Will Your Retirement Savings Last? Canadians Are Living Longer Than Ever
RBC is urging Canadians to revisit their retirement plans as longer life expectancy changes what retirement looks like. Living longer means your money may need to last much longer too.
For years, retirement planning was fairly straightforward.
Work until your mid-60s, save consistently, retire, and expect your savings to last another 15 or 20 years.
That assumption is starting to change.
According to RBC Royal Trust President and CEO Leanne Kaufman, many Canadians are still relying on retirement plans they created 20 years ago. The problem is that people are living longer, staying healthier, and spending far more years in retirement than previous generations.
Today, retirement isn't just another stage of life. It could easily last 25, 30, or even 35 years.
Living longer is great—but it comes with a cost
Most people think about retirement in terms of travel, hobbies, and finally having more free time.
What often gets overlooked are the expenses that tend to grow as we age.
Healthcare, long-term care, home renovations for accessibility, inflation, and simply covering everyday living costs over several decades can have a much bigger impact than many people expect.
RBC recommends stress-testing your retirement plan by asking questions like:
These aren't worst-case scenarios anymore. They're becoming realistic possibilities.
This is exactly why Ai Financial was founded
At Ai Financial, we've been talking about this issue for years.
Our mission has always been to help improve retirement outcomes for Canadians.
We're seeing a major shift.
People are living longer, but traditional retirement income hasn't kept pace.
CPP and OAS provide an important foundation, but for many Canadians, they're not designed to fully support a retirement that could last three decades or more.
At the same time, relying only on savings accounts often means your money struggles to keep up with inflation over the long run.
That's why we've always encouraged Canadians to start investing as early as possible, instead of waiting until retirement is just around the corner.
Time is your biggest advantage
One of the biggest mistakes people make is thinking they have plenty of time.
“I'll start investing later.”
“I'll save more when I earn more.”
The reality is that building wealth isn't just about how much you invest.
It's about how long your money has to grow.
The earlier you begin, the more time compound growth has to work for you.
That's something no one can buy back later.
Why many of our clients chose Investment Loans
Over the years, we've discovered that Investment Loans can be an effective solution for many Canadians who want to build retirement wealth sooner rather than later.
Rather than waiting years to accumulate enough cash before investing, qualified investors may be able to enter the market earlier and give their investments more time to grow.
For many of our clients, this approach has made a meaningful difference.
Some have built retirement portfolios that have grown substantially over time, helping them create additional retirement income and greater financial flexibility.
But for the right person, they can be a powerful tool for preparing for retirement.
Retirement planning is changing
RBC's message is simple:
If you haven't reviewed your retirement plan in years, now is probably the time.
At Ai Financial, we believe the conversation goes one step further.
The biggest retirement risk today may not be retiring too early.
It may be living longer than your money can support.
Canadians are living longer than ever before. That means retirement planning isn't just about saving enough money—it's about making sure your assets continue working for you throughout retirement.
The sooner you start building long-term investments, the more choices you'll have later in life.
Because preparing for retirement shouldn't begin five years before you stop working.
It should begin as early as possible.