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Toronto, ON – April 8, 2025 – A recent surge in reports from financial advisors across Canada indicates a growing trend of “retirement regret,” with many canadians expressing anxiety about enjoying the fruits of their decades-long savings efforts. This comes as a BMO survey released in February 2025 revealed over 77% of Canadians are worried about insufficient retirement savings, exacerbated by ongoing inflation.
While diligently saving for retirement is crucial, experts warn that a fear of depleting funds can lead to a diminished quality of life during one’s golden years. A recent study by Business Insider,compiling insights from 200 retirees,highlighted a common theme: the regret of not spending their accumulated wealth on experiences and passions. Noah sheidlower’s report detailed instances where retirees, despite having ample nest eggs, felt constrained by anxieties surrounding outliving their money.
This phenomenon isn’t simply about large sums of money; it affects individuals across various income levels. The core issue is a psychological barrier preventing retirees from fully embracing their newfound freedom. Financial planning, therefore, needs to extend beyond accumulation to encompass a intentional spending strategy. Books like Die With Zero, authored by Bill Perkins, advocate for a proactive approach to spending throughout retirement, aligning expenses with life stages and maximizing enjoyment.
For those unsure how to navigate this complex landscape, consulting a financial advisor is highly recommended. Advisors can help create a personalized retirement income plan, factoring in inflation, healthcare costs (which rose an average of 5.2% in Ontario in 2024, according to the Ontario Ministry of Health), and desired lifestyle. They can also assist in establishing a robust emergency fund – Scotiabank recommends having 3-6 months of living expenses readily available – to mitigate unexpected financial burdens and reduce anxiety.
Key Takeaways for Future Retirees:
- Proactive Spending Plan: Don’t wait for retirement to think about how you’ll spend your money. Start planning now.
- Emergency Fund: A well-funded emergency fund provides peace of mind and prevents dipping into retirement savings for unexpected expenses.
- Professional Guidance: A financial advisor can offer tailored advice and help you create a enduring spending strategy.
- Prioritize Experiences: Consider allocating funds for travel,hobbies,and activities that bring joy and fulfillment.
1. Business Insider: What I learned from 200 retirees by Noah Sheidlower (April 6, 2025)