flexibility and balance? Try yoga or tai chi. Harvard Health says they reduce pain and stiffness.

• Mental fitness? Cue up Wordle, Canuckle (the Canadian cousin), or Sudoku.

• Dancing? It's beneficial for your brain and your swagger 

• Listening to music or playing an instrument can reduce stress and boost memory.


Gold Medal Tip: Motivation is overrated; action is everything. Don’t be a couch potato. A new study conducted at the University of Pittsburgh School of Medicine shows that older adults who spend more time sedentary — such as sitting or lying down — may be at a higher risk for lower cognition and in areas linked to the development of Alzheimer’s disease, no matter how much they exercise! So make sure you show up, move, and the motivation will catch up.



Wealth Training: Stop Hoping, Start Budgeting

Here's a shocker: Retirement doesn't mean your expenses magically disappear. According to Steve Willems' podcast “10 Retirement Myths You May Not Want to Believe,” most retirees don’t spend less. Aside from the mortgage, spending remains surprisingly consistent, especially during the Go-Go years (ages 55-75)”.


We like what we like: groceries, entertainment, travel, and stylish or comfortable clothes are still on our shopping lists. That’s why many of us in retirement will need to pay more attention to spending and budgeting.


Check Obligation Spending


Retirement is the perfect time to reevaluate expenses from obligation rather than genuine need or joy. Here's a thoughtful way to frame that idea:


Retirement is the season of freedom, so why are you still paying for things that feel like a burden?

Now that you’re no longer earning a regular paycheck, every dollar matters more than ever. This means it’s time to take a closer look at obligatory expenses.


These might include:

• Helping adult children financially (even when it stretches your budget)

• Donating to every fundraiser or cause just because someone asked

• Hosting large family gatherings that leave you exhausted and over budget

• Maintaining memberships, subscriptions, or traditions that no longer bring you joy. (We talk a lot more about this in a previous post What’s your Retirement Plan B


While generosity is admirable, it shouldn’t jeopardize your financial security or peace of mind. Retirement should focus on investing in what truly matters to you now, rather than keeping up appearances or adhering to outdated expectations.


Here’s a gentle mantra to adopt: “I’ve earned the right to say no with love and confidence.” Freeing yourself from obligation spending doesn’t mean becoming stingy; it means becoming intentional. Give where your heart feels full, not where your guilt feels heavy. After all, you didn’t work all those years to keep writing checks out of habit.


Balance Beam- Budget


What’s your plan when overtime isn’t an option and the budget doesn’t balance? Start with a good old-fashioned reality check:

• Write down ALL expenses.

• Tally up your income.

• Look for a surplus (yay, trip!) or a shortfall (boo, time to pivot).


Look at Canadian Government Pensions

• Here's the math.  Old Age Security (OAS): Max is about $713/month or $8,556/year. And don’t forget the dreaded government clawback (formally known as the Old Age Security Pension Recovery Tax which starts at ~$90,997.

• Canada Pension Plan (CPP): The average monthly payment is $758, while the maximum is $1,364 per month or $16,368 per year.


So with these two programs combined, provided you meet requirements, as a senior, you're looking at somewhere between $17,000–$25,000/year before tax. If your lifestyle needs a bit more jazz hands, here’s how to bridge the gap:

 

DIY Income Builders:

• Slash debt. Every dollar you don't spend is one you keep.

• Downsize and bank the equity.

• Buy or build an ADU and rent it. I have written more about ADU's here.

• HELOC or Reverse mortgage (borrow strategically).

• Withdraw from investments (4% rule).

• Monetize your skills: consulting, tutoring, or writing that novel you started in 1993.


Gold Medal Tip: Track your joy per dollar. If you’re going to spend, make it worth it.



Rewire, Don’t Retire: Finding Purpose


The biggest myth of retirement? That doing nothing feels good forever. (Spoiler alert: it doesn’t.)

Passion is your GPS. It guides you towards what fills your heart. Whether you write poetry, walk dogs, or paint birds wearing tiny hats, your joy matters. And legacy? That’s just purpose with staying power. There’s science to support the benefits of this lesson. A study in JAMA Psychiatry found that people with a sense of purpose had a lower risk of mortality and disability 


Purpose-Driven Paths:


• Volunteer: Look for a cause that fires you up.

• Get a part-time job: Perhaps you can fill in at a local bookstore, garden center or be a barista?

• Hobbies: Take up painting, pottery, or poetry.

• Go Back to School: Many Universities such as The University of Toronto offer free, non-credit courses through programs as part of their community outreach.  Seniors (over 60) enrolled at York University may have all or part of their academic fees waived at the domestic fee rate for York University degree credit courses as part of their mature student program. 

• Spend real time with people you love, maybe your grandkids or elderly parents.

• Reconnect with old friends – not just on Facebook, but in person

• Get out of your backyard and see the world


Gold Medal Tip: You're never too young (or too old) to chase what lights you up. Start a business, get that degree you always wanted, and write that book. Go. For. It.


Support: No One Trains Alone


Retirement can be lonely. As we age, friends pass, routines fade, and isolation creeps in. That’s why your squad matters more than ever.


Find Your Pod:

• Family & Friends: Set expectations. Ask for help. Host Sunday dinners. Stay connected.

• Fitness & Social Clubs: Join a walking group or participate in a gym class, followed by regular post-sweat coffee.

• Faith Communities: Spirituality and structure in one. Sing in the choir. Serve at events.

• Third Places: As sociologist Ray Oldenburg says, these are neutral hangouts like libraries, community centers, or your local café. They’re tied to lower loneliness and better mental health. Think of Cheers: “Where everyone knows your name!”


Gold Medal Tip: Your local pickleball court or knitting circle might just be your new training ground.

Attitude Training: Stop Acting Your Age

Here’s a radical thought: Maybe we feel old because we act old. Want to stay young? Stay curious, try new things. Try line dancing, pickleball, bird watching, improv, or learning to code. Yes, code.


What was the worst advice our mothers gave us? “Act your age.” Nonsense! Whoever said, “You’re only as old as you feel” was on to something – but let’s take it up a notch: How about you’re only as old as your playlist!


The Power of a Youthful Attitude in Retirement


A successful retirement isn’t just about savings accounts and spreadsheets — it’s about mindset. A positive, youthful attitude is one of the most powerful (and overlooked) assets you can carry into retirement.


Even if you don’t feel youthful or optimistic, “fake it ‘til you make it” is more than just a catchy phrase—it’s a strategy. The goal isn't to accurately describe your aches, fears, or fatigue but to set yourself up for success!


Science backs it up: a positive outlook boosts health, sharpens cognition, and increases longevity. From a practical perspective, optimism makes it easier to try new things, adapt to change, and enjoy the present—all essential in retirement.


So, if the voice in your head says, “I’m too old for that,” try responding with, “This is my time.”

You begin to build because what you tell yourself matters, as does what you believe.

Retirement is your reward. Approach it like the vibrant, capable, unstoppable human you are because attitude, not age, sets the tone.


Gold Medal Tip: You’re only as old as the last thing you tried for the first time. Try something ridiculous, I double dare you!


Final Stretch


The Retirement Games are here, and let me be crystal clear: this isn’t amateur hour. This is your Olympic moment, with medals awarded for stamina, strategy, and a solid sense of humour. Whether you're rounding the first turn at 45 or doing your victory lap at 75, now is the time to train.

You’ve built strength, stretched your budget, flexed your purpose muscle, assembled your dream team, and rebooted your mindset. Now it’s time to lace up, lean in, and live life to the fullest.

This isn’t about perfection; it’s about preparation. You won’t achieve a podium finish through wishful thinking; you’ll attain it through action, adaptation, and a great deal of repetition.

So, put on your metaphorical tracksuit (or actual tracksuit if it's laundry day) and begin training with determination. The gold medal retirement isn’t just possible—it’s within reach.

Cue the confetti cannon. You’re not just aging—you’re advancing. And champions, as we know, don’t retire… they rewire, recharge, and rewrite the playbook.


On Your Marks, Get Set, THRIVE!


Don’t Retire … Re-Wire!

Sue


Connect with:
Sue Pimento

Sue Pimento

Founder | CEO

Writer, author & presenter focused on financial literacy and retirement strategies. I advocate for the health, wealth & purpose for retirees

Pension ReformInterest RatesHome EquityMortgagesReverse Mortgages
Powered by

You might also like...

Check out some other posts from Retire with Equity

There's No Such Thing as the Average Canadian Retiree. There Are Three. featured image

5 min

There's No Such Thing as the Average Canadian Retiree. There Are Three.

You've seen the photo. Silver-haired couple on a sailboat, or walking on a beach at golden hour, laughing about nothing in particular. It's on the cover of every retirement brochure ever printed. It's what "the average Canadian retiree" looks like. In thirty years of banking, I never met that couple. I met a widow in her seventies deciding between a dental crown and her property taxes. I met a couple in their sixties quietly draining their RRSPs to keep a grandchild in university. And yes, I met people with sailboats, though they weren't asking me about retirement income. They were asking about estate freezes and charitable foundations. Three conversations. Three completely different Canadians. And after three decades of having them, most recently as a vice president at one of Canada's Schedule I banks, I've come to believe our biggest retirement problem isn't that Canadians plan badly. It's that we keep designing for an "average retiree" who doesn't exist. In The Canadian Retirement Evolution, a report newly published by EY that I was proud to co-author, I make the case for seeing Canadian retirees as three distinct groups. 1) Retirees in Need (roughly 30%) Nearly one-third of Canadian retirees are living close to the edge. Limited pension income, modest personal savings, and rising living costs define their retirement. Adding to the pressure, retirement debt is becoming the new reality. According to Royal LePage, 29% of Canadians who are recently retired or approaching retirement expect to continue making mortgage payments on their primary residence. For many Canadians, debt has become a permanent companion, extending well into what should be their most financially secure years. Perhaps the most troubling reality is this. Most people in this group have never received professional financial advice. The Canadians who need planning the most are often the Canadians the financial planning industry reaches the least. That should concern every financial institution, advisor and policymaker in this country. When retirement arrives with too little income, too much debt and no plan, the result is not just financial stress. It is anxiety, reduced independence and difficult choices that no Canadian should have to make after a lifetime of work. 2) Retirees Seeking Stability (roughly 60%) This is the majority of Canadian retirees, and the group that the sailboat photo completely misses. They are not financially struggling, but neither are they financially free. They have enough to retire, but not enough to stop worrying. What they want is simple. They want to maintain the lifestyle they spent forty years building. They want confidence that their money will last as long as they do. They want a retirement plan that offers stability and predictability. And they want the freedom to help the people they love, whether that's contributing to a grandchild's education, helping with a first home, or lending a hand when life throws one of their children an unexpected curveball. That is where retirement becomes complicated. Retirement has changed dramatically over the past three decades, but much of the advice Canadians receive has not. The result is a growing gap between today's retirement realities and yesterday's retirement plans. Every dollar shared with family is one less dollar available to fund their own future. Every unexpected expense raises the same unsettling question: Will I still have enough? This group lives in the space between abundance and anxiety. They have assets, but not always confidence. They have choices, but every choice comes with trade-offs. They don't need a miracle. They need a plan that provides stability, predictability, and the confidence to enjoy the retirement they worked so hard to earn without constantly wondering if today's decisions will become tomorrow's regrets. 3) Affluent Retirees (roughly 10%) The remaining ten percent focuses on sophisticated wealth management: transferring wealth to the next generation, structuring estates to minimize taxes, and giving philanthropically. These are good problems to have, served by an entire industry built to solve them. And that's the uncomfortable truth hiding in the framework: most of our retirement advice, most of our products, and most of our planning tools were designed with this group in mind. Retirement Fear Has a Name In 1990, more than 70% of Canadian workplace pension plans were defined benefit plans, providing predictable, guaranteed lifetime income. By 2022, that figure had fallen to just 37%. In the span of a single working generation, we quietly shifted the risk of outliving retirement savings from institutions to individuals. The anxiety created by that shift is something I encountered in thousands of conversations with Canadians throughout my lending career, long before I had a name for it. I call it FORO, the Fear of Running Out. In the EY report, we describe it this way: "Fear of running out (FORO) reflects a structural gap in retirement system design, not a failure of individual planning. Most retirement frameworks were built for accumulation rather than sustainable income in later life." That is the heart of the challenge. Canada's retirement system does an excellent job of helping people save, but far less to help them transform those savings into sustainable, predictable income throughout retirement. It is little wonder that so many Canadians approach retirement with uncertainty rather than confidence. The Elephant in the Living Room One final reality deserves far more attention. Canada is in the midst of one of the largest intergenerational wealth transfers in its history. Much of that wealth is tied up in residential real estate, owned by Canadians who consistently say they want to remain in their homes for as long as possible. That creates an important contradiction. The largest asset held by most Canadian households is also one of the least integrated into mainstream retirement planning. We encourage Canadians to build home equity for decades, then often ignore it when they need income the most. If retirement planning is meant to consider every available resource, why do we continue to overlook the largest one? Resolving that question has become the focus of my research and my forthcoming book, Your Retirement Reset: How to Convert Home Equity into Financial Security (ECW Press, September 2026). But that discussion extends beyond the scope of this article. For now, it is enough to recognize the disconnect. Retirement has changed. Canadians' balance sheets have changed. It may be time for retirement planning to change as well. A Retirement System Designed for Everyone The EY report reminds us that retirement is more than a financial milestone. It is one of life's most significant transitions, and every Canadian deserves to approach it with confidence, dignity and choice. That outcome will not be achieved with a retirement system designed around a single, hypothetical retiree. Canadians retire with different financial realities, different goals and different challenges. A retirement system that recognizes only one path will continue to leave too many people behind. Designing for the three retirement realities outlined in this paper is not simply good policy. It is good business. Financial institutions that tailor products, advice and education to meet the needs of all three groups will be better positioned to serve Canada's fastest-growing demographic. Policymakers who encourage that evolution will help create a retirement system that reflects the way Canadians actually live today, not the way they lived thirty years ago. The question is no longer whether retirement has changed. It has. The question is whether our retirement system will evolve quickly enough to meet Canadians where they are. Don't Retire... Re-Wire! Sue

Canadian Retirement Expert Susan Pimento Co-Authors Newly Released EY Report on the Future of Retirement in Canada featured image

3 min

Canadian Retirement Expert Susan Pimento Co-Authors Newly Released EY Report on the Future of Retirement in Canada

Former bank executive and Retire with Equity founder says "fear of running out" reflects a structural gap in retirement system design — not a failure of individual planning TORONTO, ON — July 23, 2026 — Susan Pimento, founder of Retire with Equity, is a co-author to The Canadian retirement evolution: Why financial institutions and policymakers must rethink retirement, a new report published today by EY examining how Canada's retirement landscape is changing — and why the systems built to support retirees are struggling to keep pace. The report arrives amid a structural shift in how Canadians fund retirement: in 1990, over 70 percent of Canadian workplace pension plans were defined-benefit schemes providing predictable lifelong income; by 2022, that figure had fallen to 37 percent — shifting investment risk, and the fear of running out onto individuals. Drawing on more than 30 years of senior leadership in Canadian banking and frontline lending, including serving as Vice President at a Schedule I bank, Pimento contributed a framework that groups Canadian retirees into three primary categories, each with distinct financial circumstances and priorities — a lens designed to help financial institutions and policymakers move beyond one-size-fits-all retirement planning. Sue Pimento is also the author of the forthcoming Your Retirement Reset: How to Convert Home Equity into Financial Security (ECW Press, to be released September 2026), "Fear of running out — FORO — reflects a structural gap in retirement system design, not a failure of individual planning," said Pimento. "Most retirement frameworks were built for accumulation rather than sustainable income in later life. Canadians aren't failing their retirement plans. In many cases, the plans were never designed for the retirement they're actually living." Pimento's contribution reflects the research focus of Retire with Equity, which provides retirement intelligence to Canada's financial sector on its fastest-growing and wealthiest demographic: adults 55 and over. Her forthcoming book examines how home equity — the largest asset most Canadian households hold — can be strategically converted into retirement income, and argues it belongs in every retirement conversation and product roadmap. "The industry has spent decades perfecting how Canadians save," Pimento added. "The next decade will be judged on how well we help them spend — sustainably, confidently, and without fear." The EY Report: "Canadian Retirement Evolution" is publicly available at: https://www.ey.com/en_ca/insights/financial-services/canadas-retirement-evolution Media availability: Susan Pimento is available for interviews and commentary on: retirement income design the three categories of Canadian retirees financial strategies for aging in place Intergenerational financial conversations about money (between seniors and their adult children) home equity strategies new ways for government and banks to serve the 55+ demographic About Susan Pimento Susan Pimento brings deep experience to the conversation on modern retirement strategies in Canada. With over 30 years of senior leadership in banking and frontline lending — including serving as Vice President at a Schedule I bank — she now advises financial institutions and policymakers on how to modernize retirement solutions and engage Canada's fastest-growing, wealthiest demographic: adults 55+. She is the founder of Retire with Equity and author of Your Retirement Reset: How to Convert Home Equity into Financial Security (ECW Press, September 2026). . Media Contact: Susan Pimento Website: www.retirewithequity.ca Email: sue@retirewithequity.ca

Everything Old Is New Again. Even Layaway. featured image

8 min

Everything Old Is New Again. Even Layaway.

I've noticed a flurry of articles lately about the explosive growth of Buy Now, Pay Later. The Globe and Mail reported that BNPL has gone fully mainstream, with Canadians across income levels stretching groceries and gadgets into “manageable” monthly bites. The Walrus ran a piece by Vass Bednar arguing that BNPL has quietly become a shadow credit system that doesn't show up on any credit bureau's radar until it implodes. Reading both, I couldn't help but smile. Not because the trend is amusing, quite the opposite. It's because we've been here before. Long before Klarna, Afterpay, Sezzle and Affirm, there were Sears, Woolworth's, Kmart and Leon's. Canadians had layaway. No app, no one-click checkout, no influencer urging you to split a purchase into four easy instalments. Just a patient store clerk, a paper receipt, and a straightforward deal: you made payments over time, and only after the last one cleared did you take the item home, along with the quiet pride of knowing you'd earned it. Delayed gratification wasn't a burden; it was simply how responsible people bought things. Try explaining that to a twenty-five-year-old today. “Wait... what? You paid for it, and they wouldn't let you take it home?” Over the past forty years, we quietly flipped the model upside down. Yesterday's philosophy was pay first, enjoy later. Today, we enjoy first, pay later. The payment schedule looks remarkably similar, but the psychology could not be more different. That took me straight back to my childhood, when my parents represented two entirely different schools of financial thought. To Dad, cash wasn't just king; it was emperor, prime minister, pope, and captain of the soccer team, all rolled into one. If he didn't have it, he didn't buy it. Mom's favourite line was different: “If I waited until I could afford it, I'd never get it!” One afternoon, she came through the door beaming and announced, “I saved a thousand dollars today!” This was the 1970s, real money, and we waited breathlessly to hear how. “I bought a baby grand piano,” she said. “It was four thousand, on sale for three. I saved a thousand dollars!” The room went silent. Technically, she wasn't wrong. Dad never fully embraced Mom's definition of “saving.” I believe he eventually paid off the piano. I'm less convinced he ever settled the argument. Looking back, I don't think they were arguing about money at all. They were arguing about time. Dad believed that sacrificing today made tomorrow easier. Mom believed that tomorrow would work itself out. If they were alive now, Dad would still be carrying cash in his wallet, and Mom would have four BNPL apps on her phone and know exactly which one had the best promo running. I suspect most of us carry a bit of both. We're remarkably good at convincing ourselves that Future Me will be wealthier, more disciplined, and generally more together than Present Me. Future Me will get the raise, won't mind another monthly payment, will eat well, will sleep eight hours, will exercise regularly, and will never procrastinate. Read that again. Now look in the mirror. Got you, didn't I? Future Me usually looks a lot like Present Me, just with a few more wrinkles and a little less earning power. Behavioural economists call this present bias, or hyperbolic discounting: we place a much higher value on immediate rewards than on future ones. Nobel laureate Richard Thaler and Shlomo Benartzi built much of their retirement research around this tendency, and their Save More Tomorrow program showed how much help people need to overcome it (Thaler & Benartzi, 2004). Once you see that, BNPL stops looking like a payment option and starts looking like brilliant behavioural design. A $2,000 purchase quietly becomes “only $83 a month.” The price hasn't changed; our perception has. That, not the payment plans themselves, is the real story: the tug-of-war between Present Me and Future Me. That explains why so many Canadians struggle to save for retirement and often arrive there wishing we decided differently decades earlier. Why Is BNPL Suddenly Everywhere? Convenience is only part of the answer. The real drivers are rising living costs, stubborn inflation, and a culture that's grown allergic to waiting. BNPL fits that mindset perfectly: Payments Canada data shows usage rising from roughly 9% in 2022 to 25% in 2024. Younger Canadians cite quick access to credit, while middle-aged Canadians call it a budgeting tool. One group sees borrowing; the other sees it as managing cash flow as paycheques stretch less far. A recent Globe and Mail report on Koho's Grocery Gap data found that BNPL use for groceries more than doubled between May 2025 and May 2026, while incomes barely budged. Dad would have hated that explanation. Mom would have reminded him that life doesn't wait for your savings account to catch up. Like most financial tools, BNPL is neither inherently good nor bad. A hammer can build a house or break a window, depending on who's holding it. If your furnace dies mid-winter, financing the replacement is one of the smartest moves you'll make. The same goes for emergency dental work or a computer you need for work. Those are investments, not expenses. Financing concert tickets or a smartphone upgrade because yours is eighteen months old is a different category, one where Future Me keeps paying long after Present Me has finished enjoying the fun. Whenever I'm unsure where a purchase belongs, I ask one question: will this make my financial life stronger a year from now, or will I still be paying for it? Retailers didn't embrace BNPL out of concern for our budgeting skills; they embraced it because it works. Research from the National Bureau of Economic Research found that offering BNPL at checkout increases sales by roughly 20%, largely by nudging people to spend more than they otherwise would (Berg et al., 2024). The product hasn't changed, and your income hasn't changed; only the payment method has. That's why “$89 a month” feels far less alarming than “$2,500,” even though the math is identical. A Word on Fraud Here's a related trend that concerns me, especially for older homeowners: be cautious when someone knocks on your door offering a new roof, windows, or solar panels for “only a few dollars a day.” Before signing, ask: did I think I needed this before the salesperson showed up? Sometimes yes. Roofs wear out. But sometimes the problem is manufactured right along with the financing, and a $25,000 renovation can sound reasonable when framed as “less than your cable bill.” Dad would have insisted on three quotes; Mom would have admired the enthusiasm. Listen to Dad: get multiple estimates, loop in someone you trust, and never sign on the spot. Read that again. Never sign on the spot! The RRSP Parallel and What Retirees Should Watch For BNPL also parallels something I wrote about recently in Canada's RRSP Program Has Too Many Jobs. The Home Buyers' Plan looks nothing like Buy Now, Pay Later on the surface, but look closer, and they sound alike. Both solve today's problem by borrowing from tomorrow's resources. It's helped thousands get into homes, and homeownership remains one of the best long-term wealth builders. But every dollar pulled from an RRSP stops compounding for retirement. We celebrate the house and quietly forget the retirement income we gave up for it, Present Me negotiating a deal Future Me eventually must honour. And Future Me always shows up, whether we're ready or not. It's tempting to think of BNPL as a young person's problem, but the psychological pull intensifies in retirement, not diminishes. When you're working, the next paycheque is a couple of weeks away. In retirement, every purchase competes with a finite pool of assets that may need to last thirty years. Financing groceries isn't a budgeting strategy; it's a signal that your income isn't keeping pace with your lifestyle. If every purchase starts with “what's the monthly payment?” instead of “can I actually afford this?” it's time to step back. I've long recommended imagining every purchase as a conversation with your retired self: would Future Me thank me, or wish I'd shown more restraint? Isn't a Reverse Mortgage the Same Thing? Some readers wonder whether reverse mortgages belong in this conversation. I'd argue they're nearly the opposite. Both involve money today and repayment later, but that's where the similarity ends. BNPL borrows against tomorrow's income to finance today's consumption, while a reverse mortgage, used appropriately, converts wealth you've already built into retirement income. One asks Future Me to earn more; the other recognizes that Past Me already did the heavy lifting. There's a world of difference between borrowing against tomorrow and drawing on yesterday's success. Whatever Happened to Paying Cash? Dad's advice was simple: if you can't pay cash, don't buy it. It's a little outdated now. Few of us carry cash anymore, and digital payments are so seamless that spending barely feels like spending. Tap, click, done. Maybe the rule just needs updating. Instead of “can I pay cash?” try “if I had to pay for this in full today, would I still buy it?” That shifts our focus from the monthly payment to the total cost and from affordability to value. BNPL isn't inherently good or bad; it's a tool like any other, and the real danger is forgetting that every financial decision is a negotiation between Present Me and Future Me. What My Parents Really Taught Me Looking back, my parents weren't really arguing about money; they were arguing about time. Dad taught me the value of patience and living within my means, and he understood instinctively what behavioural economists would later prove: delaying gratification pays remarkable dividends. Mom taught me something just as important: that life isn't meant to be spent waiting forever, and that some experiences create memories no investment account can measure. The wisdom lies in knowing the difference. Retirement requires both the discipline to save while working and the wisdom to enjoy what you've built. Save every penny and never spend it, and you've missed the point, tragically. Spend it all before retirement arrives, and biology has a nasty habit of showing up right on schedule, winning every time, just as tragically. Perhaps that's the real story behind Buy Now, Pay Later. It was never really about payment plans; it's about patience, priorities, and the lifelong conversation between who we are today and who we're becoming tomorrow. Present Me always gets the microphone, while Future Me waits quietly in the wings, hoping today's decisions leave something to work with. Next time you're offered four easy payments, ask the better question: will Future Me thank me for saying yes? Someday, Future Me becomes Present Me, and that's the day we find out whether today's purchase was an investment in our happiness or just another bill waiting, not so patiently, for retirement. I have a feeling Dad would smile reading this, quietly certain he'd finally won the argument. Mom would smile too, already wondering if she could get that validation in four easy instalments, and still call it saving money. Don’t Retire … Re-Wire! Sue

View all posts
Powered by