Nearly 1 million Canadians aged 60 to 64 are heading into retirement alone. That’s a staggering 37.8%—almost 4 out of every 10—who are single, divorced, widowed, or separated. And if that’s you, it changes everything about how you need to plan for retirement.
If you’re planning to retire solo, this blog post could save you from making some of the biggest money mistakes single Canadians make.
Stay until the end, where I’ll walk you through a real planning scenario using our financial planning software to show exactly how a single retiree like you can stretch every dollar and retire with confidence.
From the 2022 data:
- Single: 315,452
- Divorced: 437,284
- Widowed: 147,126
- Separated: 96,537
Total (Single + Divorced + Widowed + Separated) =
315,452 + 437,284 + 147,126 + 96,537 = 996,399
Total population (age 60–64) = 2,639,965
Percentage = 37.8%
The Financial Landscape of Single Retirement in Canada
The average retiree income in Canada is lower than you might expect.
For Canadians aged 65 and older, the median after-tax income as of 2022:
- Couples: $74,200 per year ($6,183 per month)
- Single seniors: $30,820 per year ($2,568 per month)
The Hidden Impact of Inflation
Between 2020 and 2022, the average income for single retirees fell from $32,720 to $30,820—a 1.2% drop. Meanwhile, inflation soared nearly 10%, driving up the cost of essentials like groceries, gas, and housing.
The Biggest Risks for Single Retirees (And How to Manage Them)
Retiring alone comes with unique financial challenges. Without a partner to split costs, share benefits, or offer a safety net, every dollar matters more. Singles often face higher taxes, fewer government supports, and greater pressure to manage everything themselves.
But with smart planning, you can still retire confidently. Let’s look at the six biggest financial risks for single retirees—and what you can do to stay ahead of them.
Running Out of Money (Longevity & Investment Risk)
📉 The #1 fear in retirement? Running out of money.
Think about a Netflix subscription—a single person pays $16.99 while a couple pays the same amount but gets two profiles, shared costs, and more value. Retirement works the same way. Couples share expenses, split bills, and benefit from tax savings. Singles? They cover everything alone.
This makes running out of money a much bigger risk for single retirees because:
- You don’t have a partner’s pension or extra savings to rely on.
- You need more savings than couples to cover the same lifestyle.
💡 How to Make Your Money Last:
✅ Follow a Sustainable Withdrawal Rate – The 4% rule is a solid benchmark, but single retirees may need to adjust based on market conditions.
✅ Diversify Your Investments – A mix of growth (stocks) and safety (bonds, TFSAs, GICs) ensures you don’t run out too soon.
✅ Careful Retirement Financial Planning – Work with a financial planner to build a customized strategy based on your lifestyle, savings, and risk tolerance. When you’re on your own, every decision—from when to take CPP to how much to withdraw—matters more.
Want to see how this plays out in real life? At the end, I’ll run through some financial planning scenarios with my software to show you how a single retiree can plan for the future.
Higher Tax Burden
💰 Being single means paying more in taxes—period.
It’s not an official tax, but retiring single in Canada often means paying more. Without access to income splitting or spousal benefits, single retirees frequently land in higher tax brackets. In one example from Single Seniors for Tax Fairness, a single senior in Ontario earning $115,000 in pension income paid $21,000 more in taxes than a couple with the same combined income—simply because the couple could split their income and both qualify for full OAS and the Age Credit
Income splitting also helps couples avoid OAS clawbacks and qualify for the Age Credit, while singles often don’t.
Tax planning matters more when you’re on your own. Singles don’t have access to income splitting or survivor benefits, so every withdrawal decision can make a big difference.
There are smart ways to reduce your tax bill in retirement—how and when you take money from your RRSP, TFSA, CPP, and OAS can have a big impact on how much you keep.
I’ll break this down in a planning scenario later, where you’ll see exactly how smart timing and drawdown strategies can save thousands in taxes over your retirement.
If you want to save more on taxes in retirement, check out our free guide with 5 proven strategies to keep more of your money.
📩 Grab your free copy—link is here:
https://blueprintfinancial.ca/retirement-tax-saving-guide
Inflation & Rising Costs
📈 Inflation is the silent wealth killer.
Inflation quietly eats away at your purchasing power—and when you’re single, there’s no one to share the burden of rising costs for groceries, housing, or healthcare.
That’s why planning for inflation isn’t optional—it’s crucial. You need strategies that help your money go further, especially over a retirement that could last 30+ years.
Later, I’ll show you exactly how inflation planning plays out in a real scenario, and how the right choices can make a big difference over time.
In the meantime, here are a few ways retirees are fighting back:
✅ Downsizing or renting out space to unlock equity
✅ Exploring co-living or house hacking to cut fixed costs
✅ Moving to lower-cost provinces—or even countries—to stretch every dollar
💬 Thinking of retiring abroad? Check out my blog post Leaving Canada? The 7 WORST Tax Mistakes to Avoid! on what you happens to your taxes if you decide to leave!
No Survivor Benefits = No Financial Safety Net
💔 No spouse = no automatic pension rollovers.
One of the biggest financial disadvantages of retiring single is the lack of survivor benefits. If you’re not part of a couple, there’s no automatic rollover for your RRSPs, RRIFs, or pensions when you pass away. That can mean a massive tax hit to your estate—and less money left for the people or causes you care about.
Some employer pensions also offer little to no support for single retirees, leaving you with fewer guaranteed income options for life.
💡 How to Protect What You’ve Built:
✅ Plan Your RRSP/RRIF Withdrawals Carefully – Don’t wait too long to draw down. Gradual withdrawals can help reduce the final tax burden on your estate.
✅ Review Your Beneficiaries Regularly – Make sure your RRSP, TFSA, and insurance designations are up to date so assets go where you intend.
Less Social & Emotional Support
😔 Loneliness isn’t just sad—it’s a financial risk.
Studies show single retirees are more likely to face depression, cognitive decline, and financial scams.
💡 How to Stay Connected & Protected:
✅ Join Community Groups – Volunteering, social clubs, and classes keep you engaged.
✅ Co-Living with Other Retirees – Senior co-housing or shared housing cuts costs and builds friendships.
✅ Use Tech for Safety – Apple Watch fall detection, wellness check-ins, and fraud alerts help protect you.
🚀 Pro Tip: Scammers often target older adults who live alone. If you’re single, it’s even more important to stay informed and secure your finances.
Health & Long-Term Care Costs
🏥 No spouse means no built-in caregiver.
Healthcare costs add up fast, and single retirees face higher long-term care expenses than couples.
📌 Typical Costs in Canada:
- Home care: $25–$50 per hour
- Assisted living: $3,000–$5,000 per month
- Nursing homes: $2,000–$3,000 per month (government-subsidized), $5,000+ for private care
💡 How to Plan for Health Costs:
✅ Budget for Care – Keep a reserve fund or look into Long-Term Care Insurance.
✅ Assign a Power of Attorney – Make sure someone you trust can make medical and financial decisions if needed.
✅ Consider Disability & Critical Illness Insurance – These policies can help cover major medical costs.
👉 Why This Matters: Unlike couples, singles don’t have a built-in caregiver, so planning for health-related costs is crucial.
Tying It All Together: Why Planning Matters
So far, we’ve looked at all the major risks facing single retirees—higher taxes, no survivor benefits, the impact of inflation, and healthcare costs that can get very expensive.
And unlike couples, you don’t have a built-in caregiver or second income to fall back on.
Meet Andy Dwyer — the Single Retiree
Andy’s 65 and planning to retire this year. But like a lot of people, he’s worried about whether he actually has enough saved.
After our initial meeting, here’s what we found:
- $200,000 in his RRSP
- $100,000 in his TFSA
- No pension, no spouse
- He’s in good health
- He plans to take CPP and OAS right away
- And he thinks he’ll spend $50,000 per year in retirement
His goal? To make that money last until age 90.
But here’s where we hit the first snag.
❌ Mistake #1: Not Accounting for Inflation
On paper, Andy thought his $50,000-a-year spending plan would last until maybe his 80s if his investments did ok. But he forgot about inflation.
If we assume 2% inflation, that $50,000 today becomes:
- Around $55,000 at age 70
- Close to $61,000 by age 75
That means his actual purchasing power drops every year — and his money runs out way earlier than expected. He starts running out around age 74.
✅ But Here’s Some Good News…
Andy made another mistake, but this time, it works in his favour.
He overestimated how much he’ll spend in retirement.
Most people think they’ll spend the same in retirement as they do now, but that’s rarely the case. In reality, spending tends to drop by at least 20% once you retire — and often declines even more with age.
Andy’s new spending estimate? More like:
- $40,000/year in his 60s and early 70s
- $35,000 in his 70s and early 80s
- $30,000 or less after 85
This adjustment alone extends Andy’s savings to age 85—a big improvement. We spend a lot of time on this with clients, carefully estimating retirement costs based on lifestyle, health, and inflation. Getting those numbers right can make or break your plan.
🚀 Let’s See if We Can Do Even Better
Next move: delay CPP and OAS to age 70.
That increases his guaranteed income and significantly improves the plan. Now he’s almost fully funded — about 98%.
But wait — take a look at his tax rate. It’s too low in the early years, meaning he’s not taking advantage of his tax brackets.
Let’s fix that.
💡 Smoothing Out Taxes
We have Andy draw $30,000 per year from his RRSP from age 65 to 69 to help cover his expenses while delaying CPP and OAS.
Result?
- His plan is now 102% funded
- He gets better use of his tax brackets
- (do comparison, show big savings in tax)
- And more stable income overall
Still, 102% doesn’t give us much buffer. Let’s look at three easy ways to build more margin.
🎯 3 Ways Andy Can Boost His Retirement Plan
Our goal is to get Andy to retirement as quickly as possible, so let’s keep it realistic:
- Work one extra year before retiring
- Boosts the plan to 114% funded
- One year = major peace of mind
- Boosts the plan to 114% funded
- Monetize his hobby
- Andy loves woodworking
- Earns $10K a year for 6 years
- Plan now 112% funded
- Andy loves woodworking
- Airbnb his condo in the summer
- Lives with family those months
- Brings in $10K a year for 6 years
- Plan also 112% funded
- Lives with family those months
All doable, all low-stress options.
🛡️ What’s Next?
We’ll now take this base plan and stress-test it:
- What happens if markets drop early?
- What if inflation runs higher?
- How would long-term care affect things?
We will refine it until Andy gets a clear roadmap — and the peace of mind he needs to retire confidently.
This was a super condensed version of the financial planning that we do. In reality, we go way deeper, factoring in detailed tax projections, market risks, health care costs, estate planning, and more. What you saw today is just the tip of the iceberg.
Retirement as a single person in Canada can feel uncertain—but it doesn’t have to be. With the right strategies, you can make your money go further, minimize tax surprises, and build a future that’s both secure and fulfilling.
At Blueprint Financial, we specialize in helping Canadians craft personalized retirement plans that truly fit their lifestyle and goals. If you’re ready to take the first step, explore our financial planning services to see how we can help turn uncertainty into clarity.
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