Rob Carrick retired from his role as personal finance columnist for The Globe and Mail in 2025.Supplied
On Oct. 6, personal finance columnist Rob Carrick answered reader questions about what he’s learned in retirement and how retirees and other Canadians can more effectively save money.
For almost three decades, Carrick has been writing about everything you need to know about managing your money in Canada.
In 2025, Carrick announced he was retiring from his role as personal finance columnist at The Globe and Mail. And in September, he shared his insights on the highs and lows of the first year of retirement, including how to stay busy, manage your finances and focus on your health.
Readers asked about saving for retirement, managing inflation and what else he’s been up to for the past year. Here are some highlights from the Q&A.
Preparing for retirement
What’s the magic amount needed for retirement at 60?
Rob Carrick: The magic amount is however much you need in total savings to cover the retirement lifestyle you want. Figure out how much you’ll spend monthly in retirement (including amounts put away for travel and other savings goals) and then see if the projected income from your savings, pension (if applicable), CPP and OAS will cover it. Here is a roster of financial planners who can help you crunch these numbers.
How do you think AI could impact retirement over both the short and longer term?
Carrick: I am waiting for AI to step up with financial planning resources for the many people who don’t have enough assets to interest a financial adviser, or who cannot afford a comprehensive financial plan. I’m optimistic this will happen. Here’s something I wrote recently on AI and planning.
For those of us with significant mortgages but still working, should more of the focus be on paying down the mortgage earlier than the full term or saving for retirement?
Carrick: I know many people anticipate retiring with a mortgage. My thinking is to try your utmost to avoid this, where possible. Making mortgage payments adds a huge amount to your retirement cashflow needs. Suggestion: Continue saving for retirement, but emphasize mortgage paydowns where possible. Aim to have your mortgage paid off ahead of retirement and then direct every dollar of your former mortgage payments into retirement saving. This approach worked well for me and my wife.
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Retired life
Now that you have been retired for a year, have your thoughts changed on purchasing private health insurance vs. self-funding by putting money aside in a separate account?
Carrick: The short answer is no. I continue to self-insure for health costs rather than buy health insurance. I was wide open to buying a policy when I retired, but I just could not find one that made financial sense to me. So many limitations on claims – deductibles or ceilings.
My wife and I put a block of money monthly into a health savings account held in a high interest account at an alternative bank. In the first year, we have barely drawn on it and thus have a growing fund of money to cover costs like prescriptions, physio, etc. should they arise.
For those in early retirement, is there a formula you would apply to a cash wedge against a market downturn?
Carrick: The cash wedge is huge for retirement peace of mind. If markets tank, you leave your stocks and equity funds alone so they can recover over time. Instead, you fund your income needs (and minimum RRIF amount) from holdings in cash-equivalent investments. I’d think in terms of years, not percentages – enough cash to cover two to four years of income needs.
High-interest savings products for investors (in ETF and mutual fund formats) work well. So do money market ETFs. Laddered GICs are good, too, if you are comfortable not having liquidity to cash out any time. Make sure you buy GIC from alt banks to squeeze the best returns.
Finances aside, how have you found other aspects of retired life? Any advice on how to prepare one’s non-financial life heading into retirement?
Carrick: The best thing about retirement is being off the clock and having time for hobbies, social gatherings, etc. That said, I am not much of a hobby guy. My personal finance work, including biweekly columns for The Globe, is my hobby.
I do have much more time for reading. I figure I’m reading two times as many books more than before. I also make time to meet up with friends during the day for coffee. I also have a friend I run with on a regular basis. Just having the control to set my own schedule is huge, and I think this resonates with all retirees.
Opinion: The simple savings-account setup that retirees need in a high-cost era
One of the chief struggles for many retirees is the inability to shift from a life of frugality and saving to spending and enjoying the fruits of one’s labour. Have you found the adjustment difficult?
Carrick: I have found that people who live a frugal life while working do not easily pivot to freer spending in retirement. Instead, they tend to focus on containing spending and trying not to draw from their retirement capital. I was a steady saver in my working years, but my wife and I made sure not to back-load all our travel and experiences to retirement. We tried for a balance of financial prudence and spending in our working years, and that continues into the retirement years.
What I suggest for pre-retirees is doing a budget comparing expenses while working with anticipated expenses in retirement. Map out how much travelling you’ll do, how often you’ll go to concerts, events and restaurants. Then, see how well your finances will get you there. If you can afford your anticipated retirement life, then go for it.
We are challenged today by a significantly higher cost of living, most specifically expensive food, increasing costs of condo living, traffic and stress in a big city. What alternatives are there?
Carrick: My feeling is that retirees are kind of boxed in by rising costs for food, travel, etc. Cost-of-living adjustments are made in payments from CPP and OAS, and many stocks increase dividends. But there is no opportunity to get a bunch more income from a promotion, bonus or new job. We retirees have to live within our means, and that means compromises.
I have heard quite a bit of talk from fellow retirees about moving out of big cities. For Toronto people, Prince Edward County comes up a lot. But I’m not sure that’s a widely applicable solution, given that it can mean moving away from friends and family. My wife and I are adjusting to expensive costs for food and much else by spending more strategically. We have pretty much given up on high-end restaurants and instead go to more moderately priced spots. We’re still trying to find our rhythm with travel, given how expensive flights are.
This Q&A has been edited and condensed.