{"id":794108,"date":"2026-07-11T02:38:34","date_gmt":"2026-07-11T02:38:34","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/794108\/"},"modified":"2026-07-11T02:38:34","modified_gmt":"2026-07-11T02:38:34","slug":"the-inflation-rate-that-actually-matters-most-in-retirement","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/794108\/","title":{"rendered":"The inflation rate that actually matters most in retirement"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Illustration by Sam Island<\/p>\n

Good morning. Inflation can be one of the biggest worries when you\u2019re planning for retirement. Watching prices rise while you\u2019re living on a fixed income sounds like a recipe for stress. But what if it actually isn\u2019t quite as scary as it seems? Let\u2019s get into it.<\/p>\n

What\u2019s your personal inflation rate? <\/p>\n

Canada\u2019s latest inflation numbers may have made your heart rate tick up a little.<\/p>\n

Inflation accelerated to its highest level in more than two years in May as price pressures linked to the conflict in Iran began showing up beyond the gas pump. Statistics Canada reported in late June that the annual inflation rate climbed to 3.2 per cent in May, up from 2.8 per cent in April and the highest headline reading since December, 2023.<\/p>\n

Then, on Monday, the Bank of Canada\u2019s quarterly business outlook survey reported that many businesses expect weaker sales and anticipate raising prices in the months ahead.<\/p>\n

Most economists weren\u2019t overly alarmed, noting that oil prices have already started to ease. Still, it\u2019s easy to see why higher inflation can make retirees (and anyone planning for retirement) nervous. When the cost of groceries, utilities and other everyday expenses keeps climbing while your income stays relatively steady, it can feel like you\u2019re constantly falling behind.<\/p>\n

But a recent blog post by author Jordan Grumet<\/a> flips this whole notion on its head. His argument is that your personal inflation rate is often much more within your control than the headline number suggests.<\/p>\n

Just because prices are rising, it doesn\u2019t mean your own spending has to rise at the same pace. In retirement, for example, you may no longer have commuting costs, you have more time to cook at home instead of eating out, and you can travel during the off-season when prices are lower.<\/p>\n

\u201cWhile society takes a massive hit from rising prices, your personal inflation rate will almost always track lower than the national average because you know how to adjust the levers of your life,\u201d Grumet wrote. <\/p>\n

The same idea applies before retirement, too. We can\u2019t control inflation, but we can control many of the choices that determine how much it affects us. Staying flexible and paying attention to your spending can go a long way toward protecting your finances, no matter what inflation is doing.<\/p>\n

What are some items you\u2019re surprised you are underspending on in retirement? Let me know by emailing me at mraman@globeandmail.com<\/a>.<\/p>\n

Subscribe to the Retire Rich newsletter<\/p>\n

Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Retire Rich here<\/a>.The Calculator <\/p>\n

$1,000<\/p>\n

Amount the U.S. government will deposit into a new Trump Account for eligible newborns<\/a>. The accounts, which recently launched, are custodial retirement-style investment accounts for children. The $1,000 seed contribution from the Treasury Department grows tax-deferred until it\u2019s withdrawn.<\/p>\n

In Canada: The closest thing is the Canada Learning Bond, which helps low-income families save for postsecondary education. It offers up to $2,000 through a child\u2019s RESP, $500 upfront, then $100 a year until they\u2019re 15.<\/p>\n

The Retirement Receipt Open this photo in gallery:<\/a><\/p>\n

Illustration by Diana Bolton<\/p>\n

A couple bought $770,000 townhouse without help from the Bank of Mom and Dad<\/a><\/p>\n

The numbers: Julia, 29, and her husband, 27, earn about $160,000 a year. They put down $52,000 (6.75 per cent) on a $770,000 freehold townhouse in Pickering, Ont., after saving through RRSPs, TFSAs, FHSAs and cash accounts.<\/p>\n

The situation: Although they had access to financial help from family, they chose to buy on their own. After being priced out of Toronto and delaying their purchase when mortgage rates were too high, they kept saving until they found a home that fit their budget and lifestyle.<\/p>\n

Key takeaways: The couple maximized employer RRSP matching, automated savings and used multiple registered accounts to build their down payment. They also received nearly $9,600 back through their brokerage\u2019s commission rebate, which almost completely covered their closing costs. Their advice to other first-time buyers: don\u2019t rush, view plenty of homes and don\u2019t get emotionally attached too early.<\/p>\n

Best of the Rest <\/p>\n

\ud83d\udcb3 Not all bank rewards programs are created equal.<\/a> A new ranking of Canada\u2019s biggest loyalty programs found that some points are far more valuable than others. If you\u2019re collecting rewards, understanding how to earn and redeem them strategically could mean the difference between measly cash-back and a business-class flight.<\/p>\n

\ud83d\udcb0 Health care spending keeps rising, but where is the money going?<\/a> An analysis by Frederick Vettese, former chief actuary at Morneau Shepell, finds aging explains only about half of Canada\u2019s increase in health care costs since 2005, with roughly $40-billion in additional spending this year tied to other factors that aren\u2019t well understood.<\/p>\n

\ud83d\udcb3 Buy now, pay later is no longer just for big-ticket purchases.<\/a> More Canadians are using instalment loans to pay for groceries as food costs remain stubbornly high, a new survey by Koho shows. <\/p>\n

\ud83d\udcbc Retirees are becoming entrepreneurs.<\/a> Starting a business later in life can supplement retirement income and keep you engaged, but experts caution against risking too much of your nest egg, and to make an exit plan (Paywalled).<\/p>\n

Try This <\/p>\n

\ud83d\udc5b Your wallet might deserve a little paper money again.<\/a> Cash won\u2019t replace tap payments any time soon, but investment reporter David Berman outlines ways it can still win, such as getting you discounts and covering small purchases.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Illustration by Sam Island Good morning. Inflation can be one of the biggest…\n","protected":false},"author":2,"featured_media":794109,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46,6252],"class_list":["post-794108","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy","tag-retirementnewsletter"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/794108","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=794108"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/794108\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/794109"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=794108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=794108"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=794108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}