Retired couple enjoying a vacation.
Many retirees in Canada have meticulously planned their expenses, mapping out health care costs, housing and travel with precision. But what if being more pragmatic about your spending could stretch your retirement dollars further, boost monthly cash flow or even add extra years of financial freedom?
In retirement, every little bit helps. With that in mind, here are the top seven things Canadian retirees should stop spending their money on to improve their financial freedom.
It’s easy to justify a new car purchase every decade or so when you’re commuting to work or dropping the kids off at school, but your retirement probably involves a lot less travel than your working days.
Your golden years are the perfect opportunity to cut back on one of the biggest financial drains for most Canadians: vehicles. That’s not to say you need to abandon your car entirely and switch to public transit, but getting rid of your second vehicle — or buying a relatively modest, cheap, used car instead of something brand new — could be justified in retirement.
You could also switch to ride-sharing apps or weekend rentals to minimize your transportation costs. Every dollar saved on parking, maintenance, taxes and insurance could be used to fund your lifestyle instead.
Retirement is the perfect opportunity to downsize your lifestyle and restructure your spending to focus only on the things you need or enjoy the most. One option is to downsize your home and move into a smaller dwelling to save on maintenance costs or property taxes. You could also decide to let go of that recreational vehicle, or that boat in your driveway that may be chewing into your monthly budget.
To be fair, retirement is also about enjoying your freedom, so you don’t need to cut every luxury indulgence. But if there’s something you find yourself less attached to, maybe this is the time to let it go.
Read more: ‘You’re going to live on beans and rice’: This senior told Dave Ramsey she has debt and zero savings — here’s his response plus 3 retirement saving tips to get you back on track
The sudden spike in mortgage interest rates is making vacation homes and cottages less affordable. According to a Royal LePage report, the demand for vacation homes and cottages slowed significantly in 2024 compared to the spike seen during the pandemic, with the average recreational property in Canada often settling around $678,000.
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Selling your second property could unlock significant equity that can be added to your stock or bonds portfolio to boost monthly cash flow.
According to various surveys, a significant number of Canadian retirees financially support their adult children. A Fidelity Investments Canada report found that 59% of retirees provide some form of financial support to their adult children, ranging from helping with everyday expenses to assisting with large purchases like homes or weddings.
If you’re part of this cohort, it could be a good idea to have a conversation with your children to see if you can steadily cut back on the financial assistance. Minimizing this cost can go a long way to securing your retirement or enhancing your financial security.
Retirement is a good time to re-evaluate your insurance policies to see if you can save some money. As a senior, monthly premiums for insurance policies are likely to be higher given your age. Speak to a financial adviser to see if you’re over-insured and if you have room to cut some of your monthly premiums.
It’s easy to ignore an accumulation of a lifetime of subscriptions. As a retiree, it could be a good idea to review all your monthly subscriptions and see if you really need those streaming services, weekly magazines or meal-kit delivery services.
Your retirement is the perfect time to indulge in travel and luxury experiences, but overindulging could be stretching your budget when you get back home to your regular life.
Consider traveling during off-seasons or look for special deals to lower the cost of that annual vacation. Cutting back on spa visits and luxury cruises could also help add hundreds or even thousands of dollars to your budget.
1. Royal LePage Blog: Real estate prices in Canada’s recreational markets to see further gains in 2025 despite geopolitical uncertainty (March 26, 2025)
2. Fidelity: 2024 Fidelity Retirement Report (Apr 30, 2024)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.