Everything Financial’s Peter Cishecki offers key insights for those nearing retirement on CTV Morning Live. <\/p>\n
Christopher Liew<\/a> is a CFP\u00ae, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial<\/a>.<\/p>\n Retirement looks different when you\u2019re planning for one instead of two. The absence of a second income or a partner to share expenses like rent, groceries, and utilities with can make retirement especially challenging. There\u2019s also the added concern of managing health or caregiving needs without a spouse to help you when you need it most.<\/p>\n The financial reality of retiring alone can feel daunting. However, there are ways to make it easier. By taking advantage of tax breaks, government benefits, and implementing smart financial strategies, single retirees can create a system that allows them to be independent and secure in their later years.<\/p>\n Challenges of retiring single<\/p>\n The older we get, the more we realize the value of partnership and having a helping hand. Even if you do have some family and friends to lean on from time to time, it\u2019s not the same as having a partner or spouse under your roof who you can rely on completely.<\/p>\n One income and higher costs<\/p>\n According to a 2022 report<\/a> by Statistics Canada, the median income for single Canadians 65 and older is just $30,820. By contrast, couples over 65 earn a median household income of $74,200.<\/p>\n If you\u2019re a single retiree who\u2019s not significantly above average income, this means you\u2019ll have to find ways to make your income stretch.<\/p>\n If you\u2019re renting, you\u2019ll have to deal with the ever-increasing rental rates<\/a>. Even if you\u2019re lucky enough to live in a house you\u2019ve paid off, there\u2019s still the chance that your property taxes could steadily increase and price you out of your housing budget.<\/p>\n You\u2019ll also have to account for rising grocery costs<\/a>, utility bills, maintenance for your car or home, and other expenses.<\/p>\n No built-in caregiver<\/p>\n Couples often rely on each other for daily support as they age, especially if one partner gets sick, needs surgery, or is having mobility issues. When this happens, having a partner is an invaluable resource, as you\u2019ll have somebody to watch over you, cook you meals, and drive you around.<\/p>\n For single retirees, the absence of a partner may mean higher costs for professional caregivers, long-term care facilities, or in-home services.<\/p>\n Longevity risk<\/p>\n Longevity studies from Statistics Canada<\/a> reveal that the average life expectancy for women in Canada is 83.9 years, while for men, it\u2019s 79.5 years. This means women, on average, live 4.4 years longer than men.<\/p>\n This means that women face a greater risk of outliving their savings.<\/p>\n Tips to strengthen your finances as a single retiree<\/p>\n While the reality of retiring single certainly comes with its challenges, there are strategies you can employ to help you stretch your finances and give you more breathing room.<\/p>\n 1. Use tax credits and deductions<\/p>\n The Age Amount Tax Credit<\/a> and Pension Income Credit<\/a> are two tax credits you can use to put extra money back into your pocket as a retiree. There are also other credits and deductions you may be eligible for to help cover medical expenses, home-care costs, and even renovations you make to your home to help with mobility<\/a>.<\/p>\n Lower-income retirees may also qualify for the GST\/HST Credit and provincial programs.<\/p>\n 2. Maximize your government benefits<\/p>\n Programs like OAS, the CPP, and the GIS are retirement income sources for many retirees. If you\u2019re single and approaching retirement, you should review your eligibility<\/a> for these programs and calculate how much monthly and annual income from these sources you can expect.<\/p>\n