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


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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

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Seniors and AI (Part 2): Exercise Caution featured image

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Seniors and AI (Part 2): Exercise Caution

If you haven't read Seniors and AI (Part 1) What Could Possibly Go Wrong?, catch up here. My friend Gloria told me she asked her AI assistant what to do about a “sore knee,” and it suggested she might be experiencing “symptoms consistent with early-stage gout, possible DVT, or referred pain from lumbar stenosis.” Gloria is 74, lives alone, and spent the next three hours convinced she was dying. She was not. She had slept on the couch in an awkward position. This is Part 2 of our look at Seniors and AI. If Part 1 was about the laughs, Part 2 is where we put on our reading glasses and pay attention. When technology moves from ordering groceries to offering medical advice or emotional support, the stakes get considerably higher than an accidental pineapple on your pizza. AI and Medical Advice: The Good, the Bad, and the “You Googled What?” Let’s give credit where it’s due. AI genuinely helps in healthcare in meaningful ways. It’s available at 2 AM without judgment. It translates medical jargon into plain English. It can help you walk into a doctor’s appointment with better questions instead of the usual panicked stare. But here’s what it cannot do: see you, touch you, or notice you’re limping. It can’t smell an infection, hear the wheeze in your chest, or detect the subtle signs that something is wrong. At its core, it is an elaborate and very polite Google search. Not a doctor. Takita et al. (2025), in a systematic review and meta-analysis published in Digital Medicine, found that the overall diagnostic accuracy of generative AI models is about 52 percent. Read that again. Fifty-two percent. Suitable for a second opinion, nowhere near sufficient to replace an experienced clinician. And yet, we hear a confident-sounding response and think, “Well, the computer said so.” Confidence and correctness are not the same thing, a lesson most of us learned the hard way in our thirties. When AI Is Safe (and When It Is Decidedly Not) Go ahead and ask AI about: What does that lab term on your bloodwork actually mean Common side effects of medications you’re already taking Questions to bring to your next appointment General information about a health condition Do not ask AI about: Anything you’d describe as “just making sure it’s not something bad”? Chest pain, sudden numbness, or anything that begins with “I’ve never felt this before” Whether to stop taking a medication Whether your symptoms are serious enough to go to the ER Think of AI as the helpful intern, not the chief medical officer. You’d let the intern look something up for you, but you wouldn’t let the intern prescribe your blood pressure medication. Bottom line: if you wouldn’t trust your toaster to measure your blood pressure, don’t trust a chatbot to diagnose your heart. AI Therapy: Comfort or Catastrophe? Mental health chatbots promise empathy. Let’s be precise about what that means: they simulate compassion, not feel it. There is a difference, and it matters. A Stanford University study (Moore & Haber, 2025) warns that therapy chatbots can reinforce stigma or provide genuinely unsafe responses. They can’t detect tone, see tears, read a room, or call for help when things turn dark. This is especially concerning for older adults. Loneliness and depression are common among seniors and are routinely dismissed as “just slowing down” or “getting older.” That’s not aging. Those are invisible illnesses that deserve real attention and real human connection. The Signs We Miss According to the National Institute on Ageing’s 2025 Ageing in Canada Survey, 57 percent of Canadians over 50 report feeling somewhat or very lonely, and 43 percent are at risk of social isolation. These figures haven’t changed since 2022. This is not a fringe problem. It is a quiet epidemic hiding in plain sight. Watch for these signs in yourself and in the people you love: Pulling back from activities they once loved Sleeping too much or not nearly enough Loss of appetite or unexplained weight changes Talking nonstop when the company finally arrives (that’s hunger or severe loneliness, not chattiness) Inventing reasons to call or visit Self-deprecating humour that feels a little too real. Here’s a small but important piece of advice: don’t ask, “Are you lonely?” You’ll get a cheerful “Of course not!” Pride and independence run deep, especially among a generation that survived things we can’t imagine. Instead, act as if. Drop by with coffee. Ask for help with something they are well versed in. Bring the dog. Go for a walk. Sit quietly and watch a show together. Share a meal. Loneliness doesn’t always need a conversation. Sometimes it just needs to know someone showed up. What Your Elder Is Thinking (But Will Never Tell You) Tread carefully here. These thoughts tend to live in the quiet spaces between sentences, felt but rarely spoken. How much time do I have? Have I done enough? Will my money run out before I do? Will anyone remember me? Do I still matter? Why do I feel so sad? Why are my friends getting sick and slipping away? Will I get sick? Who will look after me? Do my children know I love them? What if I start to forget? The creeping fear of losing names, faces, the stories that make life feel like mine. Am I a burden? (This one usually hides behind a joke.) What if my best days are already behind me? Some of these will surprise you. Some won’t. Some will make you want to pick up the phone right now. That’s the right instinct. You don’t need to fix these feelings. Sometimes, sitting quietly with someone in the silence between their words is the most healing thing you can offer. For the Family: What to Watch For and What to Do A quick note for the kids, grandkids, nieces, nephews, and anyone who forwards funny videos to their grandparents: your elders are going to experiment with AI. Probably the same way you experimented with your first beer or a regrettable tattoo: curious, enthusiastic, and occasionally overconfident. Watch for these warning signs: Increasing withdrawal from real-world activities and people Confusion about what is real versus AI-generated Replacing actual conversations with chatbot exchanges Acting on AI medical or financial advice without verifying it with a professional Being secretive or evasive about what they’re doing online Here is what you can do: Connect regularly. Ask what they’re learning or laughing about. Create opportunities for in-person time. FaceTime counts in a pinch, but in-person is irreplaceable. Know when to call the doctor. Know when all they need is your time. Don’t lecture. Don’t infantilize. Just stay connected. The best firewall against the risks of AI is not better technology. It’s better relationships. The Real Threat: Replacing Connection Here is the uncomfortable truth. AI is tempting. It’s always available, never interrupts, doesn’t judge, and responds instantly without getting distracted by its own problems. For someone who feels lonely, invisible, or like a burden, that can feel like a lifeline. But it’s a false one. AI cannot hold your hand or share a meal. It can’t laugh at your jokes in a way that truly counts. It cannot offer the warmth of human presence, which is what we need most, especially as we age. The danger isn’t primarily that AI will give bad medical advice, though it might. The danger is that it will replace human connection altogether. And that is a problem no algorithm can solve. CTRL ALT DEL: Now Go Call Someone AI is a tool. Part marvel, part mistake, and entirely dependent on who holds it. Use it wisely. Enjoy the entertainment. Stay curious. And remember who is actually in charge. Technology will keep getting smarter. It will not get warmer. It will not hear the sound of your laugh, remember the story you’ve told seventeen times, or show up at the door with soup when you’re not feeling well. That is still us. That will always be us. So yes, let Gloria ask her AI about her knee. But let’s also make sure someone calls Gloria on Tuesday. Key Takeaways Use AI for information, not diagnosis or treatment. Stay alert to signs of loneliness in yourself and in the people you love. Stay genuinely connected with older family members and friends. When in doubt, choose the human over the algorithm. The greatest upgrade to AI isn’t a newer version. It’s showing up. Sue Don't Retire...ReWire! My Book is Now Available for Pre-Order I hope you will consider pre-ordering a copy of Your Retirement Reset for you, a friend or loved one. It's available September 8, 2026 - You can now order on the ECW Press site here. And if you love supporting Canadian booksellers, please also check with your local independent bookstore. Most can easily order it for you.

Canada’s Retirement Problem Is Not “Boomer Luxury Communism” featured image

8 min

Canada’s Retirement Problem Is Not “Boomer Luxury Communism”

A recent Washington Post column by Pulitzer Prize-winner George F. Will caught my attention. A prominent American conservative warns about a demographic apocalypse. Normal Monday. His argument: an aging population and a politically powerful senior cohort are driving unsustainable government spending, leaving younger generations to foot the bill. He even has a name for it: “Boomer Luxury Communism.” (Does George Will need a Snickers bar?) It made me wonder: are the same forces reshaping retirement here in Canada? I’ve heard the generational accusations. Boomers took the good pensions. Boomers drove up housing. Boomers left the mess. Boomers won’t move and sell me their house. But here’s the thing. Boomers don’t have a case of “Pierre don’t care.” Most of them are quietly terrified. After 25 years in financial services and a decade sitting across kitchen tables from Canadians over 55, I think the story is a lot more complicated than that. According to Statistics Canada data, nearly one in five Canadians (19.5%) is now aged 65 or older, representing more than eight million people nationwide, signalling significant growth in the demographic. Retirement itself has also changed dramatically. Fewer Canadians have access to defined benefit pensions. Costs are rising, from groceries to housing to healthcare. And most people want to remain in their homes as they age. The result is straightforward: retirement is lasting longer, costing more, and relying more heavily on individuals than ever before. That much we share with the United States.  But the Canadian reality is more complicated. Canada’s Seniors Are Not Living the Way Many People Assume Where the comparison begins to break down is in how we interpret what’s happening. The idea that Canadian seniors are broadly living comfortably at the expense of younger generations simply doesn’t match what I see in practice. In fact, many older Canadians are experiencing something quite different: Financial uncertainty. Despite having significant assets.  On paper, many retirees look secure. They may own their home outright. They may have some savings and receive income from programs like CPP and OAS. But much of that wealth is tied up in housing. Families led by someone aged 65 or older now have a median net worth exceeding $1.1 million, the highest of any age group. (Source: Statistics Canada, Survey of Financial Security) Yet the same data also reveals something important: The value of the principal residence for many seniors far exceeds their retirement savings. Many Canadians are increasingly finding themselves asset-rich on paper but cash-flow constrained in practice. The Rise of FORO: Fear of Running Out When you look more closely at the financial picture for many retirees, income streams are often modest and heavily exposed to inflationary pressures. Longevity adds another layer of uncertainty: A Canadian reaching age 65 today can expect to live another 20 years on average. Longevity is, of course, a triumph of modern society, although financially speaking, it has a way of extending the spreadsheet. Which leads to a question I hear repeatedly around the kitchen table: “Will I have enough money to retire?” This concern is so common that I’ve written extensively about it as FORO: "Fear of Running Out." It shows up in everyday decisions. Let’s call balls and strikes: FORO is real, and left unchecked, FORO thinking gets calcified into a permanent crouch. It’s cautious, it’s understandable — and it can quietly cost you your retirement. Worse than an ill-timed "reply all" to a company-wide email. • People delay travel • They hesitate to help their family. • They postpone home repairs • They underspend, even when they may not need to. I’ve met people who won’t replace a 20-year-old furnace because they’re saving money for an emergency. The furnace failing IS the emergency. This is not reckless consumption.  It’s cautious financial restraint. A recent Healthcare of Ontario Pension Plan Retirement survey found that nearly half of Canadians approaching retirement worry about outliving their savings. Other research from Fidelity Canada shows that many retirees spend less than they comfortably could because they fear future financial shocks or healthcare costs. This anxiety matters because retirement is not just a math problem. It is also a confidence problem. This Isn’t Boomer Excess. It’s a System That Shifted What’s happening in Canada is not primarily a story of overconsumption by retirees. It is the result of a long-term structural shift. Canadians are living longer than ever. In fact, the number of Canadians over age 85 - already one of the country’s fastest-growing demographic groups, is projected to nearly triple over the next 25 years. (Source: National Institute on Aging) Over the past several decades, pensions have disappeared. Employers steadily moved away from guaranteed pensions while individuals assumed far greater responsibility for funding their own retirement years. Defined benefit pension coverage has declined significantly in the private sector, particularly among younger workers, leaving more Canadians to manage retirement risk on their own. The CD Howe Institute has written extensively on this topic, calling for pension reform. At the same time, housing became the country’s dominant store of wealth.  For many Canadians, rising home values created the impression of growing financial security. But the current housing environment is far more complicated.  Now, real estate markets have become less liquid. Some regions are now seeing much softer housing prices after years of extraordinary growth. Cue the song, "Those were the days, my friend, we thought they'd never end." The result is a retirement system increasingly dependent on housing wealth, whether policymakers openly acknowledge it or not. Government is beginning to feel the financial pinch as well. A recent report from the C.D. Howe Institute estimated that demographic aging alone could create more than $2 trillion in long-term fiscal pressure for provincial governments, driven largely by healthcare and age-related spending. In the mid-1970s, there were nearly seven working-age Canadians for every retiree (Source: Statistics Canada). Today, that ratio has fallen to closer to three-to-one.  It's a profound demographic shift that is placing growing pressure on labour markets, healthcare systems, and public finances. As retirements accelerate, fewer younger workers are available to replace them, reshaping the country’s economic and fiscal balance. Even high levels of immigration are unlikely to fully offset Canada’s aging challenge over the long term. These pressures are real. But the Canadian story is still more complicated than the increasingly combative generational narratives emerging in the United States. Retirement Became a DIY Project Over time, we slowly moved away from a system that delivered predictable retirement income. Now we ask individuals to assemble their own retirement strategy from scratch. Choose your own adventure: except the stakes are your retirement, and there’s no going back to page one. That shift created flexibility but also risk. And today, that risk is showing up as uncertainty. And while it's tempting to frame this as a generational issue, the more meaningful divide in Canada increasingly looks like this: • homeowners versus non-homeowners • those with pensions versus those without • those with access to advice versus those navigating alone Looking at the issue through this lens helps us better understand how we arrived at this point, and why it should serve as a wake-up call for consumers, policymakers, and the financial industry. Still not convinced?  Look at this data from the Statistics Canada Net Worth Report: Near-retirement households with both a workplace pension and homeownership had a median net worth exceeding $1.4 million. Remove those two structural advantages, however, and the financial picture changes dramatically: renters without pensions had a median wealth of less than $12,000. Let me stop and let this one land. Pause, breathe, and read on. The wealth gap, when you look at homeownership and pensions, is staggering. It reveals how profoundly retirement security in Canada is shaped not only by age but also by structural access to housing and pension systems. Two Canadians of the same age can now face entirely different retirement realities depending on just a few foundational variables. That’s not a generational conflict. It’s a serious design problem — a bug, not a feature. The Accumulation Paradox Here is another gap that rarely gets discussed. Canada has done a reasonably good job of helping people accumulate assets.  BUT We have done a much poorer job helping them convert those assets into sustainable income. This is especially true when it comes to housing. Research from the National Institute on Ageing and CMHC consistently shows that the overwhelming majority of older Canadians want to age in place rather than downsize or move into institutional care.  But Canada’s retirement system increasingly depends on housing wealth, even as many retirees remain reluctant to use it strategically. For many Canadians, home equity is their single largest financial resource. Yet, culturally and psychologically, it is often treated as something to preserve rather than deploy. The result is what I call the Asset Accumulation Paradox: People can be asset-rich and cash-flow constrained at the same time, a perfect example of 2 things being true at the same time. That disconnect sits at the heart of much of the retirement anxiety we see today. Where Canada Stands Compared to the United States In some important ways, Canada is better positioned than the United States.  The Canada Pension Plan is actuarially reviewed and designed to remain sustainable over the long term. (Source: Office of the Chief Actuary). And according to International Monetary Fund data, Canada’s public debt burden also remains materially lower than that of the United States as a share of GDP. But that does not mean we can afford complacency. Because beneath the surface, there is a growing gap between what Canadians have and what they feel confident using. If we want to improve retirement outcomes, we need to focus less on assigning blame and more on improving design. That means better tools, better guidance, and more open conversations, especially about how to turn assets into income. The warnings coming out of the United States are worth paying attention to.  But Canada’s challenge is different. The risk is not that seniors are taking too much.It’s that too many Canadians are living with uncertainty despite having more options than they realize. The challenge now is not simply helping Canadians accumulate wealth. It is helping them use that wealth with greater confidence, flexibility, and security. So, let’s call this what it is. George Will is not entirely wrong. The numbers are real, the fiscal pressure is real, and yes, someone is going to have to deal with it. But the story he’s telling is a blunt instrument in a situation that requires a scalpel. Canada’s retirement challenge isn’t Boomer Luxury Communism. It’s more like Boomer Luxury Paralysis: sitting on a million-dollar asset, terrified to touch it, underspending in the present to guard against a future that may never arrive. FORO doesn’t discriminate by generation. It just quietly rearranges your life until you’re postponing the trip, skipping the furnace repair, and waiting for permission to enjoy the retirement you actually saved for. The good news? The options are better than most people think. The conversation isn’t about giving anything up. It’s about using what you already have. Sue Don't Retire...ReWire! My Book is Now Available for Pre-Order I hope you will consider pre-ordering a copy of Your Retirement Reset for you, a friend or loved one. It's available September 8, 2026 - You can now order on the ECW Press site here. And if you love supporting Canadian booksellers, please also check with your local independent bookstore. Most can easily order it for you.

Downsizing: The Biggest Retirement Myth We Keep Repeating featured image

9 min

Downsizing: The Biggest Retirement Myth We Keep Repeating

I have a friend who announced she was downsizing the way some people announce a move to Tuscany. Lightness. Optimism. A touch of smugness. Six months later, she called me from her condo and whispered, “Sue… I think I bought a very expensive closet with a concierge.” Welcome to downsizing, the most celebrated, most recommended, and most wildly misunderstood retirement strategy in Canada. Like most things that sound simple, it works beautifully until you look a little closer. I spent a decade in the reverse mortgage industry watching this play out. Clients would come in — smart, capable, financially savvy people — who had spent years being told their retirement plan was simple: sell the big house, buy something smaller, pocket the difference, and ride off into the sunset. Many of them were sitting across from me because that plan had not worked the way anyone promised. The advice was decades old. Their lives were not. Two Retirees. Same Strategy. Completely Different Outcomes. Let me introduce you to Carol and Robert, whose stories say everything. Carol did everything right. She sold her long-time home, bought a sleek condo, freed up some equity, and checked every box on the “responsible retirement” list. On paper, it was a perfect move. In practice, she lost her community, her routines, her doctor, and a piece of her identity. She found herself sitting in a condo surrounded by unpacked boxes, wondering how a smart financial decision could feel so much like a personal loss. Robert also did everything right, but his story unfolded differently. He sold his home, moved closer to family, bought something smaller, and banked a meaningful sum. What he gained had very little to do with the numbers. He gained connection, belonging, and a life that felt fuller, not smaller. The strategy was identical. The outcomes were not. That is the uncomfortable myth about downsizing. It is not a formula. It is a life decision disguised as a financial one. The Downsizing Math People Love to Quote For decades, downsizing earned its reputation honestly. Retirement was shorter, often fifteen to twenty years. Pensions were stable. Housing was affordable. Families lived closer together. Selling your home and buying something smaller freed up real capital and meaningfully cut expenses. It was practical, logical, and often the right call. Fast forward to today, and almost none of those conditions still apply. Retirement now runs twenty-five to thirty-five years — a span longer than most people’s careers were when this advice was invented. Defined benefit pensions have largely become a public sector privilege. In the 1970s, 90% of private-sector workers with a workplace pension had a defined-benefit plan. Today, that figure has dropped to roughly 40%, and that’s only among the shrinking share who have any pension plan at all (Canadian Centre for Policy Alternatives, 2025). Housing prices have surged far beyond income growth.  Real estate now accounts for over half of household wealth in Canada. Meanwhile, according to Statistics Canada, the average Canadian at sixty-five has approximately $272,000 in retirement savings, while estimates for a comfortable retirement often exceed $1 million. That is not a gap. That is a canyon. This gap turned the family home into something it was never designed to be. Not just a place to live, but a retirement plan. And once that shift happened, we collectively made a convenient assumption: the only way to access that wealth is to sell the house. That assumption is where things begin to unravel. The four assumptions that made downsizing work are no longer as reliable as they once were. 1. Smaller homes are cheaper. In many markets, the opposite is true. Smaller properties often command higher prices per square foot, and retirees now compete with first-time buyers and investors for the same limited inventory. That charming condo may cost nearly as much as the house you just sold. 2. Selling releases meaningful capital. Transaction costs alone can consume eight to twelve percent of the home’s value. Commissions, legal fees, land transfer taxes, moving costs, repairs. What looks like a windfall on paper can shrink dramatically before you ever see the money. 3. New home costs will be lower and more predictable. Condo fees, special assessments, and rising insurance costs tend to quietly escalate. What was supposed to simplify your financial life can quietly complicate it. 4. The process is straightforward. Market timing plays a much larger role than most people realize. Selling in a soft market while buying in a strong one can erode value on both sides. Downsizing is not just a financial decision. It is a transaction with real timing risk. When all four of these assumptions weaken at once, the outcome can be very different from what was promised. And yet, despite the evidence, the advice has not changed. We still tell people to “just downsize,” as though the calendar hasn’t moved since 1987. Nostalgia is not a strategy. The Part Nobody Puts in the Spreadsheet Here is what the financial projections consistently leave out: the emotional weight of this decision is enormous, and most people dramatically underestimate it. We are not talking about a slight reluctance to pack boxes. We are talking about the deep, visceral human attachment to home. The place where you raised your kids, hosted Thanksgiving, walked the dog, and knew every creak in every floorboard. The urge to age in place is powerful, primal, and not remotely irrational. And when we dismiss it with a spreadsheet, we are not being helpful. We are being reckless. And here is the harder truth: to make the numbers actually work, people often need to move two or three hours away into smaller communities where housing is genuinely cheaper. That means leaving your neighbourhood, your friends, your church, your yoga class, your doctor of twenty years, and your very carefully curated hairdresser. (Finding a new hairdresser in a rural town? That is not a life transition. That is a medical emergency.) Re-establishing a full support network in an unfamiliar community is daunting and exhausting work for anyone at any age. It often requires the senior to resume regular driving, something many are quietly hoping to scale back. And then there is healthcare. Access to specialists, familiar family physicians, and hospital services is non-negotiable for most people over sixty-five. It does not figure neatly into a spreadsheet, but it absolutely figures into the decision. I have never once met a senior who said, “You know what, I’m really glad I had to find a new GP at 72.” The urge to stay put almost always wins. Here is something worth sitting with: every older person knows what it is like to be young, but no young person knows what it is like to be old. That asymmetry matters enormously in this conversation. A well-meaning adult child running scenarios on a laptop has never felt the specific, irreplaceable comfort of a neighbourhood they have lived in for thirty years. Really listening — not just problem-solving — can bridge that gap. Because retirement is a family affair. And the families who navigate it best are the ones where everyone feels heard before anyone pulls out a spreadsheet. The Conversation That Actually Needs to Happen Financing retirement is not a binary choice. Downsize or don’t. That framing does everyone a disservice, and spoiler alert: the senior will almost always choose not to downsize. The real question is what happens next, because “stay put and hope for the best” is not a retirement plan. It’s a wish. The more useful conversation is about how to create cash flow while staying put. And that conversation is a minefield if you are not prepared. Here is the first obstacle: suggesting any kind of loan to finance retirement is a spectacular lead balloon. These are people who spent forty years lecturing their kids to pay off their mortgages and eliminate debt. Debt is the villain in their financial story. It is a bug, not a feature. So when you walk in and suggest that borrowing against their home might be the solution, their internal switchboard immediately puts that call on permanent hold. And if you mention a reverse mortgage? The Cybertruck of mortgages. The product everyone has an opinion about and almost no one fully understands. You will get one of two responses: the “talk to the hand” or the look usually reserved for the person who reheats leftover fish in the office microwave. Is some of that resistance rational? Absolutely. But is some of it just fear in a hat — old anxiety dressed up as financial principle? Also yes. This is why the key is to ask, not tell. The moment you lead with a product, you’ve lost the room. Lead with questions instead: • What are your actual cash flow needs? • How are you planning to meet them? • Are you carrying debt that is quietly strangling your monthly budget? • Do you need a lump sum, or do you need more reliable monthly income? The answers look very different, and they lead to very different solutions. If the goal is to free up monthly cash flow, paying off high-interest debt using home equity may deliver an immediate and meaningful result. A home equity line of credit can do that cleanly. If the goal is ongoing income, a reverse mortgage can provide tax-free monthly payments or a lump sum without requiring a move or a monthly repayment. If there is room on the property, a secondary suite or an addition can generate rental income and potentially add long-term value. For those comfortable thinking a few steps ahead, using a reverse mortgage or HELOC to purchase an annuity or a small rental property creates a stream of sustainable income that has nothing to do with square footage. None of these options shows up in the standard “should I downsize?” conversation. They should. The biggest financial mistake most retirees make is not the decision they choose. It’s the options they were never shown. Back to Carol and Robert Their outcomes were not the result of luck or timing. They were the result of alignment. Robert moved toward what he wanted. Carol moved away from what she felt she should. One decision created a sense of expansion. The other created a sense of loss. No spreadsheet captures that distinction. But it is the distinction that matters most. Downsizing is neither inherently good nor bad. It is simply a tool. When it is driven by clear goals, realistic assumptions, and an honest accounting of both the financial and emotional realities, it can be genuinely transformative. When it is driven by habit, pressure, or advice that stopped aging well some time ago, it tends to lead somewhere Carol knows well. So before you follow the script, pause long enough to ask a different question. Not “Should I downsize?” but “What do I actually need, and what are all the ways I can get there?” Retirement is not about having less space. It is about having more life. The right strategy is the one that gets you there without sacrificing everything that makes life worth living in the first place. Your community. Your doctor. Your Sunday routine. Your hairdresser who finally knows exactly what you mean by “just a trim.” Downsizing is a tool. Like a hammer. Enormously useful when you actually need a hammer. Spectacularly unhelpful when what you really need is a different plan.  The goal was never to end up with less. It was to end up with enough. Ask better questions. You’ll get better answers. And maybe keep your hairdresser’s number. Sue Don’t Retire…Re-Wire!!! My Book is Now Available for Pre-Order I hope you will consider pre-ordering a copy of Your Retirement Reset for you, a friend, or a loved one. It will be on store shelves on September 8, 2026. You can now order on the ECW Press site here. And if you love supporting Canadian booksellers, please also check with your local independent bookstore.

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