Featured Post from Retire with Equity

Inflation: It’s Not Just for Prices Anymore

And Other Growing Health Risks Threatening Your Fabulous Retirement

Jul 30, 2025

9 min

Sue Pimento

Lately, headlines are full of talk about inflation — a response to the economy and the looming tariffs. I’ve experienced many inflationary periods, but it feels different in retirement. When I was earning a paycheque, inflation was just an annoyance, something I needed to pay attention to and maybe buy a cheaper cut of steak. Now, as someone on a “fixed income,” it feels like a real threat.

Recently, Ben McCabe, CEO of Bloom Financial, appeared on Breakfast Television and delivered a truth bomb:


“We’re approaching a perfect storm. Longer life expectancy, fewer defined benefit pensions, and rising inflation.”  Well, that storm has arrived — and it’s inflating more than just prices. It’s also expanding our waistlines, prescription lists, and emotional baggage. Inflation, at its core, means “the condition of being inflated.” And it turns out that definition applies to more than the grocery bill.

So, grab a cup of green tea (or a celery stick if you’re feeling virtuous). Let’s explore the three sneaky forms of inflation threatening your retirement — and what you can do about them. This blog will appeal to individuals who have retired or aspire to retire in the future. Let’s light this candle!


1. Financial Inflation: The Usual Suspect


Let’s start with the obvious: inflation means your money won’t stretch as far as it used to.

In 2022, Canada’s Consumer Price Index increased by 6.8% — the highest rise in 40 years. Although it slowed down a bit in 2023, essentials such as food, rent, and fuel continue to grow. Your retirement income might be fixed, but prices definitely aren’t.


Retirement Risks from Financial Inflation:

• Longer lives mean longer bills. A 65-year-old woman today has a 50% chance of living past 90 years old. That’s over 25 years of expenses.

• Vanishing pensions. Defined benefit pensions are disappearing faster than good manners on Twitter.

• Healthcare creep. Public healthcare doesn’t cover everything, especially if you want care that wasn’t designed in 1978.


As Ben McCabe aptly put it:  “We need to stay healthy so our health span matches our lifespan,” huh?— “otherwise, inflation will affect us through the cost of medications, home care, and long-term care facilities.”


What You Can Do:

• Review your income sources. Prioritize indexed income sources, such as CPP, OAS, and annuities with COLA (Cost of Living Adjustment) riders.

• Use home equity sensibly. If you’re house-rich but cash-poor, consider a reverse mortgage or other equity release products.

• Adjust your spending habits. Host themed nights, like “Tuna Tuesdays” — a nostalgic, fun, and budget-friendly option.


How to Support Others:

• Discuss money matters with kindness. Many retirees feel ashamed of their finances. Show compassion, listen more, talk less.

• Bring food, not judgment. A regular Saturday brunch with Sadie can make a significant difference, not just financially.

• Foster social connections. Financial stress can cause isolation. Encourage hosting potlucks, card nights, or joining a community group.


2. Physical Inflation: The Expanding Middle


Retirement brings more free time… and more room. Waistlines, cholesterol, and prescriptions all seem to rise in tandem.


Signs you’re experiencing physical inflation:

• Pants that used to be snug are now aspirational

• Your Fitbit died months ago — and so did your motivation

• Your pharmacy knows you by name... and birthday


The bad news? Poor physical health is expensive. Chronic illness can deplete savings faster than a grandchild with your credit card.


What You Can Do:

• Keep moving. Walk, garden, spin — whatever gets you vertical and vibrant.

• Lift weights. Muscle mass starts declining at 40. Resistance training isn’t just for 20-somethings. Strong is the new sexy, pass it on!

• Meal plan smart. Grocery inflation peaked at 8.9% — eat better, waste less, save more. Consider shopping daily and buying only the amount of food needed for that day.

Your health span should align with your lifespan. Stay strong, stay mobile, and yes, stretching counts — but not if you’re reaching for the TV remote.


Inflammation — The Silent Saboteur


If inflation is bad, inflammation is worse. Chronic inflammation contributes to:

• Heart disease and stroke

• Type 2 diabetes

• Alzheimer’s disease and brain fog

• Arthritis, osteoporosis, and varicose veins

• Mood disorders such as anxiety and depression

• Certain Cancers


Even CNN and Al Jazeera recently reported that Donald Trump was diagnosed with chronic venous insufficiency (CVI) — a common, often overlooked condition among those over 55.

Small veins, big problem. (Insert your own “tiny vein, tiny…” joke — I’m staying classy.)


Inflammation is the unwelcome guest that never departs. If inflammation had a personality, it would be the dinner guest who drinks all your wine, insults your cat, and brings up politics at dessert. Whether it's fueling joint pain, causing swelling in your ankles, or messing with your metabolism, chronic inflammation is one of the biggest saboteurs of aging gracefully. It often hides in plain sight, presenting itself as:


• Low-grade fatigue

• Weight gain (especially belly fat)

• Mood swings or brain fog

• Increased pain and stiffness

• Slow healing.


What You Can Do:

• Eat anti-inflammatory foods, such as leafy greens, whole grains, and healthy fats. Cut out the sugar.

• Move each day. Yes, again. It’s that important.

• Lower stress to improve sleep. Stress and poor sleep fuel inflammation.

• Maintain social and emotional bonds. Loneliness and inflammation are frequently connected — break the link.



De-Inflation — The Great Slowdown


• So, we’ve discussed inflation... but what about its quieter, sneakier cousin: deflation?

• No, not the economic kind. We’re talking about the physical “poof” that occurs when we reach our late 70s and 80s — when the padding diminishes, posture declines, and everything else… well, just seems a little less buoyant.

• Suddenly, you’re shrinking. Your weight drops — but not in a sexy, "I’ve been intermittent fasting" kind of way. More like "my pants are falling down and my doctor says I’m 2 inches shorter" sort of vibe. Welcome to the gravitational pull of aging.


Signs of De-Inflation:


• Pants fit strangely, but not in a bragging way

• You’re hunched over as if you’re forever bowing to the Queen

• Your arms and legs have that crepey, crinkly look — like tissue paper with a gym membership

• And let’s not forget the wrinkles on your face — a stunning topographical map of your life


Let’s be honest: gravity always wins. Biology always wins. And yes, our skin thins — insert your own joke about being “thin-skinned” here.


But we are not entirely powerless.


Here’s How to Push Back (Gently — you don’t want to break a hip):


• Check your posture monthly. Have a friend take a quick side photo. Are you upright and confident — or resembling a question mark?

• Stretch regularly. Yoga, fascia stretching, and massage can help combat the hunch.

• Move intentionally. Gentle strength training and balance exercises can maintain muscle and stability.

• Moisturize and hydrate. For your skin, your joints, and your soul.

• Celebrate your lines. They’re not “flaws” — they’re proof you’ve felt joy, sorrow, surprise, and a few good martinis. They’re not signs of aging; they’re signs you’ve been living.


Remember: frowning only causes more wrinkles. So, smile — or better yet, laugh. Loudly. Often. Preferably at inappropriate moments.


Oh — and take my advice on this: never (and I mean never) open your eyes during downward-facing dog. Some things just can’t be unseen.


3. Emotional Inflation: When Grudges Accumulate Like Interest


Here’s the sneaky one. Emotional inflation appears as:

• Bitterness over who got what in Mom’s will

• Inflated egos and “right-titis” (a chronic need to be right)

• Replaying 1983 arguments in your head like they’re Oscar contenders.

• Giving not-so-nice nicknames to your former coworkers (and using them… publicly)

• Keeping a mental spreadsheet of injustices — now colour-coded for quick reference (who says seniors are not tech-savvy?)


Here’s the thing: emotional inflation isn’t just about what others have done. It’s also about how we interpret our role in those stories.


Ready for a bold idea that can free you from decades of emotional baggage?


What if we stopped keeping score and instead focused on how we want to show up in our relationships? What if you chose, intentionally, to be a generous sister, a supportive friend, a gracious parent, or a collaborative co-worker — not because they "deserve it," but because that's who you want to be?


It’s not easy. It may require deep breathing and the occasional muttering in the car.

However, for those willing, this mental reframe can be a total game-changer.


What to do:

• Let go. You can’t carry joy and a grudge at the same time — and joy is lighter. Lighten the emotional load. You don’t need to wait for someone to say sorry to feel free.

• Choose your character. Think of it as casting yourself in the movie of your life. Be the wise one, the peacemaker, the person who breaks the cycle, not the one still angry about a forgotten birthday in 1996.

• Write your own story. Present yourself as the person you want to be, even if others haven’t read the same script. You can’t control other people, but you can control how much space they occupy in your mind (especially if they’re not even paying for snacks).

• Reframe your perspective. Instead of keeping score, focus on who you want to be: a generous sibling, a gracious friend, or a person at peace. Let go of the scorekeeping. It rarely results in a tie, and even if you win… You still feel empty.

• Define your role. Be the big-hearted sibling, the calm presence, the one who lets go, not the person who stores bitterness in Tupperware containers.

• Invest in joy. Dance classes, martinis, laughter — choose your remedy.

• Talk it out. Therapy is more affordable than wine-fuelled Facebook rants and far more effective.

Take the high road. There’s less traffic and better scenery. You can’t always avoid emotional hurt, but you can avoid living in a constant state of emotional inflation. And trust me, nothing deflates retirement faster than a bloated list of resentments.


And if you’re feeling weighed down by the bloat of what life has thrown at you, remember: you can’t control inflation, but you can choose your response. Choose grace over grudges. Choose strength over stagnation. Choose the version of yourself that makes you proud. Because guess what? You’re still becoming who you are. Trust me — it’s better than a juice cleanse and more affordable than therapy.


Some people age like fine wine; others age like vinegar. Emotional inflation is the burden you carry that doesn't show on the scale, but it weighs everything down.


You can’t rewrite someone else’s story, but you can decide how to present yourself in your own. Taking the high road is less crowded and provides better perspectives.


Inflation May Be Inevitable — But Misery? That’s Optional.

Inflation has seeped into our lives like glitter at a craft table — impossible to contain and popping up in the most unexpected spots.

It’s not just your budget that’s swollen (thanks to blueberries and Botox), but also your belly, your prescription drawer, and — if you’re not careful — your resentment list.


But here’s the good news:  While you can’t control how high prices go, how slow your metabolism becomes, or how long Uncle Jerry holds a grudge…


You can control your response. 

So, here’s your call to calm, intentional, fabulous action:


1. Reclaim your power — in your spending, your body, and your mindset.

2. Choose curiosity instead of crankiness. Move more instead of staying still. Salad rather than salt (well… sometimes).

3. Be the kind of person who ages like disco — a little dramatic, slightly sparkly, and always ready to dance.


And if you absolutely must inflate something… make it your sense of humour. Because in the grand game of Retirement Inflation Nation, laughter is your best hedge — and it’s fully indexed to joy.


Oh — and if you're wondering whether I practice what I preach: I'm a certified fitness instructor and teach 5 jam-packed fitness classes a week at Canada’s largest gym. Movement isn’t just medicine — it’s music, community, and yes, a fabulous way to earn the right to your next martini.


So, take it from someone still riding the rhythm of life — gravity is real, but so is joy. And we’re still dancing under the stars. (Here’s proof from the Coldplay concert — yes, I was the one yelling “Fix You” with both hands in the air and not a single regret.)


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Keep inflating the things that matter: your laugh lines, your playlist, and your purpose.

With love, lunges, and a little glitter,


Sue

Don’t Retire... Rewire!




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Sue Pimento

Sue Pimento

Founder | CEO

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

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On Traditions and Rituals: • Oregon Counseling. Why Traditions Matter to Mental Health. https://oregoncounseling.com/article/why-traditions-matter-to-mental-health/ • Care365. Maintaining Traditions with Seniors. https://www.care365.care/resources/maintaining-traditions-with-seniors Additional Support: • National Council on Aging. Four Steps to Combat Loneliness in Seniors During the Holidays. https://www.ncoa.org/article/four-steps-to-combat-loneliness-in-seniors-during-the-holiday-and-beyond/ Emergency Services If the situation is urgent or someone is in immediate danger: Call 911. Canada Suicide Prevention Service (CSPS) • Call: 1-833-456-4566 (available nationwide, 24/7) • Text: 45645 (evenings) • Chat: available at 988.ca

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Not just little price increases, but if economists are right about what we can expect, it's best to “inflation-proof” yourself - before you need it.  But keep in mind, every downturn follows the same pattern: a few key sectors keep humming while everything else goes through a mild identity crisis. The Classic Defensive Trio for Canadian Retirees: Consumer Staples (groceries, household essentials) Utilities (keeping the lights on and heat up) Healthcare (aging doesn't pause for recessions) Research on past downturns shows these sectors experienced significantly smaller losses than the S&P 500 during selloffs. When markets tantrum, these industries act like the sensible cousin who says, "We'll get through this. Have a muffin." Canadian-Specific Additions: Telecoms (we'll cut many things, but not Wi-Fi) Pipelines (fee-for-service revenue, though rate-sensitive) Combine these with low-volatility or dividend ETFs, and your portfolio suddenly feels less like a roller coaster and more like a slow-moving Via Rail train: reasonably steady, unfussy, and you still get to where you're going. The Cash Wedge: And Why You Need One Think of your retirement plan as a three-layer cake: Long-term investments (stocks, dividend ETFs, balanced portfolios) Intermediate safety assets (short GICs, T-bills, high-interest savings) Cash you can actually live on (your wedge) Your Cash Wedge sits at the very front of the line — a 12–24-month cushion of living expenses held in stable, boring, absolutely-not-newsworthy places: High-interest savings accounts Short-term GICs Treasury bills Cashable deposits It's essentially the "dry powder" you need to ride through market volatility without panic-selling. Three Critical Risks Your Cash Wedge Protects Against 1. Sequence-of-Returns Risk in Early Retirement This is the risk that markets drop early in your retirement while you're withdrawing. It's the silent killer of portfolios. A cash wedge buys you: Time for dividends to arrive Time for markets to recover Time for calm to return 2. Emotional Decision-Making During Market Downturns When markets fall, too many retirees experience "sell-and-suffer syndrome": They sell low Lock in losses Delay recovery Reduce the lifespan of their savings 3. Portfolio Depletion at Critical Moments Without a cash wedge, every withdrawal during a downturn digs a deeper hole. With a cash wedge, withdrawals can pause while investments rebound. "Think of a cash wedge as retirement jiu-jitsu — using stability to neutralize volatility." How to Calculate Your Ideal Cash Wedge Size There's no magic number, but here's a practical framework: 12 months of essential expenses for retirees with pensions or steady income sources 18 months for those relying heavily on investments 24 months for anyone highly risk-averse or aging in place on a fixed budget This isn't a pile of cash sitting in a chequing account — it's a structured, laddered buffer. Why Canadian Retirees Often Resist Building a Cash Wedge I've heard all of these comments over the years from many retirees: "Cash earns nothing." Not true anymore — HISAs and T-bills offer competitive yields. "I don't want my money sitting around doing nothing." It isn't doing nothing — it's protecting your future income. "I've always been fully invested." Retirement changes the rules. What worked during the accumulation phases of retirement can be dangerous during deaccumulation. The Cash Wedge is not an investment strategy. It is an income preservation strategy — the most important one in retirement. Real-Life Example: The 2020 Market Crash Test Remember 2020?  Stock markets dropped nearly 35% in just weeks. Let's consider two couples with similar assets: Couple A : had a 2-year cash wedge Couple B : had none Couple A simply shifted withdrawals from their wedge, not their portfolio. Couple B sold their best assets at their worst prices — causing permanent damage. This is why I tell retirees: "The Cash Wedge protects your portfolio from you." It’s 12–24 months of living expenses kept in cash, high-interest savings accounts (HISA), short-term GICs, or T-Bills. It's not exciting. No one flaunts a 6-month GIC at brunch. But the emergency fund prevents disaster: selling investments at the worst possible time. It buys you time. It buys you calm. It buys you the uninterrupted ability to buy groceries. The Cash Wedge alone is powerful. But for Canadian homeowners — especially those whose wealth sits mostly in their property — there’s a second buffer that can dramatically strengthen your financial resilience: your home equity.  We'll explore that in Part 2 of this post tomorrow.  Sue Don’t Retire… ReWire!!! Want to become an expert on serving the senior demographic? Just message me to be notified about the next opportunity to become a "Certified Equity Advocate" — mastering solution-based advising that transforms how you work with Canada's fastest-growing client segment.

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