For decades, the vision of retirement was simple: work until 65, collect a pension, and enjoy a slower pace of life. But in 2025, that picture has changed—dramatically.
Rising costs of living, longer lifespans, and a shift away from traditional pensions mean Canadian’s entering retirement today face a very different landscape than their parents did. At Evans Family Wealth, we’ve seen firsthand how these changes can either derail a retirement dream or inspire a new approach that keeps it on track.
Here’s what you need to know about the new retirement reality, and how to prepare for it.
Longevity is the Biggest Game-Changer
The average Canadian is living longer than every—a wonderful thing, but one that comes with financial challenges. Retirements that used to last 15-20 years are now stretching to 25-30 years or more.
That means your savings need to last significantly longer. For many families, this requires rethinking their withdrawal strategies, investment mix, and risk tolerance to ensure income doesn’t run out before they do.
Inflation and Rising Costs of Living
Grocery bills, healthcare, and even everyday leisure activities are more expensive than they were just a few years ago. Inflation doesn’t just impact your pre-retirement budget—it compounds over time, eroding purchasing power during retirement when you’re often on a fixed income.
A modern retirement plan must include built-in inflation protection, whether that’s through growth-oriented investments, delayed CPP benefits, or smart spending strategies.
Housing Wealth Plays a Bigger Role
For many Canadians, the family home is one of their largest assets. Downsizing, renting, or leveraging home equity is becoming an essential part of retirement planning—especially as more people want to age in place while still accessing the equity they’ve built.
Understanding how your home fits into your overall wealth picture can open doors for funding retirement goals without jeopardizing long-term security.
The Rise of the “Phased Retirement”
Not everyone is leaving the workforce cold turkey. More Canadians are choosing to scale back hours, consult part-time, or start small businesses as they enter retirement.
Phased retirement can ease the transition emotionally and financially—but it requires thoughtful tax and investment planning to avoid unexpected tax bills and to ensure continued contributions don’t disrupt existing strategies.
Rethinking the 60/40 Portfolio
The classic 60/40 stock-to-bond mix isn’t always enough in today’s environment of low bond yields, higher volatility, and evolving risks.
A forward-looking retirement portfolio often includes:
- More globally diversified equities for long-term growth
- Inflation-sensitive assets
- And sometimes, innovative diversifiers like the 5% Bitcoin Solution we advocate for clients looking to hedge against traditional market risks.
Planning Beyond the Numbers
Financial security is critical, but so is preparing for the lifestyle changes retirement brings. Questions about healthcare, caregiving, travel, and legacy planning can be just as important as investment returns.
A strong retirement strategy should reflect your values, relationships, and the experiences you want to prioritize in the decades ahead.
The Bottom Line: Adaptability is Key
The new retirement reality isn’t about working longer or saving harder—it’s about planning smarter. Canadians who start early, stress-test their plans, and adjust along the way can still achieve the retirement they’ve envisioned.
At Evans Family Wealth, we specialize in helping families navigate these new dynamics with strategies that balance growth, income, and peace of mind. If you’d like to feel confident about your future, we’re here to help.
Briana