‘WHO AM I NOW?’ ADJUSTING TO RETIREMENT CAN BE TOUGH: HOW CANADIANS CAN MAXIMIZE MONEY TO ENJOY THEIR GOLDEN YEARS

When longtime journalist Stephen Kreider Yoder retired, he expected relief.

Instead, he felt what he described in The Wall Street Journal (1) as “the vacuum” — the yawning space where his career once lived. He wrote about waking up without deadlines, editors or a clear organizing force for his days. “Who am I now?” became a quiet, persistent question.

His wife, Karen, experienced retirement differently. She filled her days with sewing projects in her “woman cave.” She never agonized about losing her professional identity because she had hobbies and side pursuits.

In short, retirement can be a financial transition and a psychological reckoning.

A survey from CPP Investments (2) found that 67% of Canadians aged 28 to 44 fear they won’t have enough income in retirement because they are behind on saving and don’t yet have a clear plan for their golden years.

Yet financial readiness and emotional readiness are not the same thing. Even those with solid pensions or investments can struggle with the identity shift that comes when work disappears.

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The Canadian money question

Canada’s retirement system rests on three pillars: the Canada Pension Plan (CPP), Old Age Security (OAS) and personal savings such as RRSPs and TFSAs.

CPP replaces only a portion of pre-retirement earnings. OAS provides a base benefit (3) but is subject to clawbacks for higher-income retirees. Meanwhile, Canadian life expectancy is 81.7 years (4), and healthcare, housing and long-term care costs continue to rise.

Financial planners frequently describe “retirement spending anxiety” (5) — the fear of drawing down savings too quickly. It’s common among Canadians who spent decades accumulating assets inside RRSPs and employer pensions, only to feel uncomfortable switching to decumulation mode.

Market volatility only intensifies that caution. When markets dip, retirees may question whether they should delay retirement, reduce travel or postpone major purchases. For couples, the timing of CPP and OAS benefits — whether to take them at 60, 65, or 70 — becomes a strategic decision that affects lifetime income.

Unlike Americans, Canadians must also factor in provincial healthcare differences, potential long-term care waitlists and taxation rules that vary by province.

The first years matter most

Retirement can unfold in multiple stages like a honeymoon period followed by possible disenchantment. Without the structure of work, some retirees feel unmoored.

A good tip for handling the transition is “identity bridging,” (6) which involves carrying parts of your pre-retirement self into your new life. For example, a former executive may mentor through local business networks. A teacher may tutor newcomers. A marketer may serve on a nonprofit board.

Volunteering is especially common in Canada. According to Statistics Canada, older Canadians contribute 773 million volunteer hours annually (7), equivalent to over 400,000 full-time, year-round jobs.

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How to maximize your money in Canada

Financial sustainability requires balancing caution with flexibility.

Morningstar’s latest research suggests a safe starting withdrawal rate of about 3.9% for new retirees (8) using an inflation-adjusted strategy. However, experts claim retirees who can scale discretionary spending up or down based on market conditions may be able to spend more overall.

In Canada, the “4% rule” (9) is also a common starting point. The exact number depends on the asset mix, guaranteed income (such as CPP or a defined-benefit pension) and spending flexibility.

Here’s what matters more than the precise percentage:

• Separate fixed and flexible expenses: Housing, insurance, utilities and healthcare are largely fixed. Travel, gifting and home renovations are discretionary. In strong market years, you may spend more freely. In weaker years, you scale back.
• Coordinate as a couple: 29% of spouses (10) retire within two years of each other. Many Canadian couples retire years apart which impacts cash flow, tax planning and CPP/OAS timing.
• Plan the tax layer: Withdrawals from RRSPs are taxable; TFSA withdrawals are not. Strategic sequencing can reduce lifetime taxes and preserve government benefits.

How to maximize retirement

Here are some ways retirees can find fulfillment:

• Build routines
• Make friends in your community
• Revisit old hobbies
• Volunteer
• Explore part-time or seasonal work
• Travel

Retirement isn’t simply about whether you saved enough in your RRSP or how much CPP you’ll collect.

It’s about answering confidently: who am I now — and how will I maximize my money and time to live that answer fully?

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Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Wall Street Journal (1); CPP Investments (2); Government of Canada (3, 4); The Globe and Mail (5); AARP (6); Statistics Canada (7, 10); Morningstar (8); Million Dollar Journey (9)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

2026-03-08T10:08:12Z