Are you worried about running out of money in retirement?

A couple are discussing their retirement plans. Well, not exactly plans. More like fears.

“I don’t think my RRSP will be enough,” one said while examining the price of milk. It’s $6.49 now. Can you believe it? The other just nodded grimly.

This sort of conversation happens everywhere currently. Yet somehow it never makes it into polite dinner party conversation.

Maybe it’s time that changed.

Terrified of running out of pension money

The statistics are pretty grim, honestly. Survey after survey shows the same thing – Canadians between 55 and 65 are terrified of outliving their money.

Not “concerned.” Not “worried.” Terrified.

And they have good reason to be.

Think about it this way: your father may have worked for CN Rail or the government or one company for 30 years, retired with a decent pension, and lived maybe 15 years after stopping work. Simple math. Predictable outcome.

You? A different story entirely. Defined benefit pensions are mostly gone now. Not completely, but for most people. CPP and OAS exist, but let’s be honest – try living on $1,300 a month in today’s Canada. Your RRSP and whatever other savings you managed to accumulate have to do the heavy lifting.

Meanwhile, you’re probably going to live longer than your parents did. Maybe a lot longer.

So, do the math on that scenario. Thirty years of retirement expenses in a country where everything costs more every year. Groceries, utilities, property taxes – it all adds up fast.

Rules written for a different Canada

Here’s what makes this particularly frustrating: most people followed the rules they were given: contribute to your RRSP; get the maximum from your employer’s group plan; invest in Canadian index funds. Everything the financial advisors recommended.

But those rules were written for a different Canada. One with shorter retirements, lower healthcare costs (yes, even with universal healthcare, there are plenty of costs), and housing that didn’t require winning the lottery to afford.

Housing costs in Toronto and Vancouver have gone completely insane. Even smaller cities like Halifax and Kelowna are pricing out locals. Prescription drugs aren’t all covered by provincial health plans. Dental work, physiotherapy, home care all add up.

So even people who did everything ‘right’ are discovering it might not be enough.

That’s terrifying in a very specific way. It’s one thing to worry about money because you didn’t save. It’s another thing entirely to worry because the whole system shifted while you were playing by the old rules.

What is really happening

Forget the textbook solutions from those RBC retirement calculators for a minute. Here’s what’s really happening across Canada: lots of people are just working longer. Not because they love their jobs (though some do), but because they have to. Retirement at 60? More like 65, 67, maybe 70. The new reality.

Others are making radical changes. Selling Toronto houses and moving to New Brunswick or |Saskatchewan where money stretches further. Some are even looking at places like Portugal or Mexico. These are not just wealthy Bay Street types, but regular folk making hard choices.

The cottage country thing has flipped, too. Instead of buying vacation properties, people are selling city homes and moving to what used to be cottage areas permanently. Muskoka, the Kawarthas, the Maritimes.

Some are getting creative with income. Consulting work. Teaching at community colleges. Seasonal tourism jobs. Airbnb hosting (where municipalities allow it). Not traditional retirement, but it helps make the numbers work.

Healthcare planning has become huge. Because while we have universal healthcare, long-term care isn’t fully covered, and private rooms in nursing homes can cost $4,000-5,000 a month.

Talk about it

Money conversations are awkward under the best circumstances. Add in fear, regret, and uncertainty about the future, and most Canadians just change the subject to the weather.

There’s also that particular Canadian thing about not wanting to seem like you’re complaining. We’re supposed to be grateful for what we have, right? Admitting you might not have enough saved feels like admitting you’re not managing properly.

But here’s the thing – this isn’t really about individual failure. It’s about massive changes in how retirement works in Canada, and most people are just trying to figure it out as they go.

Making the most of spousal options

Married? You’ve got some clever moves available. You can base your minimum withdrawals on your younger spouse’s age instead of your own. If there’s a decent age gap between you two, this can really slow down those required withdrawals.

Pension income splitting is another winner. You can shift up to half your RRIF income to your spouse for tax purposes. If you’re in different brackets, this move alone could save you hundreds or thousands each year.

Practical solutions

So, let’s talk about what actually helps:

Make an honest assessment first. Not what you wish your financial situation was, but what it actually is. RRSPs, TFSAs, company pensions, CPP projections, OAS eligibility. All of it.

Then strategically think about the pieces you can still influence. When to take CPP (earlier means less money but more years of payments). Where to live (Ontario property taxes versus Alberta’s). Whether downsizing makes sense.

You may need professional help, which can pay for itself. Fee-for-service financial planners who understand Canadian tax rules, not just bank salespeople pushing mutual funds.

Consider if moving to a cheaper area or downsizing is a viable option. But remember that community building matters more than most people realise. Strong relationships reduce both isolation and expenses during retirement years.

The bigger picture

Individual solutions are important, but they’re not enough. This is affecting millions of Canadians.

Some things are starting to change. The CPP enhancement will help future retirees. Some provinces are improving prescription drug coverage. There’s growing recognition that the current system leaves too many people behind.

However, those changes will take time, and if you’re approaching retirement now, you can’t wait for government solutions.

Retirement funding crisis

The retirement funding crisis is real in Canada. The fear about outliving savings is justified. The old assumptions about company pensions and cheap housing don’t apply anymore.

But that doesn’t mean giving up or panicking.

It means adapting to Canadian realities. Being more creative about where and how to live. Making harder choices sometimes.

Planning more carefully for the costs that aren’t covered – dental, vision care, prescription drugs, home care, long-term care.

Working with the system as it actually exists, not as it was 20 years ago.

Most importantly, it means having these conversations more openly. The silence around retirement fears helps nobody.

Canadians need to share strategies that actually work in this country. Learn from each other’s mistakes. Build support systems for navigating an uncertain future.

The conversation is starting to happen. In grocery store lineups, at hockey rinks, in online forums for Canadian retirees.

Maybe it’s time to bring it to the kitchen table, too.

Please note, when thinking about retirement financial options, you should always take independent, professional advice.