In a recent post on the r/PersonalFinanceCanada online community, the developer opened up about the emotional weight of sudden wealth. “But I’m tired. 10 years of grind. This industry is insane,” they shared, adding that they would love to pivot away from tech and “just focus on other crafts like music.”

Sitting on a seven-figure nest egg, they are facing a question that many Canadians only dream of asking: is it safe to retire at 39?

While sudden wealth offers incredible freedom, managing a major windfall introduces unique financial pressures. The desire to trade an exhausting corporate grind for personal passions is deeply relatable, but financial planners warn that walking away from a career that currently commands an annual salary between $130,000 and $190,000 requires precise calculations. To truly make a windfall work for you, you must understand how to protect that principal capital over a multi-decade horizon.

Ready to build a better financial future? Browse our expert reviews of the best budget apps in Canada and start your free trial today.

The reality of a multi-decade retirement

The biggest challenge of retiring before age 40 is the sheer timeline. A typical retirement lasts 20 to 30 years. Someone retiring in their late 30s or early 40s needs their money to last 40, 50 or even 60 years. Over such a long horizon, inflation becomes a silent wealth killer, eroding the purchasing power of every dollar.

Currently, the developer and their partner have a combined annual spend of about $80,000, which includes renting a home for $3,200 a month. They estimate they could scale back their lifestyle to a leaner budget of $5,000 a month, or $60,000 annually.

On paper, a $1.8-million portfolio invested broadly in exchange-traded funds (ETFs) looks robust. If we apply the traditional 4% rule, a well-known financial rule of thumb, a $1.8-million nest egg could safely provide about $72,000 in pre-tax income annually. This easily covers their baseline target of $60,000.

However, many modern financial experts argue that the 4% rule is too aggressive for an early retirement spanning half a century. A more conservative withdrawal rate of 3.25% to 3.5% is often recommended to protect against market downturns early in retirement, a risk known as sequence of returns risk. At a 3.5% withdrawal rate, the portfolio generates $63,000 annually, narrowing the safety margin significantly.

Accounting for life variables and the safety net

Renters face additional variables that homeowners don’t, particularly rising housing costs that are entirely out of their control. While keeping money in the market has historically outpaced real estate growth in certain periods, rent inflation can quietly squeeze a fixed retirement budget over 40 years.

Furthermore, retiring early in Canada means waiting decades before official government safety nets kick in. The Canada Pension Plan (CPP) and Old Age Security (OAS) benefits generally begin between ages 60 and 65. Because CPP payouts are directly tied to how many years an individual contributes to the system, walking away from a career decades before standard retirement age will result in much smaller government pension checks later in life.

Taking a sabbatical instead of full retirement

Instead of a permanent exit, a strategic alternative for anyone facing deep burnout after a windfall is a temporary sabbatical or a “soft retirement.” Taking a one- or two-year hiatus allows the mind and body to reset without permanently draining the principal investment.

During a gap year, a $1.8-million portfolio can remain untouched, allowing compound interest to do the heavy lifting. If the market achieves a standard historical return during that break, the portfolio could grow enough to fund future years of freedom without compromising long-term security.

Ultimately, this 39-year-old developer's position is an enviable masterclass in what financial freedom actually buys: options. With zero debt and a supportive partner earning up to $50,000 after taxes, they don't need to choose between a lifelong corporate grind or permanent, risk-laden retirement right away.

By opting for a soft retirement or an extended sabbatical, the exhausted Redditor user can safely step away from the insane tech industry, pick up their instruments and focus on their music. A sudden financial windfall doesn't just provide a massive bank balance — it provides the ultimate safety valve to log off, pause and redesign your life on your own terms.

So if you have $2 to $5 million in savings, you’re well above that target. But this level of wealth comes with its own unique challenges. Here are three reasons why being a modest millionaire is difficult to handle.

1. Uncomfortable tax situation

Someone with $30 million probably has access to a team of tax lawyers and investment advisers to handle complex tax issues. Someone with only $300,000 in comparison probably doesn’t have many tax complications to worry about.

But with $2 million to $5 million in registered and non-registered accounts, you’re in a genuinely difficult place. This level of wealth is high enough to cause real tax complications when taking withdrawals or moving money around — but not high enough to justify the cost of a full team of tax professionals.

For Canadian retirees in this range, one of the most important — and easily overlooked — tax risks is the mandatory Registered Retirement Income Fund (RRIF) withdrawal. Every Canadian must convert their Registered Retirement Savings Plan (RRSP) to a RRIF by December 31 of the year they turn 71.

Once that RRIF is open, the Canada Revenue Agency (CRA) requires mandatory annual minimum withdrawals. These withdrawals are fully taxable as income, whether you need the money or not. At age 71, the prescribed minimum withdrawal rate is 5.28%, and by age 80, it rises to 6.82%, and by age 90, it reaches 11.92%.

For a retiree with a $2 million RRIF, the minimum first-year withdrawal alone would exceed $105,000 — all of which counts as taxable income. If your 2026 income — combined with Canada Pension Plan (CPP), Old Age Security (OAS) and any other sources — pushes your net income above $93,454, you’ll begin losing 15 cents of OAS for every dollar above that line. This is the OAS clawback threshold, which affects OAS payments from July 2026 to June 2027. Moreover, OAS is completely cut off at $152,062 for those aged 65 to 74.

These problems aren’t what the ultra-wealthy face — their OAS is already gone. And it’s not a problem the middle class faces either — their RRIF balances are modest. It’s the wealthy retiree in the $2M to $5M range who tends to be blindsided by it.

Still, you should have at least one highly experienced, knowledgeable financial adviser to help you navigate everything from RRIF drawdown timing to OAS clawback avoidance. Strategies like drawing down RRSP balances in your 60s before the mandatory conversion age, pension income splitting with a spouse and holding dividend-paying investments inside your Tax-Free Savings Account (TFSA) can each make a meaningful difference.

It’s best to work with a Certified Financial Planner (CFP) who offers fee-only advice — meaning they make their money from you, not from commissions from financial products you may or may not need. This eliminates potential conflicts of interest when building a withdrawal strategy around your specific situation.

To get started, open a no-fee RRSP high-interest savings account with EQ Bank. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

2. Too exposed to market swings

A billionaire probably doesn’t lose sleep over a market correction, and a middle-class retiree likely leans more heavily on CPP and OAS. But someone with a portfolio worth between $2 million and $5 million has more to lose — and more to protect.

Interest, dividends and withdrawals from your investment portfolio are probably a major part of your annual budget. Fluctuations in stocks, bonds and other assets have a noticeable, real-world impact on what you can spend.

One way to mitigate this anxiety is to diversify into hard assets like physical gold. Since 2005, Canadians have been able to hold qualifying investment-grade gold bullion inside a self-directed RRSP or TFSA, provided the gold meets CRA purity standards: at least 99.5% pure and produced by an accredited trustee or custodian, such as the Royal Canadian Mint.

Holding physical gold inside a TFSA is particularly powerful: Any appreciation in value is completely and permanently tax-free. There are no capital gains to track, and withdrawals don’t count toward your net income for OAS clawback purposes — unlike RRIF withdrawals.

Gold-related exchange-traded funds (ETFs), such as those traded on the Toronto Stock Exchange (TSX), offer a more liquid alternative for investors who want to invest in the precious metal without worrying about storing it. Both options can serve as a hedge against inflation, crashes and currency risk.

3. Lifestyle inflation can quickly spiral

If you’re a multi-millionaire, you’re probably tempted to live like one. And this temptation could be the biggest financial risk you face in retirement.

Moving up to a bigger home, carrying a larger mortgage into retirement and scheduling multiple international vacations each year can quickly eat away at your nest egg — even one that’s $5 million — faster than most people expect. This is especially true if you face a sequence-of-returns risk: retiring just before a market downturn that reduces your portfolio early in retirement, exactly when you start making withdrawals.

However, even those with a million-dollar-plus net worth don’t feel the freedom that may be associated with such a status. A 2025 report from The Globe and Mail profiled Canadian retirees who technically qualify as millionaires but don’t feel like it — stating they still hunted for bargains and worried about outliving their money. According to the UBS 2025 Global Wealth Report, about 5% of Canadians have a net worth over US$1 million, or roughly C$1.4 million at current exchange rates.

The antidote isn’t to live like a monk — it’s to build guardrails. A written retirement income plan, created with a CFP, helps define what you can sustainably spend each year while staying on track for the long run. According to Fidelity Canada’s 2025 Retirement Report, 90% of Canadians with a written financial plan feel prepared for retirement, compared to just 55% of those without one.

The instant move: Build a ‘sleep-at-night’ cash bucket

An emergency savings fund may seem redundant when you’re sitting on a portfolio worth $2 million or more. But the peace of mind that comes from locking away one or two years of living expenses in a safe, accessible account can be invaluable — particularly in a down market when drawing from investments feels like selling at the worst time.

In Canada, two practical options for this cash bucket are Government of Canada bonds and Guaranteed Investment Certificates (GICs). Government of Canada 2-year bond yields currently sit at 2.75%. Meanwhile, GIC rates hover at or below 4% at major Canadian financial institutions after the Bank of Canada held its overnight rate at 2.25% in April 2026, though smaller credit unions and online banks offer slightly higher rates. This depends on the duration the GIC is held, whether from 90 days to five years.

Neither rate is spectacular — but that’s the point. It isn’t a growth bucket — it’s a shock absorber. Letting $150,000 to $250,000 sit in short-term GICs or Government of Canada bonds means you can cover 12 to 24 months of living expenses without touching your equity portfolio during a downturn. It also gives your investments time to recover before you need to draw from them.

If you hold GICs inside a TFSA, the interest earned is completely tax-free — making it an even more efficient emergency buffer for retirees who have available TFSA contribution room. The 2026 TFSA annual contribution limit is $7,000, with a cumulative limit of up to $109,000 for eligible Canadians.

What Canadian retirees in the $2M to $5M range should do next

The size of your portfolio isn’t the problem. The plan — or the absence of one — is. Here are practical steps for Canadians in this wealth bracket.

Run an RRIF drawdown scenario before age 71

If you expect a large RRSP balance at 71, consider drawing it down deliberately in your 60s when your income may be lower. This keeps future mandatory RRIF withdrawals smaller and reduces the risk of triggering OAS clawback.

Use pension income splitting

If you have a spouse with lower income, splitting eligible pension income — including RRIF withdrawals — can meaningfully reduce the household tax bill and keep each spouse below the OAS clawback threshold.

Maximize your TFSA every year

TFSA withdrawals don’t count as taxable income and are set apart from the OAS clawback calculation. Shifting dividend-paying investments or interest-earning GICs into your TFSA is one of the most effective tax strategies available to Canadian retirees.

Diversify beyond equities

Consider a mix of equities, fixed income, real estate investment trusts (REITs) and alternative assets — including qualifying physical gold inside a self-directed RRSP or TFSA — to protect against inflation and sequence-of-returns risk.

Build your sleep-at-night cash bucket

Set aside one to two years of living expenses in a GIC ladder or short-term Government of Canada bonds. This removes the pressure to sell equities in a down market and protects your long-term portfolio.

Get a written financial plan — and update it annually

Work with a fee-only CFP to stress-test your withdrawal strategy across multiple scenarios: a prolonged bear market, a health-care shock and the possibility you live into your 90s. Your plan is only as good as its most recent update.

But Marten sees the procedure as a chance to improve his quality of life and advance science in a way that could help others.

Marten is part of a clinical trial at Toronto Western Hospital and considers the device as a way to keep communicating with his family even as amyotrophic lateral sclerosis (ALS) — a progressive disease with no cure — takes away his ability to move, speak and eventually breathe on his own.

While Marten is still recovering, the almost science-fiction procedure and the diagnosis that led to this trial highlight a far more ordinary problem: What happens to income the moment a life-changing diagnosis, like this, arrives?

Most Canadians assume some mix of employment insurance (EI), the Canada Pension Plan (CPP) and workplace benefits will catch them if illness forces them out of work. In reality, that support pays less, and arrives slower, than most people expect — and for a large share of Canadians, especially the self-employed, there’s a real gap between a paycheque and what any government program replaces.

Navigating disability and critical illness can feel overwhelming. Getting insurance coverage can help. Start by looking at independent ratings. And if you’re looking for affordable coverage, check out PolicyMe. Just answer four questions, and PolicyMe will provide you with an instant, no-obligation quote, valid up to 90 days. Don’t let healthcare costs derail your plans. Get coverage with PolicyMe.

How fast does a paycheque actually stop?

For an employee, the first option is usually EI sickness benefits, which pays 55% of insurable earnings (for a maximum of $729 a week), for up to 26 weeks.

Based on these calculations, an employee earning $95,000 a year who stops working due to a critical illness would have their annual income fall to roughly $37,900 for the first six months, before tax, and after 26 weeks, no income at all.

The shortfall highlights how EI offers little more than a short bridge, not a long-term income plan.

Is CPP disability the safety net Canadians think it is?

For Canadians whose illness or disability is expected to last longer than 26 weeks, the next option is the CPP disability benefit.

In 2026, the maximum monthly payment is $1,741.20, made up of a flat basic amount of $610.46 plus an additional amount tied to individual’s contribution history. On average, a Canadian on CPP disability benefit earns approximately $1,210 per month — a fraction of a mid-career income. What’s worse is that CPP disability doesn’t cover medication, medical devices or other health costs.

Thankfully, for those facing such a disability, Service Canada does have a faster track for processing these applications — usually within five business days for a terminal illness — a condition expected to result in death within six months — and within 30 calendar days for a “grave” condition, drawn from a list of rapidly progressive illnesses developed by Employment and Social Development Canada.

But timing the application matters: Back pay is available once a claim is approved, but only once Service Canada has a completed application on file.

Why a workplace pension or LTD plan changes the whole picture

Marten’s case points to why occupational coverage matters.

Police officers, firefighters and other public-safety workers often have access to occupational disability pensions or employer long-term disability (LTD) plans that many private-sector and self-employed Canadians don’t have at their disposal.

Group LTD plans commonly replace 60% to 70% of income, though the definition of disability and payout maximums vary by policy — and these details are worth confirming with your employer’s human resources department.

For self-employed Canadians and gig workers, there is often no employer plan to fall back on at all. According to the Canadian Life and Health Insurance Association (CLHIA), an industry association representing Canada’s life and health insurers, roughly one in three working Canadians will be unable to work due to a disability lasting 90 days or longer at least once before age 65. Without a personal disability insurance policy, that gap falls on savings, family or provincial disability support.

Build your emergency fund. An emergency fund only helps if you can access it when life happens. A high-interest savings account can help you earn more on cash while keeping your money within reach. With a no-fee EQ Bank, your money is 100% accessible but still earning a high savings rate. Build your emergency fund using a high-interest EQ Bank account.

What can the Disability Tax Credit actually offset?

Once approved for a severe and prolonged impairment, Canadians can also apply to the Canada Revenue Agency (CRA) for the Disability Tax Credit (DTC).

For 2026, the federal disability amount is $10,341, providing a federal tax reduction of up to $1,448, on top of any provincial credit. DTC approval is also the gateway to other supports, including the Registered Disability Savings Plan and the Canada Disability Benefit, a newer income-tested federal payment for working-age adults with disabilities. None of these programs replaces lost income on its own, but combined, they can meaningfully soften the financial impact of a serious diagnosis.

The decision that actually protects a household

The math is sobering: a program built for the short term (EI), a pension built for modest income replacement (CPP disability) and tax relief that reduces bills rather than replacing pay (the DTC) — but none of these were designed to work alone.

To make it through a life-altering diagnosis with finances intact, you need to map out how to tackle the potential situation before the crisis becomes a reality. That review takes an afternoon. Waiting until a diagnosis arrives to find out costs months.

Traditional insurance options aren't your only choice. Evaluating how different plans stack up can help ensure your family has the right level of protection. Online providers can help. For instance you can get a PolicyMe term life insurance policy with coverage up to $5 million with premiums starting at just $21 per month — making it easier for you to secure your family’s financial future. Just answer four questions, and PolicyMe will provide you with an instant, no-obligation quote valid up to 90 days. Most policies are approved without any medical tests, and you can opt for term lengths ranging from 10 to 30 years. Get a free, no-obligation quote today with PolicyMe.

What to do now

The first step is to check whether your job includes group long-term disability coverage — and how much of your income it actually replaces.

If you’re self-employed, get a personal disability insurance quote while you’re healthy — keep in mind that insurance premiums rise sharply after a diagnosis.

If a severe and prolonged disability is confirmed, apply for CPP disability right away — terminal and grave conditions are fast-tracked, but back pay depends on when Service Canada receives a completed application.

Finally, ask a doctor or nurse practitioner about applying for the Disability Tax Credit — approval can unlock the Registered Disability Savings Plan and the Canada Disability Benefit

Map your EI sickness runway (up to 26 weeks) against how long a CPP disability decision could take, and plan for the income gap in between.

Consider Susan. She’s 60 years old, married, and getting ready to retire soon. Her husband is older and already retired. Together they have around $600,000 in registered savings — in Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) — enough to live comfortably, but not enough to absorb a surprise six-figure bill for LTC every year. She’s wondering whether to buy an LTC insurance policy before she leaves the workforce, and whether she’s already waited too long.

The short answer: she’s asking exactly the right question at exactly the right time.

What does LTC actually cost in Canada?

The costs vary significantly by province and the level of care you need, but they’re consistently higher than most Canadians expect. According to recent estimates, typical annual LTC costs in Canada can range from $25,000 to more than $200,000, depending on the type of facility and province:

• Government-subsidized LTC home beds: $1,300 to $3,400 a month
• Private long-term care facilities: more than $6,000 a month, with some exceeding $15,000 monthly
• Private 24/7 professional in-home care: up to $200,000 a year
• Assisted living in a private facility: $40,000 to $100,000 yearly

In Ontario, as of July 1, 2026, the government-set co-payment rate for a basic room in an LTC home is $2,129.17 every month, with semi-private rooms at $2,567.17 and private rooms at $3,041.97. For comparison, the standard charge in Nova Scotia for a nursing home is $114 a day as of March 1, 2026.

But here’s the key difference: While provinces do subsidize a significant portion of LTC home costs — approximately 78.4% of costs are covered by provincial, territorial and municipal funding — the remaining 21.6% is paid by residents out of pocket or through private insurance. And for Canadians who need care in a private retirement home, or want home care services beyond what their provincial plan covers, the funding gap can be substantially larger.

Cover what provincial health care doesn’t with affordable plans from PolicyMe.

Doesn’t Canada's health care system cover this?

The most common — and most costly — misconception in Canadian retirement planning is that universal health care covers it.

Canada’s health care system covers medically necessary hospital and physician services under the Canada Health Act. But long-term care isn’t an insured service under that federal legislation. Provinces do fund a portion of long-term care, but access to subsidized beds typically requires a formal health-needs assessment, and wait times for publicly funded beds can stretch for years in many communities.

Canadian provinces don't generally require individuals to spend down their assets before they can receive provincial assistance with long-term care costs. Instead, most provinces set a standard co-payment rate and reserve subsidies for residents below a fairly low income threshold — in Ontario, for instance, that cutoff sits around $27,000 a year. With $600,000 in registered savings, Susan's retirement income would almost certainly clear that bar in any province, meaning she'd pay the standard rate rather than qualify for help. Without a plan, those out-of-pocket costs could still add up fast for her.

Is buying a long-term care policy before retirement a good idea?

Susan is smart to think about this now, because timing is everything when it comes to LTC insurance in Canada.

The Canadian LTC insurance market is notably small, with limited providers and less competition — a reality that pushes premiums higher and makes eligibility more restrictive. Fewer than 2% of Canadians currently hold an LTC insurance policy, and nearly 74% have no financial plan at all to cover these costs, according to a Leger Marketing survey commissioned by the Canadian Life and Health Insurance Association (CLHIA), an industry group representing 99% of Canada’s life and health insurers.

The math on waiting is unforgiving. The publication Insurance Business notes that annual LTC costs for a private room ranged from $800 (New Brunswick) to $6,700 (Québec) montly. Most financial advisers recommend considering LTC insurance between ages 45 and 60, before health conditions can disqualify you or drive premiums up.

Whether it makes sense for Susan depends on her assets and her risk tolerance. With $600,000 in RRSPs and TFSAs, she has enough to live comfortably in retirement — but not enough to absorb years of private-facility costs without draining the nest egg she and her husband depend on. That makes insurance coverage worth a serious look.

Alternatives to long-term care insurance

LTC insurance isn’t the only option. If Susan decides the premiums are too high — or if a health condition makes her ineligible for a standalone policy — there are several alternatives worth exploring.

• Hybrid life insurance/LTC policies: These combine a death benefit with the ability to draw on LTC benefits if needed. They address the common concern about paying for coverage you may never use — if care isn’t required, the death benefit goes to your beneficiaries. Several Canadian insurers offer these products.
• Annuity products through RRSPs or RRIFs: A life annuity, purchased from a Canadian insurer with funds from an RRSP or Registered Retirement Income Fund (RRIF), can provide a guaranteed monthly income stream that helps cover care costs. Unlike a standalone LTC policy, an annuity provides income regardless of whether care is needed.
• Home equity: For Canadians who own their homes, a reverse mortgage can be a meaningful source of funds for care costs. Homeowners aged 55 and older can access a portion of their home equity without monthly payments, through products like HomeEquity Bank’s CHIP Reverse Mortgage. It currently offers a 5-year fixed rate at 6.64%, which works out to an APR of 7.06% after factoring in closing costs and administrative fees. Funds from home equity loans and reverse mortgages are tax-free and, importantly, don’t affect government benefits such as Old Age Security (OAS) or Guaranteed Income Supplement (GIS).
• Dedicated savings: Building a distinct long-term care fund within a TFSA — separate from general retirement savings — allows tax-free growth and flexibility. This requires discipline and a realistic estimate of future care costs, but removes the premium risk.

How to find the best long-term care policy

If Susan does decide to buy long-term care coverage, the details of the policy matter enormously.

Key questions to ask any insurer:

• Is there a benefit period, and how long will it pay out?
• Is there a daily or monthly benefit amount — and does it keep pace with inflation?
• Can you receive care at home, or only in a facility?
• Is the premium guaranteed, or can the insurer raise it significantly after the initial guarantee period (typically five years)?
• Does the policy use a reimbursement model (pays eligible expenses up to a cap) or an income model (pays a set monthly benefit regardless of actual costs)?

Susan should also pay attention to the elimination period — the waiting period before benefits begin, typically 60 or 90 days — and confirm whether her provincial plan’s subsidized coverage can serve as a bridge during that window.

It’s advisable to work with an independent insurance broker who specializes in long-term care products. The Canadian marketplace has a limited number of providers, so getting multiple quotes and understanding the trade-offs between coverage, premium stability and flexibility is especially important.

What Canadians approaching retirement should do now

Susan’s situation isn’t unusual — and her instinct to plan ahead is the right one. Here are practical next steps:

• Find out what your province or territory covers. LTC subsidies, wait times and eligibility criteria vary significantly across Canada. Contact your provincial health authority or review their public long-term care guidelines to understand what will and won’t be covered — and at what cost — in your region.
• Get a quote before 60. LTC insurance premiums rise with age, and eligibility can be affected by health conditions that develop over time. If you’re in your mid-to-late 50s and in good health, now is the time to compare products. After 60, monthly premiums increase sharply.
• Model the cost gap in your retirement plan. With provincial subsidies covering roughly 78% of LTC home costs, the remaining out-of-pocket exposure may be manageable on a basic bed — but private accommodation or home care costs can widen that gap considerably. Run the numbers for your province.
• Consider a hybrid policy if premiums feel like a gamble. Hybrid life/LTC products address the “use it or lose it” concern many Canadians feel about standalone policies. Ask your insurance broker whether this type of product makes sense given your existing life insurance coverage.
• Review your TFSA room. A TFSA is one of the most flexible tools available for earmarking retirement funds. Holding a dedicated LTC reserve in a TFSA allows tax-free growth and can supplement whatever public coverage applies.
• Talk to a Certified Financial Planner (CFP). A fee-only CFP can model your retirement income from RRSPs, TFSAs, CPP and OAS alongside projected care costs, and help you assess whether insurance, self-funding or a combination makes the most sense for your financial picture.

Bottom line

Long-term care is one of the biggest financial blind spots in many Canadian retirement plans. Public health care doesn’t fully cover it, premiums rise sharply as you age past 60 and most Canadians have no plan at all to fill the gap. The earlier you start — whether with an insurance policy, dedicated TFSA funds or another strategy — the more options and the better rates you’ll have available to you.

If you’re approaching retirement, don’t wait for a health emergency to force your next steps. Find out what your province or territory covers, get a few quotes while you’re still eligible for the best rates and talk to a Certified Financial Planner who can model the real gaps in cost against your savings.

-With files from Melanie Huddart

If you’ve built up a solid nest egg, you need to understand how this tax operates to avoid a major financial surprise.

The clawback functions as an additional layer of taxation on top of your federal and provincial income taxes, which means high earners keep significantly less of their retirement cash.

Fortunately, with the right timeline and structural adjustments, you can legally minimize this penalty.

Know your threshold limits

The clawback is calculated based on your net annual income, which corresponds to line 23600 on your T1 general tax return. The federal government adjusts this threshold annually to keep pace with inflation.

For the 2026 income year, the minimum income recovery threshold is set at $95,323. If your net income stays below this limit, you receive your full OAS pension.

However, the moment your net income crosses that $95,323 mark, the CRA claws back 15 cents of your OAS benefit for every single dollar of excess income.

If you’re between the ages of 65 and 74, your OAS pension will be completely wiped out once your individual net income reaches the maximum threshold of $154,708.

The clawback isn’t a bill that arrives in the mail; the government automatically reduces your monthly cheques for the following year, running from July to June.

Is your retirement fund leaking? Secure your future today. Silent fees and stagnant interest can push your retirement date back by years. See how moving your savings to a high-interest account can help you retire sooner and with more confidence.

Implement income splitting with your spouse

If you’re married or living common-law, you don’t have to tackle the clawback entirely on your own. The CRA treats the OAS clawback as an individual tax rather than a household calculation, meaning both partners can earn up to $95,323 individually before any reductions begin.

You can use pension income splitting to balance your household revenue more evenly. If you have a workplace defined-benefit pension or you are over age 65 and withdrawing from a RRIF, you can legally allocate up to 50% of that eligible pension income to your spouse’s tax return.

Shifting income from the higher-earning spouse to the lower-earning spouse can pull the higher earner safely back below the clawback line, preserving your household benefits.

Adjust your benefit timelines and account choices

To protect your pension, review which income sources are flexible and controllable from year to year. Maximizing your TFSA is one of the easiest ways to manage your income line, because TFSA withdrawals are completely exempt from the clawback calculation.

Another highly effective strategy is delaying your OAS pension past the standard age of 65. You can choose to defer your OAS payments up until age 70, which increases your monthly payout by 0.6% for every month you wait, resulting in a permanent 36% benefit bump.

Delaying your benefits allows you to spend your 60s drawing down your taxable RRSPs or realizing capital gains in non-registered accounts. This strategic step lowers your future mandatory RRIF withdrawals, giving you a much cleaner path to stay under the clawback limit when your pensions finally kick in.

For official guidance on rules, forms and updated indexation metrics, you can verify your eligibility status and view current threshold tables directly through the Government of Canada Old Age Security page.

For nearly four decades, Chilton’s message barely changed. Save 10% of every paycheque before you spend a dime. Keep investment fees low. Do not wait for a windfall to start. It was simple advice, and it worked partly because Canadians trusted the messenger as much as the math.

What happens when the trusted voice steps back

That trust is exactly what his retirement puts to the test. Financial guidance built around one recognizable voice can quietly become a substitute for an actual plan. When that voice steps back, retires or simply falls out of favour, the habits built around it need to survive without it.

Despite stepping back from the limelight, Chilton believes a few people will step in to fill the personal finance gap. As he explained in an interview with Globe Advisor reporter, Deanne Gage, Chilton believes Canadians can turn to financial influencers, including Ben Felix, chief investment officer at PWL Capital Inc. and co-host of the Rational Reminder podcast and pay for help from specialists like Calm Money Coach, a CPA based out of Halifax, NS.

The more useful question for readers is not who to follow next, but whether their own retirement basics will hold up without a single influencer.

***Take control of your money.***You can’t control inflation, interest rates or market swings — but you can control where your money goes. When every dollar has a job, money feels less stressful. Find the budgeting app that helps you take control of your finances. Compare Canada’s Best Budgeting Apps

Do your retirement basics still work in 2026?

The good news is that the tools Chilton spent decades promoting have only gotten stronger.

For 2026, the Canada Revenue Agency (CRA) held the tax-free savings account (TFSA) limit at $7,000 for a third straight year, bringing total available room to $109,000 for anyone eligible since 2009 who has never contributed. The registered retirement savings plan (RRSP) limit climbed to $33,810 for 2026, up from $32,490 the year before, based on 18% of a saver’s 2025 earned income. The first home savings account (FHSA) still allows up to $8,000 a year toward a $40,000 lifetime maximum for first-time buyers. And each account rewards a different kind of saver.

The TFSA suits anyone who wants flexibility, since withdrawals are tax-free and the room comes back the following year. The RRSP works best for higher earners today who expect a lower tax bracket in retirement, since contributions are deducted now and taxed on withdrawal. The FHSA is narrower by design — it only helps first-time buyers, but it stacks the tax break of an RRSP with the tax-free growth of a TFSA.

No matter what your goal, using a registered retirement account (or more than one) is a key part of Chilton’s pay yourself first philosophy.

Are you in a profession that puts you in the top tax bracket? Then you need to work with fintech and finance companies that know your needs. For instance, eligible professionals can unlock up to $1,313 in annual savings when banking with National Bank. This special offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies

A habit beats a hero

Why is Chilton’s mantra of save first so important? Take, for instance, a 30-year-old Canadian who commits to saving $500 each month, split between a TFSA and an RRSP. At the end of the year, that saver would have saved $6,000. At a conservative 5% average annual return, the habit of setting aside $500 per month would grow to roughly $416,000 by age 60 — without ever needing to time the market or follow any particular guru’s stock picks. As Chilton consistently pointed out, the math rewards consistency, not personality.

That does not mean influencers and personal finance authors are useless. Chilton’s own books sold more than two million copies in Canada precisely because plain-language advice reaches people, while dense jargon-based guides do not. In the end, though, Chilton’s eventual departure from the Canadian personal financial space shows that no single voice should dictate your entire retirement plan. If Chilton, or any other financial personality, disappeared tomorrow, your contribution habits, account choices and fee awareness should not disappear with them.

Speaking of fees: What you pay matters

Fees matter just as much as the account type. A 1% difference in annual investment fees, compounded over 30 years, can quietly shrink a $416,000 balance by tens of thousands of dollars. Chilton spent 40 years hammering that point home. As a result, checking your fees — and looking for ways to save — is one habit that should outlast any single voice teaching it.

Tired of high commissions eating your returns? Compare Canada’s top discount brokerages and switch to a $0-commission platform today.

What to do now

To continue building sound financial habits, consider implementing each of the following as part of your money management habits.

• Log into your CRA My Account and confirm your actual 2026 TFSA and RRSP room before contributing to any registered retirement fund
• Automate a fixed percentage of every paycheque into a TFSA, RRSP or FHSA, rather than contributing whatever is left over
• Compare the fees on your current investment accounts against low-cost options such as an EQ Bank TFSA savings account or a Questrade self-directed account
• If you rely on one financial personality for guidance, name a backup source, such as a fee-only planner, before you need one

Get your money working for you. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you’re building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Compare discount brokerage accounts or check out Questrade, the online brokerage that combines low-cost investing with powerful research tools. Open an account and pay $0 commission on stock and ETF trades. Get $50 cash back (plus new customers can get up to $500 using code GET500. Offer ends July 23, 2026.) Start investing with Questrade

The takeaway once the guru logs off

Chilton is not leaving Canadians without options. Younger financial educators are already stepping into the space he built, and the registered accounts he championed are more generous in 2026 than at almost any point since they launched. The real test is whether the habit survives the personality.

A plan that depends on checking in with one trusted voice every few months is still a plan worth having. But a plan that could run on autopilot for a year without that voice is a stronger one. Use this moment, not to find a new guru, but to confirm your own numbers are current and your contributions are automated.

Michael Burry, the investor who became a household name after accurately predicting the U.S. housing collapse in 2008, has issued a stark warning about the current state of global equity markets. Burry — who was also the inspiration for the 2015 film The Big Short, which dramatized his prediction of the subprime mortgage crisis — says the market’s long-running rally is about to end, and a significant correction could be on the way.

For Canadian investors holding equities — whether inside a Registered Retirement Savings Plan (RRSP), a Tax-Free Savings Account (TFSA) or in a non-registered portfolio — his warning is worth taking seriously.

‘The market has jumped the shark’

In a post on Substack, Burry said he was gripped by a powerful sense of déjà vu when watching recent market behaviour.

“With what is happening in the market the last week, that I had lived this before suddenly dawned on me,” he wrote. “The NASDAQ 100, complete reversal. … I am calling something. The market has jumped the shark.”

Burry says what concerns him most is the near-total fixation on a single narrative: AI.

“Absolutely non-stop AI. Nobody is talking about anything else all day,” Burry wrote after listening to financial radio coverage on a long drive. “Stocks are not up or down because of jobs or consumer sentiment. They are going straight up because they have been going straight up. On a two-letter thesis that everyone thinks they understand ... Feeling like the last months of the 1999-2000 bubble.”

It’s a pattern Burry says he’s seen before — one that ended badly.

Tired of high commissions eating your returns? Compare Canada’s top discount brokerages and switch to a $0-commission platform today.

The boy who cried wolf — or Cassandra?

Burry freely admits his record is mixed. He compared Bitcoin to the housing market in early 2021. Three months later, he issued warnings of a massive bubble and an impending market crash he said would be the worst in history.

Neither of those specific crashes materialized on the timeline Burry predicted, and he acknowledged as much in his post.

“I am now a meme for the number of times I have called a crash,” he wrote. “I have become the boy who cried wolf. History is written not by the victors, but by those that control the pen, and social media has that pen right now, it seems.

“Still, I got it right in 2000, got it right in 2007. Got it right in 2019, helped by COVID, and I called the meme stock crash in mid 2021. I called the bank stock run in 2023.”

Burry isn’t alone

Burry isn’t the only market veteran sounding the alarm. On May 7, 2026, hedge fund billionaire Paul Tudor Jones told CNBC that the current environment reminded him of 1999 — the last strong year before the dot-com crash.

While Jones said he expects the current rally to last another year or two, he worries about how extreme valuations could become before the inevitable correction.

“Just imagine the stock market went up another 40%,” Jones said. “The stock market GDP is going to probably be good lord 300%, 350%. You just know that there’ll be some ... breathtaking kind of corrections.”

Why this matters for Canadian investors

It would be easy for Canadian investors to dismiss this as an American concern. It isn’t.

The Toronto Stock Exchange (TSX) Composite has its own significant technology component, and most Canadians who invest in broad-market exchange-traded funds (ETFs) — common building blocks in RRSP and TFSA portfolios — hold substantial U.S. equity exposure. Popular all-in-one ETFs such as XEQT or VEQT, widely held by Canadian retail investors, allocate roughly 40% to 45% of their assets to U.S. equities, which are heavily weighted toward large-cap technology companies.

History offers a cautionary note. When the dot-com bubble burst in 2000, the TSX Composite lost approximately 50% of its value from peak to trough — a decline comparable to the NASDAQ’s. The geography didn’t isolate Canadian investors.

A correction of the scale Burry and Jones are describing would ripple through Canadian portfolios whether or not the trigger originates here.

What Canadian investors can do now

The goal isn’t to panic-sell, but rather to invest with clarity. Here are some principles worth revisiting:

Review your asset allocation. If your RRSP or TFSA is heavily weighted toward equities — particularly U.S. large-cap tech — consider whether your current allocation still matches your timeline and risk tolerance. Contribution room in registered accounts, like your TFSA or RRSP, is too valuable to risk losing by putting all your eggs in one basket.

Use your TFSA wisely. Losses inside a TFSA don’t generate a capital loss you can use to offset other income, and lost contribution room from a decline isn’t immediately recovered. It’s important to preserve capital if your timeline is short.

Diversification is more than geography. It also means asset classes. Fixed income — such as Government of Canada bonds, GICs or bond ETFs — can reduce portfolio volatility even if the return drag feels frustrating during a bull market.

Don’t try to time the market. Even Burry acknowledges his timing has been wrong before. Selling everything to wait for a crash that may not happen — or may arrive two years from now — can cost more in missed gains than the eventual decline. Dollar-cost averaging into diversified, low-cost ETFs through regular RRSP or TFSA contributions remains one of the most resilient long-term strategies for Canadian investors.

Talk to a registered adviser. If Burry’s warning has you reconsidering your strategy, that conversation is worth having with a qualified financial adviser — one registered with the Canadian Investment Regulatory Organization (CIRO), the self-regulatory organization overseeing investment dealers and mutual fund dealers in Canada.

-With files from Melanie Huddart

Stitched into the local economy

This movement is gaining serious ground. At the heart of the expansion is Jenny Ambrose, a Saskatoon-based maker and the Sewcase program coordinator for Soaring Circle. Running the program from her home studio and storage unit in Saskatoon, Ambrose coordinates Sewcase to empower Indigenous youth through education, career and entrepreneurship opportunities.

Ambrose herself spools from a long thread of sewists — she and her mother even appeared in a 1982 StarPhoenix story about sewing. After fashion design stints in BC and England, she returned to the area and joined Soaring Circle in 2023, just as the organization was launching a sewing lab at Ahtahkakoop Cree Nation. The initiative hit close to home and heart. After meeting with Soaring Circle’s co-founder, Josée Lusignan, Ambrose became the coordinator of the new program.

Ambrose now travels to remote areas to help bridge the geographic gap, using her deep background in textiles to mentor the next generation. “I’ve got a little bit of a network,” she told the Saskatoon StarPhoenix, “for getting boxes around.” Over the past three years, Sewcase’s intrepid boxes of swag have turned moths into butterflies, with isolated youth now flaunting their fashion on runways and stages from Wollaston Lake to Toronto.

According to data published by the Canadian Quilters Association, the initiative has established 22 specialized skills labs across the country, welcoming roughly 5,000 students. For many participants, the program opens up paths to economic self-reliance that did not exist before in their local economies. According to Soaring Circle’s own program documentation, their central objectives include “supporting mental health, employability and entrepreneurship” while introducing youth to careers in the fashion and textile industries.

Blending culture with a business mindset

What makes this movement take off so successfully is how it honours local tradition while teaching modern commercial skills. Students are learning to make high-quality, practical items like winter coats, mitts, hats and traditional ribbon skirts. For Ambrose, this is about more than just a paycheque; she emphasizes that the initiative is equally a reclamation of culture for northern residents, allowing students to connect with their heritage while building sustainable futures.

“Through the Sewcase lab, our students are now able to create a variety of traditional and practical items – this not only empowers them with skills but also helps them connect deeply with their heritage,” says Gwen Harper, a teacher from St. Theresa Point First Nation, in a profile published by Global Heroes. “Students are excited about school, and their attendance has improved. The Sewcase lab is brimming with activity and students, every single day!”

Once the technical foundation is there, the focus shifts to business literacy. Through specialized entrepreneurship programs and partnerships, students learn how to execute a brand, manage production budgets and discover how to bring a product to market in limited editions. They even tackle essential financial literacy concepts to ensure they can confidently manage a business bank account.

The results speak for themselves. The program has already seen students showcase their creations on provincial fashion runways, and multiple participants have expressed a desire to pursue formal post-secondary fashion degrees.

How to use side hustles to build financial resilience

You don’t need to be enrolled in a specialized school program to take a page from this playbook. If you would consider turning a hobby into income from your own living room, the structure of this northern initiative provides an excellent checklist:

• Focus on high-utility items: The northern sewing labs focus on winter coats, bags, pajamas and everyday apparel. When launching a product or service, choose items that solve an immediate, practical need for your target audience.
• Keep start-up costs lean: One of the core pillars of the northern program is upcycling, which involves turning unused textiles and fabric waste into brand-new garments. Using secondhand materials or keeping inventory low prevents you from taking on heavy consumer debt at the start.
• Prioritize mentorship: The students succeed because they connect directly with industry experts like Jenny Ambrose, mentors and peers. Look for local business associations or online communities in your niche to avoid making costly beginner mistakes alone.

Building an independent stream of income takes time, patience and steady practice. But as these makers are proving, consistency and a willingness to learn can turn a simple pile of raw materials into a thriving professional path.

That assumption is common among incorporated professionals, senior earners and dual-income households. The default substitute if the roof leaks or the job disappears, is to use a home equity line of credit (HELOC), or a credit card. The goal is to wait for the next paycheque to pay off the debt.

But responding to a financial emergency using credit isn't the sam as using cash — and access isn't the same as control.

According to data collected by the United Way, nearly half of Canadians (46%) say they could cover basic expenses for only one month or less before falling into debt if they lost their main income — and high earners aren't immune to that gap, they're just better at hiding it behind a line of credit.

Sizing an emergency fund properly, choosing where to hold it and building it without stalling other financial goals requires financial money management. Here's how to manage those decisions well.

Are you in a profession that puts you in the top tax bracket? Then you need to work with fintech and finance companies that know your needs. For instance, eligible professionals can unlock up to $1,313 in annual savings when banking with National Bank. This special offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies

Why a HELOC doesn't count as an emergency fund

Many Canadians and high-income earners treat a HELOC as their financial backstop. It's cheap, it's already approved, and it feels like cash. But a HELOC is a form of credit, not savings — the Financial Consumer Agency of Canada (FCAC) notes that HELOCs are revolving, typically non-amortized credit products secured against a borrower's home. Interest starts accruing the moment funds are used, and the credit limit can move with the lender's own assessment of risk.

That matters most in a genuine emergency. A HELOC also puts a home directly at risk, since it's secured credit, a lender can move to recover an unpaid balance through the property.

An emergency fund, held in cash, carries no such exposure — it's simply there, on the reader's own terms.

How much cash does the typical Canadian actually need?

Orman's own guidance has shifted over the years — moving upwards. These days, Orman recommends building a liquid emergency fund that is the equivalent of 8 to 12 months of living costs, rather than the 3 to 6 months once considered standard. For professionals or Canadians with less predictable income — those who are self-employed, incorporated or paid partly through bonuses or commissions — the higher end of that range is worth taking seriously.

The target should be based on fixed costs, not total spending. That means mortgage or rent, minimum debt payments, insurance and essential utilities — not discretionary categories that could be cut if income stopped. In this hypothetical example, someone with $8,000 in monthly fixed costs would be looking at a target in the range of $64,000 to $96,000.

Where to hold it: The case for a high-interest TFSA

Cash sitting in a chequing account earns little and blends easily into everyday spending. A tax-free savings account (TFSA) solves both problems: Withdrawals are tax-free, growth inside the account is tax-free, and the money stays liquid.

For 2026, the annual TFSA contribution limit is $7,000, and Canadians who were 18 or older in 2009 and have never contributed can have up to $109,000 in total contribution room.

For high earners and professionals who have been maximizing RRSP contributions but neglecting their TFSA, this is often where unused room quietly exists. Holding the emergency portion in a high-interest TFSA savings account, rather than a TFSA invested in equities, keeps it insulated from market swings while it still grows tax-free.

Make your cash work harder. You can't control inflation, rates or market swings — but you can control where your cash sits. Compare high-interest savings accounts to keep your money working for you. One good option is a no-fee TFSA with EQ Bank that earns 1.50% on every dollar saved. Open a TSFA HISA with EQ Bank.

Building the fund without pausing your investing

Canadians often treat emergency savings and investing as mutually exclusive, pausing one to fund the other. A more resilient approach runs both at once, even at a slower pace: automate a fixed percentage of every paycheque into the TFSA, kept separate from investment contributions, until the target is reached.

In some cases, particularly for those with variable income, building the cushion first — even partially — before increasing investment contributions can reduce the odds of tapping a HELOC, or worse, high-interest debt, when income dips.

Get your money working for you. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you're building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Compare discount brokerage accounts or check out Questrade, the online brokerage that combines low-cost investing with powerful research tools. Open an account and pay $0 commission on stock and ETF trades. Get $50 cash back (plus new customers can get up to $500 using code GET500. Offer ends July 23, 2026.) Start investing with Questrade

The decision that actually matters

The real decision isn't whether to have an emergency fund. It's whether to keep relying on borrowed money to play that role, or to build a cash reserve that doesn't depend on a lender's approval, a variable rate or a home's equity. For professionals earning enough to feel exempt from the advice, that's exactly the moment it applies most.

What to do now

• Calculate monthly fixed costs, not total spending, to find the real target
• Open or top up a high-interest TFSA and keep it separate from investment holdings
• Automate a fixed transfer each payday, even a small one, alongside investing
• Treat a HELOC as a backup, not a first line of defence
• Revisit the target once a year as fixed costs change

Survey methodology

The United Way Centraide Canada (UWCC) Financial Anxiety Index poll was conducted by Léger among 8,014 Canadians aged 18 or older, surveyed between February 17 and March 11, 2026. Results were weighted by gender, age, mother tongue, region, education level, and personal and family income. The estimated margin of error is +/- 1.1%, 19 times out of 20.

A new study from Toronto-based MyChoice, drawing on Statistics Canada, CMHC and CLHIA data, finds the average Canadian household should carry roughly $595,000 in insurance coverage but holds only about $509,000 — a gap of 14.5%.

The shortfall is widest in Ontario, where households need close to $794,000 but hold an estimated $552,000, a gap of more than 30%.

The problem isn't that Canadians are buying less insurance. It's that coverage bought years ago hasn't kept pace with bigger mortgages, higher salaries and larger financial obligations. With more than 1.2 million mortgages set to renew this year, that mismatch is becoming harder to ignore.

Why record insurance coverage hides a real debt shortfall

While total life insurance coverage keeps climbing, nationally, year-over-year, the shortfall exists because the average policy held by Canadians reflects a decision made at a single point in time.

“Nationally, the total amount of life insurance coverage has increased, but much of that coverage was locked in years ago,” said Vitalii Starov, vice-president of product growth at MyChoice. Since then, mortgage balances have grown, consumer debt has risen, and incomes have increased — all of which change how much protection a household actually needs. Based on the analysis from MyChoice, mortgage debt now makes up roughly three-quarters of total household debt in Canada. A policy that once covered a mortgage balance in full may now leave a much larger gap exposed. That gap tends to stay invisible until it's tested — most households only discover a shortfall after a death, a disability or a mortgage renewal forces the numbers into view.

Traditional insurance options aren't your only choice. Evaluating how different plans stack up can help ensure your family has the right level of protection. Online providers can help. For instance you can get a PolicyMe term life insurance policy with coverage up to $5 million with premiums starting at just $21 per month — making it easier for you to secure your family’s financial future. Just answer four questions, and PolicyMe will provide you with an instant, no-obligation quote valid up to 90 days. Most policies are approved without any medical tests, and you can opt for term lengths ranging from 10 to 30 years. Get a free, no-obligation quote today with PolicyMe.

Ontario's gap is the widest in the country

The widest gap is held by mortgage holders and those with life insurance coverage and living in Ontario. The Ontario shortfall, which is more than 30% of total debt, is the largest in the nation, followed by Quebec (at 25%) and Alberta (at 21%). Despite high housing prices, British Columbia residents are underinsured by just over 16%, while Manitoba and Nova Scotia are close to balanced, with average coverage roughly matching estimated need, according to data published in the Insurance Business of Canada.

Starov attributes Ontario's gap largely to the province carrying the highest average mortgage balances in the country, amplified by rising non-mortgage debt and higher average salaries. For a household carrying a seven-figure mortgage in the Greater Toronto Area or Ottawa, that shortfall can be the difference between a family staying in their home after an unexpected death and having to sell.

It can be overwhelming trying to balance the right coverage and a manageable premium. But it doesn't have to be complicated. An easy way to compare premiums is to shop online. For instance, BlueCross can help protect what matters most with coverage starting at $15 per month. Blue Cross Life offers flexible term options (ranging from 10 to 30 years) with pricing that’s on par or better than digital insurers — and lower than most traditional providers. Use their 100% online application to get approved in just 20 minutes, usually without a medical exam.

The mortgage renewal wave makes this the moment to check

More than 1.2 million Canadian mortgages were renewed in 2025, and the renewal wave is expected to continue into 2026. For homeowners whose life insurance was purchased when their mortgage balance — or their income — looked different, a renewal is a natural trigger to revisit coverage.

And the stakes are real. Canada's life and health insurers paid out $18.6 billion in life insurance benefits in 2024, including $8.9 billion in death benefits. Life insurance remains one of the most direct ways to keep a mortgage from becoming an unmanageable burden for survivors.

How to tell if your coverage is enough

To determine if you have enough life insurance coverage, you need to start with the math, not the premium. Add up your outstanding mortgage balance, other debts and 5 to 10 years of income replacement, then compare that total against your current death benefit.

For example, if a homeowner carrying a $550,000 mortgage, $30,000 in consumer debt and an annual household income of $90,000 might reasonably target 5 to 10 years of income replacement — pushing total coverage need above $900,000 once the mortgage and other debts are combined. That means a $500,000 policy that felt generous a decade ago could now cover barely half of what that household actually needs.

If your policy hasn't been reviewed in three years or more, a review — not necessarily a new purchase — is often the right first step. In some cases, reallocating coverage between partners or adjusting term length can reduce a gap without a large increase in premiums.

Comparing quotes through a licensed broker can confirm whether closing the gap costs as little as most Canadians assume.

Ready for peace of mind? It’s worth considering how your family would manage without you around. To get a clear picture use a quick online calculator to estimate your actual coverage needs and see how a tailored life insurance policy can give you peace of mind and comfortably fit your budget. For instance, in just a few minutes you can get a free, no-obligation online quote with PolicyMe. Get coverage from the comfort of your home with PolicyMe’s instant online decision — making it easier to secure your financial safety net.

What to do now

• Add up your outstanding mortgage balance, other debts and 5 to 10 years of income replacement, then compare that total against your current death benefit
• If your policy has not been reviewed in 3 years or more, request a review — a mortgage renewal, salary increase or new child can change what you need
• If you rely mainly on employer group life insurance, remember it typically ends when your job does — the national average of $509,000 in personal coverage may not fill that gap on its own
• Compare quotes through a licensed broker if the math shows you are underinsured

A decision worth making before renewal, not after

A life insurance gap doesn't resolve itself. It compounds quietly every time a mortgage grows, a raise arrives or a policy sits untouched. A mortgage renewal, a new child or a job change is as good a prompt as any to run the numbers again — before a shortfall becomes someone else's problem to solve. This isn't a case for buying the biggest policy available; it's a case for making sure the size of the policy matches the size of the obligation. For most Canadians, that's a five-minute calculation, not a five-figure decision.

“These questions are worth tens of thousands of dollars, and yet we remain in the weeds and play small by asking the $3 questions,” Sethi has told CNBC Make It. Sethi calls these the $30,000 questions — decisions with enough financial weight to shift a career's trajectory, not just a grocery bill.

For Canadians, four of those questions come up again and again: Have you negotiated your salary? Are you capturing your full employer RRSP match? Are you using your TFSA room? And have you actually shopped your mortgage at renewal? Each is a bigger lever than a year of skipped lattes — and each is easy to leave untouched.

Have you negotiated your salary?

Average weekly earnings in Canada reached $1,333 in March 2026, up 3.5% from a year earlier, a number that moves mainly through broad wage growth rather than individual negotiation. Robert Half's 2026 Canada Salary Guide found 83% of employers agree that professionals with specialized skills are paid more than peers without them in the same role, and 54% say they're most willing to raise pay specifically for candidates with specialized skills or certifications. In this hypothetical example, a professional who negotiates just one $5,000 raise early in a career and invests the difference rather than absorbing it into lifestyle costs ends up with a meaningfully larger nest egg decades later, simply because that money had more time to compound. Accepting whatever number is offered is the $3 answer. Asking whether the offer reflects what the role — and the skills attached to it — are actually worth is the $30,000 one.

Get your money working for you. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you're building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Compare discount brokerage accounts or check out Questrade, the online brokerage that combines low-cost investing with powerful research tools. Open an account and pay $0 commission on stock and ETF trades. Get $50 cash back (plus new customers can get up to $500 using code GET500. Offer ends July 23, 2026.) Start investing with Questrade

Are you capturing your full employer RRSP match?

About 22% of Canadian employers offer no retirement benefit at all, according to the 2024 Canadian Employer Pension Survey conducted by Angus Reid Group on behalf of the Healthcare of Ontario Pension Plan (HOOPP). Among employers that do offer a group RRSP, the value only flows if an employee contributes enough to trigger the match. An employer contribution of 50 cents to a dollar for every dollar an employee puts in is, in effect, a guaranteed return before any market performance is even counted. Both an employee's own contributions and an employer's match count toward the same Canada Revenue Agency (CRA) RRSP deduction limit — 18% of the previous year's earned income, up to $33,810 for 2026 — so it's worth checking available room on a Notice of Assessment before increasing contributions. Skipping the match isn't a one-time $3 mistake. It's a recurring $30,000 one.

Are you using your TFSA room?

Tax-free savings account (TFSA) room is the other recurring leak. The annual TFSA dollar limit is $7,000 for 2026, and anyone who has been eligible since the account was introduced in 2009 and has never contributed has $109,000 in cumulative room available. Unlike RRSP withdrawals, TFSA withdrawals aren't taxed, and unused room carries forward indefinitely — so the cost of leaving it idle isn't a missed deduction, it's years of tax-free growth that never happened. In this hypothetical example, a Canadian who contributes the full $7,000 every January instead of spreading it out through the year captures close to a full extra year of tax-sheltered growth on that contribution, repeated across a working life. That's a bigger gap than any line-item budget cut will close.

Whether you’re a beginner or a pro, we’ve found the best trading platforms for you. Find the best Canadian brokerage that offers the tools you need to grow your wealth. To get started — and earn 2% or more on every dollar you save — open a no-fee RRSP high-interest savings account with EQ Bank. Start building your TFSA today with EQ Bank.

Have you shopped your mortgage at renewal?

About 60% of Canadian mortgage holders renewing in 2025 and 2026 are expected to see a payment increase, with the average payment roughly 6% higher in 2026 than in December 2024, according to Bank of Canada analysis. Roughly 75% of borrowers facing an increase hold a five-year, fixed-rate mortgage.

Some borrowers can offset part of the increase — the Bank of Canada's own modelling suggests that about half of affected borrowers could eliminate their payment increase by extending their amortization by five years. Renewing automatically with the existing lender, without comparing rates elsewhere, is the $3 habit. Asking a broker or a second lender for a written quote before signing — particularly for anyone renewing a five-year fixed term taken out at pandemic-era rates — is the $30,000 one.

Skip the bank-hopping. Shop rates and terms using online mortgage tools. For instance, Homewise lets you compare rates from 30+ lenders with one simple application — getting you the best rate in minutes. Get personalized mortgage options from Homewise.

What to do now

• Ask HR for the group RRSP match formula and confirm you're contributing enough to get the full amount
• Pull your latest Notice of Assessment to confirm your actual RRSP and TFSA room before increasing contributions
• Set a calendar reminder 4 to 6 months before mortgage renewal to request quotes from at least one other lender or broker
• Before accepting a raise or offer, check whether it reflects current market rates for the specific skills involved, not just tenure

None of these four questions requires a windfall or a side hustle. They require a phone call, a Notice of Assessment, or a written quote — the kind of unglamorous admin that's easy to postpone in favour of a faster decision about lunch. The lowest-effort one is usually the RRSP match, since it requires no new money, only enrolment paperwork. The $3 questions will always be there to think about later. The $30,000 ones expire.

A week before their flights took off, Ali visited a walk-in clinic feeling like he had the flu, CTV News reported. The physician who attended Ali told him “it was a run-of-the-mill sickness” and he should be fine to take the trip.

But just two days after the couple hit their resort, Ali’s condition worsened considerably. He suffered multiple seizures, was given urgent care and drifted into a coma.

“At that point, my brain goes numb, and I don’t remember much of anything afterwards,” Ali told the outlet.

Given his condition, Ali was treated in Mexico for eight days, though doctors were unclear about his diagnosis. He was flown back to Canada by air ambulance to resume his medical care — all his bills were paid for.

That is, however, until one year later.

Ali’s claim denied

In 2025, Ali was told his insurance claim under his policy was denied, and as a result, he would be on the hook for $147,502. According to CTV News, an investigation into Ali’s claim was performed and found that his walk-in clinic visit before his trip created a loophole for his coverage — under Manulife’s Global Youth All-Inclusive Policy, travellers are required to be in stable condition for 90 days prior to their departure.

CTV News reached out to Manulife for comment on Ali’s behalf.

“Manulife can confirm that medical records indicate that prior to travel, Mr. Ali was experiencing symptoms and had sought medical care related to a pre‑existing condition. Under the policy, this condition fell within the three-month stability period prior to departure. Since the condition was known at the time of travel based on the prior medical care, this affected how coverage was applied,” a spokesperson told the outlet.

“This situation underscores the importance of understanding travel insurance coverage, as policies contain specific terms, conditions, and exclusions. Manulife encourages travellers to carefully review their policy and share relevant medical information in advance, including if there are any changes since the time of purchase. Our insurance support teams are also available to answer questions to help policyholders have a clear understanding of their coverage,” the company added.

As of the time of writing, Ali’s family has appealed the claim twice with no success, according to CTV.

Don't leave points on the table. Compare Canada's top travel rewards programs today to see which one gets you to your destination faster.

The limits of medical travel insurance

Ali’s narrative points to an issue that some Canadian travellers miss: medical insurance doesn’t cover all types of medical issues while abroad. There are gaps to be aware of.

Common examples of high-risk activities include scuba diving and skydiving. These types of endeavours are not usually covered under traditional travel medical insurance policies, only specialized ones. Travel medical insurance may also not provide coverage for specific destinations, specifically those that have a travel advisory issued by the Canadian government.

Though helpful, medical insurance obtained through a travel credit card also has some shortcomings. It can be common for credit card medical insurance to have coverage caps on the length of a trip, so longer trips may not have insurance for the entire duration. Medical insurance through credit cards typically offers less protection than standalone policies and may require the cost of the trip to be paid for in full by the specific credit card in advance — using points or other payment methods may result in no medical coverage at all.

Employer medical insurance can be more robust than the kind offered through credit cards, but there is some nuance involved. When it comes to emergency out-of-country travel claims, clear communication about the limits of out-of-country coverage is necessary; otherwise, employees could pay out-of-pocket when their insurance lapses.

Regardless of where your medical insurance comes from, Ali’s story underlines an important provision to watch for: pre-existing condition clauses. A pre-existing medical condition is any health issue or injury that you sought attention for prior to your trip. While some policies do cover pre-existing conditions, that is usually with the caveat that the policyholder is “stable” (i.e. no hospitalization, medical procedures, medication or symptom changes related to a health issue/injury) within a certain period prior to the trip.

This provision is what negated Ali’s medical policy, as his insurer viewed his walk-in clinic trip as triggering the caveat for his pre-existing medical condition clause.

“Doctors here say it had nothing to do with the flu or any of the symptoms he represented, but the insurance company is saying we believe there is a connection between the two. That’s the problem,” Martin Firestone, president of Travel Secure Inc., told CTV in an interview.

Is travel medical insurance worth it?

Ali’s harrowing ordeal might be leaving a burning question in your mind: is travel insurance worth the cost? Some Canadians are thinking not.

A survey from TD Bank found that Canadians are cutting costs when it comes to travelling this summer, with 44% of respondents citing higher fuel prices as influencing their decision. As a result, 46% of Canadians surveyed said they were planning to travel without medical insurance — and 29% acknowledged they can only cover $300 in emergency medical costs without insurance.

Is that the right move to make? Experts disagree.

In an interview with CBC News, Will McAleer, executive director of the Travel Health Insurance Association of Canada, pointed to a survey showing that 94% of travel insurance claims are paid.

"The benefits are there for many Canadians when they're purchasing it. It's the unfortunate times when the coverage expectation doesn't line up with the actual wording of the policy," McAleer said.

Additionally, the Canadian government notes that without medical coverage, a medical emergency abroad will not be paid by personal Canadian health insurance. While provincial or territorial health plans may cover some costs, the government notes that these plans will never cover costs upfront, and some countries will not provide treatment if travellers do not have a robust enough insurance policy or money to pay for medical bills.

Travel medical insurance often costs only a few dollars per day, depending on the policyholder's age, destination and medical history — far less than the cost of even a brief emergency hospital stay abroad.

How to get travel insurance the right way

Yes, Ali’s story is a harsh reminder that there are limits on medical coverage. But data shows that travel insurance is often a vital expense. The point is, however, there needs to be due diligence when purchasing a policy.

For starters, it’s important to know how to get a policy in the first place. Canadians can obtain travel insurance through their credit card, bank, insurance broker, travel agent or financial institution. Using a travel agent or insurance broker gives you the opportunity to ask questions about a policy and get clear answers upfront. But, if you do your research properly, you can find a policy that matches your needs on your own, too.

But once you have a policy or two to choose from, what exactly should you watch for? Here are some pointers.

• Note any pre-existing condition clauses. Whether you have a pre-existing condition or not, make sure you clearly understand the terms of a pre-existing condition in your policy and how that could affect a claim. Look for time periods that you are required to be medically stable so your coverage doesn’t lapse — these are crucial.
• Check time limits. Medical insurance policies from different providers can vary greatly in how long the coverage lasts. If you’re planning a long trip, make sure to review the duration of the medical coverage so it does not expire on the last leg of your vacation.
• Know the exclusions. Pay close attention to where the policy will not cover a medical issue and why. If a policy excludes insurance for travellers headed to countries under a travel advisory warning, make sure to review your destination closely.

While inspecting a policy before you purchase it is paramount, so is reviewing it up until — and during — your vacation. Then you know when, where and how you’re covered. If you’re in doubt about the limits of your travel insurance, talk with an insurance advisor for more details.

That’s why so many Canadians struggle to take the final leap out of their careers and into retirement. Delaying the decision to quit work by “just one more year” seems to make good financial sense on paper. After all, why not add another full year of income, Canada Pension Plan (CPP) contributions and investment growth to push your nest egg from “good enough” to perfect?

But delaying retirement even after your financial adviser has confirmed it’s a practical decision to make has real implications — ones that rarely show up on a spreadsheet. Here are three hidden costs of working too long that can have serious ramifications.

1: The cortisol tax

Life expectancy isn’t the same as healthy life expectancy. According to Statistics Canada, as of 2024, the average life expectancy at birth in Canada is 82.16 years — 80.30 for men and 84.29 for women. Further, the health-adjusted life expectancy (HALE) for Canada in 2023 was 15.3 years at age 65. That represents the average expected number of healthy years remaining for older adults.

However, the World Health Organization (WHO) estimates that Canadians spend roughly 12 to 13 of those final years in less-than-full health — meaning healthy life expectancy is closer to 69.

Simply put, you can’t expect the same vitality, strength and stamina in your 70s or 80s as you can in your 60s.

With this in mind, spending one extra year of your 60s at a desk represents a real hidden cost. Worse yet, those extra meetings and deadlines are adding stress and cortisol to your system that could further chip away at your remaining healthy years. This is one of the most compelling reasons to consider retirement when your finances say you’re ready — not a year or two later.

It’s also a reason to plan seriously for long-term care (LTC). Canada’s provincial health-care systems cover many medical costs, but publicly funded long-term care beds come with lengthy wait times in most provinces. Long-term care facilities can cost between $1,300 and $3,400 a month for a subsidized nursing home bed, while private facilities can exceed $6,000 monthly.

Without proper planning, those costs could deplete a retirement fund far faster than expected — and in many cases, the financial burden shifts to family members.

Cover what provincial health care doesn’t with affordable plans from PolicyMe.

2: The window on tax strategies is closing

Retiring a little earlier than planned — even if your nest egg is only “good enough” — opens up meaningful opportunities to reduce your tax burden over the long term.

For Canadians, one of the most powerful of these is the Registered Retirement Savings Plan (RRSP) meltdown strategy. Before your RRSP must be converted into a Registered Retirement Income Fund (RRIF) by December 31 of the year you turn 71, there’s often a window in your early-to-mid retirement years when your income — and therefore your tax bracket — is lower than it will be once mandatory RRIF withdrawals kick in.

During this window, you can withdraw from your RRSP deliberately, at a lower marginal rate, and shift that money into a Tax-Free Savings Account (TFSA). Future growth and withdrawals from the TFSA are tax-free, which means less taxable income when RRIF minimums begin and when CPP and Old Age Security (OAS) payments start.

Capital gains timing is another consideration. Under current Canadian tax law, individuals include 50% of capital gains in their taxable income — the so-called 50% inclusion rate. Realizing gains during a lower-income year in early retirement can result in substantially less tax compared to realizing those same gains while still earning a full employment income.

If you stay at work for an additional year, employment income can push you into a higher tax bracket, making all of these strategies less effective or even unavailable.

Whether or not the tradeoff is worthwhile depends on your personal financial situation. But this planning window is one of the most overlooked arguments for retiring when your numbers work — not just when they’re perfect.

If you don’t currently have a financial adviser, now is a good time to find one. A fee-only Certified Financial Planner (CFP) can model your specific situation, including RRSP meltdown strategies, TFSA optimization and tax-bracket management. FP Canada maintains a public registry of CFP professionals at fpcanada.ca.

3: The OAS clawback trap

This one is a hidden cost — and a potentially severe one for Canadians who plan to collect OAS while still working or drawing employment-level income.

OAS isn’t simply taxable income — it’s subject to a recovery tax (commonly called the OAS clawback) that takes back 15 cents for every dollar when an individual’s net income rises above a specific threshold. For 2026, the threshold is $93,454. OAS payments are fully eliminated once net income reaches $152,062 for people aged 65 to 74, and $157,923 for those 75 and older.

If you continue working past 65, your employment income may well push you into or above that clawback range — meaning the OAS benefits you’ve accumulated over a lifetime of work could be partially trimmed or entirely eliminated while you’re still earning.

This dynamic is particularly punishing for anyone in a higher income bracket. At the same time, it also interacts with mandatory RRIF withdrawals that begin later: The combination of RRIF income, CPP, OAS and any other income can compound into a tax situation that feels like a trap rather than a reward for a lifetime of saving.

By retiring earlier, you can potentially preserve more of your OAS benefit and keep more of your overall retirement income in your pocket.

What Canadians can do now

If you’re approaching retirement and wondering whether “one more year” is worth it, consider these steps:

• Model your tax brackets. Work with a CFP to map out your income for the first five to 10 years of retirement. Identify whether an RRSP meltdown strategy or TFSA top-up makes sense for your situation.
• Check your OAS clawback limit. Use the CRA’s online calculators or ask your adviser whether your projected retirement income puts you near the $93,454 threshold (2026). Even small adjustments in income timing can preserve thousands of dollars in OAS benefits.
• Plan for the care gap. Review what your provincial health plan covers for long-term or home care. If there’s a gap, explore private long-term care insurance options before a health event makes coverage more expensive or unavailable.
• Optimize CPP and OAS timing separately. Deferring CPP past 65 increases your benefit by 0.7% each month — or 8.4% a year — up to a maximum 42% increase at age 70. If you defer OAS past 65, your benefit increases by 0.6% a month, up to a maximum 36% increase at age 70. A financial adviser can help you decide whether deferring, collecting early or at 65 makes the most sense for your health, income needs and tax picture.

-With files from Melanie Huddart

If you’re wondering this, you are not alone. Millions of Canadians are going through this same thought process as they approach retirement. Some assume that government benefits will be enough to live on in retirement, while others continue to work and save, believing they will need millions to be comfortable. As usual, the reality lies somewhere in the middle.

In 2026, a good monthly retirement income in Canada is often between $3,500 and $5,000 per month for a single retiree. Of course, the right amount for your situation may be different. This amount will depend on factors such as housing costs, lifestyle goals, location and long-term health. For couples, the target is often a higher amount of dollars, but lower overall, since some expenses are shared.

The challenge for most is that the CPP and Old Age Security (OAS) usually cover only a portion of that income. Most retirees need to rely on a combination of government benefits, workplace pensions and savings and investments. The benefits alone typically do not cover all living costs for retired Canadians.

Here’s what a realistic retirement income looks like in Canada, where that money usually comes from and how to determine whether you’re on track.

What counts as a good monthly retirement income in Canada?

Ask five Canadian financial planners what a “good” retirement income is, and you will likely get five different answers. Retirement is not a one-size-fits-all experience, and should not be viewed as such. But even though most Canadians will have different retirement goals and requirements, some benchmarks can be used.

The Financial Consumer Agency of Canada (FCAC) and many other financial professionals use the 70% to 80% income replacement rule as the gold standard.

The theory behind this is simple: Canadian retirees will need about 70% to 80% of their pre-retirement income to maintain a similar lifestyle. For a Canadian who was making $80,000 annually at their job, they’ll need roughly $56,000 to $64,000 annually in retirement. This comes out to roughly $4,700 to $5,350 per month.

It should be noted that even the 70% to 80% replacement rule isn’t perfect for every scenario.

Housing is usually the biggest variable for the rule. A retiree who is mortgage-free in New Brunswick or a rural part of the country may find $3,000 per month sufficient to cover expenses. Whereas someone living in Toronto or Vancouver will require considerably more.

Spending habits become different, too. Most retirees don’t have to pay for things like commuting to work, retirement savings contributions, or other work-related expenses. On the other hand, they may spend more on travel, healthcare or helping adult children or grandchildren.

Statistics Canada data also provides some useful context. Recent figures show median after-tax income for senior families is approximately $69,000 annually, or about $5,750 monthly. Single seniors generally report much lower incomes, often in the $30,000 to $35,000 annual range.

The takeaway: A good retirement income isn’t necessarily about hitting a magic number. It’s about generating enough monthly cash flow to support the lifestyle you want without worrying about running out of money.

To get started, open a no-fee RRSP high-interest savings account with EQ Bank. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

Where does retirement income in Canada actually come from?

Many Canadians overestimate how much of their retirement income will come from government benefits. By the time they retire, it’s usually too late to begin investing or saving.

In reality, retirement income is usually built from several sources layered together. Ideally, these strategies are incorporated from an early age to allow investments and savings to grow over time.

Old Age Security (OAS)

The OAS is available to most Canadians aged 65 and older who meet Canada’s residency requirements. To receive the full OAS, retirees need 40 years of residency in Canada. To be considered, you need a minimum of 10 years if you retire in Canada and 20 years if you reside outside of Canada.

These benefits are adjusted for inflation and rebalanced quarterly. As of 2024, the OAS payment was about $700/month for Canadians over the age of 65.

Canada Pension Plan (CPP)

Unlike OAS, CPP is based on your earning history and contributions throughout your working years in Canada.

One thing to note with CPP: the average payment can be much lower than expected. This is due to not working the maximum pensionable time due to things like periods of unemployment. The maximum benefit that is often cited in retirement discussions is quite a bit more than the average Canadian collects each month.

Workplace pensions

If you’re fortunate enough to have a defined-benefit pension, this can provide significant relief and be a great help in supplementing your retirement income. This lowers your reliance on government benefits.

Defined-contribution plans, meanwhile, depend on investment performance and contribution levels, so they can be a bit more volatile than defined-benefit pensions. Still, either one can be of great benefit, and if generous enough, can provide a person’s entire monthly retirement income.

RRSP and RRIF withdrawals

If you’ve been investing and saving in your RRSP, this can become a major income source after retirement.

At the age of 71, RRSPs must be converted into a RRIF or annuity, which means that minimum withdrawals must be made each year. Still, even though you’re taxed on those withdrawals, the RRSP can provide excellent investment growth over a long time horizon.

TFSA withdrawals

For those lucky enough to be investing since 2009, the TFSA has become the ultimate tax-efficient retirement income source.

All capital gains and withdrawals are tax-free, and there’s no set schedule like with an RRIF. TFSAs should be maximized each year to provide significant long-term growth and a generous source of retirement income.

Other investments and savings

Non-registered investments, rental properties, dividends and interest income can also supplement retirement cash flow. Note that many of these accounts are less tax-friendly, so it’s beneficial to use the RRSP and TFSA first.

Why the income gap matters

The income gap is real for Canadian retirees, and the easiest way to show this is in an example using real numbers.

Let’s say a 65-year-old retiree receives:

• CPP: $780/month
• OAS: $727/month

Combined government income: $1,507/month

Let’s say this retiree needs a modest retirement income of about $3,000 monthly. That means they would need another $1,493 every month from savings, pensions or investments.

Now, if they want to bump that up to $4,500 monthly, that gap rises to nearly an extra $3,000 per month.

This is why retirement planning is ultimately about stacking income sources rather than relying on any one program. The more income streams you have, the safer your lifestyle will be in retirement.

How do you know if your retirement income is enough?

We have now arrived at the question that nearly every Canadian asks as they approach retirement. The simplest way to answer that question is to calculate your retirement income gap.

Step 1: Estimate your retirement spending

Start by listing all of your anticipated monthly expenses:

• Housing
• Utilities
• Food
• Transportation
• Insurance
• Healthcare
• Travel
• Entertainment

Many retirees are surprised to discover their spending doesn’t drop as much as expected. In fact, spending on things like health care and travel may increase in retirement, which offsets any savings from work-related expenses.

Step 2: Add up guaranteed income

Include all of the following:

• CPP
• OAS
• Workplace pension income
• Annuities
• Investments (dividends, bond distributions)

These sources create your retirement income floor and will do a bulk of the heavy-lifting.

Step 3: Calculate the gap

Subtract guaranteed income from expected expenses. This will give you a ballpark figure of what your income gap might be in retirement.

For example:

• Target spending: $4,500/month
• CPP + OAS + pension: $2,700/month
• Gap: $1,800/month

That gap must be filled through investments, savings, or workplace pension income. This is why it pays (literally) to have multiple sources of retirement income prepared.

Using the 4% rule

Anyone who has researched retirement planning has certainly come across what’s known as the 4% rule. The 4% refers to the amount of retirement income withdrawn each year for living expenses. It was developed by the American financial advisor William Bengen in 1994.

Using Bengen’s 4% rule:

• $250,000 portfolio = roughly $10,000 annual income
• $500,000 portfolio = roughly $20,000 annual income
• $750,000 portfolio = roughly $30,000 annual income
• $1 million portfolio = roughly $40,000 annual income

A $500,000 retirement portfolio could therefore support approximately $1,667 monthly income under the rule. Of course, this should all be taken as a guideline and not a financial guarantee. Things like lifespan, market performance and inflation can all impact a strict 4% withdrawal rule.

Don’t underestimate longevity

Interestingly, one of the biggest planning risks for retirement is living a long life, at least longer than you may expect at the time of retirement.

Statistics Canada data suggests Canadians reaching age 65 today frequently live well into their 80s, with many women reaching their late 80s and beyond.

Needless to say, a retirement span of 25 years requires a lot more planning than one that’s 15 years. If you’re in good health and can reasonably expect a longer lifespan, it will be of serious benefit to do some extra planning to map out a longer retirement strategy.

Signs your retirement income may fall short

The biggest fear when entering retirement is that your income may fall short. Here are some warning signs to watch out for:

• CPP and OAS cover less than half of your target income
• You haven’t projected spending beyond age 85
• Your RRSP could be depleted within 15 years
• You haven’t accounted for inflation
• Healthcare and long-term care costs aren’t included in your plan

These aren’t reasons to panic, but certainly some red flags to watch for during your retirement planning.

What are the biggest retirement income mistakes Canadians make?

Overestimating CPP benefits

A lot of workers will assume that since they’ve worked for decades, they will receive the maximum CPP payment.

In reality, average CPP payments remain significantly lower than the maximum payout. The amount you receive depends on your lifetime earnings and contribution history.

Always make sure you can get an accurate estimate of your CPP when planning out your retirement income.

Claiming CPP too early

This isn’t necessarily a mistake since it’s legally accepted, but it’s a decision that can set you back quite a bit of money in retirement.

Collecting your CPP at the age of 60 is allowed, but it can seriously reduce your monthly payment amount. For every month that you collect CPP before 65, your monthly amount is reduced by 0.6%. Between the ages of 60 and 65, this can reduce your CPP by up to 36%.

Conversely, if you delay your CPP to age 70, it increases your monthly amount by 0.7% per month.

Claiming OAS too early

Like the CPP, the OAS can also be collected early or delayed until age 70. If you can wait until age 70, you can increase your OAS payments by up to 36%.

There’s no early claim for OAS, as it kicks in when you turn 65. Therefore, collecting it as normal is considered collecting it early, especially given the benefit of waiting until 70.

Ignoring taxes

A lot of people tend to overlook taxes in retirement. Retirement income is not tax-free, aside from any generated from a TFSA.

RRSP and RRIF withdrawals count as taxable income and can absolutely push you into a higher tax bracket.

Higher-income retirees should also be aware of the OAS clawback. This occurs when your annual income is higher than the OAS threshold. In 2026, this amount was $95,323, which has an impact on OAS payments in 2027 and 2028. Anything over that, and you pay back your OAS through your income tax. For every dollar you’re above the threshold, you’ll pay back $0.15 of your OAS.

Underestimating inflation

As we’ve all seen over the past few years, inflation can really get out of control in a hurry. Consumer prices can rise quickly, and not only does that eat into your retirement portfolio, but it also devalues years of hard work.

Luckily, CPP and OAS are indexed to inflation, but many personal savings plans are not automatically protected. This is why it is always better to plan for higher inflation in retirement just to be safe.

Relying only on government benefits

We covered this earlier, but it cannot be overstated: too many Canadian retirees plan to rely solely on government benefits.

Even at the maximum amount, the CPP and OAS are not enough to live off of in most Canadian cities. These benefits should be a foundation of your retirement income, but not the entire source of it.

How can you boost your retirement income?

Remember, it’s never too late to begin taking hold of your retirement income plan. There are ways to boost your retirement income, even if you feel you are late to the game.

Delay CPP and OAS if possible

For many Canadians, delaying benefits is the single most effective way to increase guaranteed lifetime income. This increase is a permanent one, and all you need to do is delay your government retirement benefits for as long as possible.

Maximize TFSA contributions

The TFSA is the ultimate retirement weapon. Canadians should be focusing on maximizing their TFSA before other investment accounts. Withdrawals, capital gains and dividends are all tax-free, with no withdrawal minimums or schedule. Any transactions in the TFSA do not affect OAS or the Guaranteed Income Supplement (GIS) eligibility either.

Consider phased retirement

This may not be an option for some, but gradually entering retirement can help reduce pressure on retirement savings and allow additional time for investments to grow.

Working part-time for several years can reduce pressure on retirement savings and allow investments additional time to grow.

Explore GIS eligibility

Lower-income retirees may qualify for the GIS, which is another government benefit if you make below the GIS threshold.

In 2026, the GIS threshold was quite low, meaning most retirees likely will not qualify. For a single person, the threshold was $22,512 and for couples who both receive OAS, it was $29,760.

FAQs

What is the average monthly retirement income in Canada?

According to Statistics Canada, the median after-tax income for senior couples is approximately $69,000 annually, or about $5,750 monthly. Single seniors typically report lower incomes.

Is $3,000 a month enough to retire on in Canada?

It depends on housing costs, lifestyle and location. A mortgage-free retiree in a lower-cost region may find $3,000 sufficient, but most retirees in major Canadian cities will find that it isn’t enough to cover day-to-day expenses.

How much will CPP and OAS pay per month?

Benefits change regularly and are indexed to inflation. Your CPP payments vary based on your contribution and employment history, while OAS depends primarily on age and residency requirements.

At what age should I start collecting CPP?

You can begin collecting CPP between the ages of 60 and 70. Starting earlier reduces benefits, while delaying your CPP collection increases them significantly if you can wait until age 70. The best choice depends on your health, income needs and life expectancy.

What is a comfortable retirement income for a single person in Canada?

Many financial planners would place a comfortable retirement income for a single Canadian between $3,500 and $5,000 per month, although personal circumstances vary significantly.

By introducing a progressive annual wealth tax on the ultra-rich, Canada could unlock a massive wave of public funding. And because of how our economic map is drawn, Ontario stands to gain the most.

This concept of a wealth tax is not just an idealistic theory; it’s the core solution proposed in a study published by Canadians for Tax Fairness. The authors point out that extreme wealth concentration reflects a massive social opportunity because "the fiscal resources needed to fund a national pharmacare program, to transition to renewable energy and to develop mass non-market housing exist."

Based on their new estimates of how wealth is distributed across the provinces, the authors explicitly use the data to calculate the immense revenue that could be raised from various proposals for annual and one-time wealth taxes.

The report blows the lid off where the country's absolute richest citizens live. While you may assume Canada's billionaires are spread out evenly across our vast country, the reality is that Ontario has become the undisputed capital of extreme wealth hoarding.

The billionaire cluster in Ontario

The data shows that out of 86 billionaire families living across Canada, a staggering 38 of them reside in Ontario. That means more than 44% of the country's ultra-wealthy are concentrated in just a single province.

The pattern becomes even more pronounced when you look at centi-millionaires, or families holding at least $100 million in net worth. Across Canada, there are 3,380 families who have reached this massive asset threshold, and 1,570 of them call Ontario home.

This extreme clustering did not happen by accident. Ontario, and specifically the Greater Toronto Area, operates as the primary economic engine and financial hub of the country. Much of this top-tier wealth is tied directly to corporate equity, real estate and financial investments centred around Canada's largest banks and corporate headquarters.

Over the last few decades, the returns on these financial assets have consistently outpaced the growth of regular workers' wages, creating a perfect environment for massive capital accumulation at the very top.

Find your perfect bank account. Use our expert comparisons to find the highest sign-up bonuses and lowest fees in Canada.

Balancing the economic scales

While a tiny handful of families in Ontario are watching their fortunes reach astronomical heights, the daily reality for millions of others looks very different. In Ontario alone, more than 1.9 million ordinary people are currently living below the poverty line.

When so much economic power is concentrated in so few hands, a small group of individuals holds disproportionate influence over major investment decisions and corporate directions, which can often reflect private interests rather than the public priorities of the community.

This is where the power of a progressive wealth tax comes into play. By implementing the tax models evaluated in the report to target extreme fortunes, the government could gently redistribute that hoarded economic power back into the public sphere. Because Ontario houses the vast majority of Canada's billionaires and centi-millionaires, the revenue generated within the province would be immense.

Instead of watching wealth pool at the very top, a targeted wealth tax would convert those massive private fortunes into public goods, funding the national programs and local infrastructure projects that everyday Canadians desperately need to ease the cost of living.

Skene, an 86-year-old from Sault Ste. Marie, ON, was drawn into the scam by a video of Prime Minister Mark Carney urging Canadians to invest — a video that turned out to be an AI-generated deepfake video. In other words, it was bogus. Still, the video was convincing enough for the retiree, who made an initial investment of $350, believing it was backed by the Bank of Canada.

“I saw an ad on Facebook of Mark Carney telling me if I invested $350 Canadian, it would be backed by the Bank of Canada,” she said to CTV.

She was soon contacted directly by the scammers, who convinced her over the course of several months to invest more, promising returns of $40,000 per month. Eventually, she cashed in her Registered Retirement Income Fund (RRIF) for $650,000, mortgaged her condo for $350,000 and got a $35,000 cash advance on her credit card to invest in the bogus scheme.

That’s when the scammers vanished, leaving her with only a few hundred dollars.

“I just really thought it was going to work out and when all the funds were gone, it was like the world ended for me,” Skene told SooToday.

While her story is tragic, it’s not unique. More broadly, it raises questions about where Canadians, especially older ones, should place their trust to make investment decisions in the age of AI scammers.

AI is ‘supercharging’ scams

Financial abuse, both by family and by scammers, is the most common form of elder abuse in Canada. It’s also a growing problem.

According to the Canadian Anti-Fraud Centre (CAFC), Canadians reported losing a record $704 million to fraudsters in 2025, around half of which ($351 million) was lost through investment fraud. The latest available data, meanwhile, suggests 40% of reported losses come from individuals aged 55 years and older.

Those total losses represent a nearly 300% increase since 2020, much of which is being targeted at older Canadians.

And the rise of AI is “supercharging” these scams, according to Cyber-Seniors, a non-profit organization providing technology training to older adults. AI lets scammers targeting older age groups pull off far more sophisticated schemes, producing deepfakes, emails and websites that are “startlingly authentic.”

“AI is playing a huge role in fraud,” Jeff Horncastle, a spokesperson for the CAFC, told Cyber-Seniors. “I hate to use the word ‘scary,’ but it’s so difficult now to know what’s real and what isn’t.”

Horncastle added that investment schemes are surging in Canada, representing half of all funds lost last year. And like the one targeting Skene, they often start with an AI-generated image or video that features a well-known celebrity or politician endorsing an investment opportunity that’s “too good to be true.”

“Unfortunately, stories like this are becoming increasingly common across Canada,” Horncastle wrote in an email to SooToday.

Slow down — and stick to trusted platforms

But Skene’s story doesn’t have to end as a cautionary tale. It can also bring awareness to the tactics of scammers and ways to avoid falling into their traps.

One common tactic is to pressure victims to act quickly, which reduces the time they have to do research. This makes it easier to trick them with promises of higher-than-normal returns, urgent messages from financial institutions or government agencies, and fake trading apps or websites, especially ones involving cryptocurrency.

In Skene’s case, a bogus investment account showed that her investment had almost doubled, when in reality, the money was already long gone.

That’s why it’s always a good idea to take your time to check the validity of the investment using resources like the National Registration Search Tool, run by the Canadian Securities Administrators, and to stick to trusted banking and trading platforms. That way, you can minimize the chance of downloading malicious apps or compromising your personal information, while also taking advantage of the extensive features offered by the bigger platforms.

For example, Canadian investors can look to a tried-and-true online platform like CIBC Investor’s Edge, which gives them the security — and features — of one of Canada’s biggest banks without having to pay exorbitant commissions or fees.

In fact, with their comprehensive online trading platform, it actually pays to trade more. Active traders making over 150 trades a quarter can get a discounted commission rate of $4.95 per trade. And CIBC doesn’t charge any account or maintenance fees if the combined market balance of all accounts is greater than $10,000. Plus, you can receive real-time news and stock alerts, helping you keep track of market shifts.

Want to know more? Here’s a comprehensive review of the CIBC Investor’s Edge platform and its features.

Get some help

Another lesson to be learned from Skene’s story is the value of reaching out for advice before making any big financial moves — something that scammers will try to deter.

According her longtime friend, Pat Probert, that’s exactly what they tried to do, instructing Skene not to tell her friends because “‘you’re making so much money that your friends will be mad at you.’” It was only after she realized she was being scammed that she turned to Probert, who jumped into action by contacting two financial institutions she dealt with and the local police, who are still investigating.

“I was shocked. It’s beyond sickening,” he said.

If anything, these events underscore the importance of seeking out sound financial advice, preferably from professional advisors. But they can also be costly — and aren’t always available when you need them.

For those who want investment opportunities at a moment’s notice, AI-powered stock-picking services are another option, but many Canadians are still wary of using them for financial advice.

However, if you’re looking for the best of both worlds — the accessibility and immediacy of an AI-powered platform mixed with the human touch — you may want to consider stock-picking services like Moby, which offers investors data-driven insights from AI alongside expert analysis from financial professionals.

With Moby’s digital platforms, investors not only receive real-time stock picks and access to in-depth research, they also get a variety of features to educate users and help them make informed investment decisions. What’s more, subscribers can get hand-picked investment opportunities delivered straight to their inbox three times a week.

Start harnessing the power of AI. Check out what else Moby can do for your investing strategy.

Bottom line

Thanks in part to new AI tools at their disposal, scammers are becoming increasingly sophisticated in the tactics they use to defraud their victims. This means that Canadians, particularly who are older, will want to be more careful about where they place their trust when making investments.

As for Judy Skene, her story isn’t over yet. Her friend, Pat Probert, has set up a GoFundMe page, which has already raised nearly $12,000 of the $20,000 goal as of July 1. Meanwhile, Stephanie McLean, Secretary of State (Seniors) for Canada, was also notified about her story, reaching out to speak to Skene directly.

But Skene says that she’s going public with her story because she wants to keep others from becoming victims to these schemes.

“Just be alert and be careful with what you see,” she told CTV.

This isn’t the first time the CRA issued a warning for this type of scheme — schemes that are often pitched to higher-earning professionals as a way to retain tax-free income.

In most cases, these arrangements involve complex transactions, like borrowing money and using it to pay for insurance, which can mislead taxpayers and result in serious tax consequences.

The most recent message from the CRA was blunt: These disability tax schemes are not tax-free, and not really insurance.

If you have been told a critical illness policy can quietly move money out of your company without triggering tax, here’s what you need to do next.

Are you in a profession that puts you in the top tax bracket? Then you need to work with fintech and finance companies that know your needs. For instance, eligible professionals can unlock up to $1,313 in annual savings when banking with National Bank. This special offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies

How the scheme works, and why CRA doesn’t call it real insurance

According to the CRA, these tax-shelter arrangements require shareholders to borrow money from a lender connected to the product’s promoter, then transfer those funds to their corporation. The corporation records the transfer as a loan and separately buys a critical illness policy, often from an insurer outside Canada. Because the loan is limited recourse — meaning the lender can only seize the pledged security rather than the shareholder’s other assets — and that same security cancels the shareholder’s obligation to repay it, the money effectively completes a circular trip back to the shareholder without ever showing up as taxable income. But the CRA is clear: This type of policy does not meet the standards of a genuine insurance contract. Because the real purpose is to move surplus corporate funds into a shareholder’s pocket without triggering tax on a dividend or salary, the insurance coverage is incidental and doesn’t meet the requirements for a preferred tax product.

Why incorporated professionals are on CRA’s radar

This is not CRA’s first warning about insurance-based cash extraction. In 2020, the agency raised similar concerns about offshore disability insurance plans and offshore leveraged insured annuities.

The common thread across all three is a corporation with retained earnings, a shareholder who wants that cash without triggering a taxable dividend or salary, and a promoter offering an insurance wrapper as the workaround.

Incorporated professionals, who often build up cash inside a professional corporation specifically to defer personal tax at the lower small business rate, are a natural audience for this kind of pitch, since the appeal of tax-free withdrawals is strongest for people already paying close attention to their corporate tax bill.

Navigating critical illness insurance can feel overwhelming — but looking at independent ratings is a great place to start. If you're exploring options, PolicyMe is widely recognized for its clarity, covering 44 conditions with a straightforward online review process to help simplify your planning. Compare from the comfort of your home with PolicyMe’s instant online decision — making it easier to secure your financial safety net. Protect what counts with critical illness coverage

What the penalties could look like

CRA says participants in these schemes can be reassessed and denied the tax benefits they claimed, while promoters and advisors may face separate consequences.

Two provisions of the Income Tax Act explain why this can get expensive fast. Gross negligence penalties under subsection 163(2) add 50% of the understated tax to a reassessment, on top of the tax and interest already owed. Third-party civil penalties under section 163.2 mean the CRA can penalize accountants, advisors or promoters who structured the arrangement. In the most serious cases, where the CRA believes a taxpayer knowingly made false statements to evade tax, the file can move from a civil reassessment to a criminal charge under section 239, which carries a fine of between 50% and 200% of the tax evaded and up to two years in prison on summary conviction, or up to five years if prosecuted by indictment. The CRA confirmed it is actively investigating arrangements like this one and has already taken enforcement action on comparable schemes.

What to do now

If you’ve entered an arrangement involving critical illness insurance and a corporate loan structure, talk to an independent tax professional as soon as possible. Be sure to ask whether any insurance arrangement in your corporation uses a limited recourse loan — as the CRA treats that structure as a red flag.

If you think you may have participated in a similar scheme, CRA’s Voluntary Disclosures Program can reduce or eliminate penalties if you come forward before an audit starts.

Finally, if you suspect a tax scheme, contact the CRA’s Informant Leads Centre at 1-866-809-6841.

The bottom line for corporate-owned insurance

None of this means critical illness insurance is a bad product, or that every corporate-owned policy is a red flag. Legitimate corporate-owned critical illness coverage, bought to protect a business against the cost of losing a key shareholder to serious illness, with premiums paid from corporate funds and no side loan structure, is a standard, unremarkable planning tool.

Where the CRA draws the line is when this continuity planning tool is combined with a limited recourse loan, an offshore insurer and a structure whose main purpose is to extract cash rather than buy coverage. If your arrangement includes borrowed money, an offshore insurer or a promoter’s pitch about tax-free withdrawals, that is the moment to get a second opinion — before CRA asks for one.

Winkler isn’t the only Alberta resident facing steep home insurance premium increases — and this experience is now backed by federal data.

A recently released Statistics Canada study on extreme weather shows that homeowners’ insurance premiums in Alberta climbed almost 392% between December 2005 and December 2025 — the largest increase of any province and more than double the national average of 174.4%, over the same period. The study is the most authoritative reckoning yet of how extreme weather is fundamentally repricing the cost of owning a home in Canada.

And this repricing is no longer a problem just for Alberta residents.

Protect your home today. Storms, leaks and unexpected accidents don’t wait for a convenient time. Find a home insurance policy that helps you prepare for life’s surprises. If you’re ready to save as much as 20% on your premiums, compare 50+ quotes on Rates.ca — bundle your auto and home policies to save even more. Find trusted home coverage with Rates.ca

Why Alberta became the most expensive province to insure

There isn’t one isolated reason for Alberta’s astronomical premium increase, explains Statistics Canada economist Marisa McGillivray, who led the study.

“There’s just been an overall uptick in the frequency, as well as the severity, of extreme weather.”

Alberta sits in the geographic crosshairs of hailstorms, wildfires and convective storms — particularly in and around Calgary — and the financial consequences are compounding.

The data proves McGillivray’s point. In just a single 30-day window in the third quarter of 2024, four catastrophic events struck regions across Canada, costing insurers a combined $7 billion. The Calgary hailstorm alone — golf-ball-sized hail that tore through the city in August 2024 — generated $3 billion in insured losses in roughly one hour. The Jasper wildfire, the same year, added another $1.1 billion in claims.

The result? Canada’s property and casualty (P&C) insurers recorded net underwriting losses on home insurance in both 2023 and 2024. In other words, some Alberta insurers were paying out more in claims than they collected in premiums. With most insurers following a fiduciary duty to shareholders, these losses can’t stay on the insurer’s balance sheet and end up being transferred to policyholders at renewal time — typically spread across the entire provincial pool of homeowners, whether or not those policyholders ever filed a claim.

The national trend: Your province’s insurance versus general inflation

Alberta residents aren’t the only ones feeling the pressure.

Between December 2019 and December 2025, Canadian home insurance premiums rose 45%, outpacing the all-items Consumer Price Index, which rose 21% over the same period. That gap — insurance inflation running more than twice general inflation — is the financial pressure that Canadians are feeling when it comes to their home insurance policy renewal.

According to Statistics Canada CPI data, Manitoba, Nova Scotia and Saskatchewan all exceeded the national average home insurance increase of 38.6% in the five-year period from December 2020 to December 2025. In 2024, total insured weather losses in Canada hit $9.4 billion — a figure that the Insurance Bureau of Canada (IBC) calls the highest ever recorded, and roughly 12 times the annual average seen in the decade between 2001 and 2010.

“Natural disasters are reshaping the home insurance landscape for Canadians from coast to coast,” said Liam McGuinty, vice-president of federal affairs at IBC in a mid-June call-for-action. “The increased frequency and severity of extreme weather events are driving up claims costs and putting pressure on home insurance premiums across the country.”

Stop overpaying for insurance. Many homeowners renew the same policy year after year without checking their options. See how Canada's best home insurance companies stack up before you renew. If you're ready to save as much as 20% on your premiums, compare 50+ quotes on Rates.ca — bundle your auto and home policies to save even more. Find trusted home coverage with Rates.ca

How climate repricing works — and why homeowners with no claims are still seeing hikes

Insurance pricing operates on a pooling principle: The losses of the few are distributed across the premiums of the many. When catastrophic weather events hit with greater frequency and severity, the math changes for everyone in the pool — even homeowners who have never filed a claim.

Beyond the claims themselves, rebuild costs have surged. Statistics Canada’s residential building construction price index rose 69.4% between the fourth quarter of 2019 and the fourth quarter of 2025. That means a home that would have cost $400,000 to rebuild six years ago now costs closer to $680,000. If a homeowner’s dwelling replacement value has not been updated to reflect that increase, they may be significantly underinsured — and find out only after a claim.

Reinsurance costs — what insurers pay to insure their own risk — also spiked sharply in 2023 and remain elevated. That upstream cost increase flows directly into retail premiums for Canadian homeowners.

What comes next if the trend continues

The IBC has warned that around 10% of Canadian households already face flood risk so elevated that private flood insurance is unavailable or unaffordable. A federal flood insurance program was pledged with an April 2026 launch date, but as of mid-2026, there’s been no launch and no update.

A 2025 report from the Canadian Climate Institute estimated that without restrictions on building in high-risk zones, more than 540,000 homes could be built in flood-prone areas by 2030, adding an estimated $2 billion in annual damages. The same institute calculated in 2026 that $4 billion in annual proactive infrastructure investment could yield $5 to $10 billion in avoided losses — but that investment has not yet materialized at scale.

For homeowners in wildfire interface zones, high-risk postal codes — particularly in northwest Calgary, parts of Atlantic Canada and the B.C. interior — the concern is not just rising premiums but shrinking availability. Some insurers are quietly reducing their exposure in specific regions, which can leave homeowners without renewal options from their existing insurer.

Stop overpaying for insurance. Many homeowners renew the same policy year after year without checking their options. See how Canada’s best home insurance companies stack up before you renew. If you’re ready to save as much as 20% on your premiums, compare 50+ quotes on Rates.ca — bundle your auto and home policies to save even more. Find trusted home coverage with Rates.ca

What homeowners can do now to reduce premium exposure

Rising premiums do not mean homeowners are without options.

Several actions can directly affect what you pay at renewal — and how well you are actually covered if disaster strikes.

Review your dwelling replacement value. Rebuild costs are up roughly 70% since 2019, according to Statistics Canada data. If your coverage limit has not been updated to reflect this, you may be underinsured — a gap that matters most precisely when you need coverage.

Check for critical coverage gaps. Overland water and wildfire endorsements are separate add-ons in many standard policies. Homeowners in flood-prone areas or wildfire interface zones who do not hold these endorsements may face denied claims after the events most likely to strike them.

Shop your policy every one to two years. After back-to-back underwriting losses in 2023 and 2024, some insurers are pricing new customers more aggressively than renewals as they compete to rebuild volume. Comparing quotes at renewal can capture that difference.

Ask about mitigation credits. Many insurers offer premium credits for backwater valves, sump pumps, monitored alarm systems and impact-resistant roofing. Plus, provinces and municipalities are offering incentives and rebates to help with upgrades. For instance, the City of Calgary offered the Resilient Roofing Rebate Program, which has now ended, but offered up to $3,000 for hail-resistant roof retrofits.

Ask directly whether your insurer is reducing exposure in your area. In high-risk postal codes, non-renewal notices are being issued at renewal rather than mid-term. Asking the question now — rather than discovering the answer with 30 days’ notice — allows time to arrange alternative coverage.

The Statistics Canada data is clear: This is not a temporary spike. Every year from 2020 to 2025 has been ranked among the top 10 costliest for extreme weather claims since records began in 1983. Premiums will reflect that reality — the question for Canadian homeowners is whether their coverage does too.

However, life doesn’t always unfold that way. Whether you’re divorced, widowed, estranged from family or simply chose a different path, there are many reasons Canadians reach retirement alone. And when they do, all of the decisions fall on them.

“It all falls on me,” said Amy Kant, 65, who spoke to The Wall Street Journal about the reality of navigating medical procedures, estate planning and downsizing her home as a single woman.

Her experience resonates with a growing number of Canadians. According to Statistics Canada, 4.4 million people lived alone in 2021, up over 38% since 1981 — that’s 15% of all adults, the highest number ever recorded. Among those aged 85 and older, nearly half (42%) live solo.

The challenge isn’t only emotional. Solo agers face real financial and logistical pressures: who will manage your finances if you can’t? Who will make medical decisions? What happens to your home, your savings, your estate? These aren’t abstract questions: They all require concrete planning, and the earlier, the better.

Here’s where to start.

Hire financial professionals to do the heavy lifting

You may have limited personal support as you age alone, but you can build a team of experts to provide a professional alternative.

If you don’t already have a financial adviser, consider hiring one experienced in working with seniors. Look for someone who holds the Certified Financial Planner (CFP) designation — Canada’s national standard for financial planning professionals. They can review your full financial picture: your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) balances, your Canada Pension Plan (CPP) and Old Age Security (OAS) entitlements, and any pension income — and help you map a withdrawal strategy that reduces tax and keeps your income stable.

Many solo agers may not realize that, even with both CPP and OAS maximized, the combined income only totals roughly $26,999 each year — well short of what most Canadians need to maintain their pre-retirement lifestyle. A financial adviser can help bridge that gap with your savings, and flag risks like the OAS clawback (which kicks in for net income above $93,454 for 2026 to 2027) or mandatory Registered Retirement Income Fund (RRIF) withdrawals that could push your taxable income higher than expected.

An estate lawyer (or notary in Québec) will help you set up a comprehensive estate plan: drafting a will, naming beneficiaries and establishing a Power of Attorney (POA). In Canada, a POA is a legal document that allows a trusted person to make financial or personal care decisions on your behalf if you become incapacitated. Without one, a loved one may have to apply to the court to be appointed your legal decision-maker — a process that can be stressful, expensive and delay important decisions.

The upfront cost of working with these professionals is something to consider. Fee-only financial advisers in Canada typically charge $150 to $400 an hour for one-time advice, or $3,000 to $10,000 or more for a comprehensive financial plan. That may feel steep, but the cost of not planning — paying unnecessary taxes, making avoidable CPP/OAS timing mistakes or dying without a will — is almost always higher.

Ask people in your personal network for recommendations, or search the FP Canada adviser directory to find a certified planner near you.

To get started, open a no-fee RRSP high-interest savings account with EQ Bank. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

Decide where you want to live in your sunset years

One of Kant’s main concerns is changing her living situation. She currently lives in a condo with stairs — an arrangement that becomes increasingly impractical if you face surgery or illness, common obstacles when people age.

In Canada, you have a range of options when it comes to where you live in retirement. According to the Canadian Institute for Health Information, 91% of older adults prefer to age at home rather than move to an institution. For many solo retirees, aging in place is the goal — but it requires planning.

Age in place (with modifications)

Downsizing to a smaller, single-storey home with fewer stairs and less maintenance is one of the most popular options. Accessibility modifications — such as grab bars, walk-in showers and ramp access — can extend the time you can safely live at home.

Retirement homes (independent living)

These communities provide a social setting with optional services, without the full medical support of a care facility. Monthly fees for elder care in Canada range from approximately $1,500 to $3,400 for subsidized homes, and up to $6,000 for a private facility. Ontario tends to be on the higher end ($2,085 – $2,979 monthly), while other provinces offer more cost-effective options.

Assisted living

Assisted living facilities offer personal support services for seniors who need help with daily activities but don’t require full nursing care. Costs vary widely by province and level of care.

Long-term care (LTC) homes

For seniors with more complex medical needs, LTC homes provide around-the-clock nursing and personal support. These are provincially regulated and partially funded. For example, in Ontario, the basic co-payment rate for a publicly funded LTC bed was $66.95 a day ($2,036.40 a month) as of July 1, 2024. Private LTC facilities can cost $6,000 to $15,000 every month. Prices vary widely depending on the level of care and the province or territory.

The key for solo agers is to explore options early — before a health crisis forces the decision. Waiting lists for publicly funded LTC homes can be long, and the best retirement communities fill up quickly.

Cover what provincial health care doesn’t with affordable plans from PolicyMe.

Build a medical care strategy before the last minute

The time to find a trusted medical team isn’t during an emergency. For solo agers, having reliable healthcare support in place is especially important — there may be no family member available to step in, interpret medical information or advocate on your behalf.

Canada’s publicly funded healthcare system covers most medically necessary services, but coverage has limits. Vision care, prescription drugs and home care aren’t universally covered, and availability varies widely by province.

For home-based support, most provinces offer publicly funded home care assessed on need. In Ontario, Ontario Health atHome (formerly Home and Community Care Support Services) connects eligible residents with nursing, personal support and therapy services. All other provinces and territories offer similar programs through regional health authorities, under the Canada Health Act.

For those who need more support than the public system provides, private home care services are available at rates typically ranging from $25 to $75 an hour, depending on the type of care and region. These services can include everything from meal preparation, transportation to post-surgical support and medication management — a lifeline for solo agers who no longer drive or who are recovering from illness.

If you’re unsure where to start, ask your family physician for a referral to a geriatric care manager or a local home care agency. Some provinces also offer publicly funded programs to help seniors navigate the system.

What Canadian single seniors can do right now

Planning for aging alone doesn’t have to happen all at once. But the earlier you start, the more options you’ll have — and the less it will cost you in the long run. Here are five concrete steps to consider:

1. Get your legal documents in order. Draft a will and set up a Power of Attorney (POA) — one for property and finances, and one for personal care. Without a POA, no one, including a spouse or adult child, can automatically step in to manage your affairs if you become incapacitated. A lawyer or notary can prepare these documents, and some provinces offer low-cost legal clinics for seniors.

2. Understand your retirement income. Review your CPP entitlements on your My Service Canada Account and confirm when you plan to start benefits. Delaying CPP past 65 increases your monthly payment by 0.7% a month (up to a 42% boost at age 70), and deferring OAS to age 70 increases payments by 36%. For many solo agers, locking in higher guaranteed income later can be a critical safety net.

3. Maximize your TFSA. The TFSA annual contribution limit is $7,000 in 2026, with total available room up to $109,000 for those who have never contributed since it was first introduced in 2009. Withdrawals from a TFSA don’t count as taxable income — making it an invaluable tool for solo agers managing OAS clawback risk or Guaranteed Income Supplement (GIS) eligibility.

4. Explore your housing options before you need them. Research retirement communities, assisted living facilities and LTC homes in your area now. Understand the costs, the wait lists and what each level of care includes. If you’re planning to stay at home, assess what modifications your property may need and factor those costs into your retirement budget.

5. Build your support circle. Solo aging doesn’t mean going it alone. Identify two or three trusted people — friends, neighbours, a lawyer, a financial adviser — who can act in specific roles if you need support. Research community resources, including seniors’ centres and local volunteer networks. Social connection is good for mental health — according to a 2019 National Institute on Aging report, loneliness and social isolation can be as harmful to health as smoking a pack of cigarettes a day.

-With files from Melanie Huddart

Development of Canada’s first offshore wind farms took a significant step forward after Nova Scotia’s offshore energy regulator released the names of international companies officially cleared to bid on seabed licences. The regulatory milestone advances Wind West, a massive clean energy initiative that could fundamentally alter the national electricity grid and reshape long-term infrastructure spending across the country.

The Canada-Nova Scotia Offshore Energy Regulator confirmed that five individual corporations and two major business alliances successfully passed a rigorous pre-qualification review process that concluded earlier this year. To achieve eligibility, the corporate applicants had to satisfy strict financial, technical, legal and social criteria, proving their capacity to construct and manage major ocean-based utilities.

For Canadians mapping out the economic future of national utilities, the entry of global energy players signals that large-scale marine wind generation is shifting from a theoretical policy concept into a tangible commercial sector.

A global lineup forms on the East Coast

The regulator’s announcement revealed a diverse international roster of pre-qualified participants who consented to have their names made public. The list features Toronto-based Northland Power Inc., Belgium’s DEME Concessions Wind N.V., China’s Ming Yang Smart Energy Group Ltd., Ireland’s Simply Blue Energy (OSW) Ltd. and Luxembourg’s Jan De Nul N.V.

Two prominent corporate consortiums were also cleared to participate in the upcoming auction. One group comprises Halifax-based DP Energy Canada Ltd., Nova East Wind Inc., Singapore’s Enterprize Energy Atlantic Pte. Ltd. and Switzerland’s SBM Renewables Holding SA. The second cleared alliance pairs South Korea’s Hanwha Ocean Co. Ltd. with Q ENERGY France SAS.

A formal call for bids on the initial seabed licences will be issued later this year. According to The Canadian Press, these upcoming commercial submissions will face intense ministerial scrutiny at both the federal and provincial levels before any construction rights are officially granted.

Ready to build a better financial future? Browse our expert reviews of the best budget apps in Canada and start your free trial today.

Understanding the massive scope of Wind West

The initial phase of the megaproject carries an estimated price tag of roughly $60 billion. Provincial economic projections indicate that approximately $40 billion will be spent directly on the massive ocean turbine infrastructure, while the remaining $20 billion will fund entirely new regional transmission networks.

The physical territory designated for this opening phase covers the Sydney Bight area, located northeast of Cape Breton in the Gulf of St. Lawrence, alongside three distinct ocean parcels off the eastern shore of mainland Nova Scotia.

While the provincial government targets an initial capacity of five gigawatts of power from this first phase as early as 2033, the long-term vision is vastly larger. Nova Scotia Premier Tim Houston previously adjusted the province’s licensing targets, boosting the long-term goal eightfold to a staggering 40 gigawatts by the year 2050. Because Nova Scotia requires only about 2.4 gigawatts to power its domestic grid, the vast majority of the generated electricity is destined for export markets.

Moving from a have not to a have province

For Atlantic Canada, the project is being positioned as a fundamental economic turning point. Premier Tim Houston expressed immense optimism regarding what this influx of global corporate interest means for the local economy.

“By attracting companies with the experience and know-how to deliver large energy projects, we are setting the stage for a successful offshore wind industry here at home,” Houston told The Canadian Press. “This kind of growth will move us from a have not to a have province and create many new opportunities for our young people, small businesses and communities.”

According to provincial analysis, if the federal government assists in covering the substantial infrastructure costs, the clean electricity generated by these ocean turbines could eventually satisfy roughly 27% of Canada’s total overall energy demand. Neighbouring Quebec and the state of Massachusetts have already expressed formal interest in purchasing power from the proposed clean energy network.

The actual deployment timelines for these projects remain long-term. A spokesperson for Q Energy France noted that their internal estimated timeline for actually commissioning offshore turbines stretches to sometime in 2035.

While it will take years before this electricity flows into Canadian homes, the corporate and financial frameworks being built today will shape national infrastructure investments for decades to come.

At the end of March, more than 37,000 Canadians filed for bankruptcy — the highest quarterly total since 2009, according to the Office of the Superintendent of Bankruptcy (OSB), the federal agency that tracks insolvency filings. There were 8.5% more Canadians filing for bankruptcy in Q1 2026, compared with the same quarter in 2025.

But it’s not the quantity of insolvency cases that’s worrisome, but the underlying trend that concerns insolvency professionals. "It's the canary in the coal mine," explained Doug Hoyes, a licensed insolvency trustee and co-founder of Hoyes, Michalos & Associates. In particular, was the sharp increase in filed insolvencies from January to March of this year, climbing 17.5% in just three short months.

For households who are just covering minimum payments while juggling ongoing living costs, this is a reminder that far more Canadians are struggling with inflation, price increases, higher living costs and economic uncertainty.

Pay off debt faster. If you’re struggling with high credit card debt or have outstanding payments on multiple cards, consider taking out a personal loan. If you use a loan consolidator, like Loans Canada, you can shop for the best rate and best loan. Personal loans typically have a lower interest rate than credit cards, which helps you save on interest payments. Plus, you only have one payment to keep track of when consolidating debt with a personal loan. Use Loans Canada to compare rates and find your one payment loan option — and pay off debt faster.

Consumer proposal or bankruptcy? What do Canadians choose?

According to OSB data, almost 80% of the 37,121 filings were consumer proposals, while the remaining 20% were bankruptcies.

As Hoyes explains, a consumer proposal prevents a person from losing assets while agreeing to repay creditors a fixed amount, over time, while bankruptcy can require giving up assets to settle debt. In general, consumer proposals tend to be chosen by people who still feel relatively stable about their financial future, while bankruptcies often signal a deeper crisis.

So, why does this matter? Because most of the filings are from Canadians who need help with debt management and repayment, not Canadians who have lost everything.

Why debt is getting heavier even where filings haven't spiked

Equifax Canada, the credit bureau that tracks national debt and repayment data, found in its Q1 2026 Market Pulse report that the average non-mortgage debt tied to an insolvency filing reached $43.3K, up from $40.2K two years earlier. For homeowners who became insolvent, average non-mortgage debt hit $82.4K, a 19% increase over the same period. In other words, the people filing aren't just more numerous — they're going in deeper before they file.

B.C. and Ontario are leading the increase

British Columbia posted the steepest year-over-year jump in consumer insolvencies, up 16.2% to 4,234 filings, OSB data shows. Ontario's consumer insolvencies rose 14.7%, with bankruptcies there climbing more than 25% — a spike Hoyes linked partly to U.S. tariffs hitting the province's manufacturing sector.

What to do before debt becomes unmanageable

You don't need a record-breaking headline to know if you're at risk. Instead, watch for these warning signs:

• Making only minimum payments on credit cards for more than a few months in a row
• Using one credit product to pay another, such as a cash advance to cover a mortgage payment
• Feeling unable to absorb a $500 unexpected expense without new borrowing

If any of that sounds familiar, a free consultation with a federally regulated Licensed Insolvency Trustee can clarify your actual options before a missed payment turns into a crisis. As Wesley Cowan, a Licensed Insolvency Trustee and vice chair of the Canadian Association of Insolvency and Restructuring Professionals (CAIRP), put it, the goal for most people isn't choosing between a proposal and bankruptcy right away — it's understanding whether debt can still be managed informally, and what each path would mean for long-term recovery.

Cut your interest costs. Lower your total borrowing costs by rolling high-interest credit card debt into a more affordable loan. Credit cards often carry higher interest rates than personal loans, so carrying a rolling credit card balance can become costly over time. Moving debt into a single, lower-rate financing structure can help reduce your overall borrowing costs and help you get out of debt faster. Using Loans Canada, you can compare loan rates or find a consolidation loan. Loans Canada uses a single application to help you compare rates from more than a dozen lenders, finding the best rates and better terms. Make debt repayment easier and faster using Loans Canada.

Being proactive matters

The data doesn't mean a crisis is coming for every household. But it does mean the cushion many Canadians rely upon is getting thinner. For every Canadian, that means being proactive — checking your own numbers and cutting costs where possible, to help build some wiggle room, should a cash crisis arise.

Instead of relying on a stranger’s voice, criminals can now use AI tools to create calls that sound like a friend, child or family member in distress. The goal is often to create enough panic that victims act before they have time to stop and think.

When a familiar voice isn’t real

That’s what Brenda Brookins thought was happening when she answered a phone call one afternoon around the time her son normally gets off work. The voice on the other end sounded exactly like his.

“I picked up the phone, and I said, ‘Hello,’ and he’s like ‘Mom? Mom?’ And it was his voice!” Brookins told news station WSYR-TV.

“He said, ‘I just had a car accident.’ I said, ‘Are you OK?’ He said, ‘Mom, I need help!’.”

As the conversation continued, however, Brookins began to notice details that didn’t quite fit.

One of the first red flags was the word “mum” — a term she said her son never used. Then another person joined the call, claiming to be a police officer at the scene of the accident. But there was one more clue that something wasn’t adding up: the area code on the incoming number didn’t match where her son lived.

“I thought it could’ve been a police officer’s phone, but then when I sat and thought about it, the area code wasn’t right,” she said.

Brookins’ story is far from unique. While it occurred in America, it’s the same script being used against Canadians, too.

Stop leaving money on the table. Discover which Canadian banks are currently paying up to $700 just for opening a new account.

The threat is real — and growing fast in Canada

AI voice-cloning scams use artificial intelligence to recreate a person’s voice, often from audio clips found online. Scammers can use the technology to make phone calls that sound remarkably similar to a friend, child or other loved one.

As AI technology becomes more accessible, these types of scams are becoming increasingly common in Canada. In 2024, Canadians reported losing nearly C$3 million to family-emergency and grandparent voice-cloning scams, according to figures from the Canadian Anti-Fraud Centre (CAFC).

The pattern is disturbingly consistent: the caller claims to have been in an accident or arrested and needs money immediately. They instruct their target to tell no one.

According to a Hiya Q4 2024 Global Call Threat Report — a survey of more than 12,000 consumers across Canada, the U.S., UK, Germany, France and Spain — 27% of Canadian consumers reported experiencing deepfake fraud calls, with average reported losses totalling US$1,479. AI-generated deepfake fraud calls result in far greater financial damage: more victims reported losses exceeding US$6,000 than those affected by traditional phone scams.

Overall Canadian fraud losses are staggering. In 2024, the FCAC received 112,000 fraud reports involving over C$704 million in reported losses. The CAFC and the Royal Canadian Mounted Police (RCMP) note the actual total is likely much higher, estimating the data represents only 5% to 10% of actual fraud in Canada, as many victims never report.

Protecting yourself from AI scam calls

Brookins said she decided to share her experience in the hopes of helping others avoid falling for a similar scam. One of the biggest lessons she took away from the ordeal is the importance of having a family codeword.

“Set up a codeword with your family. Maybe don’t do it over the phone or through text because, if you are being monitored, they’re gonna catch that,” she said. “I was so scared, I almost cried because I thought he had been in a car accident.”

The CAFC also recommends taking a few simple steps if you receive a call from someone claiming to be a loved one in trouble:

• Pause before reacting — scammers often use fear and urgency to cloud your judgment.
• If a loved one supposedly needs help, hang up and contact them directly using a number you know and trust.
• Never share personal or financial information with unexpected callers.
• Be cautious of requests for payment through gift cards, wire transfers, e-transfers or cryptocurrency.
• If something feels off, check with a trusted friend or family member before taking any action.

“You might think, oh, it’s never gonna happen to me, it’s never gonna happen to me, but it was just scary,” Brookins said.

What Canadians can do now

If you think you’ve been targeted by an AI voice-cloning scam, here are the steps to take:

• Report it to the CAFC and the police. You can file a report at antifraudcentre.ca or by calling 1-888-495-8501, even if you weren’t a victim. Every report helps investigators identify patterns and stop fraud rings. Report the incident to your local police to create a file.
• Contact your financial institutions immediately. If money has already been transferred, fast action is critical. Financial institutions have fraud escalation teams who may be able to interrupt or freeze a transfer.
• Review the personal info you have posted online. Voice clones are typically built from audio found on social media — TikTok, YouTube, Facebook and Instagram videos. Consider making accounts private or limiting who can hear yours or a family member’s voice.
• Set up a family codeword. Choose a word or phrase that isn’t searchable or guessable, and share it in person. If a caller claims to be a loved one, ask for the codeword before taking any action.
• Know the red flags. Unusual area codes, unfamiliar turns of phrase, a request for secrecy, or demands for payment via gift card, e-transfer or cryptocurrency are all warning signs.
• Stay informed. The Ontario Securities Commission (OSC) has issued video guidance on how to avoid AI-voice scams, while the Government of Canada maintains up-to-date fraud alerts at Canada.ca.

-With files from Melanie Huddart

With the average wedding costing around $32,000 in 2025 according to RBC, it’s no wonder Canadians are feeling the pressure to either tie the knot or get the keys to their first home. With the minimum downpayment for the average Canadian home sitting at approximately $45,000, that isn’t a hypothetical decision, either.

“I think people just don’t have it and aren’t willing to spend that when they’re starting their new chapter as a married couple and don’t want to spend the next 10 years in debt — they want to buy a house,” Alicia Thurston, CEO of Pop-Up Chapel told Global News.

More and more wedding venues have been seeing a shift to smaller, less ornate celebrations due to the heightened cost of living, as less people attending typically means less associated costs. Experts have noticed that couples who are still getting married despite the sticker shock are spending to get the most bang for their buck — not to have the most lavish fete in town.

“Couples are more price sensitive than they were before, and they are looking for savings,” wedding photographer Gosia Strzeminska told Global News, adding, “Either it’s when it comes to hours of the coverage or number of photographers for the wedding, when before it was quite often a standard having two photographers for the wedding. It comes down to value and the budgets.”

Breaking down the financial pain points

Wedding planners, photographers and other matrimonial experts are seeing signs of strain for new couples wanting to marry. But where are these points of financial tension coming from exactly?

Well, quite a few different places, actually.

The latest Labour Force Survey from Statistics Canada for May showed that the unemployment rate now sits at 6.6% — down from a high of 6.9%. However, the unemployment rate for younger Canadians (those aged 15 to 24) was over double at 13.4%.

The cost of goods and services continues to spike as well, with StatCan’s latest Consumer Price Index survey noting that inflation rose 3.2% year-over-year in May, with gasoline prices shooting up 33.2% annually. On a year-over-year basis, the price of fresh vegetables rose 9.0% within the same time frame, contributing to an overall inflation for food purchased in grocery stores. In fact, rising food prices have continually outpaced headline inflation for 16 consecutive months. Essential expenses — not nice-to-haves — are eating away at budgets.

For younger Canadians, rising prices for necessities and an elevated unemployment rate are not only putting pressure on whether or not to throw a wedding, but also their retirement outlook and general financial stability.

A recent survey from BMO found that 67% of respondents believe saving for retirement is harder for them than it was with their parents, and 77% of those surveyed worry that saving for retirement will be harder for the next generation.

In the near term, Gen Z Canadians view ballooning costs as holding them back from their overall goals, not just retirement. A survey from TD Bank in late 2025 found that 47% of Gen Z respondents surveyed said the cost of living was their biggest barrier to reaching their financial goals, and over a third (36%) said their income was not enough for them to financially get ahead.

Skip the bank-hopping. Let Homewise do the shopping for you. Access rates from 30+ lenders with one simple application and find your best fit instantly.

The right way to save for a major milestone

Canadian consumers are feeling the pinch, whether they're planning a wedding or deciding to attend one this summer. This brings up an important consideration, especially when every dollar counts: what’s the best way to save for a major goal or financial milestone?

Start with the basics. Before saving for major milestones, experts generally recommend building an emergency fund that can cover three to six months of essential expenses. Keeping this money in a high-interest savings account (HISA) allows it to earn interest while remaining easily accessible if you lose your job or face an unexpected expense. If you know you won't need part of your savings for several months or years, a guaranteed investment certificate (GIC) may offer a higher interest rate in exchange for locking your money away until the end of the term. Both options provide stability and help ensure you won't have to rely on high-interest debt during an emergency.

Seek specialized accounts when saving for a home. The first home savings account (FHSA) is a Canadian's key savings account for those planning to buy their first home. FHSAs have a contribution limit of $8,000 each year, up to $40,000, which carries over if unused. Withdrawals — and any investment growth — are tax-free so long as they are used towards the purchase of a first home. Contributions are also tax-deductible, providing immediate financial benefits as well.

RRSPs and TFSAs for retirement. Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are the cornerstone of retirement planning, and each account comes with unique benefits.

TFSAs are powerful saving accounts because any interest or capital gains earned within the account is tax-free, and withdrawals are completely tax-free as well. That said, there are limits on how much you can place in a TFSA. For 2026, the TFSA annual contribution limit is $7,000, and each Canadian has their own contribution room limit that begins to accumulate when they turn 18.

RRSPs, meanwhile, allow Canadians to contribute up to 18% of their previous year's earned income, to a maximum of $33,810 for 2026, plus any unused contribution room carried forward from previous years. Contributions are tax-deductible, lowering your taxable income today, while investments grow tax-deferred until they're withdrawn in retirement, when many Canadians are in a lower tax bracket.

Rather than viewing these accounts as competing options, it’s recommended to use them together: maintain an emergency fund for unexpected expenses, use an FHSA if you're saving for your first home, and continue building long-term wealth through a combination of TFSAs and RRSPs based on your income, tax bracket and retirement goals.

While the cost of living has impacted some Canadians’ savings speed and goals, it doesn’t change the vehicles they have access to grow their wealth.

“It provides us all the capital we need to put on the balance sheet, which was kind of one of the last big things we needed to put in place,” CEO Daniel Eberhard told The Financial Post. The company describes itself as now “late in the final stages” of the licensing process.

What Koho has built so far and what it still cannot do

Launched in 2014, Koho today offers a prepaid Mastercard, a high-interest savings feature, a credit-building product, rent reporting, and a basic crypto offering through a partner. The company, which serves 2.5 million customers, has grown quickly, but still faces one important limitation.

Because KOHO isn’t a bank, it cannot hold customer deposits itself. When you earn interest on a Koho account, your money is held in trust at a CDIC-member partner institution rather than directly with KOHO.

Koho is also not a direct member of the Canada Deposit Insurance Corporation (CDIC). The trust structure still provides deposit protection, but only for balances earning interest and only after you have activated the feature by providing your social insurance number.

For most customers, it’s a minor difference. But if you use Koho as your primary banking account, the trust arrangement adds an extra layer behind the scenes that a bank license would remove.

Find your perfect bank account. Use our expert comparisons to find a bank account with the highest sign-up bonuses and lowest fees in Canada.

The advantages of a Schedule 1 bank license

Obtaining a Schedule 1 bank license under the Bank Act would significantly expand Koho’s capabilities. As a chartered bank, it could:

• Hold customer deposits directly on its own balance sheet
• Become a direct CDIC member, meaning eligible deposits would be insured up to $100,000 per category through Koho itself rather than through a partner institution
• Access lower-cost funding, potentially allowing it to offer more competitive savings rates and lending products
• Offer a broader range of loans and mortgages that it cannot legally originate today

With 250 employees, compared with thousands at each of the Big Six banks, Eberhard has argued that Koho’s lean operating model allows it to operate far more efficiently. With annual revenue now roughly $250 million, the company appears to have the scale it needs to support a regulated banking business.

Compare Canada’s best banking promotions in one place. Save time and maximize your new client bonus. See what banks are offering new account perks and find the right bank account for your needs.

What OSFI’s new fast-track process could mean for the timeline

The timing may also be working in Koho’s favour. In June 2026, the Office of the Superintendent of Financial Institutions (OSFI) introduced a Targeted Fast-Track Framework to expedite the approval process for new fintech banks.

Under the new framework, OSFI aims to provide initial feedback within four weeks, complete its risk-based review within 12 months, and then forward its recommendation to the Minister of Finance, who has up to three months to make the final decision.

That’s a dramatic improvement over the traditional process. Questrade, for example, spent six years navigating the regulatory system before receiving approval to launch Questbank in November 2025.

KOHO has already been working with OSFI since 2021 and entered the second phase of the licensing process in 2024. With the capital raise now complete and the new fast-track framework in place, KOHO could receive approval as early as this year, although the final decision still rests with the federal government.

How Koho Bank would differ from your current Big Six account

If approved, Koho Bank would enter a market in which a handful of large banks still control the vast majority of Canadians’ deposits.

For consumers, the biggest differences may include:

• No monthly account fees, consistent with Koho’s current business model
• Direct CDIC deposit insurance without relying on a trust structure
• Expanded lending products, including personal loans and potentially mortgages
• Savings accounts and GICs designed to compete with online banks such as EQ Bank rather than traditional branch-based banks

What Koho wouldn’t immediately offer is the full infrastructure of a major Canadian bank. There would be no nationwide branch network, extensive business banking services, large mortgage portfolio, or decades-old institutional relationships.

For many Canadians, that means Koho would likely work best as either a primary everyday banking account or a complementary account alongside an existing relationship with one of the Big Six.

That said, consumers shouldn’t make financial decisions based on products that don’t yet exist. Koho’s license appears closer than ever, but it hasn’t crossed the finish line just yet.

What to do now

If you’re already a Koho customer, there’s no reason to make any immediate changes. A bank license could open the door to new lending products, simpler deposit insurance, and more competitive savings rates, but none of those benefits take effect until the license is officially approved and new products begin rolling out. In the meantime, it’s worth taking a few simple steps:

• Watch for announcements on new savings, lending, and deposit products as Koho moves through the approval process later this year.
• Compare Koho’s future savings and GIC rates with competitors such as EQ Bank and the Big Six before moving your money. A bank license doesn’t automatically mean the best rates.
• Confirm that future Koho Bank products are covered by direct CDIC membership rather than trust coverage through a partner institution, especially if you keep more than $100,000 in one insurance category.
• If you’re considering switching to a fintech for the first time, compare Koho’s fees, features, and savings rates with alternatives such as EQ Bank and Wealthsimple before you decide.

Canada’s banking landscape hasn’t changed much over the years, but that may finally be starting to shift. Whether Koho ultimately becomes Canada’s next chartered bank or not, one thing is already clear: fintechs are no longer just trying to compete with the Big Six; they’re trying to join them.

For decades, buying car insurance in Ontario meant accepting a standard package of mandatory coverages known as statutory accident benefits. These protections were built right into every policy, ensuring that if you were hurt in a collision, you had immediate access to cash for lost wages, childcare and funeral costs.

Today, that one-size-fits-all model disappears. While medical, rehabilitation and attendant care benefits remain strictly mandatory, Ontario drivers renewing their policies can now opt out of several accident benefits that were previously required. This includes income replacement, caregiver benefits, housekeeping expenses and death and funeral benefits.

The provincial government pitched the reform as a way to empower motorists, lower premiums and cut down on redundant coverages. However, local experts warn that the newfound flexibility introduces a serious double-edged sword.

The reforms are intended to give consumers more choice and reduce potentially overlapping coverage. However, they also place greater responsibility on drivers to understand what protection they already have elsewhere and what they may be giving up.

The hidden cost of a lower premium

The temptation to opt out is simple math. Drivers looking to shave down their monthly expenses might see the new options as an easy win. Industry data suggests that dropping these coverages might only save a policyholder around $10 a month, yet the financial fallout of losing them can be devastating.

Take income replacement benefits as an example. Up until today, if a severe crash left you unable to work, your standard Ontario auto insurance policy automatically kicked in up to $400 a week to help keep you afloat. If you choose to opt out of that benefit at your next renewal, that safety net drops to zero.

The biggest risk isn’t necessarily the reform itself, but that some consumers may remove coverage to save money or because they believe it’s redundant, only to discover later that they’ve created a gap in their protection.

Ontario drivers are paying 18.9% more for car insurance since 2020. This 3-minute check on Rates.ca could save you hundreds — and up to 20% when you bundle auto and home policies.

Navigating the coverage crossover

The logic behind the government’s shift is that many Ontarians already have these protections through their workplace benefits or private insurance plans. If your employer provides a robust long-term disability policy, paying for income replacement on your auto insurance might feel like paying for the same thing twice.

Determining whether your workplace benefits truly mirror your auto insurance takes careful homework. Many corporate health plans have strict caps, shorter coverage windows or definitions of disability that are far harder to meet than an auto insurance claim.

While the changes may help some drivers eliminate unnecessary overlap, they also shift more responsibility onto consumers to evaluate insurance trade-offs that were previously built into the standard policy.

Your renewal game plan

The good news for Ontario motorists is that nothing changes automatically this morning. Your current policy remains exactly as it is until your specific renewal date rolls around later this year or next. When that renewal notice lands in your mailbox, your insurance provider is required to renew your policy with all your existing benefits intact unless you explicitly tell them otherwise in writing.

Before you make any adjustments to save a few dollars on your premium, take these three steps to protect yourself:

• Audit your workplace coverage: Request a full copy of your employer benefits booklet. Look closely at the disability section to confirm exactly how much income is protected and for how long.
• Assess your household needs: If you’re a stay-at-home parent, a student, or a primary caregiver for an elderly relative, benefits like caregiver and housekeeping coverage are vital because you may not have a traditional corporate package to rely on.
• Talk to an advisor: Don’t just uncheck boxes online to lower a quote. Ask an insurance representative to explain exactly what risks you are absorbing by opting out.

For a full breakdown of what is changing and to review the legal guidelines of the new system, you can review the official Registered Insurance Brokers of Ontario guidelines or consult the consumer advisories provided by the Insurance Bureau of Canada.

The Financial Services Regulatory Authority of Ontario (FSRA), the provincial body that oversees insurance agents and other financial services providers, reviewed 130 life insurance agents linked to three major managing general agencies (MGAs) and found that half of them had broken the rules. The review covered the period from May 2022 to April 2023.

As a result of the FSRA investigation, 65 agents were penalized for a combined 184 violations of the Insurance Act, including unsuitable sales practices, failure to disclose conflicts of interest, incomplete training and misrepresentation to the regulator.

What agents were actually doing — and why it harmed clients

The three MGAs at the centre of FSRA’s review — Greatway Financial Inc., World Financial Group Insurance Agency of Canada and Experior Financial Inc. — all use a tiered-recruitment model. In that structure, agents are paid not just for selling policies, but also for recruiting other agents. That creates an incentive to prioritize recruitment over client suitability.

The three firms together represented roughly 20% of all licensed life insurance agents in Ontario at the time of the review — approximately 12,775 agents, according to FSRA files.

FSRA found that agents frequently recommended overfunded universal life (UL) policies without conducting a proper needs analysis or considering whether simpler, lower-cost alternatives would better serve the client. In many reviewed files, the regulator found that the needs analyses were “trivial, flawed or identified no insurance need at all.” Retirement planning advice was described as incomplete or inaccurate, and policy illustrations were misleading or unrealistic.

Most critically, the FSRA reports noted that agents often failed to discuss tax-free savings accounts (TFSAs) or registered retirement savings plans (RRSPs) as alternatives to overfunded UL premiums — despite these being more appropriate for many clients seeking estate solutions.

The enforcement actions were not limited to agents with prior regulatory red flags. FSRA explicitly noted that none of the 130 agents reviewed had been previously flagged for compliance concerns. The regulator found the conduct at these firms was worse than at firms whose agents had been specifically selected due to past misconduct.

Traditional insurance options aren't your only choice. Evaluating how different plans stack up can help ensure your family has the right level of protection. Online providers can help. For instance you can get a PolicyMe term life insurance policy with coverage up to $5 million with premiums starting at just $21 per month — making it easier for you to secure your family’s financial future. Just answer four questions, and PolicyMe will provide you with an instant, no-obligation quote valid up to 90 days. Most policies are approved without any medical tests, and you can opt for term lengths ranging from 10 to 30 years. Get a free, no-obligation quote today with PolicyMe.

The universal life insurance problem: Who it’s for — and who it isn’t

Universal life insurance is a permanent life insurance product that combines a death benefit with a self-directed investment component. Policyholders can pay more than the minimum premium to build a tax-sheltered investment account inside the policy — a strategy sometimes called an “overfunded” UL policy.

Agents sometimes marketed overfunded UL policies as an investment tool available to almost anyone. But for most everyday Canadians — particularly younger, lower-income individuals with high-interest debt and no existing savings — the math rarely works in the client’s favour.

FSRA’s report was direct: “Given that many of these cases involved young people with modest means, no savings and carrying high interest debt, the money being used to overfund UL premiums under the guise of helping them grow their savings may well have otherwise been put to better use through investment in TFSAs or by reducing their personal debt.”

The scale of UL selling at these firms reinforces the concern. According to FSRA data, approximately 92% of Greatway’s $42.8-million gross income for 2020 came from the sale of permanent life insurance products — 99% of that from universal life. In 2020 and 2021, more than half of all policies sold by the three firms were universal life policies.

Universal life insurance can be appropriate in specific circumstances: When you have a genuine need for permanent life coverage, when you are already maximizing your TFSA and RRSP, when you have no high-interest debt, and when you are prepared to actively manage the policy over many years. For the typical client in their 20s or 30s with limited savings and credit card debt, a term life policy paired with a TFSA is almost always a better starting point.

It can be overwhelming trying to balance the right coverage and a manageable premium. But it doesn't have to be complicated. An easy way to compare premiums is to shop online. For instance, BlueCross can help protect what matters most with coverage starting at $15 per month. Blue Cross Life offers flexible term options (ranging from 10 to 30 years) with pricing that’s on par or better than digital insurers — and lower than most traditional providers. Use their 100% online application to get approved in just 20 minutes, usually without a medical exam.

Where the new MGA oversight rule stands now

In response to its enforcement findings, FSRA developed a proposed licensing and compliance framework specifically for life and health MGAs in Ontario — Proposed Rule 2025-001. The rule would have required MGAs to obtain a licence, meet suitability standards and implement formal compliance systems.

The framework had been targeted for launch on June 1, 2026. However, on February 23, 2026, FSRA announced it was pausing work on the rule. The regulator cited the need for further consideration of industry feedback, including concerns that the proposed rule’s definition of “MGA” was too broad and could inadvertently capture individual advisors and small practices that are not true distribution-level intermediaries.

The Ontario government has stated it remains committed to establishing a licensing framework for life and health MGAs and will communicate next steps in due course. Saskatchewan and New Brunswick have both introduced MGA licensing regimes — in 2020 and 2023, respectively — and Ontario’s regulatory approach is expected to align with those models once revised.

The pause does not affect the enforcement actions already taken against individual agents, nor does it reduce FSRA’s existing authority to investigate complaints and sanction agents under the Insurance Act. The protections available to consumers remain in place; the outstanding issue is whether a new layer of MGA-level oversight will be added.

How to find out if your policy was sold correctly

If you purchased a universal life insurance policy through an agent linked to one of the named firms — or through any MGA-linked agent — in the past several years, you have a practical path to reviewing your situation.

Start by asking for the original needs analysis. Every licensed agent is required to complete a documented needs analysis before recommending a life insurance product. Request a copy. If it does not clearly identify your financial situation, existing debt, savings and specific insurance needs, that is a problem.

Compare the cost of the UL premiums against what you could have earned by contributing the same amount to a TFSA. Given the 2026 TFSA contribution limit of $7,000 per year, many clients would have been better off directing their savings there first — especially if their UL premiums were above the minimum required to maintain coverage.

If you believe your policy was sold without a proper needs analysis or that your agent failed to disclose a conflict of interest, you can file a complaint directly with FSRA at fsrao.ca. The regulator has an active enforcement unit and has already demonstrated it will act on complaints of this nature.

Ready for peace of mind? It’s worth considering how your family would manage without you around. To get a clear picture use a quick online calculator to estimate your actual coverage needs and see how a tailored life insurance policy can give you peace of mind and comfortably fit your budget. For instance, in just a few minutes you can get a free, no-obligation online quote with PolicyMe. Get coverage from the comfort of your home with PolicyMe’s instant online decision — making it easier to secure your financial safety net.

What to do now

If you hold a universal life (UL) policy, you should also compare the cost of your UL premiums against what you could’ve saved or invested in a TFSA or RRSP over the same period.

Also, if you got a universal life (UL) policy in the last five years, ask your adviser to provide the original needs analysis completed before the sale. Check whether your agent disclosed any conflicts of interest — including whether they earned recruitment bonuses — at the time of sale.

Finally, file a complaint with FSRA at fsrao.ca if you believe your policy was unsuitable or that the agent misrepresented how the product worked.

Yet, many Canadians report not having enough emergency savings for that “rainy day,” should it ever come. The latest results of the MNP Consumer Debt Index, for example, show that less than half of Canadians (47%) say they have enough emergency savings to cover six months of living expenses, exposing a majority of households to financial risk.

With the higher costs of living, it’s hard to blame them.

In April 2026, Canada's Consumer Price Index (CPI) rose to 2.8%, with gas prices up 28.6% and groceries up 3.8% year-over-year (3). A survey by H&R Block Canada found that nearly 6 in 10 working Canadians (58%) say they struggle to pay for everyday expenses, while 79% feel their income isn't keeping pace with the cost of living (4).

As a result, building an emergency fund slides further down the priority list.

"The emergency fund is a great concept in theory," explains Certified Financial Planner (CFP) Jason Heath (5). "The problem, in practice, is that Canadians are either unwilling or unable to prepare financially for emergencies."

But maybe the problem isn't with Canadian consumers — it's with the approach.

The old emergency fund: Looking its age?

Conventional wisdom says to open a high-interest savings account early, put away 10% to 20% of your monthly income until you hit your target, then leave it alone.

But the lump-sum approach doesn't fit the financial reality most Canadians are living. The numbers alone are daunting: According to a 2026 cost-of-living analysis by Spergel, average monthly expenses for a single person in Canada run $3,300 to $3,800, and $5,900 and $6,400 for a family of four (7). For six months of expenses, that amounts to $19,800 to $22,800 for a single person, and a whopping $35,400 to $38,400 for a family of four.

For households already stretched thin, that number can feel unreachable.

The modern emergency fund: Finding a new purpose

Instead of one pool of money sitting in a single account, consider splitting your emergency savings across several funds — each with a specific job to do.

Here are three examples:

Shock-absorber fund: This covers sudden, one-time expenses without having to rely on credit.

• Car or house repairs
• Medical costs
• Unexpected bills

Income-bridge fund: This bridges any income disruptions and acts as a financial buffer during periods of income instability.

• Lost jobs
• Reduced hours
• Transition periods

Cost-of-living fund: This buffers the rising costs of living, helping to absorb ongoing cost pressure over time.

• Fuel
• Groceries
• Other necessities

Assigning each fund a clear, real-world purpose — rather than a vague 'break glass in case of emergency' — gives you a more concrete motivation to save. Unexpected costs feel more manageable; income disruptions feel less destabilizing.

Each fund also has its own timeline. You might start with a shock-absorber fund to avoid racking up high credit card bills in case of an unexpected expense, while an income-bridge fund might be a longer-term project. That removes the pressure to do it all at once.

Most importantly, this model is the first step in building a financial ecosystem — organizing your money across chequing, savings and investing accounts in a way that gives you more flexibility to adapt to changing circumstances.

System building 101: Putting a new model into practice

The key to making this work is finding the right home for each fund so your accounts work together rather than in silos.

Financial institutions are increasingly shifting toward this relationship-based banking model. This ecosystem rewards you with perks like waived fees or higher interest rates as your total balance across the bank grows.

The Scotia High Interest Savings Account is a prime example. Your HISA interest rate is determined by your Total Relationship Balance¹, which is the combined daily closing balance in your eligible chequing, savings, and investment accounts.

The more you hold across these accounts, the better the rate on your Scotia HISA. Once that combined balance hits C$10,000 or more, you unlock higher interest rates on your HISA across five distinct balance tiers ranging up to 2.20% (rates subject to change).

New account holders can also earn a 5.00% promotional rate² for the first three months when opening a Scotia High Interest Savings Account today. Conditions apply.

Here’s how to map out your modern emergency fund:

The shock-absorber fund: Keep it highly liquid in a standard HISA

Because a shock-absorber fund is designed for sudden, unpredictable expenses — like a $1,200 emergency vet bill or a blown car transmission — you need immediate, friction-free access to your cash.

A standard Scotia High Interest Savings Account is the natural home for this bucket. It offers zero monthly fees and unlimited self-service transfers between your Scotiabank accounts.

You can instantly transfer money from your savings account to your chequing account via the mobile app, the moment a surprise bill hits. Depending on your account, any applicable transaction fees are often a better option than carrying a balance on a high-interest credit card..

The income-bridge fund: Shield your larger savings inside a TFSA

An income-bridge fund requires a much larger pool of capital because it needs to cover three to six months of expenses during a job loss or career transition.

Keeping $20,000 to $38,000 in a regular high interest savings account means you will have to pay tax on the interest you earn each year, which can quietly chip away at your growth.

With the Scotia HISA, mutual funds and tax-sheltered savings accounts count toward your Total Relationship Balance, which can bump the funds in your HISA into Scotiabank’s higher interest rate tiers.

The cost-of-living fund: Let it build momentum in short-term GICs

A cost-of-living fund acts as a buffer against ongoing, predictable inflation pressures — like grocery bills jumping another 3.8% or gas spiking.

Because you know you will be drawing from or adding to this fund gradually over the year, you can look beyond a traditional savings account to maximize your yields.

Consider laddering a portion of this fund into short-term GICs. Because GICs are included in Scotiabank’s relationship banking calculation, they help unlock higher tiers.

Locking in a guaranteed rate for three or six months beats inflation safely, without tying up your cash for too long.

Bottom line

Building an emergency fund is harder than ever for Canadians in 2026. But the fix may not be saving more — it may be saving smarter.

Splitting your emergency savings into purpose-built funds makes the goal feel achievable and keeps your money working in the right direction.

Paired with a relationship-based product like the Scotia HISA, those smaller funds can add up to better rates, fewer fees and a more resilient financial foundation.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Government of Canada (1); MNP (2); Statistics Canada (3); H&R Block Canada (4); Financial Post (5); The Globe and Mail (6); Spergel (7)

The CAPE ratio, created by Nobel Prize-winning economist Robert J. Shiller, compares current stock prices to company earnings over the past 10 years (adjusted for inflation) and is widely used around the world to measure whether the market is overpriced.

Even so, this doesn’t mean a market crash or recession is brewing. While the CAPE ratio shows that stocks are currently pricey compared to the past, it can’t predict exactly when the market might drop.

It’s also worth noting the difference for Canadians: As of January 1, 2026, Canada’s S&P/TSX Composite Index had a CAPE ratio of 26.20 — high, but still well below the U.S. reading. This gap matters for Canadians thinking about how and where to invest their retirement savings.

A price tag from the past

A traditional price-to-earnings ratio looks at a company’s earnings just over the past year. However, the CAPE ratio measures a company’s earnings over the past decade, adjusted for inflation, which smoothes out the ups and downs of economic booms and recessions. It can also be used to measure whole market indexes, not just individual companies.

For example, a CAPE ratio of 41.33 means investors are paying roughly $41.33 for every $1 of inflation-adjusted earnings generated over the previous 10 years.

According to Shiller’s research, higher CAPE ratios tend to mean lower returns over the long term. But they’re not good at predicting exactly when a downturn will begin. For instance, the ratio stayed high for years during the late 1990s before the dot-com bubble finally burst.

Valuation tools like the CAPE ratio aren’t meant to predict exactly when the market will peak. Instead, they’re best used to check your risk level and make sure your portfolios are well diversified. In other words, it’s not a market-timing tool — it’s more like a risk-management tool.

Make your savings work harder. Open a self-directed investing account with CIBC Investor’s Edge — low fees, powerful tools, and control over your future.

Don’t put all your eggs in one index

The old advice to just “buy the index” to spread out your risk may not work as well any longer. More of the S&P 500’s total weight is piling up in just a few companies. By the end of 2025, the 10 largest entities made up nearly 41% of the entire S&P 500, way up from only 19% at the end of 2015.

The trend here is known as the “Great Narrowing,” and it’s especially strong in the tech sector. The S&P 500 now leans so heavily on these dominant companies that it acts more like a tech-focused fund than a broad mix of the global economy.

A situation like this could become a problem, as many of these tech giants are deeply connected to each other through artificial intelligence (AI). They’re spending billions of dollars building AI infrastructure — and much of that money simply moves between the same handful of companies. For example, one company buys advanced microchips from the other, while a third leases massive cloud data centres from a fourth, and so on.

A funding loop like this means these companies’ profits heavily depend on each other. If one company runs into trouble, it could set off a chain reaction that hurts the earnings of all the top companies in the index.

For the average Canadian investor, this means a standard retirement portfolio with significant S&P 500 exposure is especially vulnerable if only one sector — like tech — runs into trouble. As a result, Canadians might want to look beyond U.S. stocks and consider other types of investments that may react differently when the economy changes.

On the other hand, the S&P/TSX Composite Index leans more heavily toward financials, energy and materials — sectors that often respond differently to economic shocks than tech does. This natural variety is one reason why some Canadian portfolio managers say it makes sense to hold a solid mix of Canadian stocks alongside U.S. investments.

Looking beyond the stock market

To lower risk, some investors go beyond stocks and bonds by adding other types of investments to their portfolios.

Real estate is one of the most common ways Canadians build wealth outside the stock market. According to Statistics Canada, home equity makes up 42% of all household wealth — and that number is even higher among younger families, who often have nearly half their wealth tied up in their dwellings.

According to TD Economics, Canadian household net worth rose to $18.6 trillion in the last quarter of 2025, mostly due to investment gains. But Canadian households also owe $1.77 for every dollar they earn — a reminder that not all wealth can be easily turned into cash, and that putting too much into one type of asset comes with risk.

Rental properties and investment real estate have long been a reliable source of steady income for wealthier investors. For those who want to invest in real estate without the responsibilities of owning and managing a property, real estate investment trusts (REITs) — many of which trade on the TSX — offer an easier way in, with lower costs and a built-in mix of properties.

The art of diversifying

Large institutions have been spreading out their investments for a long time, putting money into different types of assets so they don’t rely too heavily on any one class. Canada’s own Canada Pension Plan Investment Board (CPP Investments) — the Crown corporation that manages retirement funds for more than 22 million Canadians — actively touts how its portfolio is “invested across a wide range of asset classes and geographies.”

CPP Investments ended fiscal 2026 with $793.3 billion in net assets, earning an average return of 8.8% a year over the past 10 years. Its strategy — spreading money across different types of investments that don’t all rise and fall together — is widely regarded as a smart way to manage risk.

Billionaires and family offices have done something similar, putting some of their money into investments that don’t rise and fall with the stock market — like fine art, private loans and commodities such as gold or oil.

Most everyday investors can’t access the same private markets as CPP Investments or the world’s wealthiest families. But the basic idea still applies: Spreading your money across different asset types — including some that don’t move with the stock market — can lower your overall risk.

Don't leave money on the table with expensive trading fees. Click here to discover the best online brokerages in Canada and start keeping more of your hard-earned gains.

All that glitters

Gold has historically attracted investors during periods of inflation, global uncertainty and shaky markets.

While gold prices can regularly rise and fall, research suggests gold is, on average, a good way to protect against economic uncertainty — and a safe place to put your money when markets get extreme.

For Canadians who want gold as part of their retirement plan, there’s a little-known option with big tax advantages: holding eligible gold bullion inside a self-directed RRSP or TFSA. Since 2005, the Canada Revenue Agency (CRA) has allowed specific types of high-quality gold and silver to be held inside these accounts, under rules set out in the Income Tax Act, Section 204.

To qualify, gold must be at least 99.5% pure — like the Gold Maple Leaf coin made by the Royal Canadian Mint. It also has to come from an approved refiner or government mint, and be stored in a CRA-approved location. Keeping it at home doesn’t count. You’ll also need a self-directed RRSP through a participating financial institution.

Gold ETFs that trade on the TSX are another way to invest in this precious metal inside a registered account — and they’re much simpler to manage than holding physical gold. Both options let Canadians benefit from gold’s potential to hedge against inflation, while keeping their money in a tax-deferred account.

Seek professional advice for extra clarity

Markets can stay expensive for years, which is why many financial professionals warn against making investment decisions based on only one signal. Instead, they suggest building a plan based on long-term goals, how much risk you’re comfortable with and how long you plan to invest.

If you’re unsure whether your portfolio is ready for a period of high prices, talking to a qualified financial professional can help you make clearer decisions.

In Canada, the official designation for professional financial planners is the Certified Financial Planner (CFP) certification, managed by FP Canada. To earn it, CFP professionals must meet strict requirements for education, testing, experience and ethics — and they’re required to act in their client’s best interests. There are more than 17,300 CFP professionals across the country.

Canadians can search for a CFP professional in their area through FP Canada’s online directory at fpcanada.ca. Many planners offer a no-obligation, free initial consultation.

Plan for the long haul

Even though the CAPE ratio is nearing a record high, it doesn’t mean a recession or stock market crash is guaranteed. Instead, it serves as a reminder that stock prices matter, and that spreading investments across different types of assets — known as diversification — is still the most reliable way for investors to manage risk over time.

When stock prices get very high, trying to make a quick profit or guess the exact moment to sell rarely works out in your favour. History shows that the best way to handle an unpredictable market is to spread your money across different investments — like Canadian real estate, REITs, gold, bonds or a well-balanced mix of global stocks — guided by expert advice and kept within the market for the long haul.

What Canadian investors can do right now

The CAPE ratio won’t tell you when the market will drop — but it can be a useful prompt to check whether your portfolio is ready to handle a rough patch. Here are some steps worth considering:

• Check your RRSP and TFSA for too much U.S. index fund exposure. If a large share of your registered savings is in S&P 500 ETFs, consider whether you also have enough money in Canadian equities, international markets, bonds or other types of investments.
• Maximize your TFSA room. As of 2026, Canadians who have been eligible since the TFSA started in 2009 can contribute up to $109,000 in total. Unlike an RRSP, money withdrawn from a TFSA isn’t taxed as income — making it a powerful tool for flexible investing that keeps more money in your pocket.
• Consider the TSX for domestic diversification. The S&P/TSX Composite leans toward financials, energy and materials — sectors that tend to behave differently than U.S. tech-heavy indexes. This gives your portfolio a natural balance.
• Explore gold within registered accounts. Gold that has at least 99.5% purity and is stored within a CRA-approved location can be held inside a self-directed RRSP or TFSA. This combines the metal’s potential to protect against inflation with the tax benefits of these accounts. Gold ETFs traded on the TSX offer a simpler option.
• Don’t try to time the market. CAPE ratios can stay high for years before prices drop. Instead of reacting to only one signal, check how your investments are spread out, based on how long you plan to invest and how much risk you’re comfortable taking.
• Consult a CFP professional. Canada’s FP Canada organization has a searchable directory of Certified Financial Planner professionals across the country at fpcanada.ca. A fee-only or fee-for-service CFP can look at your full financial picture — your RRSP, TFSA, CPP entitlements, real estate and risk tolerance — and help you build a plan that fits your goals.

And with inflation steadily eating away at Canadians’ purchasing power, even that once-magic number is beginning to look a little mundane.

That’s why tracking your net worth against the national average and different percentiles can give you a clearer picture of your progress toward financial freedom — and your real retirement readiness. A million dollars in savings might sound impressive. But after you run the numbers, it may not be as secure as it seems.

A big part of that discussion is retirement. Although a million dollars might seem like remarkable financial success in your 20s, or even 30s, it’s a different story when you retire and still have another 20 or even 30 years ahead of you. According to BMO Financial Group’s 2026 Annual Retirement Survey, the average Canadian believes they’ll need $1.7 million to comfortably retire — up from $1.54 million the year before. And more than 1 in 3 Canadians (36%) say they’re unlikely to reach that target.

These numbers mean it’s important to know where you stand today, so you can plan for where you want to be tomorrow. With that in mind, here’s what the latest data says about what it takes to be in the top 10% of Canadian families — and how to start closing the gap.

Canada’s top 10%

Statistics Canada’s Survey of Financial Security (SFS), a national survey on the assets and debts of Canadian families, is one of the most reliable sources of data on household wealth in the country. According to the most recent results from 2023, the median net worth of Canadian families was $519,700. That means if your household’s net worth is above that figure, you’re doing better than half of all Canadian families.

The numbers vary significantly by province. Families in British Columbia had the highest median net worth at $773,500, while Ontario families came in at $665,600. At the other end of the spectrum, New Brunswick had a median of $286,200.

To break into the top 10% of Canadian families by wealth, you’ll need a net worth of at least $2 million, according to the Parliamentary Budget Officer’s (PBO) 2025 update to its High-net-worth Families Database (HFD). The information is drawn from StatCan’s SFS and surveys like Maclean’s 2024 list of Canada’s wealthiest.

The same PBO report found that the top 10% of Canadian families collectively hold 53% of total net wealth in the country, while the top 1% alone hold 24%. Meanwhile, the middle 40% of families share about 27.6% of national wealth, and the bottom 40% hold just 3.3%.

So if you have a net worth above $2 million, you’re genuinely among the affluent. Your family likely enjoys greater access to housing, education and opportunities than the vast majority of Canadians.

Another point worth noting: Total Canadian household net worth reached $18.6 trillion in the first quarter of 2026, according to StatCan — an increase of 1.3% from the previous quarter. However, that aggregate wealth isn’t evenly distributed, which is precisely why tracking your individual net worth is crucial.

Make your savings work harder. Open a self-directed investing account with CIBC Investor’s Edge — low fees, powerful tools, and control over your future.

Wealth is a moving target

Every year, Canada’s wealthiest families tend to get even richer. At the same time, the cost of living keeps rising.

Between 2021–2025, the S&P/TSX Capped Composite Index — Canada’s primary benchmark for the domestic stock market — has delivered a total return (including dividends) of roughly 124%, with an annualized return of around 17.5% over that period. That gave the portfolios of many affluent Canadian families a meaningful boost, raising the bar for what it takes to stay in the top 10%.

Meanwhile, Statistics Canada reported the consumer price index (CPI) rose 2.1% on an annual average basis in 2025. While that’s the smallest annual average increase since 2020, cumulative inflation over the past five years has reached nearly 20% — meaning your dollar buys significantly less than it did in 2021.

Taking all of this into account, maintaining your position among the wealthiest Canadians means more than just keeping pace with inflation. It requires investment growth that outstrips the rising cost of living and the rising wealth of those already ahead of you.

For most Canadians — the broad middle band of earners — reaching the $2 million threshold may take a lifetime of disciplined saving, savvy investing and, for some, a well-timed inheritance or successful business outcome. But it doesn’t have to be done alone. Finding a qualified financial adviser during the early stages of your wealth-building journey could make a meaningful difference — especially if your net worth is approaching or at the Canadian median of $519,700.

Look for a certified financial planner (CFP) or chartered financial analyst (CFA) registered with your provincial securities regulator, such as the Ontario Securities Commission (OSC) or the Autorité des marchés financiers (AMF) in Québec.

A slow and steady approach

If you’re still in your younger years, one of the most reliable paths to building wealth is a slow and steady approach to investing. For many, consistently putting a little money aside into a broadly diversified, low-cost investment — like an index fund — is the easiest way to start building a nest egg.

It’s also a strategy championed by investing legend Warren Buffett, the former CEO and current chairman of the board of Berkshire Hathaway.

“My regular recommendation has been a low-cost S&P 500 index fund,” Buffett wrote in his 2016 letter to Berkshire Hathaway shareholders.

Buffett applies this advice to his own family. “One bequest provides that cash will be delivered to a trustee for my wife’s benefit,” he wrote in Berkshire’s 2013 shareholder letter. “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund.”

For Canadian investors, Buffett’s advice translates well. You can access equivalent exposure to the S&P 500 — or the Canadian market — through low-cost exchange-traded funds (ETFs) listed on the Toronto Stock Exchange (TSX). Options include the iShares S&P/TSX Capped Composite Index ETF (TSX: XIC) and the BMO S&P/TSX Capped Composite Index ETF (TSX: ZCN), both of which offer broad exposure to roughly 225 of the largest Canadian companies at low annual fees.

Even better: These ETFs can be held inside a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA), which both offer powerful tax advantages. Contributions to an RRSP are tax-deductible, reducing your taxable income today — and growth is tax-deferred until withdrawal. A TFSA, meanwhile, offers completely tax-free growth and withdrawals at any time.

If you’re just getting started and aren’t sure how to invest, Canadian robo-advisors offer an easy, automated way to build a diversified portfolio without needing to pick individual stocks.

Tired of high commissions eating your returns? Compare Canada’s top discount brokerages and switch to a $0-commission platform today.

A passive-income play

With housing prices elevated across many regions in Canada, real estate remains one of the most intuitive wealth-building tools — and it’s one that Canada’s wealthiest families know well. Baby boomers in particular have benefited enormously: According to StatCan’s 2023 SFS data, the median value of family homes was $500,000, with families aged 65 and older boasting a median net worth of over $1.1 million — much of it tied to real estate.

Buying into the property market has become progressively more difficult for many Canadians, particularly first-time buyers. But homeownership isn’t the only way to benefit from real estate. Real estate investment trusts (REITs) — publicly traded companies that own income-producing properties — allow investors to participate in the real estate market without a down payment or landlord responsibilities.

Canadian REITs can be purchased on the TSX and held inside an RRSP or TFSA, combining the passive income potential of real estate with the tax advantages of registered accounts.

A time-tested hedge

Once you’ve established your wealth, protecting it is the next priority. One of the most historically reliable tools for doing so is investing in gold.

The precious metal tends to hold its value during economic downturns and can serve as a hedge against inflation and currency volatility — both of which are particularly relevant for Canadians, given the loonie’s sensitivity to global commodity prices and U.S. monetary policy.

In Canada, investors can hold investment-grade gold inside a self-directed RRSP. Since the 2005 federal budget, the Canada Revenue Agency (CRA) has allowed gold bullion of at least 99.5% purity — including Canadian Gold Maple Leaf coins produced by the Royal Canadian Mint — to be held in self-directed registered accounts as a qualifying investment. Gold ETFs listed on recognized Canadian exchanges, such as the iShares Gold Bullion ETF (TSX: CGL), also qualify and come without the complexity of physical storage.

Just keep in mind that gold is generally best used as one part of a well-diversified portfolio rather than as a standalone retirement strategy.

What Canadians can do next

Whether you’re at the median, approaching $1 million or already in the top 10%, a few concrete steps can help you build and protect your wealth:

Know your number. Use Statistics Canada’s SFS data and the PBO wealth distribution to understand where your household net worth falls relative to other Canadians. If you’re below the $519,700 median, that’s your first benchmark. The $2 million threshold is the next meaningful target for top-10% status.

Max your registered accounts first. Before investing in taxable accounts, prioritize your RRSP (2026 contribution limit: $33,810, or 18% of earned income from the prior year) and TFSA ($7,000 annual limit for 2026). The tax savings alone can significantly compound your returns over time.

Don’t overlook CPP and OAS. The Canada Pension Plan (CPP) and Old Age Security (OAS) are often overlooked when Canadians calculate their “retirement number.” A 65-year-old who has worked full-time and contributed to CPP throughout their career can receive up to roughly $1,507 each month in CPP benefits (2026 maximum) — reducing how much you actually need to draw from your nest egg.

Invest consistently in low-cost index funds. Warren Buffett’s advice is crucial here. A low-cost TSX or global index ETF held inside an RRSP or TFSA — and added to regularly — is one of the most reliable long-term wealth-building tools available to Canadians.

Consider a financial adviser. If your net worth is approaching or above $500,000, consulting a fee-only licensed CFP or CFA can help you optimize your asset allocation, tax strategy and estate planning. Look for advisers registered with your provincial regulator.

The OpenAI chief executive officer recently admitted he was “pretty wrong” about AI’s impact on the job market. Speaking at a Commonwealth Bank of Australia conference, Altman confessed he had expected far more disruption to entry-level white-collar jobs than what we’ve actually seen.

“I’m delighted to be wrong about this,” Altman said. “I thought there would have been more impact on entry-level white-collar jobs being eliminated by now than has actually happened.”

His reversal is notable. On the Uncapped podcast — hosted by his brother Jack — Altman had proclaimed only a year ago that “a lot of jobs will go away” because of AI. Now, he says the catastrophic displacement he feared simply hasn’t happened.

For Canadian workers and investors watching this unfold, the good news is that the evidence so far backs him up. However, the fear hasn’t entirely disappeared, either.

Why the change?

Altman says he began rethinking his belief as he noticed a persistent “human part” of working that AI couldn’t comfortably replace. He experimented with having an AI chatbot manage his email and Slack messages, but eventually returned to handling those exchanges himself.

“We really do care about our interactions with people and this thing, which is a huge amount of my time, is not something that I can imagine myself outsourcing to an AI anytime soon,” he said.

It’s also worth noting that OpenAI confidentially filed its initial public offering (IPO) registration with the U.S. Securities and Exchange Commission (SEC) in late May 2026. Analysts tracking the deal estimate public listing could potentially push the company past a US$1 trillion market capitalization. Painting the company’s technology in a less alarming light could support that goal.

Stop leaving money on the table. Discover which Canadian banks are currently paying up to $700 just for opening a new account.

Some agree. Some don’t

Altman isn’t alone in softening his position. Anthropic CEO Dario Amodei — who once predicted AI could eliminate as many as 50% of white-collar jobs — now suggests automation may actually expand the scope of human work. Anthropic, also, is eyeing a public listing.

However, AI job losses continue to make headlines. Recently, Meta laid off 8,000 employees, a decision made at least in part by AI’s ability to handle tasks previously done by people. Pinterest, Amazon and Dow have also cited the technology as the reason behind recent workforce reductions.

And Mercer’s Global Talent Trends 2026 report — surveying approximately 12,000 C-suite executives, human resources leaders and employees globally — found that 99% of the chief executive officers surveyed expect AI to lead to at least some cutback in human resources in the next two years. Further, only 32% of those same executives believed they could optimally integrate both human and machine capabilities.

The Canadian picture is different — for now

For workers in Canada, the evidence tells a more measured story — one that reflects Altman’s revised optimism more than the boardroom anxiety seen in global surveys.

Statistics Canada data published in January 2026 found that from November 2022 — when generative AI tools became widely available following the launch of ChatGPT — through December 2025, overall employment in Canada continued to grow.

During the same period, the share of Canadian businesses using AI to produce goods or deliver services doubled, rising from 6% in 2023 to 2024, to 12% in 2024 to 2025. Yet the percentage of those AI-adopting businesses that actually reduced employment because of AI held steady at just 6% across both periods.

A second October 2025 Mercer survey of 462 Canadian employers found that only 1% cited AI and automation as a reason for reduced hiring, while 62% reported no significant change to hiring volumes despite AI adoption over the prior 12 months. Just 3% said they were actively planning headcount changes related to AI.

“While AI is changing the way many employees and companies work, there’s still a critical need for human beings to use the tools and provide their judgment,” said Mercer’s president Teresa Palandra, commenting on the Canadian survey results.

That doesn’t mean Canadian workers are untouched. StatCan research — conducted with the Labour Market Information Council (LMIC) — estimated that around 60% of Canadian workers are employed in occupations with high exposure to AI. Of those, roughly 31% are in roles where AI may be able to perform key tasks outright, while the remaining 29% work in roles where AI is more likely to serve as a support tool.

Employment growth has also been notably weaker for younger and less-educated workers since 2022. Tricia Williams, research director at the Future Skills Centre, a Canadian labour-market research hub, has noted a measurable shrinkage in roles for clerical and administration. “We’re already seeing fewer positions [in clerical and administrative work], because a lot of those tasks are being complemented by AI,” Williams said.

The World Economic Forum’s (WEF) 2025 Future of Jobs Report provides the broadest global view: by 2030, approximately 92 million jobs are projected to be displaced worldwide, offset by roughly 170 million new roles — a net gain of 78 million positions. However, 41% of employers globally anticipate reducing their workforce where AI can automate tasks.

What Canadian workers can do now

The data suggests Canada is, so far, experiencing transformation more than elimination. But the window to prepare is open now, and the workers best positioned for the next decade are those who use it strategically.

Identify whether your role is AI-competing or AI-augmenting

The Conference Board of Canada uses StatCan’s exposure index to model how AI is likely to affect specific roles — offering employers and workers a clearer picture on where the risks and opportunities lie. If your work involves codifiable, routine or rules-based tasks, you’re more likely to be in an AI-competing role and should actively pursue supplementary skills.

Pursue upskilling through available Canadian programs

The Canada Job Grant provides up to $10,000 for every employee in government-matched funding for skills training. UpSkill Canada, a program under the Business and Higher Education Roundtable (BHER), connects workers with employer-supported digital skills development.

Protect your income if AI does affect your employment

Employment Insurance (EI) provides a temporary safety net for workers who lose a job through no fault of their own, including AI-related layoffs. Workers affected by automation may also qualify for the Canada Training Credit (CTC) — a refundable tax credit of up to $250 a year, with a lifetime limit of $5,000, to help cover the cost of eligible training.

Build the skills AI can’t replicate

Altman’s own experience — a return to managing his own correspondence — underlines a broader truth: judgment, authenticity, relationship-building and leadership remain difficult for AI to replace. These are worth investing in deliberately, whether through professional development, mentorship or expanded responsibilities.

Understand that today’s calm will pass

Statistics Canada’s data shows Canadian employment held firm through 2025. But Altman himself didn’t rule out that his initial forecast “still may” come true. The WEF projects that nearly 40% of core job skills globally will change by 2030, making upskilling urgent and necessary to keep up with AI expansion. Waiting is a strategy — it’s just not a particularly safe one.

-With files from Melanie Huddart

A reader recently wrote in to challenge that takeaway, urging us to re-evaluate what a truly divided city means when people are presented with the long-term trade-offs. The feedback forced us to look deeper at the data, the multi-billion-dollar investments at stake and the invisible infrastructure constraints that could alter Toronto’s shoreline for decades.

The true price of a shorter commute

The commercial case for jet expansion often centres on breaking the current airline monopoly and lowering fares. In March 2026, Premier Doug Ford announced plans for the province to take ownership of the airport lands and declare it a Special Economic Zone. In a provincial press release, Ford stated, “We’re unlocking Billy Bishop Airport’s full potential by expanding the airport so we can bring cheaper flight options, more routes, and more convenience.”

However, looking at the issue through a purely financial lens overlooks the massive public funds already poured into the shoreline. Over the past two decades, three levels of government have invested roughly $2.9 billion in waterfront revitalization, with another $975 million committed to the next phase of development.

The long-term economic health of local retailers, restaurants, recreational operators and hospitality businesses relies on a walkable, liveable waterfront attraction. Shifting the heart of the harbor into an intensified aviation corridor puts those public investments and tourism dollars at risk.

Hidden costs and safety zones

The physical requirements needed to accommodate larger passenger jets extend far beyond the runway itself. According to research compiled by the community campaign NoJetsTO, introducing jets requires upgrading federal safety standards. This includes expanding the marine exclusion zones from the current 305 metres to anywhere between 830 and 1,190 metres.

An exclusion zone of that scale would effectively close the Western Gap, cutting off vital water access for local boaters, marinas and recreational harbour users. Furthermore, safety regulations dictate strict building height limits under flight paths, known as obstacle limitation surfaces. Research indicates these height restrictions would blanket parts of the Port Lands, potentially forcing developers to scale back or cancel parts of the 14,000 planned homes in the area.

Health assessments also raise red flags. A Toronto Board of Health assessment found that expanding the island airport would worsen local air quality, increase premature death risks and decrease waterfront access. Separate air quality monitoring near the runway revealed that the airport is already a primary source of ultra-fine pollution particles during takeoff and landing operations.

How to voice your opinion on the waterfront project

The future of the island airport rests on the 1983 Tripartite Agreement between the federal government, the City of Toronto and PortsToronto. The historic agreement explicitly bans commercial jets and runway extensions, and it is set to expire in 2033. Because any changes require all three signatories to agree, municipal and federal leaders still hold significant leverage despite provincial maneuvers.

If you want to have a say in how your waterfront is developed, you can take action by connecting with local representatives and advocacy networks:

• Contact your local member of parliament and city councillor to express your views on the Tripartite Agreement renewals.
• Review the independent impact studies and planning risks mapped out on the Environmental Defence research portal.
• Participate in upcoming municipal community consultations regarding Port Lands development and waterfront transit planning.

Beyond the percentages

When we first looked at the 46% to 49% split in the Liaison Strategies poll, it was easy to see Toronto as a city cleanly divided into two opposing camps. But as our reader rightly pointed out, a poll only captures a snapshot of a headline — it doesn't capture the weight of the trade-offs.

Looking deeper reveals that Torontonians aren't just split on whether they want cheaper flights or a shorter commute. The real division lies in a fundamental choice about the city's identity. It is a tension between the immediate convenience of a downtown aviation hub and the permanent, long-term sacrifice of the housing, clean air and public green spaces that define the waterfront.

The numbers on that survey show a city gridlocked in debate. But as the 2033 expiration of the Tripartite Agreement inches closer, the true story isn't about a decimal-point difference in public opinion. It is about recognizing that whatever Toronto decides next won't just change how we travel — it will permanently rewrite the landscape of the city itself.

Yet as that day drew closer — now less than a year away — the confidence on paper wasn’t translating into confidence in their guts.

While this particular situation is hypothetical, the dilemma at hand resonates deeply for Canadians. According to Statistics Canada, the average retirement age in Canada was 65.4 in 2025. But retiring early, as Angela and Matt plan to do, requires an extra layer of planning that a spreadsheet alone can’t capture.

And according to BMO’s 2026 Retirement Survey, 36% of Canadians lack confidence in their ability to reach their retirement savings goals. Even those who’ve saved diligently can feel unsure about whether the math will hold up in real life.

So, how can Angela and Matt — and the many Canadians in a similar position — know they’re truly ready to step back?

Set a clear goal early and keep tabs on it

If early retirement is on your radar, it’s not something you can start planning for just a year or two before your target date.

“You should start looking at your plan at least five to 10 years prior to your expected retirement age,” Domenick D’Andrea, co-founder of DanDarah Wealth Management, told Moneywise.

D’Andrea recommended reviewing your proposed retirement budget, debt obligations, any major expenses you expect during retirement and investment strategies that align with your risk tolerance.

Based on your expected spending and anticipated investment returns, you can determine how large your nest egg needs to be. For Canadians retiring early, there’s an added layer of complexity: you may not be eligible to collect government benefits right away.

The Canada Pension Plan (CPP) can be claimed as early as age 60, but doing so reduces monthly benefits permanently — by 0.6% for each month before age 65, up to a maximum reduction of 36%. Old Age Security (OAS) cannot begin before age 65 under any circumstances. This means Angela, at 59, and Matt, at 60, will have to face several years of relying entirely on personal savings and a lessened CPP benefit before being given a boost by OAS.

For Canadians who left an employer benefits plan, there’s also a healthcare planning gap. Canada’s universal provincial healthcare covers doctor visits, hospital stays and some in-hospital drugs — but not outpatient prescriptions, vision care or most paramedical services. Early retirees need to budget for private supplemental health insurance or self-insure against these costs, which can range from just over $100 to more than $400 per month for a private plan.

Angela and Matt’s countdown timers are a smart approach because they help keep the couple on track. They know exactly how much time they have left to hit their savings goal, which helps keep them motivated.

Is your retirement fund leaking? Secure your future today. Silent fees and stagnant interest can push your retirement date back by years. See how moving your savings to a high-interest account can help you retire sooner and with more confidence.

Make sure your portfolio will last

One reason Angela and Matt are hesitant to act on what the numbers say is that what works on paper may not work in real life. Sequence of returns risk is a key culprit.

Sequence of returns risk refers to the danger that poor investment performance early in retirement can have an outsized impact when you’re drawing income from your portfolio.

For example, if stock prices are down, you’ll need to sell more shares to generate the same amount of income. That reduces your holdings more quickly and makes it harder to benefit from future market gains. Over time, this can significantly increase the risk of running out of money.

There are approaches to limit this risk. D’Andrea recommends the bucket strategy.

“I would build a bucket strategy with three goals in mind — guaranteed income, capital preservation and growth,” he said. “There’s peace of mind knowing that you have enough income to cover your day-to-day expenses with guaranteed sources, a bucket to comfortably grow assets and a long-term growth bucket to continue to build.”

For Canadian retirees, this maps naturally onto the two main account types: a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA) for tax-free flexibility. Coordinating withdrawals across these accounts — drawing from the RRSP in lower-income years, delaying CPP to lock in a higher indexed benefit and preserving TFSA withdrawals for later retirement — can significantly reduce lifetime taxes and protect against OAS clawback.

You can also add any non-registered accounts into your financial arsenal for additional growth — just be mindful that any gains are taxable. In Canada, 50% of your capital gain is added to your taxable income and taxed at your marginal rate, so what you actually owe will depend on your income level and province.

Consider getting professional help

You may also feel more confident about retiring if a professional confirms you’re ready.

“Retirement is not only a financial decision, but also an emotional one,” D’Andrea said. “I would suggest that you speak with a financial professional with a proper planning process who will assess your overall situation.”

If a spreadsheet showing you have enough money isn’t enough to give you confidence, an adviser who can evaluate the bigger picture may provide the reassurance you need.

If your adviser helps you create a clear plan to generate income, preserve your wealth and stay within your budget, you can retire with confidence. If not, you’ll know where you stand and can adjust accordingly.

“If the numbers don’t work, it may be time to review all options and see if saving more and working a few more years might be a better choice,” D’Andrea said.

Since Angela and Matt are ready to go, taking these steps should enable them to retire on their own schedule — and keep those countdown timers running.

What Canadians can do next

For Canadians wanting an early exit from the workforce, here are key steps worth taking before the countdown hits zero:

Map out your CPP and OAS bridge: Model what your income looks like at ages 60, 65 and 70 under different CPP and OAS start dates. Deferring CPP to 70 increases your monthly benefit by up to 42%; deferring OAS to 70 increases it by up to 36%. Use the gap years to draw strategically from your RRSP — filling lower tax brackets before government income pushes you into a higher one.

Protect your TFSA: The TFSA is one of the most powerful tools in the Canadian retirement toolkit. Withdrawals don’t count as taxable income and won’t trigger OAS clawback, making it ideal to preserve for later retirement when other income sources may be higher.

Plan your healthcare coverage gap: Be sure to budget for private supplemental health insurance or factor in the out-of-pocket costs for prescriptions, vision and paramedical services that provincial plans don’t cover. Premiums vary by province, age and coverage level — compare plans well before you leave your employer’s group benefits.

Know your RRIF deadline: Your RRSP must convert to a Registered Retirement Income Fund (RRIF) by December 31 of the year you turn 71. RRIFs require minimum annual withdrawals, which are fully taxable. Early, strategic RRSP drawdowns before age 71 can reduce the size of forced RRIF withdrawals later — and your tax bill.

Work with a certified financial planner (CFP): A CFP can run retirement income projections, stress-test your portfolio against sequence of returns risk and build a withdrawal plan that coordinates your RRSP, TFSA, CPP and OAS to minimize lifetime taxes. Look for a fee-only planner to avoid potential conflicts of interest.

According to Statistics Canada’s National Balance Sheet and Financial Flow Accounts, Canadian households held more than $2.07 trillion in currency and deposits at the end of 2025 — though the pace of that accumulation has slowed, as more households shift money into mutual funds and investments. That shift makes sense: as interest rates eased through 2024 and 2025, savings and deposit accounts started offering lower returns, nudging savers toward higher-growth options.

But plenty of Canadians haven’t made that move — and the ones sitting on excess cash in standard chequing accounts are quietly falling behind.

Inflation reality check

Canada’s annual inflation rate climbed to 3.2% in May 2026 — the fastest rate since December 2023, driven largely by energy prices surging in the wake of the Iran war.

Now consider what your money earns sitting in a standard chequing account at one of Canada’s Big Six banks. Most major banks’ chequing accounts pay 0% interest. Even among digital banks and fintech apps that do offer interest on day-to-day accounts, rates typically range from 0.01% to roughly 0.1% — a return far lower than the rate of inflation.

The result: every month you leave excess money sitting in a low-yield account, inflation is quietly eroding its purchasing power. A dollar today buys less than it did a year ago — and if your cash isn’t growing, you’re effectively losing ground.

But inflation isn’t the only cost of holding too much idle cash. There’s also the opportunity cost — all the potential growth you leave on the table by choosing not to invest in assets that can generate real returns over time.

Stop leaving money on the table. Compare Canada’s top-rated high-interest savings accounts and switch to a provider that actually helps your balance grow.

So what’s the right amount?

That said, some cash on hand is essential. You don’t want to be forced to redeem investments during a market downturn because a pipe burst in your basement, your car gave out, or you suddenly lost your job. And you definitely don’t want to put those costs on a credit card — where the standard Canadian rate sits around 19.99% to 25.99% APR on most general-purpose cards.

The standard advice from most financial planners is to keep an emergency fund covering three to six months of essential living expenses — enough to cover the basics (housing, food, utilities, insurance, debt payments) if your income disappears.

But personal finance expert Suze Orman has been pushing the general public to think bigger. In a December 2025 blog post, she urged her readers to aim for eight to 12 months of emergency savings, writing: “There are signs the economy may be losing steam. That’s not a prediction. It’s just a reminder that recessions or climbing unemployment don’t tell us six months in advance that they are on the way. We need to be prepared.”

Orman’s updated recommendation isn’t excessive — it reflects the reality that job searches can take longer than expected, especially in a slowing economy. And her guidance applies just as squarely to Canadians. If you’re self-employed, a sole earner or in a volatile industry, a larger buffer may give you the breathing room you actually need.

To calculate how much cash you need in reserve, add up your essential monthly expenses —rent or mortgage, groceries, utilities, transit, insurance and minimum debt payments — then multiply by the number of months that feels appropriate for your situation. Alternatively, look at your after-tax monthly take-home pay and multiply by your target number of months.

As with most money decisions, this is a balancing act. Too much cash drags your long-term finances down. Too little leaves you exposed. The goal is finding the right number for your life — and then putting the rest of your money to work.

Where to park the rest

Once you’ve calculated your emergency fund target, any cash beyond that threshold should be working harder for you. Canadians have a few particularly powerful tools for this:

High-Interest Savings Accounts (HISAs): If you need near-term access to cash — say, for a purchase in the next 12 months — a HISA is a strong first move. These accounts at online banks and credit unions currently offer rates between 2% and 3%, well above the rate on a standard chequing account, with your principal protected by Canada Deposit Insurance Corporation (CDIC) coverage up to $100,000 per insured category.

Tax-Free Savings Accounts (TFSAs): A Tax-Free Savings Account (TFSA) lets you invest and grow money tax-free. The 2026 TFSA contribution limit is $7,000, and if you’ve been eligible since the account was introduced in 2009 and have never contributed, your total cumulative room is $109,000. You can hold a HISA within a TFSA to keep cash accessible and sheltered from tax, or invest in exchange-traded funds (ETFs), stocks or Guaranteed Investment Certificates (GICs) for greater long-term growth.

Guaranteed Investment Certificates (GICs): If you know you won’t need a sum for a set period — anywhere from 30 days to five years — a GIC locks in a fixed rate, typically between 3% and 4% for terms of one to five years as of mid-2026, with CDIC protection. GICs inside a TFSA shelter that interest income from tax entirely.

Registered Retirement Savings Plans (RRSPs): If you’re in a higher tax bracket now and expect a lower one in retirement, RRSP contributions reduce your taxable income today while the money grows sheltered. However, withdrawing from an RRSP for an emergency triggers income tax on the amount withdrawn — so keep your emergency fund in a separate, accessible account rather than in your RRSP.

Finding the right balance between liquid emergency savings and growing investments will keep you — and your family — both secure and financially ahead of inflation over time.

The goal isn’t to eliminate cash from your life — it’s to make sure the cash you hold is doing a job, and the rest is growing.

The Ontario government, in tandem with the federal government, is launching its temporary, one-year expansion of the HST rebate program. First announced during the 2026 provincial budget, the initiative essentially eliminates the provincial portion and mirrors a federal top-up to provide unprecedented tax relief. For buyers who’ve been sitting on the sidelines waiting for official administrative guidance, the wait is over. The new rules change the math on pre-construction condos, townhomes and detached builds across the province.

Here is exactly what is changing, who qualifies and how you can use this rollout to lower your out-of-pocket costs at closing.

Breaking down the new tax tiers

The expanded rebate is structured to offer maximum relief to mid-market homes, which have traditionally been squeezed by previous tax caps. Under the old system, provincial housing rebates were tightly restricted, but the temporary program shifts the thresholds significantly.

If you purchase an eligible newly built home valued up to $1 million, you can receive a full 13% HST rebate, which maxes out at $130,000. According to official guidelines from the Canada Revenue Agency, this consists of an $80,000 provincial enhanced rebate combined with a 5% Ontario top-up worth up to $50,000.

For properties priced between $1 million and $1.5 million, the total savings remain capped at a flat $130,000. Once a property crosses the $1.5 million mark, the rebate begins to step down proportionally. If the purchase price falls between $1.5 million and $1.85 million, the available tax relief declines in a linear fashion from $130,000 down to $24,000. Any luxury newly built homes valued above $1.85 million will only qualify for the standard provincial rebate floor of $24,000.

Knowing the strict timing rules

Because this is a temporary economic booster shot designed to stimulate the construction sector, the timelines are incredibly rigid. You cannot apply this retroactively to an older purchase agreement. To secure the funding, your builder agreement of purchase and sale must be signed between April 1, 2026 and March 31, 2027.

Physical construction milestones also dictate your ultimate eligibility. The province requires that physical construction on the home must begin on or before December 31, 2028. Furthermore, the building must be substantially completed by December 31, 2031. If a project faces severe zoning or labour delays that push construction past these target windows, the rebate could be at risk.

It’s also worth noting that the property must be intended for use as a primary place of residence for you or a close relative, or utilized as a qualified, long-term residential rental property. Standard corporate buyers and short-term flip properties are locked out.

Thinking of selling or refinancing before your move? Get personalized mortgage options from Homewise — they’ll find your best rate in minutes.

How to assign the rebate at closing

For most buyers, the biggest concern is cash flow. Paying an extra $130,000 in tax on closing day and waiting months for a government check to arrive in the mail is an agonizing prospect. Fortunately, the implementation process includes a mechanism to bypass this issue entirely.

When you sit down with your real estate lawyer to finalize your paperwork, you can contractually assign both the enhanced provincial rebate and the provincial top-up directly to your builder. By signing the updated schedule forms, you give the developer permission to claim the rebate from the government on your behalf.

In exchange, the builder applies the $130,000 reduction directly against your final purchase price on closing day. This slashes your immediate, out-of-pocket closing costs and reduces the total mortgage amount you need to secure from your bank. Just ensure your legal counsel reviews the builder’s purchase agreement ahead of time to confirm the assignment clause is explicitly stated and properly structured.

The administrative kickoff

The real estate industry has been eagerly anticipating this administrative kickoff. In a public statement regarding early spring housing data, Building Land and Development Association chief operating officer Justin Sherwood noted that a minor dip in late spring activity was “largely due to potential new homebuyers still waiting on the sidelines for clarity on how the HST rebate will be administered.”

With the administration systems operational starting today, that ambiguity disappears. Industry analysts expect the clear framework to renew buyer confidence, particularly in the low-rise and townhome sectors where purchase prices frequently sit within the sweet spot of the new $1 million to $1.5 million tax bracket.

If you have been weighing the pros and cons of a resale home versus a brand-new build, this tax adjustment significantly tilts the financial scale. Speak with your accountant and broker this week to ensure your paperwork aligns perfectly with the new criteria before you sign on the dotted line.

You can review a full breakdown of the administrative guidelines and the legal mechanics of the program by watching this expert overview of the 2026 Ontario HST Rebate Update, to learn more about the legal forms you’ll need and assignment procedures required to ensure your builder can apply the tax reduction directly at closing.

Built back in 1953, the facility thrived during an era when the False Creek waterfront was completely dominated by heavy manufacturing and actively serviced by Canadian Pacific Railway tracks. However, the world around the old brewery has shifted dramatically. The trains stopped running long ago, and the surrounding neighbourhood slowly filled with modern residential complexes, seaside parks and trendy commercial areas like Granville Island.

Recognizing that loud, high-traffic manufacturing no longer fits into a modern waterfront community, city planners and local leaders are radically shifting gears. The transformation of this single piece of real estate provides an eye-opening glimpse into how Canadian urban planning is evolving, and it highlights a broader national trend that every housing-conscious Canadian should keep an eye on.

A massive zoning pivot

For years after the brewery closed its operations and moved to a larger, more accessible facility in Chilliwack, the future of the Vancouver waterfront site remained up in the air. The primary hurdle was its rigid industrial classification. Heavy industrial zoning allows for factories and warehouses but strictly blocks the creation of office buildings, storefronts or housing.

Things changed rapidly in early 2026. According to official municipal planning documents published on the City of Vancouver Shape Your City portal, local authorities launched a formal process to amend the Vancouver Official Development Plan. This amendment changes the land use designation of the former brewery site from “Industrial and Employment” to a newly minted category: “Mixed-Use High-Rise 2.”

A City of Vancouver council referral report outlines exactly why the old ways of thinking are being left behind, noting that the site’s “lack of connectivity to key trucking and rail routes critical for goods movement” means it “is no longer suitable for stand-alone heavy industrial uses.” Instead, the city is pushing for a vibrant mix of high-density housing, retail spaces, hotels and high-tech office structures that could scale well over 26 storeys into the sky.

Stop wondering where your money went. Compare Canada’s top-rated budgeting apps and find the perfect tool to help you save more this month.

The ripple effect of neighbouring megaprojects

What makes this specific property shift so fascinating is what’s happening right next door. The old brewery shares a 900-foot property boundary with a massive, historic development called Sen̓áḵw.

Sen̓áḵw is a 10.5-acre parcel of land owned by the Squamish Nation, who reclaimed the ancestral village site following a landmark court ruling. Because this project sits on designated reserve land, it’s not bound by traditional municipal zoning restrictions. Led by Nch’ḵay̓ West, a partnership between the nation’s economic development corporation and the major Canadian pension fund OPTrust, the project is moving ahead at an astonishing pace.

As detailed by the Squamish Nation, the site broke ground in 2022 with an historic $1.4-billion federal loan, marking the largest loan from the Canada Mortgage and Housing Corporation in national history. When fully completed across four distinct phases, Sen̓áḵw will feature a cluster of high-density towers delivering more than 6,000 purpose-built rental properties. The project represents a monumental step toward economic independence for the nation, with the first phase of 1,409 homes actively coming online over the next year to welcome Squamish people back to their historic lands.

The hidden real estate ripple effect hitting major urban centers across Canada

It’s easy to look at a local zoning battle on the West Coast and think it has little to do with daily life in Calgary, Toronto or Halifax. However, the exact same financial pressures reshaping this piece of land are quietly playing out in major cities all across Canada.

Our urban centres are rapidly running out of empty space, and the old way of dividing cities into strict, separate zones for living and working is no longer keeping up with demand. The transformation of this former brewery proves that the era of protecting massive, single-use industrial blocks right in the middle of a city is drawing to a close. To get more homes built close to transit, offices and schools, municipal governments from coast to coast are being forced to rethink old boundaries.

When a massive industrial site transforms into a walkable, high-density residential community, it fundamentally alters the rhythm of the surrounding real estate market. For anyone trying to navigate today's housing market, watching how these commercial conversions unfold is one of the best ways to spot where the next vibrant, highly connected neighbourhood is going to pop up before the first shovel even hits the ground.

“I’m happy to say I have full mobility … I don’t have that deep achiness that I used to have,” she said in a six-week update reel. “And I used to have all of this clicking at the top of my shoulder that I don’t have any longer either.”

She combined her stem-cell injections with red light therapy and peptides, and reported paying US$7,000 (C$9,500) in total for the procedures.

But before Canadians pack their bags and head to the nearest international clinic, there are both financial and personal costs worth understanding.

How stem-cell tourism became trendy

Stem-cell tourism involves traveling to another country to receive treatments that are unavailable or unapproved at home. In these procedures, blank cells are taken from fat, bone marrow, skin or blood, then transformed into new cells to repair injured tissues or joints.

Many people pursue it for chronic pain or injury recovery. But it’s also gaining popularity for cosmetic reasons. Kristiana Capati-Choquet, a travel agent specializing in medical-therapy trips for wealthy clients, told The Financial Times that one client in her 60s now travels the globe specifically seeking the best place in the world for stem cell-based rejuvenation therapy.

The appeal for finding procedures overseas is understandable. In Canada, the regulatory environment for stem-cell therapy is strict — and deliberately so.

Don't leave points on the table. Compare Canada's top travel rewards programs today to see which one gets you to your destination faster.

What’s approved in Canada — and what isn’t

Health Canada regulates cell therapies as drugs under the Food and Drugs Act. That means any stem-cell procedure — even one using a patient’s own cells — requires federal authorization before it can legally be offered to Canadians.

The treatments currently authorized in Canada are limited to hematopoietic stem cell (HSC) transplants, which use blood-forming stem cells from bone marrow, blood or umbilical cord blood to treat blood cancers such as leukemia and lymphoma; and a class of engineered immune-cell therapies called CAR-T (chimeric antigen receptor T-cell) treatments. A single stem cell product, Prochymal, was conditionally approved by Health Canada in 2012 to treat pediatric acute graft-versus-host disease — a serious complication that can arise from bone marrow transplants. In practice, however, as of 2018, the drug was never commercially distributed throughout Canada.

All other cell therapies currently offered in Canada or sought abroad are considered experimental or unproven. Despite this, private clinics offering unapproved stem-cell treatments have been increasing across the country: as of 2018, 43 Canadian clinics were found to be offering such procedures. In 2019, Health Canada publicly confirmed that stem-cell treatments are drugs, requiring authorization — but it never ordered those clinics to cease operations.

Canada has also been slower to act against unproven stem-cell clinics than the U.S., according to University of Alberta researchers writing in BMC Medical Ethics.

The costs of stem-cell procedures and travel

In Alisha’s case, she paid US$7,000 (C$9,944) for her injections in Tijuana. But calculating the full cost for Canadians is more complex.

Treatment prices vary based on the type of stem cells used (bone marrow versus umbilical cord, for instance), the specific condition being treated and the country offering the service. The most common destinations for stem-cell tourism are China, India, Mexico and Thailand. In Bangkok, stem-cell therapy generally ranges from C$2,562 to C$18,506. In Mexico, prices typically fall between C$2,278 and C$13,524.

For Canadians considering treatment closer to home, private clinics in Canada charge approximately C$6,000 for a basic autologous stem-cell injection. More complex procedures or those involving expanded or donor stem cells can run up to C$30,000 — and that’s before factoring in travel costs if you don’t live near the clinic.

Peer-reviewed journal Canadian Family Physician published research that puts the average cost of a treatment-only stem-cell tourism trip at roughly C$30,000 — not including flights, accommodations, meals or lost wages.

For Canadians traveling to destinations like Tijuana, the logistics are relatively simple if departing from Vancouver or another western city. For those in Ontario or Atlantic Canada, the trip becomes far more expensive with return flights, hotel stays and ground transportation adding significantly to the total. Alisha also acknowledged she may need a booster treatment down the road — because she’s a hairdresser, she continues to use the same muscles she had treated.

Another part of the equation Canadians often overlook is taking time off work. If you’re taking unpaid leave for travel and recovery, those lost wages are part of the true treatment cost.

What your provincial health plan won’t cover

Here’s where the financial risk compounds: provincial and territorial health plans in Canada won’t cover the cost of experimental stem-cell treatments abroad. The Government of Canada explicitly cautions that “your provincial or territorial health plan may not cover your expenses if you develop complications in the country where you’re having the procedure.”

Most standard Canadian travel insurance policies also explicitly exclude planned medical procedures — the very definition of stem-cell tourism. If something goes wrong during or after the procedure and you haven’t arranged specialized medical tourism insurance in advance, you could be facing enormous out-of-pocket expenses for emergency care abroad and repatriation to Canada.

If you return home and require ongoing care for complications, provincial plans will typically cover medically necessary follow-up care — but they won’t reimburse what you already spent abroad.

The risks associated with stem-cell tourism

The financial risks are significant. But the health risks are harder to measure — and potentially more serious.

There’s little scientific evidence that most of these therapies actually work for the conditions they claim to treat. The treatments offered by clinics popular with medical tourists haven’t undergone the rigorous clinical trial process Health Canada requires.

Reported complications include infection, immune rejection, tumour formation and, in rare cases, death. Many of these clinics are located in countries with endemic infectious disease risks, such as malaria and dengue virus, adding a layer of travel health risk on top of the procedural risks themselves.

For cosmetic treatments, the science is even more unclear. Mesenchymal stem cells (MSCs), which are popular for aesthetic procedures, can’t be directed to a specific area once introduced into the body. Dr. Anita Rajoo, a UAE-based doctor specializing in integrative aesthetic and regenerative medicine, spoke plainly to The Financial Times. “If someone wants it for a beauty purpose, you cannot programme it to function that way — there’s no way we have control over where it’s going to go.” Combining MSC treatments with other cosmetic procedures such as Botox may also cause adverse effects.

Ultimately, every person must decide how much financial and physical risk they’re willing to accept. But that decision should be fully informed.

What Canadians should know before booking

If you’re considering stem-cell therapy — abroad or in Canada — here are practical steps to protect yourself financially and physically:

• Talk to your family doctor first. Canadian physicians can help you review the evidence, discuss alternatives and red flags in clinic marketing materials.
• Check Health Canada’s authorization. Use Health Canada’s Drug Product Database and Clinical Trials Database to verify whether a treatment is authorized or part of an approved trial.
• Read your travel insurance policy carefully. Most standard policies exclude planned medical procedures. If you intend to travel for treatment, look specifically for medical tourism insurance and confirm what complications the policy will cover.
• Verify the clinic’s credentials. Many countries publish physician and facility licensing information on official government websites. Check the destination country’s health regulatory body before you commit.
• Factor in the full cost. Include flights, accommodation, ground transportation, meals, lost wages and the possibility of follow-up treatments. A C$7,000 procedure can easily become a C$15,000 trip — or more.
• Plan your aftercare in Canada. Even if the treatment goes smoothly, know in advance which Canadian physician or specialist will manage your recovery and follow-up.

The federal small business deduction (SBD) allows Canadian-controlled private corporations (CCPCs) to pay a preferred federal corporate tax rate of 9% on up to $500,000 of active business income, which is typically income from a business’s day-to–day operations. However, that benefit starts to shrink once passive investment income inside the corporation exceeds $50,000 in a year, due to a rule known as the “SBD grind.”

Doctors, dentists, lawyers, and other incorporated professionals who are building investment portfolios inside their corporations need to understand how this rule works.

Are you in a profession that puts you in the top tax bracket? Then you need to work with fintech and finance companies that know your needs. For instance, eligible professionals can unlock up to $1,313 in annual savings when banking with National Bank. This special offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

What is the $50,000 passive income threshold?

The SBD reduces the federal corporate tax rate on active business income from 15% (the general rate) to 9%. This can save a CCPC roughly $30,000 in annual federal corporate tax on a full $500,000 of qualifying income. Provinces and territories layer their own SBD on top, resulting in combined savings that are considerably larger. In Ontario, for example, the combined small-business rate is about 11.2%, compared with the general rate of around 26.5%.

Since 2019, however, that benefit has been subject to a passive income constraint. Under subsection 125(5.1) of the ITA, if a CCPC (or its associated corporations) earns more than $50,000 of adjusted aggregate investment income (AAII) in the prior year, the business limit is reduced by $5 for every $1 of passive income above that threshold. The SBD is eliminated once AAII reaches $150,000.

You also have to consider the AAII reference year. For example, a CCPC calculating its 2026 SBD uses the passive income earned in its 2025 taxation year, so investment returns earned in 2026 will affect the tax rate on active income next year.

What counts as AAII? Interest income, portfolio dividends, and taxable capital gains are the main components. Income earned inside a registered plan is excluded, but most returns from a corporate non-registered portfolio are not.

How a growing corporate portfolio triggers the grind

In a simplified example, a dentist’s operating corporation holds a diversified non-registered portfolio that generates $70,000 in annual investment income, which includes interest, dividends, and realized capital gains. That’s $20,000 above the $50,000 threshold, reducing the business limit by $100,000 ($20,000 × $5). The corporation now qualifies for the SBD on only $400,000 of active income rather than the full $500,000. (Note that this scenario is purely illustrative.)

According to CIBC Wealth Management’s February 2025 research on CCPC passive income planning, authored by Jamie Golombek and Debbie Pearl-Weinberg, a corporation that completely loses the SBD due to passive income exceeding $150,000 in Alberta faces an additional tax cost of roughly $3,800 on $500,000 of active income if dividends are paid in the same year.

However, they note that the real cost is the loss of tax deferral over time, because less after-tax income remains inside the corporation to compound. Over 40 years, the difference between preserving the full SBD and losing it entirely can exceed $100,000 in after-tax wealth at a 5% investment return.

The threshold is also shared across associated corporations. If you or a family member controls more than one corporation, their passive income is aggregated for purposes of the grind.

Ready to watch your savings grow? Check out the best HISA providers in Canada, including no-fee options and high-yield promotional offers. Eligible professionals can unlock more than $1,000 in annual savings when banking with National Bank. The bank’s current offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

3 strategies professionals use to manage the passive income grind

There is no single fix, and the right approach depends on the portfolio’s size, the corporation’s active income, and the shareholders’ long-term withdrawal plan. That said, incorporated professionals and their accountants typically consider three main approaches.

Rebalance toward lower-yield holdings. AAII is largely driven by interest income, dividends, and realized gains rather than unrealized growth. As a result, portfolios that emphasize growth-oriented equities or corporate-class funds that generate fewer annual taxable distributions may reduce AAII without requiring money to leave the corporation.

Implement a Holdco/Opco split: Some business owners move passive investments into a holding company (Holdco) while keeping business operations in a separate operating company (Opco). The goal is to separate passive investment income from the corporation claiming the SBD. However, this strategy requires careful planning. CRA anti-avoidance rules under subsection 125(5.2) are specifically designed to address structures created primarily to reduce AAII. You should consult a qualified tax adviser before you restructure.

Accelerate salary or bonus payments: Paying additional salary or bonuses before year-end reduces retained earnings available for investment, which can help keep future passive income lower. For professionals who are already generating more corporate profits than they need personally, this strategy involves giving up some tax deferral today in exchange for preserving access to the SBD tomorrow.

What if you’ve already crossed the threshold this year?

If your corporation has already exceeded the $50,000 AAII threshold, don’t panic. Crossing the threshold doesn’t eliminate the SBD for the current year. Instead, it affects next year’s business limit, so you have time to plan ahead.

Before your corporation’s year-end, consider working with your accountant to calculate your current AAII position, estimate the impact on next year’s SBD, and explore whether adjustments could reduce the grind. Even if getting below $50,000 isn’t realistic, reducing AAII below $150,000 may preserve at least part of the deduction.

Here are a few practical steps to consider:

• Calculating your corporation’s current-year AAII before year-end to see how close you are to the $50,000 threshold
• Asking your accountant whether a Holdco/Opco structure could make sense in your situation
• Reviewing your corporate investment portfolio to determine whether lower-distribution or growth-oriented holdings could reduce future AAII
• Modeling the cost of losing all or part of the SBD if passive income is approaching $150,000

Keep in mind that the passive income grind isn’t permanent. A corporation that has one high-passive-income year can regain access to the full SBD if passive income falls back below the threshold in a future year.

The sudden collapse of the event leaves a trail of unrecoverable costs for attendees who travelled to Happy Valley-Goose Bay, while highlighting how deeply economic certainty is tied to respectful government relationships with Indigenous communities.

A sudden halt to business

Organizers of the event, the Labrador North Chamber of Commerce, made the difficult choice to shut down the remainder of the conference as a gathering of more than 120 people formed outside the E.J. Broomfield Memorial Arena. In an official statement, the chamber noted, “We are disappointed the government did not address the outstanding concerns of the Labrador Innu this week and we will be cancelling the remainder of the conference.”

The fallout spreads wide in Labrador. For regional contractors and resource companies, annual economic expos serve as the primary pipeline for securing partnerships, land agreements and local contracts. When an event of this scale is erased from the calendar, the losses go beyond non-refundable airline tickets and empty hotel rooms. It disrupts long-term financial planning and dampens the economic momentum of the entire region.

Don't leave points on the table. Compare Canada's top travel rewards programs today to see which one gets you to your destination faster.

The root of the dispute

The cancellation didn’t happen in a vacuum. It stems from a profound disagreement over a planned cultural and historical exhibit, Innu Pakassiun, which was scheduled for the Labrador Interpretation Centre to mark National Indigenous Peoples Day.

Leadership from the Innu Nation chose not to proceed with the exhibit after the provincial government intervened over the presented timeline of Innu history. According to a formal statement from Innu Nation leadership reported by VOCM News, the province pushed a perspective that conflicted with accepted academic consensus and Innu heritage, stating that the government wanted them to support "the province's own controversial theory of Innu history." Provincial officials countered, according to CBC, by stating it was prudent to consult with other Indigenous groups to avoid public disputes.

Long-term economic questions

While Innu leadership clarified that they have no grievance with local business owners or the chamber itself, they pointed out that the friction with the province "creates uncertainty for everyone involve in Labrador's economy."

Premier Tony Wakeham, alongside Indigenous Relations and Reconciliation Minister Lela Evans, met with Innu leadership to pitch several proposals, but all recommendations were rejected. Wakeham expressed disappointment over the last-minute cancellation, noting the significant impact and resources that go into orchestrating a conference of this magnitude.

Ultimately, this situation underscores a vital lesson about how interconnected modern commerce is with social responsibility. True economic sustainability and predictable business environments are impossible without solid, mutually respectful foundations between government authorities and Indigenous nations. Until a lasting resolution is reached, local enterprises everywhere remain vulnerable to the sudden fallout of unresolved systemic disputes.

In one of her first acts, Governor General Louise Arbour announced that the Office of the Secretary of the Governor General is cutting back on clothing expenses billed to Canadian taxpayers.

According to a letter sent to MPs, each Governor General (GG) will only be reimbursed for outfits worn at official functions, such as black-tie events or public ceremonies, where it is their duty to represent the monarch and country.

“Normal everyday casual or business attire is the responsibility of the Governor General,” the letter reportedly stated.

The move comes after renewed criticism over the clothing expenditures billed by predecessors at Rideau Hall. In September 2025, a list of former Governor General Mary Simon’s wardrobe purchases between January 2024 and March 2025 was made public in Parliament. Notable pieces include $1,500 for a “sealskin chest piece” for official events in Nunavut and $1,117 on six pairs of shoes.

And it’s not the first time a Governor General’s new clothes have come under scrutiny. Both Simon and her predecessor, Julie Payette, have been criticized for expensing a combined total of $88,000 to Canadian taxpayers for clothing purchases made between 2017 and 2023.

Clothing each GG got to keep.

While a few of the items were worn in connection to their official duties, others appeared to be for everyday use, prompting renewed calls for reform to the clothing allowance. Defenders have pointed out that the role requires them to attend many official functions with strict dress requirements — and that female governors generally attract the most scrutiny for their wardrobe expenses.

Rideau Hall did not respond to Money.ca’s request for comment in time for publication.

More than just clothes

Part of the issue may be optics. As the country enters a technical recession, expenses on the hill are an easy target for criticism.

Still, it’s hard to deny that Canadians are struggling. The Consumer Price Index (CPI) — an inflation benchmark — hit 3.2% in May, a 29-month high pushing the country out of the Bank of Canada’s inflation-control target range of 1% to 3%. Meanwhile, the cost of food outpaced the CPI for 16 straight months. Most notably, the price of a tomato was 45.2% higher in May 2026 than in May 2025.

These basic, very human concerns add some perspective to expenses filed by any Governor General, both past and present.

And it’s not just about their clothing.

In May, it came out that the Canadian government paid out $554,000 in just one year to support five individuals who formally held the role of Governor General. Turns out each GG can bill up to $206,040 per year in expenses after leaving office.

What makes these charges more notable is that they come on top of generous salaries provided to each GG while they’re in office, as well as the sizeable pension each gets after they retire from office. Current estimates put the salary of a serving GG at $393,800, while former GGs take in annual pensions of about $150,000.

For reference, the average salary of a working Canadian is around $70,000, or less than a quarter of the current Governor General’s take. No wonder 59% of Canadians polled by Leger believed the GG’s the salary should be reduced.

For Canadians earning an average salary and not rewarded for their service by a defined benefit pension, it raises some concerning questions like what can Canadians do to secure their retirement?

Take control of your financial future. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you're building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Find the ideal discount brokerage account

Retire like a king… or a governor

Most Canadians would jump at the chance of a $150K pension, let alone $200K in paid expenses, for their retirement years.

The reality is, most retirees will only get this type of security and spending power if they save for it themselves.

There are many ways of securing enough income for retirement, from using public pensions, like the Canada Pension Plan (CPP), to contributing to workplace retirement plans or opening personal investment accounts, like a Registered Retirement Savings Plan (RRSP). In most cases, Canadian retirees will end up relying on a mix of government income support, such as Old Age Security (OAS) and CPP, and their own savings.

That’s why Tax-Free Savings Accounts (TFSAs), which are registered savings accounts that function as an investment account, are a popular option for retirement investing. TFSAs allow you to avoid paying taxes on income earned through capital gains, dividends or interest when the funds are withdrawn.

To maximize TFSA earnings, Canadians need to think beyond high-interest savings accounts (HISA) and use their TFSAs as a way to shelter investment earnings.

There is one big disadvantage with the TFSA: You can only contribute a specified amount each year. In 2026, the contribution limit was capped at $7,000 and prior year contribution limits were as low as $5,000. Still, holding a self-directed TFSA in a brokerage account lets you choose from a range of investment options, including stocks, bonds and ETFs.

Get your money working for you. Keeping administrative costs low is just as important as choosing the right investments. Many investors find it helpful to look for platforms that waive account maintenance fees once a specific household balance is met. For instance, CIBC Investor’s Edge doesn’t charge any account or maintenance fees if the combined market balance of all accounts is greater than $10,000. Plus, you can receive real-time news and stock alerts, helping you keep track of market shifts.

Opening a discount brokerage account with CIBC Investor’s Edge is easy and their easy-to-use online and mobile investing dashboad can help you diversify your portfolio without paying exorbitant commissions on trades. New customers get 200 free trades using promo code EDGE2026 and enjoy unlimited commission-free trades on over 180 select ETFs. Terms and conditions apply. Offer ends September 30, 2026.

Break in case of emergency

The cost of living crisis in Canada is hard enough for many Canadians, but what happens when things go wrong? What happens if you lose your job and suddenly can’t pay for groceries? In this scenario tapping into your retirement account would be a gamble and a setback.

One way to avoid derailing your future financial goals is to set up an emergency fund. This fund helps you pay for larger, unexpected expenses without taking on high-interest debt or tapping into retirement savings.

To keep this money accessible but still working for you, hold the funds in a high-interest savings account (HISA). Rates on HISA accounts are often at or above the rate of inflation, meaning they can slow down the erosion of your purchasing power and keep your savings working for you.

Ready to watch your savings grow? Check out the best HISA providers in Canada, including no-fee options and high-yield promotional offers. One reliable and consistent champion when it comes to offering a high earning rate on savings is EQ Bank. Not only can you build your emergency fund with interest rates as high as 2.75% — up to 6x higher than the rates offered by big-name banks in Canada — but you don’t pay monthly account fees or struggle to meet minimum account thresholds. EQ Bank offers a no-fee online bank account with unlimited transactions, no minimum balance and free use of any ATM across the world.

Plus, if you are worried about the security of your funds, deposits with EQ Bank are backed with CDIC deposit insurance of up to $100,000.

Middle-class and those in the top tax brackets need to be strategic

For Canadians who are middle-class or higher-income earners, the key isn’t just about saving but also about managing taxes and fees.

To help, consider partnering with a finance company that knows and understands your needs. For instance, eligible professionals can unlock $1,000 or more in annual savings when banking with National Bank.

Depending on eligibility, the offer can include the following:

• Up to 3 bank accounts with no fixed monthly fees
• Personal and home equity lines of credit with preferred terms and conditions
• Preferred value-added services like legal assistance and identity theft protection
• Access to a financial advisor
• An eligible Mastercard rewards credit card (certain fees apply)

See if your profession qualifies

Bottom line

On its own, the decision to cut back on the Governor General’s clothing allowance may seem like a small win for the Canadian taxpayer. However, the mounting pressure that led to the change is symptomatic of broader concerns and struggles faced by everyday Canadians, particularly over the rising costs of living. Rather than sitting in frustration, use this moment to pause and think about ways of improving your finances — sometimes a simple shift in how and where we save our money can help make it easier to achieve our future financial goals.

There’s a name for this: Analysis paralysis. And Dave Ramsey has a solution that is as blunt as it is simple — shut up and invest.

On a recent episode of The Ramsey Show, the personal finance guru addressed a caller named Dylan who questioned why he recommends splitting retirement savings across four types of mutual funds rather than simply buying an S&P 500 index fund.

Ramsey’s answer wasn’t really about which fund is better. It was about a far bigger problem.

‘100% of people who invest end up with more money’

Ramsey acknowledged that fewer than half of individual mutual funds in the growth sector outperform the market over time — a point that Canadian data has confirmed repeatedly. According to the SPIVA Canada Year-End 2025 Scorecard, published by S&P Dow Jones Indices, 93.4% of Canadian equity active funds underperformed the S&P/TSX Composite Index that year. Over a 10-year horizon, 98.8% of active Canadian equity funds failed to beat their benchmark.

But Ramsey’s core argument wasn’t about active versus passive. It was about the cost of doing nothing while the debate drags on.

“You got a lot of people that have an opinion out there that have no stinking money,” Ramsey said. “100% of the people who invest end up with more money than those who don’t every time.”

He cited Vanguard founder John Bogle as evidence that long-term market outperformance by active fund managers is the exception and not the rule. But he also argued that investors who choose actively managed funds that have demonstrated long-term success — a mix of large-cap, mid-cap, small-cap and international growth funds — can still outperform a simple index strategy by a modest margin. (And investors can use mutual funds or exchange-traded funds (ETFs) to create those four investment buckets.)

Whether you agree with that or not, Ramsey’s central point is hard to argue with: A small difference in returns between funds is irrelevant if you never actually invest.

Get your money working for you. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you're building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Compare discount brokerage accounts or check out Questrade, the online brokerage that combines low-cost investing with powerful research tools. Open an account and pay $0 commission on stock and ETF trades, plus new customers get up to $500 using code GET500. (Offer ends July 23, 2026.) Start investing with Questrade

The millionaire next to you probably didn’t overthink it

Ramsey pointed to research from Ramsey Solutions’ National Study of Millionaires, a survey of more than 10,000 U.S. millionaires, to make his case. The findings were striking: 8 out of 10 millionaires built their wealth through their workplace retirement plan. Most were not financial geniuses. Most were not high earners. And many picked a fund to invest in simply because a colleague suggested it. While these findings are not peer-reviewed, they paint an interesting picture of how everyday citizens reach a seven-figure net worth without being financial tycoons.

“A lot of millionaires are just regular people who picked out their mutual fund based on what the guy in the cubicle next to them was doing,” Ramsey said. The key, he stressed, is that they were investing — not just talking about it.

For Canadians, this lesson lands with particular weight. A 2025 Retirement Survey conducted by the Healthcare of Ontario Pension Plan (HOOPP) found that 49% of Canadians have not set aside any money for retirement in the past year, and 39% have never saved for retirement at all.

Meanwhile, a separate poll from Edward Jones Canada, released in February 2026, found that only 41% of Canadians plan to contribute to their Registered Retirement Savings Plan (RRSP). Additionally, 70% of Canadians report having negative feelings about RRSP contributions, with confusion being the most common emotion (40%). Other respondents felt unsure about maximizing their RRSP opportunities correctly (37%) or worried they are not contributing enough for a financially secure retirement (36%).

On top of that, BMO’s Annual Retirement Survey, also released in early 2026, found 74% of Canadians worry they will not have enough money in retirement because of rising prices. Of those who said inflation was eroding their financial security, 31% admitted to actively contributing less to their retirement savings as a result.

The gap between worrying about retirement and actually investing for it is exactly what Ramsey is calling out.

Keep more of your money. Keeping administrative costs low is just as important as choosing the right investments. Many investors find it helpful to look for platforms that waive account maintenance fees once a specific household balance is met. For instance, CIBC Investor’s Edge doesn’t charge any account or maintenance fees if the combined market balance of all accounts is greater than $10,000. Plus, you can receive real-time news and stock alerts, helping you keep track of market shifts. Opening a discount brokerage account with CIBC Investor’s Edge can help you diversify your portfolio without having to pay exorbitant commissions on trades. Get 200 free trades when you open a CIBC Investor’s Edge account using promo code EDGE2026. Plus, enjoy unlimited commission-free trades on over 180 select ETFs. Terms and conditions apply. Offer ends September 30, 2026.

Is it time to stop searching for the ‘perfect’ portfolio?

The Canadian investment landscape offers the same basic choice that Ramsey describes: actively managed mutual funds, passively managed index funds or exchange-traded funds (ETFs), or asset allocation funds that do the balancing for you.

For Canadian investors looking to track the S&P 500 — one of the benchmarks Ramsey has long cited for its strong long-term returns — several low-cost options trade directly on the Toronto Stock Exchange (TSX). As of year-end 2025, the Vanguard S&P 500 Index ETF (TSX: VFV) and the BMO S&P 500 Index ETF (TSX: ZSP), for example, both carry management expense ratios below 0.10% and have posted five-year annualized returns of around 15.8% in Canadian dollar terms, according to Morningstar Canada.

For investors who want broad exposure to Canadian equities, the iShares Core S&P/TSX Capped Composite Index ETF (TSX: XIC) returned 16.03% over the last five years as of year-end 2025.

As Ramsey puts it: “Theory doesn’t matter until it’s applied. I really don’t care what you think about swinging a baseball bat until you swing one, honey.”

What Canadian investors can do right now

If Ramsey’s message resonates — and the data suggests it should — here are four steps grounded in the Canadian financial system.

Start with your workplace retirement plan

If your employer offers a group RRSP, start there — especially if there is a matching contribution. For the 2026 tax year, the RRSP contribution limit is $33,810 or 18% of your prior year’s earned income, whichever is lower. Employer matching contributions count against that room, but they represent money you would otherwise leave on the table. Most Canadian employers that offer matching cap it at a percentage of salary — check your human resource (HR) documents or ask your plan administrator.

Open a TFSA if you haven’t already

A Tax-Free Savings Account (TFSA) is the other major registered account available to Canadians. Unlike an RRSP, contributions are not tax-deductible, but all growth and withdrawals are completely tax-free. The 2026 TFSA annual contribution limit is $7,000, unchanged from 2024 and 2025. For anyone eligible since the TFSA was introduced in 2009 and has never contributed, the cumulative limit available in 2026 is $109,000. A TFSA is well-suited for both short-term and long-term investing goals.

Ready to watch your savings grow? Check out the best HISA providers in Canada, including no-fee options and high-yield promotional offers for TFSA and RRSP HISAs. Eligible professionals can unlock more than $1,000 in annual savings when banking with National Bank. The bank’s current offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies

Automate your contributions

One of the biggest barriers to investing is inertia. Setting up a regular automatic contribution — even $100 a month — removes the decision from your calendar. Many Canadian financial institutions, as well as online brokerages such as Questrade and Wealthsimple, allow investors to automate RRSP and TFSA contributions directly from a bank account. The money moves before you can spend it.

Get your money working for you. Every dollar you funnel to savings is a dollar working toward your future. Whether you're building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Find the ideal discount brokerage account

Focus on diversification and your timeline

Whether you choose mutual funds, index ETFs or a single asset-allocation ETF — a one-ticket fund that holds a globally diversified mix of stocks and bonds in a single product — the more important variable is time in the market. An investor with 30 years until retirement can tolerate more short-term volatility than someone retiring in five years, and can start with a more growth-oriented portfolio that gradually becomes more conservative over time. The right product matters less than the decision to start.

As Ramsey would say: The best portfolio is the one you actually invest in.

Group RRSPs — offered by employers — aren’t the norm in Canada, with 1 in 5 employers offering no retirement benefits at all, according to a 2024 survey by the Healthcare of Ontario Pension Plan (HOOPP) and the Angus Reid Group. But for Canadian employers with access to a group RRSP, many aren’t capturing the full BOGO offer. The reasons for not capturing the full amount usually boil down to gaps in enrolment, mismatched contribution rates or vesting schedules that employees are unaware of or don’t understand.

Still, the math is difficult to ignore. It’s the only investment that delivers an immediate guaranteed return of 50% to 100% on every dollar contributed — and this is before any market performance is factored in.

If your employer matches dollar-for-dollar up to 4% of salary on a $90,000 income, that’s $3,600 a year in free retirement savings (as long as you contribute $3,600 to your group RRSP). But you only get that free money if you contribute — and you only get the maximum employer contribution if you contribute the full amount.

To help, here’s what you need to know to claim all of the RRSP BOGO you’re entitled to as a group RRSP plan member.

Take control of your money. Whether you are saving for a home or an emergency fund, our guide helps you find high-interest savings accounts with the highest interest rates and low or no fees. Get your money working for you using a HISA. Eligible professionals can unlock more than $1,000 in annual savings when banking with National Bank. The bank’s current offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies

How does employer RRSP matching work?

A group RRSP is an employer-sponsored plan where individual RRSP accounts are set up in each employee’s name. Contributions come off your paycheque before tax, reducing your taxable income immediately — an advantage you don’t get with after-tax savings.

When an employer adds a matching program, it works on a formula. The most common structure in Canada is a match of 3% to 5% of your pre-tax salary — though the exact terms vary by employer and are spelled out in your plan documents, according to Benefits Alliance.

For example, if you earn $80,000 and your employer matches 100% of your contributions up to 4% of your salary, and you contribute 4%, then every bi-weekly paycheque, approximately $123 would be deducted and contributed to your group RRSP. This works out to a $3,200 per year contribution to your group RRSP — and your employer adds another $3,200. This means your annual RRSP contribution is $6,400, and you get a tax deduction based on that amount, even though you only paid 50% into that RRSP contribution.

Key detail: In most plans, the employer match only happens on payroll deductions made through the group plan. Your employer won’t match contributions you make to a separate personal RRSP accounts.

Get your money working for you. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you’re building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Compare discount brokerage accounts or check out Questrade, the online brokerage that combines low-cost investing with powerful research tools. Open an account and pay $0 commission on stock and ETF trades, plus new customers get up to $500 using code GET500. (Offer ends July 23, 2026.) Start investing with Questrade

What is the contribution room limit you need to watch?

Both your own contributions and your employer’s match count toward your total RRSP deduction limit — the maximum amount the Canada Revenue Agency (CRA) allows you to contribute and deduct in a given year.

The 2026 RRSP dollar limit is $33,810, up from $32,490 in 2025. It’s calculated as 18% of your prior year’s earned income, up to that annual cap, minus any pension adjustment.

If you also participate in a defined benefit or defined contribution pension plan, your pension adjustment — which is calculated by your employer and reported on your T4 — reduces your available RRSP room. This is worth checking before increasing your group RRSP contributions, to avoid an overcontribution penalty of 1% per month on any excess above $2,000.

“Make sure that you’re not overlooking the money that your employer has put in on your behalf as well, because that counts against your contribution room,” explained Manulife’s Head of Wealth Planning and Practice, Julie Seberra.

What’s the vesting trap — and how do you avoid it?

Under CRA rules, employer contributions deposited directly into a group RRSP are yours immediately — there is no mandatory vesting period for straight group RRSPs. However, some employers route matching contributions through a deferred profit-sharing plan (DPSP) instead, which operates alongside the group RRSP. The CRA permits DPSP vesting schedules of up to two years.

Vesting structures come in three forms:

• Immediate: The employer’s funds are yours right away
• Graded: You earn ownership gradually, such as 50% after one year and 100% after two
• Cliff: You receive nothing until a fixed date, then all at once

The type your employer uses matters enormously if you’re considering a withdrawal or a job change.

1. If your plan has immediate vesting, you’ll be entitled to the full financial benefit.
2. If your plan has graded vesting based on length of employment, you’ll receive the portion of employer contribution that lines up with your length of your employment. If 50% of the employer contributions vest in one year and fully vests in two years, you won’t be entitled to employer contributions if you leave in the first year. You’ll be entitled to 50% of employer contributions if you leave between one year and two years. You’ll be entitled to the full financial benefit the day after two years.
3. If your plan has cliff vesting, and the cliff is one year, you won’t be entitled to employer contributions if you leave before you hit your one-year anniversary, but after that, you’ll be entitled the full financial benefit.

To illustrate, assume your an employee that earns $90,000 and your enrolled in a group RRSP that matches 50 cents per dollar up to 5% of your salary, with a two-year cliff vesting schedule on the employer’s DPSP contributions. After two years, total RRSP contributions before investment returns could reach approximately $13,500 — the employee’s $9,000 plus $4,500 in employer match. But if that employee left at month 23, they would take only their own $9,000. The full employer match would be forfeited.

Keep in mind that regardless of your employee’s plan, your own contributions are never subject to vesting — only the employer’s portion can be forfeited. Always read your plan documents to understand which structure applies to you.

Why are so many Canadians not capturing the full match?

There are four common reasons why Canadian employees leave money uncollected.

They never opted in. In most group RRSP plans, enrolment is not automatic. According to Benefits Alliance, automatic deductions are necessary to trigger the employer match — a lump-sum contribution made separately usually won’t qualify.

They contribute below the match cap. If the employer matches up to 5% of salary and the employee contributes 2%, the employer only matches 2%. The remaining 3% of the potential contribution match goes unclaimed.

They didn’t wait out the vesting period. Employees in plans with DPSP-based matching who leave before their vesting date forfeit the employer’s portion — sometimes worth thousands of dollars.

They didn’t know the match exists. The 2024 HOOPP survey found that 22% of employers don’t offer any retirement benefit — but among those who do, group RRSPs were the most commonly introduced or improved benefit in 2024 (57%). The key is to stay informed of employee benefits and to sign up as soon as plans are offered (or change).

What should you do right now?

Start by finding out what your employer actually offers. Check your employment contract, your employee benefits portal or ask human resources directly. If a group RRSP exists, ask four questions: What is the match formula? What is the maximum match as a percentage of salary? Is there a vesting schedule, and if so, what type? Are employer contributions deposited to the group RRSP or a DPSP?

If you’re not enrolled, opt in. Complete the payroll deduction authorization with your HR department to trigger the employer match. Then confirm your contribution rate is at least equal to the cap — anything less leaves matching money on the table.

Before increasing your contribution, verify your personal RRSP deduction limit through your CRA My Account or your most recent Notice of Assessment. Your employer’s contributions count toward your room, so adding both without checking can trigger an overcontribution penalty.

Bottom line

No brokerage account, no market timing decision and no investment product in Canada offers a built-in return equivalent to a dollar-for-dollar employer RRSP match. Capturing it fully is the most straightforward retirement decision most Canadian workers will ever face.

Posts circulating online claim that hackers can lift your fingerprint from a high-resolution photo — a close-up selfie, a victory sign, a hand holding a receipt, even a wave — and then replicate it using AI. From there, the worry is they could use that fingerprint data to break into biometric-secured devices and accounts, or fuel identity theft and phishing attacks.

Unlike a password, you can’t change your biometric data — your fingerprint, face, retina or voice.

Could it really happen to you?

“This sounds like the stuff out of spy novels or Mission: Impossible,” said Carnegie Mellon University professor Vyas Sekar to CBS News. “In theory, it’s possible, especially if people are posting high-resolution images.”

Still, Sekar noted for a bad actor to put stolen biometric data to use, they would also need access to a device that requires a fingerprint scan — like your phone or laptop. A more likely target is a “high-value” individual, such as someone with access to a high-security facility.

That isn’t entirely theoretical. In 2014, Jan Krissler of the European hacker network Chaos Computer Club used photos of then-German defence minister Ursula von der Leyen — now President of the European Commission — to recreate her fingerprint.

While the average person isn’t likely to be targeted for fingerprint extraction, Canadian cybersecurity officials are raising concern about a wider pattern of AI-assisted biometric fraud.

In June 2025, the Canadian Centre for Cyber Security (CCCS) — a part of the Communications Security Establishment Canada — issued a joint advisory warning Canadians of an active campaign where malicious actors were using AI to impersonate high-profile public figures. The advisory noted that Canadian officials had “recently become aware of similar tactics targeting Canadians in a related or linked campaign” to one the FBI was already tracking.

The stakes here are real. According to the Canadian Anti-Fraud Centre (CAFC), Canadians reported a record $704 million in fraud losses in 2025 — and that figure represents only an estimated 5% to 10% of actual incidents. Identity fraud was the most commonly reported fraud type, accounting for 8,403 cases.

Consolidate your debt and simplify your life. Click here to find a no-annual-fee card that offers 0% interest for up to 12 months.

Common scams to watch out for

Hackers don’t need a copy of your fingerprint to target you. Other types of attacks — voice cloning and AI impersonations, in particular — are far easier to pull off and have already hit Canadians hard.

“It’s already possible to go online and learn how to make a convincing deepfake, based on a mere three seconds of recorded audio of someone’s voice — using off-the-shelf, publicly available software,” according to KPMG Canada. “On top of this, there is an emergence of ‘deepfake-as-a-service’ as a lucrative market on the dark web.”

The KPMG Canada Business Fraud Survey, conducted in February 2026 among 251 Canadian companies by the Angus Reid Group, found that 81% of businesses that have been defrauded say generative AI was used in the attack. The most common AI attack methods identified were AI-generated phishing emails and chats (60%), deepfakes and manipulated documents (39%) and voice-clone calls imitating executives (24%).

The CCCS’s National Cyber Threat Assessment 2025-2026 backs up this trend, noting that AI is helping to create attacks that are both personalized and persuasive. Publicly reported AI-generated harm incidents in Canada grew from 36 cases in 2022 to 107 in 2023.

Scams also tend to spike during the summer travel season. According to Norton’s threat intelligence team, “People are understandably distracted, spending more on travel and tickets, tapping confirmation links without a second look.”

“Voice cloning has made phone-based imposter scams harder to detect, and deepfake technology has made romance fraud and investment schemes more convincing,” according to Norton.

A trending scam to be aware of this summer is reservation hijacking, where fraudsters use lookalike booking platforms to steal your reservation details — then trick you into surrendering payment information. Because the scammer has your real reservation number, the approach can look completely legitimate.

Other active scams include:

• Fake tickets for sold-out concerts, festivals and sporting events
• Fake gambling sites tied to major events
• Crypto and investment scams
• Tech support scams
• AI romance scams

How to protect your data

The best way to protect your data is using a combination of healthy digital habits and technical safeguards.

Start with your social media. Avoid posting close-up photos that clearly show your fingertips or palm details — peace-sign selfies are a particular risk. Review your privacy settings on all platforms and limit the amount of personal information you share publicly.

Take advantage of multi-factor authentication (MFA) on all your important accounts. MFA requires two or more forms of verification — for example, a password and a one-time code sent to your phone — so that a stolen password (or replicated fingerprint) alone isn’t enough to break in.

Use a strong, unique password for every account. Anti-malware software, spam filters and caller ID protection add further layers of defence. Keep all software and operating systems updated with the latest security patches.

Be cautious of unsolicited calls, emails or texts asking for your personal or financial information — including your Social Insurance Number (SIN). Your SIN is described by cybersecurity experts as “the master key to our identity in Canada.” Guard it carefully: You’re legally required to share your SIN only with employers, some financial institutions — for interest-bearing accounts, for example — and specific government programs.

“Instead, contact them using a website you know is trustworthy. Or look up their phone number. Don’t call a number they gave you or the number from your caller ID,” advises the CAFC.

Don’t click on suspicious links in unsolicited messages, and hang up on suspicious calls even if the phone number looks legitimate — numbers can be spoofed. And if someone insists you pay with cryptocurrency, a wire transfer, a payment app or gift cards, treat that as a serious red flag.

What Canadians can do right now

If you suspect you’ve been targeted or victimized by online fraud or a cyber scam, here are your Canadian-specific next steps:

• Report to the CAFC and the RCMP’s National Cybercrime Coordination Centre (NC3) using the new centralized Report Cybercrime and Fraud portal at reportcyberandfraud.ca, or call 1-888-495-8501. You can report anonymously. Even if you weren’t a victim but witnessed a scam, a report helps law enforcement track trends and prevent future fraud.
• Contact your local police. File a police report and keep the report number for your records.
• Alert your bank and credit card providers immediately if you believe any financial accounts may be compromised.
• Contact Canada’s two main credit bureaus — Equifax Canada (1-800-465-7166) and TransUnion Canada (1-800-663-9980) — to place a fraud alert on your credit file.
• If your SIN may have been compromised, contact Service Canada (1-800-622-6232) and the Office of the Privacy Commissioner of Canada to report the breach and learn your options.
• Report spam and electronic threats (phishing texts, fraudulent emails) to the Spam Reporting Centre at fightspam.gc.ca, which enforces Canada’s Anti-Spam Legislation (CASL).

The best time to set up these protections is before you need them. Reviewing your privacy settings, activating multi-factor authentication and knowing who to call if something goes wrong takes minutes — and could save you far more than money.

It’s a question that many cash-comfortable retirees quietly wrestle with. And it’s one worth taking seriously: as Canadians are living longer, even those in their 70s and 80s need to keep thinking about whether their money is still working for them.

The hypothetical scenario above — a couple, both 75, with $1.5 million in a registered investment account and $500,000 sitting in a high-interest savings account or cash equivalent, plus a pension — may look well-off on paper. But is that half-million sitting idle actually making the situation better? Financial advisors say: probably not.

Keeping $500,000 in the bank isn’t putting needed money to work

When cash accumulates in savings without a clear purpose, it tends to lose its value quietly over time — and inflation is the culprit. Canada’s Consumer Price Index (CPI) rose 2.1% on an annual average basis in 2025 according to Statistics Canada, and while that pace is relatively moderate, the compounding effect on a large cash balance over 10 to 20 years is significant.

“Cash is important in retirement, but too much can become a problem,” says Stacey Stark, founder of Aurelia Capital Advisors. “Cash provides stability and liquidity, but inflation can erode purchasing power over time. Most retirees benefit from balancing cash reserves with investments that help maintain long-term growth and income.”

In Canada, the most common vehicle for keeping large cash balances is a high-interest savings account (HISA) or a Guaranteed Investment Certificate (GIC). As of June 2026, the best GIC rates in Canada range from 2.45% to 4.05% for 1- to 5-year terms, while HISA rates range from 0.15% to 4.50% depending on promotional offers. Even at the higher end, these rates barely keep pace with inflation and offer little in the way of long-term growth.

How long do Canadians actually live? The numbers may surprise you

One reason some retirees underestimate how much they need is that they also underestimate how long they’ll need it. According to StatCan, in 2023 a Canadian woman aged 65 could expect to live another 22.3 years, with a Health-Adjusted Life Expectancy (HALE) of 15.8 years. A man the same age could expect another 19.7 years and a HALE of 14.7 years. That puts average life expectancy at age 65 well into the mid- to late 80s.

For a couple both aged 75, the planning horizon isn’t five years. It may be 15 or 20. That’s long enough for inflation to substantially erode the real value of a $500,000 cash position, and long enough to benefit meaningfully from a more diversified approach.

The Canadian context: RRIF rules, CPP and OAS

For Canadian retirees, the stakes around cash management are shaped by a distinct set of rules and income sources.

Most significantly, anyone who converted their Registered Retirement Savings Plan (RRSP) into a Registered Retirement Income Fund (RRIF) must make minimum annual withdrawals, whether they want to or not. The Canada Revenue Agency (CRA) sets the prescribed withdrawal factor by age. At 75, the factor is 5.82%, meaning a $500,000 RRIF would require a minimum withdrawal of $29,100 that year. These withdrawals are fully taxable as income.

This matters for cash planning: retirees with large RRIFs are already being required to draw down registered savings. Holding an additional $500,000 in non-registered cash — especially when it’s earning less than inflation — may represent a missed opportunity to either reduce the tax hit on RRIF income or to deploy capital more efficiently.

On the income side, Canadian retirees at 75 are likely already receiving Canada Pension Plan (CPP) and Old Age Security (OAS) payments, both of which provide a reliable baseline of guaranteed income. With those government sources and potentially a pension, a large cash reserve becomes even less critical as a day-to-day safety net.

What to do instead: put the cash to work, strategically

For older retirees sitting on large cash reserves, you may want to consider allocating a portion to a long-term care insurance policy. In Canada, long-term care insurance (LTCI) helps pay for care services that provincial health care doesn’t cover — things like home support workers, assisted living or nursing home stays. In 2021, the Canadian Medical Association estimated that the combined annual cost of long-term care and home care in Canada would reach $58.5 billion by 2031, and yet most Canadians have no financial plan to cover it.

Long-term care insurance premiums are not tax-deductible for individuals in Canada — they cannot be used to reduce your taxable income. However, premiums paid for qualifying plans may be claimable under the Medical Expense Tax Credit (METC), which reduces the tax you owe rather than your income directly. As for the benefits paid out: if you purchased the policy personally and paid premiums with after-tax dollars, the benefits are generally received tax-free. If an employer paid the premiums on your behalf, the benefits would typically be taxable income. Always consult a tax professional, as your specific policy and situation will determine the tax treatment.

For Canadian retirees who want predictable income without worrying about market performance, a joint life annuity — one that continues paying as long as either spouse is alive — can be a powerful complement to CPP and OAS. The remainder could be kept liquid for unexpected expenses.

For cash that isn’t earmarked for a specific purpose, Canadian retirees might consider alternatives that offer better returns without requiring a long investment horizon: GIC ladders (spreading cash across GICs with different maturities, typically 1 to 5 years, to maintain rolling liquidity), conservative dividend-paying Canadian equity exchange-traded funds (ETFs), or Canadian corporate bonds held inside a TFSA, where interest income is sheltered from tax.

What Canadians can do: 5 steps to make retirement cash work harder

If you’re holding more cash than you need in retirement, consider these steps:

• Know your RRIF floor. If your investment accounts are held in a RRIF, calculate your annual minimum withdrawal obligation using the CRA prescribed factor for your age. This is money you must take out each year regardless — so plan around it.
• Map your income against your needs. Add up your guaranteed income sources: CPP, OAS, any workplace pension and RRIF minimums. If your basic expenses are covered, the argument for holding $500,000 in cash weakens significantly.
• Consider a GIC ladder. Instead of leaving large sums in a savings account, spread cash across GICs with staggered maturities (1, 2, 3, 4 and 5 years). This gives you predictable returns and rolling access to funds without locking everything in at once.
• Explore long-term care insurance. Canada’s public health system covers basic medical care, but not the full cost of personal care, home support or a private nursing home room. An LTCI policy can protect your retirement savings from being depleted by care costs — and your heirs from inheriting a reduced estate.
• Talk to a fee-only financial advisor. If emotional factors are driving your cash position, a fee-only planner (one who doesn’t earn commissions on products they recommend) can help you develop a withdrawal and allocation strategy that feels safe while also working smarter.

The report, released by Canadians for Tax Fairness, takes a deep dive into how extreme wealth is distributed across the provinces. While we often talk about the national economy, this provincial breakdown reveals that where you live in Canada plays a massive role in how wealth inequality impacts your financial security.

For years, official data from Statistics Canada has obscured the extreme wealth held by the ultra-wealthy because it only tracks wealth by decile (groups of 10%). By combining this data with the Forbes billionaire lists, researchers were able to get a much clearer picture of the true wealth gaps across the country.

The findings are stark. Across Canada, the wealthiest 1% of families controlled $3.7 trillion in 2023. That is nearly a quarter of all wealth in Canada, and it represents a staggering $3 trillion increase since 1999.

How your province stacks up

Depending on how you measure it, different provinces can claim the title of the most unequal region in the country.

If you look strictly at the raw numbers, Ontario is the undisputed hub for Canada’s ultra-rich. The province is home to 38 billionaire families, which represents 44% of the country’s total billionaire population of 86 families. Ontario also boasts 1,570 centi-millionaire families (those with a net worth of at least $100 million) and 51,360 deca-millionaire families (with a net worth over $10 million).

When it comes to pure averages, Ontario’s wealthiest 0.01% of families hold an average of $546 million. British Columbia is next with an average of $501 million, followed by Quebec at $408 million and Alberta at $393 million.

However, the story changes when we look at the share of total wealth held by the ultra-wealthy within each province. Alberta actually leads the country, with the wealthiest 1% controlling 25% of the province’s total wealth. Quebec follows closely behind at 24.6%, while Ontario sits at 22.3% and British Columbia ranks near the bottom at 20%.

The contrast between the average wealth numbers and the overall shares comes down to real estate.

In British Columbia and Ontario, astronomical housing prices have lifted the net worth of the typical middle class family. Because a home is the primary financial asset for most Canadians, these high property values pull up the median family wealth to $632,000 in British Columbia and $500,000 in Ontario. This mathematically lowers the total share held by the top 1%. In contrast, lower homeownership rates in Quebec depress the wealth of the typical family, leaving the median family wealth at just $286,000 and giving the ultra-wealthy a larger piece of the provincial pie.

Turn your home equity into your financial safety net. Are "invisible" costs making your budget feel tight? A reverse mortgage could be the key to unlocking tax-free funds, allowing you to stay in the home you love while boosting your monthly cash flow.

The true scale of the divide

To truly understand how this impacts the broader financial landscape, it helps to look at the gap between the highest earners and those struggling to get by.

While a tiny handful of families have accumulated immense fortunes, millions of Canadians are completely left out of the wealth accumulation cycle. To put it in perspective, while just 3,380 Canadian families have accumulated at least $100 million in wealth each, a staggering 4.4 million people lived in families below the poverty line, with the greatest number living in Ontario.

The report highlights this stark contrast by comparing the number of deca-millionaire families against the population living below the Market Basket Measure, which is Canada’s official poverty line. In Ontario, while 51,360 families hold more than $10 million in wealth, over 1.9 million people have incomes insufficient to meet their basic needs. In Quebec, 18,710 families have a net worth above $10 million, while 686,500 people fell below the poverty line in 2023.

What this means for your money

At first glance, the wealth of billionaires may feel disconnected from your daily financial life. However, extreme wealth concentration directly influences the broader economy, affecting everything from property values to public services.

The hoarding of wealth means there is less capital circulating to support the financial security of the average citizen. It also alters the political and economic landscape, creating a system where a small group of individuals holds significant influence over jobs, investments and economic policies.

The authors of the report point out that this concentration represents a major missed opportunity for public investment. The fiscal resources needed to fund a national pharmacare program, to transition to renewable energy and to develop mass non-market housing exist. Implementing targeted wealth taxes could unlock billions in revenue to fund these programs, which would directly ease the cost of living burdens for everyday Canadian households.

While opponents of wealth taxes often argue that the ultra-rich will simply leave the country, the report notes that millionaire flight in response to changes in tax policy is wildly overblown by the media. The actual scale of such movements is extremely small.

For the average Canadian trying to navigate high housing costs and general affordability pressures, the report is a clear reminder that the macroeconomic playing field is heavily tilted. Building personal financial security requires recognizing these structural realities and advocating for economic policies that keep more wealth in the hands of the middle class.

For most middle-class and higher-earning Canadians, this isn’t a cash-flow problem; it’s a sequencing problem. And one of the most cited pieces of financial advice addresses it directly. Speaking at a Berkshire Hathaway annual meeting, Warren Buffett framed it this way: “Do not save what is left after spending, but spend what is left after saving.”

High-earning Canadians are among the worst offenders. As income climbs from $80,000 to $120,000 to $200,000 and beyond, spending tends to match it. The Canada Revenue Agency (CRA) sets annual limits on registered retirement savings account contributions — in 2025, $32,490 for registered retirement savings plans (RRSPs) and $7,000 for tax-free savings accounts (TFSAs) — that most high earners are not fully using. The opportunity cost is substantial.

One way to follow Buffett’s ‘pay yourself first’ is to automate contributions to savings plans before discretionary spending is possible. This turns it into a savings plan and not a willpower solution. It’s a structural solution to a cash-sequencing problem — and the mechanics are simple enough to put in place this week.

Are you in a profession that puts you in the top tax bracket? Then you need to work with fintech and finance companies that know your needs. For instance, eligible professionals can unlock up to $1,313 in annual savings when banking with National Bank. This special offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies

What is lifestyle creep — and why does income make it worse?

Lifestyle creep is the gradual normalization of higher spending as income rises. It is not one large decision. It is a pattern of small upgrades that become baseline: the neighbourhood, the vehicle, the vacation, the kids’ activities. Each is individually defensible. Together, they absorb the raise before it ever reaches a savings account.

The trap is tightest at income levels where Canadians feel financially stable but have not yet locked in a savings habit. A $9,000 annual RRSP contribution, started at age 35 and earning a modest 6% annually, reaches roughly $357,000 by age 65. The same contribution starting at 45 reaches about $126,000. The decade of delay costs more than money — it costs the time that makes compounding work, when your money isn’t just saved but works to earn, as well.

In this hypothetical example, the numbers illustrate the cost of deferral. For precise projections, a licensed financial planner can model outcomes based on individual income, marginal tax rate and investment horizon.

Ready to watch your savings grow? Check out the best HISA providers in Canada, including no-fee options and high-yield promotional offers. Eligible professionals can unlock more than $1,000 in annual savings when banking with National Bank. The bank’s current offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies

How does automation actually work — and why does it matter?

The mechanics are straightforward. Most Canadian financial institutions and online brokerages allow pre-authorized contribution plans that pull a set dollar amount from a chequing account on a schedule — weekly, bi-weekly or monthly. The key is timing: The transfer should be set for the day after the paycheque clears, not the day before rent is due.

When the contribution leaves before discretionary spending is possible, it is no longer a decision. It becomes infrastructure. The remaining cash can be used for spending which tends to produce more disciplined choices.

For RRSP contributions, employer group plans with payroll deductions accomplish the same result. For TFSAs, the automation typically requires a small amount of setup at a bank, credit union or brokerage, but most platforms offer it as a standard feature. Many robo-advisors make recurring contributions a core part of onboarding.

How much should Canadians at each income level target?

There is no universal savings rate, but the following framework — framed as a starting point, not advice — reflects commonly cited guidance from financial planners working with salaried professionals:

Income between $80K and $100K: At this level of income, a combined RRSP and TFSA contribution target of 10% to 15% of gross income is a reasonable baseline — roughly $8,000 to $15,000 per year.

Income between $100K and $150K: A target of 15% to 20% is more commonly recommended, particularly where employer pension coverage is limited or absent.

Above $150K: Above $150,000 and especially above $200,000, full RRSP room utilization becomes a meaningful tax-reduction strategy in the current year, in addition to the long-term savings benefit. For instance, the 2025 RRSP limit of $32,490 allows a $150,000 earner to shelter roughly 22% of gross income from tax — assuming their individual deduction room supports it. A licensed financial adviser can confirm your personal deduction room through your CRA Notice of Assessment.

The TFSA is complementary rather than competing. Since a TFSA contribution does not produce a current-year deduction, but withdrawals are tax-free at any point. For Canadians who have been eligible since 2009 and have never contributed, the accumulated room has reached $109,000 in 2026.

Get your money working for you. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you're building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Compare discount brokerage accounts or check out Questrade, the online brokerage that combines low-cost investing with powerful research tools. Open an account and pay $0 commission on stock and ETF trades, plus new customers get up to $500 using code GET500. (Offer ends July 23, 2026.) Start investing with Questrade

What to do before the next paycheque clears

To take advantage of automated contributions and to build a savings habit, you need to take three actions, roughly in order of immediacy:

First, confirm your RRSP deduction limit. It appears on your most recent CRA Notice of Assessment or in your CRA My Account portal. This is the ceiling for your current-year contribution, adjusted for any pension plan participation.

Second, set a recurring transfer for the day after your direct deposit lands. Start with an amount that would not require reducing any essential fixed expense — even $200 bi-weekly adds up to $5,200 per year, a meaningful contribution at most income levels.

Third, revisit the amount at every income change. A raise is the best moment to redirect a portion of new income before it becomes baseline spending. Redirecting even half of a raise to registered accounts avoids lifestyle creep while allowing some real improvement in day-to-day life.

The sequencing is the strategy — a strategy that closely adheres to Buffett’s advice to pay yourself first. Spend what’s left after saving — not the other way around.

5 steps to automate a savings habit

1. Check your RRSP room: Log into CRA My Account or check your Notice of Assessment to confirm your deduction limit for 2025.
2. Set the automation today: Contact your bank or brokerage to schedule a pre-authorized RRSP or TFSA contribution for the day after your next paycheque.
3. Start small if needed: A $200 bi-weekly contribution is $5,200 per year. Starting below your target is better than not starting.
4. Redirect raises immediately: When income increases, adjust automated contributions before spending adjusts. Redirect at least half of any raise to registered accounts.
5. Review annually: Check contribution room each January. Unused RRSP room carries forward; unused TFSA room does too. Neither expires.

Prime Minister Mark Carney delivered a landmark speech urging the world’s middle powers to band together, arguing that countries like Canada could build a new economic order by cooperating rather than competing. Carney’s statement was bold, well-received and immediately hailed as a watershed moment for Canadian foreign policy.

But when Dimon was asked about it, his response was blunt: “It’s a fantasy. They did that, it’s called Europe.” He continued by stating: “The GDP of Europe has gone from 90% of America[‘s GDP] to 70%. And in our view, it will probably continue to erode over time because [of] high taxes.”

Europe as the cautionary tale

Dimon didn’t leave it there. He explained that Europe’s gross domestic product (GDP) — the total monetary value of all finished goods and services produced within a country — will continue to decline due to high taxes and regulatory fragmentation. Dimon argued that these factors are a structural drag that no amount of coalition-building can easily overcome.

He was also clear that the European experience is a pointed lesson for Canada.

Carney’s middle powers strategy envisions closer economic ties with the European Union, India, Japan, Australia and others — explicitly modelled, in part, on the kind of bloc-building that the EU was supposed to represent. For Dimon, if Europe itself is losing economic ground, the strategy’s foundation deserves scrutiny.

To be clear, Dimon is not dismissing Canada or Carney personally — he said plainly at Davos, “I have a lot of respect for Carney.” But respect and agreement are two different things. And the stakes of this disagreement land directly in your portfolio.

Get your money working for you. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you’re building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Compare discount brokerage accounts or check out Questrade, the online brokerage that combines low-cost investing with powerful research tools. Open an account and pay $0 commission on stock and ETF trades, plus new customers get up to $500 using code GET500. (Offer ends July 23, 2026.) Start investing with Questrade

What this means for Canadian investors

Canada’s economy is deeply tied to the U.S. — roughly 66% of Canadian merchandise exports go south of the border. And Carney’s government has made diversification the centrepiece of its economic agenda by establishing new trade deals with China, Qatar, the EU and others, as well as trade negotiations with India, the Association of Southeast Asian Nations (ASEAN) and Mercosur.

If those partnerships mature and deliver, then Canadian companies — and by extension, Canadian portfolios — will gain new revenue streams and reduce vulnerability to U.S. policy swings. That’s the bull case for the strategy.

The bear case, which Dimon is essentially making, is that middle-power coalitions are harder to build and sustain than they appear, and that the economic gravity of the U.S. is not easily replaced. If the diversification effort underdelivers, Canada could end up with strained U.S. relations and disappointing returns from new partnerships — the worst of both worlds.

Dimon has a well-documented history of sounding economic alarms — from warning of a “hurricane” in 2022 to flagging market complacency at Davos — earning him a reputation among some observers as Wall Street’s most prominent pessimist.

Take control of your finances. Taking a hands-on approach to your financial future can be a rewarding way to manage your wealth. Self-directed investing accounts give you direct control over your assets, providing the tools and resources needed to make informed decisions while keeping fees manageable. For instance, a self-directed investing account with CIBC Investor’s Edge gets you access to investor tools, low fees, and control over your future. Plus, enjoy unlimited commission-free trades on over 180 select ETFs and get 200 free trades when you open a CIBC Investor’s Edge account using promo code EDGE2026. Terms and conditions apply. Offer ends September 30, 2026.

The market risk hiding in plain sight

Dimon also flagged a concern that applies directly to any Canadian investor with exposure to bonds or equities: Market complacency.

At Davos, he noted that markets appear to be underpricing the risk of further U.S. interest rate hikes — he put the odds significantly higher than the consensus — citing inflationary pressure from tariffs, persistent budget deficits and immigration policy.

Higher U.S. rates ripple into Canadian markets quickly. They put upward pressure on the Bank of Canada’s rate decisions, affect bond valuations and dampen equity multiples. For Canadian investors holding a mix of domestic equities and bonds in a registered retirement savings plan (RRSP) or tax-free savings account (TFSA), this matters.

Are you in a profession that puts you in the top tax bracket? Then you need to work with finance companies that understand your needs. For instance, eligible professionals can unlock up to $1,313 in annual savings when banking with National Bank. This special offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies

What you can do now

You don’t need to pick a side in the Dimon-Carney debate to take useful action. The underlying message from both perspectives is the same: The world is more uncertain, and portfolios built for a stable, U.S.-anchored global economy may need to be stress-tested for a different reality.

Here are a few things worth considering:

Review your geographic exposure. If your equity portfolio is heavily weighted toward Canadian stocks or U.S. equities with no meaningful international diversification, consider whether that reflects a deliberate view or simple inertia.

Check your bond duration. In a higher-rate environment — which Dimon considers more likely than markets do — longer-duration bonds lose more value. Short-duration bonds or bond funds may offer more resilience.

Consider low-cost, globally diversified ETFs. Products like Vanguard’s VBAL or iShares XBAL hold a mix of Canadian, U.S. and international equities and bonds in a single fund, providing built-in diversification without requiring active management.

Don’t confuse political optimism with investment strategy. Canada’s trade pivot may ultimately succeed — but it hasn’t yet, and building a portfolio that requires it to do so is a concentrated bet on a geopolitical outcome.

Get your money working for you. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you’re building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Find the ideal discount brokerage account

Dimon ended his Davos remarks with a line that applies as much to investors as to policymakers: “America First is fine as long as it isn’t America alone.” For Canadians, the corollary might be: Canada’s resilience is worth building — but don’t bet the portfolio on it before the strategy proves itself.

Immigration, Refugees and Citizenship Canada (IRCC) has reduced its permanent resident admissions target to 395,000 in 2025, down from approximately 483,000 in 2024, a reduction of over 18%. The target falls further to 365,000 in 2026. And for the more than three million temporary residents believed to be currently living in Canada, the change could have meaningful financial implications.

What the new immigration caps mean for your PR timeline

The lower targets do not affect every immigration stream equally. Express Entry, Provincial Nominee Programs (PNPs), and family sponsorship streams each have their own allocations, and IRCC adjusts those independently.

What the lower overall target does mean is that competition for available spots may increase, and some applicants could face longer waits than they originally expected.

Processing times already vary significantly across programs. Some economic-class applicants still receive decisions within six months, while others wait much longer. For now, it makes sense to treat your expected PR date as a range rather than a fixed deadline and build your financial plans accordingly.

The IRCC publishes processing-time estimates by application type on its website. Checking those estimates is still the best way to track changes that could affect your application.

What financial products can you access without PR status?

If you’re a newcomer awaiting permanent residency, the good news is that you can still access many financial accounts and benefits as a temporary resident, including the following:

Registered Retirement Savings Plan (RRSP): Accessible to temporary residents who earn Canadian income and file a Canadian tax return. The contribution room is based on prior year earned income, so the earlier you start filing and contributing, the more room you accumulate.

Tax-Free Savings Account (TFSA): Any Canadian resident aged 18 or older with a valid SIN can open a TFSA account, regardless of immigration status. The contribution room accumulates for each calendar year you meet the residency conditions.

First Home Savings Account (FHSA): This account is open to any Canadian resident who is a first-time home buyer, regardless of whether they hold PR. Given the FHSA’s $8,000 annual contribution limit, consider opening this account as early as possible.

Mortgage qualification: Many Canadian financial institutions have specific mortgage programs for newcomers, including temporary residents. While the eligibility criteria can vary between institutions, you will likely require a valid work permit and verifiable full-time employment. While you may qualify without a Canadian credit history, you will likely have to fulfill other criteria, such as a larger down payment.

What about government benefits and supports?

According to the Canada Revenue Agency (CRA), you must be a resident of Canada for income tax purposes to receive any benefit or credit payment, both federal and provincial. However, even non-permanent residents who hold temporary residency qualify. That means if you have a valid school or work permit, or other temporary permit issued by IRCC, you qualify for government benefits.

The benefits available to non-permanent residents include the Canada Child Benefit (CCB) and the Canada Groceries and Essentials Benefit (formerly known as the GST/HST credit), and more. Note that not all benefits are available immediately upon your arrival in Canada, and each benefit has its own requirements. Make sure you check with the CRA for more details on the benefit you wish to receive.

How to build your credit score in Canada

Building credit in Canada while on a work or study permit is entirely possible, but it requires some planning.

One challenge for newcomers is that foreign credit histories generally do not transfer to Canada, so newcomers to Canada start with a blank credit file upon arrival. That said, building credit in Canada while on a work or study permit is possible, but you need to go about it the right way.

Consider starting with a secured credit card or another credit-building product. Use it regularly and pay the balance in full each month. Many major banks also offer newcomer banking packages that include easier access to entry-level credit products; just be aware that these can come with higher fees.

Bank smarter from day one. Whether you’re earning your first Canadian paycheque, saving for a home or building your financial future, compare newcomer bank accounts with low fees, welcome bonuses and everyday banking benefits. Or check out National Bank’s banking package for newcomers that includes a bank account with no fixed monthly fees for up to 3 years, along with additional services designed to help simplify the transition to life in Canada. For a limited time, eligible newcomers may also qualify for up to $600 cashback when opening and using eligible banking products and services. See offer page for more details. The offer is available to permanent residents, temporary workers and international students who have been in Canada for 5 years or less. Open an account today.

One mistake you’ll want to avoid is applying for multiple credit products at once. Every application generates a hard inquiry, which can temporarily lower your score. If your residency timeline isn’t yet settled, focus on building a longer, stronger credit history rather than opening multiple accounts.

The housing decision: Should you buy or rent while waiting for PR?

There is no simple answer as to whether you should buy or rent while still a temporary resident, but there are some practical guidelines you can follow.

If your work permit has less than two years remaining, many federally regulated lenders will view the application as higher risk, regardless of your income. The Office of the Superintendent of Financial Institutions (OSFI) requires lenders to assess a borrower’s ability to repay over the full mortgage term, and a permit that may expire before then complicates that assessment.

For many temporary residents still waiting for PR approval, renting while continuing to save for a down payment within a TFSA or FHSA may be the lower-risk option. Purchasing a home before PR is finalized can still be possible, but it often requires stronger income documentation, a larger down payment, and a lender who supports newcomer financing.

Every financial journey starts with the right account. Whether you’re new to Canada for work, school or a fresh start, compare banking options that offer low fees, welcome bonuses and the tools to help you build your financial future with confidence. For instance, National Bank’s newcomer package offers no fixed monthly fees for up to 3 years, plus access to everyday banking, TFSA, RRSP and FHSA options to help you save, invest and build your future. Eligible newcomers may also qualify for up to $600 cashback. See offer page for details. Open an account today.

If your permit renewal or PR decision is expected soon, speak with a mortgage professional to clarify your options before you make any major commitments.

What to do now

Even with reductions to Canada’s immigration targets, the fundamentals of good financial planning remain. If your expected PR timeline has shifted, it’s important to stay flexible and focus on the financial choices that are within your control:

• Check the current processing time for your specific immigration stream through IRCC, as timelines vary widely by program
• Open a TFSA and FHSA as soon as you have a valid SIN, since eligibility is generally based on residency rather than PR status
• Avoid major financial commitments, such as a home purchase or co-signing a lease, until you have greater certainty around your status in Canada
• Ask your bank about newcomer banking programs that can help you begin building credit without an extensive Canadian credit history

The bottom line is that you shouldn’t put your financial life on hold while waiting for permanent residency. Building credit, saving consistently, and taking advantage of the registered accounts available to you today can leave you in a much stronger position when your PR approval eventually arrives.

The plan was to eventually sell the family home, downsize and finally stop worrying about money. Instead, that plan fell apart after Derek’s father was pulled into an investment opportunity via WhatsApp.

The pitch came from a woman named “Tanya.” In hindsight, her proposal was full of glaring red flags: guaranteed returns, fast growth and claims that turning a few hundred thousand dollars into millions was not only possible, but entirely “safe.”

By the time Derek found out, roughly $250,000 had already been wired out of his parents’ retirement savings. His father hadn’t asked many questions. He hadn’t verified the opportunity. And critically, he hadn’t told Derek’s mother.

Now Derek is left picking up the pieces — and trying to prevent things from getting worse. While this is a hypothetical situation, it has real-world resonance that many Canadians can relate to, especially those past the age of 60 — here’s why.

What to do if a scam drains retirement savings

Once money has been wired out of an account, it is usually very difficult to get back — though there are rare cases where quick action can still help.

The first step is to contact the bank or financial institution involved as quickly as possible. In some instances, they may be able to flag the transfer as suspicious, attempt to recall the wire, or place a temporary hold if anything is still in motion. There are no guarantees, but moving fast can improve the chances of limiting further damage.

In cases like Derek’s, a family member stepping in directly can be critical. If his parents are open to it, Derek may be able to work with the bank to add himself as a Trusted Contact Person (TCP) on their investment accounts. The TCP is a formal Canadian regulatory mechanism, introduced by the Canadian Securities Administrators (CSA) in 2022 under National Instrument 31-103, that allows a financial advisor to reach out to a named person if they suspect a client is being exploited or is experiencing diminished capacity. Importantly, a TCP does not have power of attorney or any authority to make account changes. Their role is simply to be a point of contact when something seems off.

Wire transfers move quite fast. Once they’ve fully cleared, they are often difficult to reverse — especially if funds have crossed borders. That’s why fraud experts stress acting in hours, not days.

It is also important to formally report what happened. In Canada, that means filing a report with local police and the Canadian Anti-Fraud Centre (CAFC), which is jointly managed by the RCMP, the Competition Bureau and the Ontario Provincial Police (OPP). The CAFC can be reached toll-free at 1-888-495-8501 or through its online Fraud Reporting System. Even if the money cannot be recovered, having an official record supports bank investigations and may assist any follow-up action. Victims can also report to their provincial securities regulator through the Canadian Securities Administrators.

From there, the focus usually shifts to protecting whatever savings remain. For Derek, that can mean working with his parents to tighten account access, lower transfer limits, add extra approval for large withdrawals and block new payees or external wire transfers. When retirement savings held in registered accounts — such as Registered Retirement Savings Plans (RRSPs), Registered Retirement Income Funds (RRIFs), or Tax-Free Savings Accounts (TFSAs) — are involved, advisors often recommend keeping long-term funds separate from accounts that are easier to access. This adds an extra layer of protection when pressure or manipulation enters the picture.

Don’t let inflation eat your savings. Browse the best high-interest accounts for 2026 and open an account in minutes to start earning interest daily.

Why ‘guaranteed return’ scams are so effective

What happened to Derek’s family is not unusual. It is part of a much larger, increasingly sophisticated fraud ecosystem that is becoming harder to spot in real time.

Investment scams were the costliest category of fraud in Canada in 2025, accounting for $351 million of the over $704 million in total reported fraud losses, a nearly 300% increase since 2020, according to the Canadian Anti-Fraud Centre (CAFC). There were 4,409 investment fraud cases reported to the CAFC in 2025 alone.

The real numbers, however, are almost certainly far worse. Only 5% to 10% of fraud incidents are ever reported in Canada, according to research from McMaster University and Statistics Canada cited by the RCMP. That means reported losses represent only a fraction of the true financial harm.

To make matters worse, older Canadians are disproportionately targeted, with those aged 60 and older absorbing approximately 40% of all fraud dollar losses in 2024, despite representing roughly 23% of the population. The reason is straightforward: they tend to hold more accumulated savings — often in registered retirement accounts — and fraudsters know it.

That said, age alone is not the deciding factor. According to the CSA’s 2024 Investor Index, 46% of Canadians report encountering investment opportunities on social media, and 23% say they have been approached with what they believe was a fraudulent investment. It usually comes down to timing, trust and the circumstances someone is in. These scams tend to follow a consistent psychological “playbook”:

• Secrecy pressure: Victims are told not to mention it to a spouse, family member, or financial advisor — cutting off the chance for a second opinion.
• Urgency: There is always a rush. The opportunity will “disappear” if the victim doesn’t act immediately.
• Authority mimicry: Scammers pose as experienced brokers, advisors, or successful investors to build trust quickly.
• Social proof: Fake testimonials, screenshots, or fabricated dashboards are used to make everything look legitimate and “proven.”

Once trust is established, these scams often don’t move all at once — they build slowly. Victims may start with smaller transfers that feel manageable before being pushed toward larger and larger amounts, until the account is eventually drained.

The CAFC has also warned about repeat targeting. People who have previously been scammed are often approached again, sometimes by completely different groups that have acquired or traded their information. That is part of what makes cases like Derek’s so difficult. The money is gone — but what takes longer to untangle is everything around it: how the trust was established, why it wasn’t questioned sooner and how easy it is in the moment to believe that one more transfer might still turn things around. For many families, that emotional damage lingers long after the financial loss is tallied.

What Canadians can do to protect themselves and their families

Derek’s story is painful precisely because it is so preventable in hindsight. Here are concrete steps Canadians can take to reduce the risk for themselves or an aging parent:

• Designate a Trusted Contact Person (TCP). Anyone with an investment account in Canada should name a TCP — a person their financial advisor can contact if they suspect exploitation or diminished capacity. The TCP has no account access but provides a critical safety check. Ask your advisor or investment firm to add one today.
• Know the red flags of investment fraud. Guaranteed high returns, time-sensitive pressure and requests for secrecy from a spouse or advisor are almost always warning signs. Canada’s securities regulators are unambiguous: legitimate investments do not come with guaranteed returns.
• Keep registered retirement savings protected. Treat your RRSP, RRIF and TFSA as funds with an added layer of friction. Set up extra verification steps or lower transfer limits so that large, unusual withdrawals require additional approval.
• Talk about money with family. The secrecy that surrounded Derek’s father’s transfers was central to the scam’s success. Open, regular conversations about finances — without judgment — are one of the most effective defences against fraud.
• Report it. Whether money was lost or not, reporting suspected fraud to the CAFC (1-888-495-8501 or antifraudcentre.ca), local police and your provincial securities regulator helps authorities track patterns, warn others and build cases. Many fraudsters are stopped because earlier victims came forward.

Fraud doesn’t discriminate. It targets the careful and the careless, the tech-savvy and the unfamiliar. What it consistently exploits is trust — and the belief that this time, the opportunity is real.

Companies including Anthropic and OpenAI lured firms in with flat-rate fees and monthly subscriptions. Now they’re pivoting to pay-as-you-go plans, with usage calculated in units called tokens. And this token-based pricing doesn’t add up to “token” amounts: We’re talking figures that rival many full-time salaries. And with roughly 60% of Canadian workers employed in jobs considered highly exposed to AI-driven job transformation, the question of whether AI actually saves money matters here at home.

The real cost of AI tokens

Arvind Jain is the chief executive officer (CEO) of Glean, a firm that provides businesses with AI and cloud computing support. He told CNBC this situation is not only unexpected, but unprecedented.

“This is the first time ever that I can remember that technology costs the same as people,” he said.

In many cases, AI isn’t less of an expense than human resources — it’s more. Nvidia’s Vice-President of Applied Deep Learning, Bryan Catanzaro, told Axios that the “cost of compute is far beyond the costs of the employees” on his team.

And the numbers are striking. Organizations spent an average of US$1.2M on AI-first applications in 2025 — more than double the prior year, according to Zylo’s 2026 SaaS Management Index.

OpenAI CEO Sam Altman has acknowledged the issue directly. “People are really saying, you know, it’s kind of a meme now, but ‘My company spent my entire 2026 budget in Q1. Can you make this more efficient?’” Altman said. “That went from, at the beginning of this year, an issue that never came up (people were totally happy with the amount they were spending) to, all of a sudden, a huge issue.”

Ready for a better banking experience? Switch to a top-rated account today and earn a cash bonus when you set up your direct deposit.

Microsoft lets staff go — then lets Claude go

Last year, Microsoft announced it was prioritizing AI investment — piling US$80 billion (C$110 billion) into AI data centres and letting 15,000 people go worldwide, about 4% of its workforce. This April, Reuters confirmed Microsoft announced voluntary buyouts targeting employees at the senior director level and below whose combined age and years of service total 70 or more — roughly 7% of its US workforce.

Then came a second reversal: Microsoft cancelled its developers' Claude Code licenses after roughly six months, redirecting engineers to GitHub Copilot CLI — a move widely attributed to the unexpectedly high cost of agentic AI tool usage.

It’s not that Microsoft is abandoning AI. After all, the company has built Large Language Models (LLMs) into every aspect of its business and promotes AI with Microsoft 365 Copilot. But it’s doing its best to develop proprietary AI software to avoid being dinged on usage.

Prof G Markets co-host Ed Elson predicts that a growing number of developers at firms and start-ups will opt for cheaper, open-source AI models than high-end Claude and ChatGPT. Elson also notes that AI options made in China are up to 30 times less expensive. That could contain the soaring costs of developing AI applications at the front end. But Elson notes that in some cases the resulting AI products — the AI applications themselves — are costing more than the humans they were designed to replace.

That’s led to what observers call the “AI boomerang.”

The AI boomerang — bringing humans back… for now

The boomerang effect is well-documented in Canada. A recent Robert Half survey of 1,365 professional-services hiring managers found that 34% of those who cut staff after adopting AI have already reinstated those positions or similar ones — a trend the firm has labelled “AI correction hires.”

Lisa Cohen, an associate professor of organizational behaviour at McGill University’s Desautels Faculty of Management, explains why: most AI systems only replace slices of work, not whole jobs. “You can’t just take tasks in and out without changing the connected systems,” she says.

More research from Gartner shows that globally, 50% of businesses that laid off customer service representatives or people in operations roles will end up hiring them back by 2027.

One high-profile cautionary tale: Global fintech buy now, pay later company Klarna decided not to renew 700 customer service representative contracts and replaced them with an AI chatbot, giving the company US$10 million (C$13.7 million) in initial savings. But customers were so dissatisfied that they had to rehire its human workforce.

Back home, Statistics Canada confirms that the percentage of Canadian businesses using AI to produce goods or deliver services more than doubled from 6.1% during the 2023-to-2024 period to 12.2% during the 2024-to-2025 period. Yet of those AI adopters, only 6.3% reported a decrease in employment because of AI — a figure that remained unchanged even as adoption surged.

Not the last chapter

We’ve reached a new chapter in the story of the AI revolution, one in which AI can cost more than employing people, and companies are looking for cheaper AI solutions — weighing whether to invest in AI tokens, reduce headcount, or even bring people back.

But it’s not the last chapter. “The ‘humans are cheaper’ era has an expiration date,” warns technology analyst Rob Enderle. “The cost of AI is likely to follow a trajectory similar to solar power or flat-screen TVs: an initial period of ‘only for the rich’ followed by a precipitous drop.” He wrote in Technology News World that some data suggests AI labour could be 90% cheaper within the next 10 years, particularly as short language models — alternatives to LLMs — increase and the infrastructure is built out.

Gartner research supports a similar view, where a recent report projects that by 2030, inference costs on advanced AI models will fall by nearly 90% compared to 2025. The catch, analysts note, is that cheaper per-token pricing won’t necessarily translate to cheaper total AI bills: more capable “agentic” AI uses far more tokens for each task, and consumption tends to outpace the falling unit cost.

“At that point, a human being’s time will become a luxury good — something people pay extra for, like hand-stitched leather or artisanal sourdough,” Enderle wrote.

What this means for Canadian workers and their employers

Statistics Canada research makes clear that this isn’t an abstract concern. About 60% of the Canadian workforce is potentially highly exposed to AI-related job transformation — that’s roughly 12 million workers. But exposure doesn’t automatically mean displacement: About half of those workers are in jobs where AI is more likely to augment their work than replace them outright.

The real risk, as the boomerang stories show, is impulsive decision-making — cutting too fast, spending too much and then having to reverse course at a significant cost.

Next steps for Canadian workers and employers navigating the AI shift

Whether you’re an employee wondering about your future or an employer weighing an AI investment, here are some practical takeaways from the current moment:

For employees:

Know your exposure. Statistics Canada’s research distinguishes between AI-exposed jobs that are likely to be replaced and those likely to be augmented. Jobs involving complex judgment, communication and relationships — think nurses, teachers, trades people and senior analysts — are generally in the “augment” category.

Build AI literacy. Robert Half Canada’s data shows employers are now refilling roles with a stronger emphasis on AI literacy alongside human skills. Familiarity with the tools — understanding their limits rather than simply using them — makes workers more resilient.

Don’t panic, but do plan. Employment continued to grow overall in Canada between 2022 and 2025, even in AI-exposed occupations. The short-term risk is more about job transformation than mass replacement.

For employers:

Run a real cost analysis before cutting. The Robert Half Canada data is clear: 75% of employers who cut staff to save money found that the rehiring, retraining and knowledge-loss costs erased those savings.

Pilot before you prune. Start with AI as a productivity tool in limited workflows before restructuring around it. Track real-world token costs and compare against actual labour costs.

Rethink, don’t just repost. For roles being refilled, Robert Half recommends redesigning the job description to combine AI literacy with core human judgment — rather than simply rehiring for the old role.

-With files from Melanie Huddart

The survey of almost 13,000 individuals across the globe — of which nearly 1,000 were Canadian — was completed in 2025. The survey was focused on understanding the rate and impact of suspected digital fraud across 18 different countries.

Canada in particular showed high levels of suspected fraud when using online communities (e.g. dating apps, forums) — compared to the global average of 8.3%, Canada came in at 11.9%. Compared to last year, Canada’s rate of suspected digital fraud rose 63%, while the global average dropped 36%.

The median loss for victims of these crimes is $1,301, and in a time of a rising cost of living and other financial pinch points squeezing Canadians dry, a loss of this caliber can be financially devastating.

Those who partake in online video gaming are not immune to this worrying trend either, as the TransUnion study also reveals that suspected digital fraud rates for gamers rose 54% between 2024 and 2025.

Experts highlight how the rise of video gaming (an estimated 20 million Canadians play video games as of 2025) and online communities create ripe opportunities for bad actors to socially manipulate others for financial gain.

“This growth definitely then creates an incentive for fraudsters to enter these ecosystems to create relationship-driven fraud to not necessarily gain monetization right at that point in time, but to unpack that identity and build that relationship, build that trust to get the information they need to monetize it in the future,” TransUnion Canada’s director of fraud analytics, Andrew Sigfrid, told Global News in an interview.

In contrast to other forms of fraud such as cyberattacks, these scams are often carried out in one-on-one conversations over a period of weeks, months, or even years.

The objective is to build as much trust as possible with the victim so when the “ask” comes out, the victim complies quickly.

Why Canada is a bigger target for digital deceit

So, why is Canada being targeted more than other countries surveyed?

Sigfrid pointed out two main drivers: the ubiquity of digital engagement and Canadians’ wealth.

“We’re a very digitally engaged population. So we do a lot of our interactions with trustworthy institutions through online banking, e-commerce, all these different channels that we interact with on a daily basis just creates [sic] a lot of digital engagement and a lot of touch points that fraudsters could potentially intercept,” Sigfrid said.

He also pointed out that Canada’s overall wealth is a magnet for bad actors, as they seek to find the most lucrative targets. According to Statistics Canada’s recent Financial Security Survey, the median household net worth in 2023 was just shy of $520,000.

Compared to other countries on the world stage, Canada is currently ranked 11th in overall gross domestic product (GDP) per the International Monetary Fund (IMF).

As one of the wealthiest countries in the world with a very online population, it’s understandable why digital scammers target the Great White North. So, what can Canadians do to better protect themselves from these inherent vulnerabilities?

Stop leaving money on the table. Discover which Canadian banks are currently paying up to $700 just for opening a new account.

How Canadians can fight back against online relationship fraud

As more Canadians rely on digital communities or online dating for a sense of connection, the potential for bad actors to exploit these spaces rises in tandem. In fact, a survey from YMCA Canada in conjunction with Angus Reid found that 60% of Canadians feel disconnected from their physical communities.

So, how can Canadians protect themselves against scammers online? Here’s some advice to help you recognize which online connections are not in your best interest.

• Watch for isolating language. Fraudsters do not want other people knowing their relationship with you, as that increases the chances their facade will be exposed. Keep an eye out for language that isolates you from your in-person friends or family, or that tries to hide your relationship — this could be the beginnings of a scam.
• Be cautious of those who don’t want to meet in person. While online relationships or communities might never result in real-life meetups, take caution if someone is insisting that you provide financial help and has never met you in person.
• Be aware of emotional coercion. It’s typical for scammers to use emotionally manipulative language to prompt financial action from victims. Keep an eye out for responses that are coercive when a request for financial help is denied — that’s something a true friend would never do. Examples include using guilt, anger, or distress to push you to send funds.

If you are caught in a romance scam, report the crime to your local police immediately, and notify your financial institution, credit bureaus (e.g. Equifax, TransUnion) of the event. Because romance scams involve the victim voluntarily sending funds to a fraudster, it can be very difficult to be reimbursed or have the transfers reversed. Discussing the situation with your bank and the police will likely give you insight into your chances at recovery.

Here’s the good news is, retirement planning in Canada doesn’t need to be complicated. In fact, it can be broken down into a simple formula: How much income you’ll need, what the government benefits will provide and use additional accounts like RRSPs or TFSAs to fill the gap.

Whether you are 25 or 55, the best time to start preparing for retirement is right now.

Take control of your money. You can’t control inflation, interest rates or market swings — but you can control where your money goes. When every dollar has a job, money feels less stressful. Find a budgeting app that helps you take control of your finances. Compare Canada’s Best Budgeting Apps

What does ‘retirement ready’ actually mean in Canada?

If you ask a Canadian financial planner about being ‘retirement ready,’ most of them will say something like this: Retirees in Canada need 70% to 80% of their pre-retirement income annually. This will allow them to maintain their lifestyle in retirement.

What does this look like in terms of actual numbers?

For a Canadian earning $70,000 annually, that suggests a retirement income of between $49,000 and $56,000 each year. Taking into account things like investment returns, retirement age and lifespan, this translates to a retirement savings of between $700,000 and $1 million.

Government benefits like CPP and OAS will help reduce the amount you need to save. Even at their maximum, these benefits will not replace your working income and are not enough to live on for most retirees. This means that most Canadians are responsible for generating additional retirement income through things like investments, savings, and workplace pensions.

In reality, there is no true ‘retirement ready’ number. Every retiree will have a different figure, and it depends on lifestyle, debt load, expected retirement age, health and whether or not you have a workplace pension.

When should Canadians start saving for retirement?

The best time to start saving for retirement is now.

With that being said, time always matters when it comes to saving and investing. There’s a reason why they say compound interest is the eighth wonder of the world.

If we assume a 6.0% annual return, someone who invests $500 monthly beginning at the age of 25 could accumulate roughly twice as much by retirement as someone who waits until they are 35.

A simple age-based framework:

• 20s: Focus on building the savings habit
• 30s: Increase contributions as income rises
• 40s: Maximize registered accounts where possible
• 50s and 60s: Shift attention toward preserving income and evaluating CPP deferral strategies

And if you’re one of those who are starting late, don’t panic. There are enough ways to play catch-up with those who started earlier. Unused RRSP contribution room carries forward indefinitely, and the TFSA contribution room accumulates each year that you are eligible.

One thing that every Canadian should take advantage of, regardless of age, is an employer-matching program for things like pension contributions or RRSPs. Your goal should be to maximize this before directing money elsewhere, as it is an immediate return on your savings and can really lead to high compounding over the long-term.

Ready to watch your savings grow? Check out the best HISA providers in Canada, including no-fee options and high-yield promotional offers, such as $200 cash back when you add new deposits to a no-fee EQ Bank RRSP account. Or if you’re an eligible professional, you can unlock more than $1,000 in annual savings when banking with National Bank. The bank’s current offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

RRSP vs. TFSA — which should you use for retirement savings?

Honestly, you should use both. There’s no such thing as too much retirement savings or investments. But there are differences between the two accounts that you should be aware of.

In general, RRSPs tend to benefit higher-income earners who shift to a lower tax bracket during retirement. TFSAs often benefit the lower and middle-income earners who seek flexibility and tax-free investing.

The biggest drawback of the RRSP is that withdrawing too early can trigger a withholding tax and can even permanently reduce your tax-sheltered savings.

There is a spousal RRSP which couples should consider. This account can help balance retirement income and potentially reduce taxes later on.

For current contribution limits and eligibility rules, check the Canada Revenue Agency (CRA) website.

How do CPP and OAS fit into your retirement income plan?

These government benefits should be a part of your retirement income plan, but do not count on them to fund your entire retirement.

The CPP is not a flat benefit, meaning your payment is dependent on how much you contributed during your working years. It also depends on when you choose to start receiving these benefits.

On the other hand, the OAS is available to all eligible Canadians starting at the age of 65. You can choose to defer this to age 70 for a significant increase in payments. Higher-income retirees can potentially face an OAS recovery tax, or the OAS clawback. If you make above a certain threshold, your OAS may be paid back to the government via income tax payments.

One of the biggest decisions to make is when to start collecting your CPP. Deciding on when to begin collecting can have a major impact on our retirement income.

Here are the impacts of when you start collecting your CPP:

• Collecting CPP before age 65 reduces your payments each month by 0.6%, up to 36% if you begin collecting at age 60
• Collecting CPP after age 65 increases your payments each month by 0.7%, up to 42% if you begin collecting at age 70

If you are in good health with enough retirement savings, it makes sense to delay your CPP payments as late as you can.

Lower-income retirees should also understand the Guaranteed Income Supplement (GIS), which can provide valuable additional support.

Before making any decision, use the My Service Canada Account estimator to review your personalized retirement income projections.

How much should you save each month — and where does it go?

Let’s go back to our original hypothetical scenario. The 38-year-old Canadian earning $70,000 annually contributes either 10% or 15% of gross income and earns an annual return of 6.0% until age 65.

Saving 10% of gross income is about $583 per month, and 15% brings that up to $875 per month.

It might not seem like much, but over the long-term, these monthly contributions can translate to hundreds of thousands of dollars in additional retirement assets. Take advantage of any employer matches, as these can really kick your retirement investing into hyperdrive. When contributing to your retirement income, focus on employer matches, your RRSP and your TFSA, then registered accounts last.

Finally, if you’re carrying high-interest debt such as credit card balances, paying that down should generally come before aggressive investing.

Monthly retirement savings starter kit

• Check your RRSP contribution room.
• Open a TFSA if you don’t already have one.
• Automate monthly contributions.
• Review your investment mix annually.

Frequently asked questions about retirement planning in Canada

How much money do I need to retire in Canada?

Most financial planners will tell you to target between $700,000 and $1 million in savings, but your needs depend on lifestyle, expenses and how much income CPP and OAS provide. A good way to look at it is having 70% to 80% of your pre-retirement income annually after you retire.

What is a good age to retire in Canada?

Age 65 remains the traditional benchmark, but the right retirement age depends on your savings, expenses, and long-term health.

Can I retire in Canada with $500,000?

Possibly. If your expenses are modest and CPP and OAS cover a meaningful portion of your income needs, $500,000 may be sufficient. It also helps to have a workplace pension to supplement your post-retirement income.

Is it too late to start saving for retirement at 50?

No. You can still use unused RRSP room, maximize TFSA contributions and adjust your savings rate to improve retirement readiness. You may not have the benefit of long-term compounding, but it is never too late to begin saving and investing for retirement.

What happens to my RRSP when I turn 71?

You must convert your RRSP into a Registered Retirement Income Fund (RRIF) or an annuity by Dec. 31 of the year you turn 71.

Your retirement planning checklist — next steps by age

20s

• Open a TFSA
• Join your workplace pension plan
• Automate contributions

30s

• Calculate RRSP contribution room
• Increase savings as income grows
• Set a retirement income target

40s

• Maximize RRSP and TFSA contributions
• Consider a spousal RRSP
• Review your investment risk level

50s

• Model CPP deferral scenarios
• Eliminate high-interest debt
• Evaluate housing plans for retirement

60s

• Finalize your retirement income plan
• Assess OAS deferral
• Prepare RRSP-to-RRIF conversion
• Build a tax-efficient withdrawal strategy

Canada’s Ombudsman for Banking Services and Investments (OBSI), the national independent body that investigates consumer banking and investment complaints, has flagged this type of scenario as a systemic problem, serious enough to report directly to regulators.

In its 2025 Annual Report, released March 13, 2026, OBSI described a pattern of banks withdrawing settlement and goodwill offers made to fraud victims who escalate complaints to OBSI, or explicitly threatening to pull those offers if escalation occurs.

Ready for a better banking experience? Switch to a top-rated account today and earn a cash bonus when you set up your direct deposit.

What OBSI’s 2025 report said about bank settlement withdrawals

OBSI isn’t a regulator, but it serves as Canada’s independent external complaints body (ECB) for federally regulated banks. In practical terms, it’s the final stop for consumers who can’t resolve a dispute through their bank’s internal complaint process. Let’s just say its hands are full. In 2025, OBSI, operating in an expanded role, handled more than 26,000 consumer inquiries and over 6,100 formal investigations, nearly double the previous year’s complaint volume.

Fraud was by far the biggest driver of banking complaints. It accounted for roughly one-third of all banking investigations, with fraud-related cases nearly doubling year over year to 1,815. Against that backdrop, OBSI reported three systemic issues to regulators. Two of them have direct implications for banking customers.

First, some banks were wrongly holding customers liable for fraudulent transactions that occurred while the consumer was in the process of reporting the fraud. These are circumstances in which federal and provincial laws and voluntary codes explicitly protect consumers. Second, and more broadly, banks have been found to withdraw or threaten to withdraw settlement and goodwill offers when consumers escalate to OBSI.

OBSIs reporting should serve as a warning signal to regulators that bank conduct is undermining the consumer protection framework and warrants a response.

Find your perfect bank account. Use our expert comparisons to find the right bank account with the highest sign-up bonuses and lowest fees in Canada.

Your right to escalate without penalty: what the law says

Under Canada’s Financial Consumer Protection Framework, bank customers have the right to escalate an unresolved complaint to an external complaints body. That right is not conditional on surrendering a settlement offer already on the table. OBSI’s position, as reflected in its 2025 annual report, is that banks threatening to withdraw offers as a condition for staying out of the OBSI process are undermining that framework.

The Financial Consumer Agency of Canada (FCAC), the federal consumer protection watchdog for banks, appeared before the Standing Senate Committee on Banking, Commerce and the Economy in February 2026 and reaffirmed its supervisory role over banks’ complaint-handling obligations. Under the framework, banks must address complaints within 56 calendar days and provide consumers with a final written response.

Once a bank issues a final written decision, consumers have 180 calendar days to file a complaint with OBSI. OBSI’s investigation is free of charge and independent. And most importantly, OBSI’s own rules do not permit banks to make settlement offers conditional on consumers agreeing not to escalate. In other words, if your bank tells you the offer on the table will disappear if you go to OBSI, they are breaking the rules.

How to protect yourself when negotiating a fraud settlement with your bank

If you’re negotiating a fraud settlement with your bank, start by getting every offer in writing before you acknowledge or respond to it. Verbal offers can be disputed, revised, or withdrawn. If the bank is offering compensation, a goodwill payment, or any other resolution, ask for the details in writing, including any deadlines or conditions attached to the offer.

At the same time, don’t lose sight of your escalation rights. Once you receive a final written decision from the bank, the 180-day OBSI filing window begins. Remember that OBSI investigations are free, independent, and do not require you to obtain legal representation.

A few practical steps can help protect your position:

• Get every settlement or goodwill offer in writing before responding.
• Keep copies of emails, letters, and notes from phone conversations.
• Track the date of your bank’s final written decision and your 180-day OBSI deadline.
• Document any statement suggesting an offer will be withdrawn if you escalate.
• Include that documentation in your OBSI complaint if you decide to file.

OBSI can recommend compensation of up to $350,000, but its recommendations are not currently binding on banks. In 2025, nine banking and investment cases settled for less than OBSI’s recommended amount, leaving consumers collectively short over $202,000. OBSI has been working with regulators toward a binding compensation framework, but for now, the process still relies heavily on transparency and accountability.

All of this is why documentation remains your strongest protection. If a bank threatens to pull an offer because you exercise your right to seek an independent review, know that it’s a pattern that Canada’s banking ombudsman has formally flagged for regulators.

Compare Canada’s best banking promotions in one place. Save time and maximize your earnings by switching to a bank account that fits your lifestyle best.

Winging the withdrawal sequence can accidentally push you into a higher tax bracket or cause you to outlive your nest egg. Your accounts require a deliberate exit strategy.

Understanding how to balance Registered Retirement Savings Plans (RRSP), Tax-Free Savings Accounts (TFSA) and non-registered investments makes a massive difference in how much cash stays in your pocket. The standard advice often suggests burning through your taxable investments first, but a blended approach usually delivers the best results.

Melt down your registered accounts early

Leaving your RRSP untouched until the absolute last minute is a common approach that can backfire. By law, you must close your RRSP by December 31 of the year you turn 71, which usually means converting it into a Registered Retirement Income Fund (RRIF).

Once that happens, the Canada Revenue Agency (CRA) enforces mandatory minimum withdrawals every year, whether you need the money or not. If you have a large RRIF balance, these forced withdrawals can skyrocket your taxable income.

To manage this, consider a strategy called an early RRSP meltdown. If you retire at age 60 but do not need to take the Canada Pension Plan (CPP) or Old Age Security (OAS) yet, you can intentionally withdraw money from your RRSP to fund your life. You will pay income tax on those withdrawals, but you will be doing so at a lower marginal tax rate than if you stacked those withdrawals on top of government pensions later in life.

Shrinking the size of your registered accounts before age 71 helps smooth your lifetime tax bill and prevents a massive tax spike in your 70s.

Stop leaving money on the table. Compare Canada’s top-rated high-interest savings accounts and switch to a provider that actually helps your balance grow.

Keep non-registered capital gains under control

Taxable investment accounts are highly flexible, but they come with unique annual tax obligations. You face taxation on interest, dividends and capital gains every year, even if you do not withdraw the money from the account.

When you do sell investments to fund retirement, only 50% of the capital gains are included in your taxable income. This makes non-registered accounts highly tax-efficient compared to an RRSP, where every single dollar withdrawn is fully taxed as regular income.

It’s all about proactive structural planning. Use your non-registered cash or sell assets with small capital gains during years when your other income is relatively low.

Be careful not to sell off massive, highly appreciated stock positions all at once, as that can cause a single-year income spike that disrupts your financial plan.

Treat your TFSA as your ultimate retirement shield

The TFSA is arguably the most powerful tool in a Canadian retiree’s arsenal. Every dollar you pull out of a TFSA is completely tax-free, and those withdrawals are entirely invisible to the federal government when it calculates income-tested benefits.

Because of this unique feature, saving your TFSA room for later in retirement is often the smartest move. If you face an unexpected expense in your late 70s, such as a major home repair, buying a new vehicle or paying for private healthcare, taking $20,000 out of an RRIF could trigger a severe tax penalty. Taking that same $20,000 out of a TFSA carries no tax consequences at all.

A balanced approach involves using a mix of RRSP and non-registered assets to fill up your lowest tax brackets early in retirement, while letting your TFSA compound untouched for as long as possible.

By strategically mapping your withdrawals, you can keep your lifetime tax bill low, maintain total control over your income and ensure you keep more of your hard-earned savings.

The $90K experiment that caught everyone’s attention

Stuart Thompson, a tech reporter for The New York Times, has become the most talked-about example of AI-assisted home selling. When he and his wife decided to list their Hudson Valley home, he skipped the traditional real estate agent and turned to Google’s Gemini AI chatbot instead.

Originally, the couple and several agents they consulted estimated their home would sell for roughly US$550,000 (C$755,000). Thompson wasn’t excited about handing over a 3% listing commission — as much as US$30,000 (C$41,200) — to a seller’s agent. So he began experimenting with AI.

Using Gemini, Thompson crafted his listing, sourced a photographer, staged the home and navigated the steps to post it to the Multiple Listing Service (MLS). Within 24 hours, showings were booked. Soon after, three offers arrived — all over asking. AI even helped him assess which to accept. The winning bid wasn’t the highest, but it was a solid offer above US$600,000 (C$823,000).

Thompson hired a lawyer to handle the paperwork. Even with that expense, he and his wife cleared US$90,000 (C$123,500) more than expected on the sale — and the buyers agreed to cover their own agent's 2% commission, saving another US$12,000 (C$16,500). In all, Thompson saved US$36,000 (C$49,400) in commissions.

“I’m persuaded that AI may well transform real estate agents into something more like travel agents,” Thompson wrote. “Once essential to navigating an opaque process, they could soon become more of a nice-to-have for busy people who want a more carefree experience.”

Robert Levine, CEO of strategic consulting firm ComOps, had a similar story. He used ChatGPT to sell his Florida home — and received five offers in five days, ultimately closing at nearly US$1 million (C$1.31M), about US$100,000 (C$137,200) more than agents had predicted.

Thinking of selling or refinancing before your move? Get personalized mortgage options from Homewise — they’ll find your best rate in minutes.

What this means for Canadians — and why commissions hurt more here

The commission math hits Canadian sellers especially hard. According to the Canadian Real Estate Association (CREA), the national average home price reached $702,079 in May 2026 — the highest monthly figure in two years.

At a typical 5% total commission (2.5% per side, as is common in Ontario), selling a home at the national average costs roughly C$35,100 in agent fees alone — before HST. Add Ontario’s 13% HST on that commission and the real cost rises to approximately $39,660. In the Greater Toronto Area, where the average home sold for C$1,069,700 in May 2026, a 5% commission with HST amounts to more than C$60,000.

In the Greater Vancouver Area, the commission structure is tiered: typically 7% on the first C$100,000 of the sale price and 2.5% on the balance. On a $900,000 Vancouver home, that works out to roughly C$27,000, or C$28,350 after factoring in GST. However, this figure is then split between the seller’s agent and the buyer’s agent — 3.875% on the first C$100,000 and 1.3375% on the balance for the former, and 3.125% on the first C$100,000 and 1.1625% on the balance for the latter.

“Commissions are often up for negotiation,” notes Rates.ca. “There’s also the option to find a brokerage that charges a flat fee, or you can sell the home yourself.”

Canada’s Competition Bureau, the federal agency that promotes fair market competition, has been investigating CREA’s commission rules since October 2024. It obtained a court order to examine whether the rules discourage buyers’ agents from offering lower rates or create conditions for ‘steering’ — the practice of directing buyers toward homes offering higher commissions. In February 2026, the Bureau expanded its investigation to include Greater Vancouver Realtors.

The Canadian catch: you still need a licensed agent or brokerage for MLS access

Here’s where Canadian sellers face a meaningful constraint that Thompson didn’t have to navigate in the same way: in Canada, private sellers cannot list directly on the MLS® System. Access to MLS® — the dominant database used by the vast majority of buyers and their agents — requires a licensed REALTOR® or a registered brokerage.

That said, flat-fee ‘mere posting’ services have become a popular workaround. For a one-time fee, often between C$299 and C$999, these brokerages will post your listing on the MLS® System and Realtor.ca on your behalf — without providing representation, staging advice or negotiation support. Services like For Sale By Owner Inc. (FSBO.ca), ComFree and One Flat Fee operate across most provinces.

This means a Canadian seller pairing AI guidance with a flat-fee MLS listing service could potentially replicate Thompson’s approach: use AI to craft a listing, research comparable sales on Realtor.ca, coordinate a photographer and navigate showings — then hire a real estate lawyer to handle the Agreement of Purchase and Sale (APS), as well as the closing.

In provinces like Ontario and B.C., hiring a real estate lawyer for the final paperwork is not optional — it’s legally required. Legal fees typically range from C$1,500 to C$3,000 for a standard residential transaction, according to RE/MAX Canada. Even at the higher end of that range, the math often still strongly favours the AI-plus-flat-fee approach.

Using AI to sell a home isn’t all smooth sailing

Thompson and Levine both acknowledged challenges using AI instead of a real estate agent.

There are some things a virtual assistant can’t do: show prospective buyers a home, touch up paint, move furniture or call buyers’ agents. All that work lands in the lap of a DIY seller.

In the comments on Thompson’s NYT article, one reader questioned how much time he actually saved. “You did all the legwork, calling, staging,” the reader wrote. “It sounds like a lot; how many hours did it add up to and how much would that time be worth at your normal rate of pay?”

Thompson also noted moments when he needed emotional support during the nerve-wracking sales process — a big part of what a real-life agent provides.

And AI agents can make mistakes. Thompson noted that Gemini initially gave him the wrong advice on paying the buyer’s agent a commission.

Ines Hegedus-Garcia, managing partner of the realty firm that represented the buyer in Levine’s sale, told Realtor.com that Levine could have made more with an agent. She argued that a professional would have negotiated a better deal during the bidding war, and that Levine’s ChatGPT queries were sometimes legally off-base. “’[The buyer’s agent] is like, no, that doesn’t apply in Florida,’” she said.

The same risk applies in Canada. Provincial real estate rules vary — what’s standard practice in Ontario under the Trust in Real Estate Services Act (TRESA) may differ from B.C. rules under the Real Estate Services Act, or from Quebec’s regime, which is governed by the Organisme d’autoréglementation du courtage immobilier du Québec (OACIQ). AI tools trained largely on U.S. data may not reliably reflect Canadian provincial differences.

Still, Levine has no regrets. “I’d recommend it to everyone,” he said. “ChatGPT is not coding. It is a conversation, and you’re going to have to have that conversation with a real estate professional if you want to go that direction anyway.”

What Canadian sellers should do before trying AI-assisted home selling

If you’re thinking about using AI to help sell your home, here are some steps to take first:

• Understand your legal obligations. In Ontario, using a real estate lawyer to close the transaction is mandatory. Review your provincial disclosure requirements — for instance, Ontario’s Seller Property Information Statement (SPIS), though technically optional, is frequently expected by buyers.
• Research your market with Canadian data. Use Realtor.ca (owned by CREA) to review comparable sales in your area. Unlike Zillow, which does not operate in Canada, Realtor.ca is the authoritative public-facing database for Canadian listings. For GTA sales history and data, HouseSigma is also a widely used tool.
• Price carefully. AI tools can help you research comparables, but they may not account for hyper-local factors that a licensed agent who knows your street might flag. Getting a formal appraisal (C$300 to C$500) or a Comparative Market Analysis (CMA) from a local agent before going it alone can add a useful sanity check.
• Use a flat-fee MLS service for exposure. Because private sellers cannot post directly to the MLS® in Canada, a flat-fee brokerage is typically the most cost-effective path to maximum buyer exposure. Research the service before committing: confirm what’s included, what buyer agent commission you’ll offer (agents often expect 2.5% to remain motivated to show your home), and what happens if you need to change your listing.
• Be ready for the emotional and logistical load. As Thompson and Levine discovered, selling without an agent means managing showings, fielding inquiries, negotiating offers and staying calm under pressure — all on your own timeline.
• Hire a real estate lawyer early. Don’t wait until you have an offer in hand. Engaging a lawyer before you list means you’re prepared to move quickly if a buyer comes in fast — which, in a hot market, they often do.

The financial pressure behind the need to work overtime is real.

Separate data from the 2026 MNP Consumer Debt Index, conducted by Ipsos on behalf of MNP LTD, found that fewer than half of Canadians (47%) report having six months of emergency savings — with the number of women and middle-income earners with an emergency buffer dropping quite dramatically, according to survey data.

As a result, many now consider the nursing profession an unreliable path to financial stability — despite the profession’s typical salary that’s consistently above the nation’s average salary range.

But there is hope. Here’s what mid-career nurses can do to interrupt the money-pinch cycle — guidance anyone can use to help create breathing room in their budget.

Take control of your money. You can’t control inflation, interest rates or market swings — but you can control where your money goes. When every dollar has a job, money feels less stressful. Find the budgeting app that helps you take control of your finances. Compare Canada’s Best Budgeting Apps

Why an $80,000 salary doesn’t mean financial security

Three structural forces can erode earnings even before a dollar is spent — or reaches your savings or investing accounts.

The first is educational debt. For nurses, in particular, the CFNU’s 2025 national nursing student survey found that more than a quarter of nursing students have considered leaving their program due to financial difficulties. One of the biggest strains for this profession, in particular, is the unpaid placement hours. More than 9 out of 10 (92%) of Canadian nursing students said they would support being paid for mandatory clinical placement hours. Why would this matter? Because a new graduate who financed four or more years of education and completed hundreds of hours of unpaid placements may enter the workforce carrying significant debt before their first paycheque arrives. Eliminating even a portion of this educational debt helps to reduce money spent on debt and allow these professionals to start making major purchasing decisions, such as buying a car, a home or investing in their future financial goals.

The second is benefits cost-sharing. Over the last few decades, employers have shifted the cost of employee benefit plans onto their employees. This means higher premiums and, for nurses, higher deductions taken off their paycheques to cover employee benefit plan costs. When you combine the cost of these deductions with mandatory pension contributions — which are valuable long-term, but feel like a present-day cash drain — take-home pay can drop dramatically. For instance, a nurse in Ontario earning $88,000 gross may take home closer to $60,000 to $65,000 after federal and provincial tax, CPP contributions, EI premiums, and benefit deductions.

The third is that nominal pay gains have not kept pace with the actual cost of living. The 2026 FP Canada Financial Stress Index, based on a national survey of more than 2,000 Canadians conducted by Leger, found that money remains the leading source of stress for 43% of Canadians — a figure consistent across all nine years of the index. A pay increase of 2% to 3% per year, which is roughly what collective agreements have delivered in recent years for professions, such as nursing, looks very different after food price inflation, higher mortgage carrying costs, and increased benefit premiums are factored in.

The cost-of-living squeeze that pay raises can’t fix

According to the MNP Consumer Debt Index’s January 2026 data, 2 in 5 Canadians (41%) say they are within $200 of not being able to pay their monthly bills. As Grant Bazian, president of MNP LTD, noted in the January 2026 release: “Canadians expect most aspects of daily life to worsen rather than improve in 2026.”

This is increasingly becoming a middle-class problem. Many Canadians — including nurses — earn too much to qualify for government support programs, but not enough to comfortably absorb rising housing, food, and borrowing costs without relying on debt.

For Canadian nurses, the financial pressure shows up in behaviour. The 2025 CFNU National Nurses Survey found that roughly one-third of respondents had worked involuntary overtime in the past six months. Two-thirds said their workplace was regularly over capacity. And nearly 1 in 3 said they were somewhat or very dissatisfied with nursing as a career choice — a figure that likely has financial roots as much as professional ones.

One in four Canadian nurses reports rating their mental health as fair or poor. Around 31% meet clinical thresholds for burnout. While workplace conditions are certainly a significant contributor, financial stress and workplace overload cannot be considered as separate problems; they compound each other, as shown in the responses to the CFNU National Nurses Survey.

Canada is in danger of losing nurses

Turns out these pressures don’t get better with time.

The CFNU’s 2025 national nursing student survey found that among older nursing students (those aged 30 and over), financial concern was especially acute, with a significant share considering dropping out of nursing programs entirely due to financial pressure. That dropout risk represents a systemic cost to Canada’s already-stretched health workforce.

While nurses and other middle-income professionals may not be able to quickly change or solve systemic problems, these hard-working Canadians can take action to start feeling a bit more in control of their finances and their lives.

Get your money working for you. Every dollar you save on fees is a dollar that stays invested and working toward your future. Whether you're building a TFSA, growing your RRSP or investing in a non-registered account, the right brokerage can help you keep more of your returns. Compare discount brokerage accounts or check out Questrade, the online brokerage that combines low-cost investing with powerful research tools. Open an account and pay $0 commission on stock and ETF trades, plus new customers get up to $500 using code GET500. (Offer ends July 23, 2026.) Start investing with Questrade

How to build a $5,000 emergency fund on a tight budget

Without an emergency fund, manageable expenses can quickly become long-term debt problems. A $1,000 car repair charged to a credit card charging 22% interest might not seem catastrophic at first, but if that balance sits unpaid for six months, it can add another $120 in interest charges. More importantly, it creates a financial pattern that becomes harder to escape.

The simplest way to break free is to automate your savings even before you start to spend your paycheque.

Transferring $200 per month into a Tax-Free Savings Account (TFSA) or a high-interest savings account (HISA) accumulates roughly $2,400 over 12 months, without relying on willpower or perfect budgeting. That won’t build a five-month cushion immediately, but it’s enough to cover many unexpected expenses without reaching for credit.

Ready to watch your savings grow? Check out the best HISA providers in Canada, including no-fee options and high-yield promotional offers. Eligible professionals can unlock more than $1,000 in annual savings when banking with National Bank. The bank’s current offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

Eliminate the interest you’re paying on debt you already owe

If you’re carrying a credit card balance, a portion of every paycheque is quietly disappearing before you can use it. That’s not a budgeting problem — it’s a structural one.

Here’s what it looks like. Carry $8,000 across two credit cards at 20% interest, and you’re paying roughly $133 per month in interest alone — money that buys you nothing and resets the following month. Over a year, that’s nearly $1,600 spent on interest on debt you already owe.

Move that same $8,000 to a balance transfer credit card at 0% for 12 months, or consolidate it into a personal loan at 8% to 11%, and your monthly interest cost drops to near zero or around $55 to $73. The difference — about $60 to $80 per month — can be used to pay down debt faster. And that one structural change, with no income increase or lifestyle cut, can shorten a five-year repayment timeline by 12 to 18 months.

Two tools to consider when reducing interest payments

Balance transfer card. Most major Canadian banks offer 0% or low-rate promotional periods of 9 to 12 months, sometimes with a 1% to 3% transfer fee. It works best when you have a clear repayment plan and won’t add new charges to the card.

Ready to become debt-free? Use the Money.ca comparison tool to see how much you could save by moving your high-interest balance to a low-rate card today. For instance, move high-interest credit card debt to an MBNA Mastercard and save 37% in interest charges. Check out the best low-interest credit cards.

Debt consolidation loan. A personal loan through a bank or credit union typically carries a fixed rate of 7% to 14%, well below the 19.99% or higher on most credit cards. The fixed payment and clear end date also reduce the psychological weight of revolving debt.

Struggling with high credit card debt or outstanding payments on multiple cards? Find a lower-interest personal loan with Loans Canada. A lower interest rate helps you save on interest payments, plus you’ll have only one payment to keep track of when you consolidate debt with a personal loan. With Loans Canada, one application gets you access to 30+ lenders and finds you the best rate.

Before acting, check your credit score. If it’s below 650, neither tool may offer enough of a rate drop to matter. In that case, a debt avalanche — throwing every spare dollar at your highest-rate card first — is likely the more effective move.

Spend an hour to find out what income you can expect from a retirement pension

Canadian nurses with defined-benefit (DB) pensions have a significant, and often underappreciated, advantage. Plans such as the Healthcare of Ontario Pension Plan (HOOPP) or OPTrust provide guaranteed retirement income with every hour worked. For most mid-career professionals with a DB pension, that pension, not an RRSP, is their primary retirement income.

That said, contribution errors are more common than people expect — a problem that is particularly true for nurses (or other professions) who work across multiple health authorities, take parental leave, or move between employers. A missing year of contributions can mean thousands of dollars less in annual retirement income. If you fall into that category, confirming your service record and contribution history directly with your plan administrator is worthwhile; spend an hour to find out if you have gaps, what your options are and how it will impact your retirement income.

Retirement savings gap: What private-sector professionals with no DB pension need to consider

For nurses in long-term care or private-sector settings — or any professional without a DB pension — the retirement income gap is a real concern.

A mid-career nurse at age 45 with limited RRSP savings still has time, but you will need to act quickly. The goal is to save enough in your TFSA and RRSP to supplement income from the Canada Pension Plan (CPP) and Old Age Security (OAS).

The key is to make these contributions automatic — before your monthly paycheque can be spent. Consider working with a bank with tools and strategies that help you achieve your goals.

Take Control Of Your Money. Check out the best HISA providers in Canada, including no-fee options and high-yield promotional offers. Eligible professionals can unlock more than $1,000 in annual savings when banking with National Bank. The bank’s current offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

Bottom line

The financial stress many Canadian nurses are experiencing is not a personal failure. The 2025 CFNU National Nurses Survey — 4,736 practising nurses from coast to coast — confirms what nurses have been describing for years: wage increases that fail to keep pace with living costs, unpaid clinical time baked into training, and a benefits structure that erodes take-home pay quietly and steadily.

The good news is that breaking the cycle often doesn’t require a dramatic income increase. In many cases, it starts with one deliberate financial move that improves cash flow and reduces pressure over time. For nurses and every other middle-class professional who spends their career making high-pressure decisions for others, taking one intentional financial step for themselves may be one of the highest-impact decisions to make.

But for Andy Hill, 44, a family finance coach and podcaster, that idea has shifted over time into something a little less rigid — and, he says, a lot more realistic for regular households trying to make it all work.

Hill started out following the classic Financial Independence, Retire Early (FIRE) playbook, saving aggressively with the goal of potentially stepping away from work decades ahead of the traditional timeline.

But as life, costs and priorities evolved, he moved toward a more flexible approach known as Coast FIRE. That means you save aggressively for a while — as much as 50% to 75% of your income — until you’ve built a nest egg 25 times greater than your annual expenses. Then you “coast” into retirement as you count on compound interest on your investments to do the heavy lifting.

Coast FIRE — combined with what he calls “F-you money” — are the “cheat code” for the FIRE movement, he said in an interview with Business Insider.

And for Hill, that mix changed more than his financial plan on paper — it also changed the daily feeling of working, saving and having options in a way he hadn’t experienced before.

What is Coast FIRE and an ‘F-you fund?’

Coast FIRE is basically a lighter version of the FIRE plan.

Instead of trying to save every extra dollar until you can fully walk away from work, you do the heavy lifting early in your career — building up a solid investment base — and then, at some point, shift gears.

Once you’ve hit that “enough is enough” number in savings, you stop aggressively pouring money into retirement accounts. You still work, but you’re no longer in full accumulation mode. Your investments are left alone to grow over time, while your paycheques go toward everything else life throws at you.

For Hill, that number was about US$550,000 (C$757,000) he had invested by age 40. From there, the math takes over: with an assumed long-term return of about 6% annually, that portfolio could potentially grow to roughly US$2 million (C$2.75 million) over time without adding another dollar, Business Insider noted.

And compared to traditional FIRE, where the goal is often to fully replace your income much earlier, the coasting approach can take a lot of pressure off the savings target itself.

But the part that really changed things for Hill’s financial plan was what he calls his “F-you money.”

Not a technical concept; it’s what he defines as a cash cushion. It’s like an emergency fund, in that it sits somewhere safe. But it’s enough to give you the ability to walk away from a job or situation that isn’t beneficial anymore.

Hill told Business Insider there was a stretch where he felt stuck in a stressful corporate job — earning a solid income, but feeling like leaving wasn’t really an option. That mismatch between income and freedom pushed him to build a buffer that felt big enough to give him confidence, rather than just security.

So his “F-you” goal was simple: accumulate 12 months of living expenses in cash before making any big career moves. The strategy gave him enough leeway to step back and try something different without immediately worrying about how the bills would get paid.

By 2020, he and his wife, Nicole, had both reached their Coast FIRE target and fully built out their “F-you fund.” And according to Hill, that’s when things actually started to feel different.

“The year I left my corporate career, I was making around US$180,000 (C$248,000) per year working 40 to 50 hours per week,” he told CNBC’s Make It. “This year, I’m paying myself US$100,000 (C$138,000) working 20 to 25 hours per week.”

So even though Hill’s income dropped on paper, the trade-off was clear. He had less pressure, more control over time and a work setup that actually fit his family life — something a growing number of Canadians say feels harder to come by as everyday costs continue to rise faster than paycheques.

Statistics Canada data shows inflation rose to 3.2% in June, as essential costs — especially food and shelter — remain high for most households.

Don’t let inflation eat your savings. Browse the best high-interest accounts for 2026 and open an account in minutes to start earning interest daily.

How Coast FIRE can apply to Canadians

On this side of the border, Coast FIRE operates the same way but the tools look a little different.

In Canada, the two main registered accounts for building a FIRE-ready portfolio are the Registered Retirement Savings Plan (RRSP) and the Tax-Free Savings Account (TFSA). For the 2026 tax year, the RRSP contribution limit is C$33,810 or 18% of prior-year earned income, whichever is lower. The 2026 TFSA annual limit is C$7,000, with cumulative contribution room reaching C$102,000 for eligible Canadians who have been eligible since its inception in 2009.

For Canadian Coast FIRE planners, the TFSA is particularly powerful: withdrawals — including any growth — are tax-free at any time, which makes it ideal for funding the gap years between early semi-retirement and the age when Canada Pension Plan (CPP) and Old Age Security (OAS) begin. In 2026, the average CPP retirement benefit is approximately C$925.35 per month, while the maximum is C$1,507.65 monthly at age 65. As of the April to June quarter, OAS pays a maximum of $743.05 a month for those aged 65 to 74 in 2026.

One key consideration for Canadians: retiring early or reducing contributions during a career-transition period can lead to lower CPP payments later, since the benefit is based on your lifetime contributions. That’s exactly why the Coast FIRE strategy — where you stop aggressively saving but keep working and contributing — can be better suited to the Canadian system than a full early retirement.

For the “F-you fund” equivalent, a High-Interest Savings Account (HISA) is the most straightforward option. Deposits at Canada Deposit Insurance Corporation (CDIC)-member institutions are insured up to C$100,000, while credit union deposits are insured provincially, often in full, but vary widely across provinces.

How to build up an initial cash cushion

Hill stresses that saving up an “F-you fund” isn’t about living on rice and beans or cutting every bit of joy out of your life. In fact, he thinks using that approach could backfire for most people.

When savers get too strict, too fast, that’s often when the financial decisions get worse rather than better.

“There’s so many other things that you can do with your life besides working,” he said to CNBC.

Instead, he leans on a handful of simple habits that are easy to repeat and actually stick over time.

• Keep the fund somewhere safe. The point isn’t to chase returns or get fancy. It’s simply knowing the money is there and ready to use if life suddenly changes.
• Hold monthly money meetings. These are regular check-ins with your household to look at where the money is going, what’s coming up and whether your spending still matches your goals — it doesn’t need to be more complicated than that. It keeps everyone on the same page, instead of guessing month to month.
• Zoom out and look at the big picture first. Think: housing, transportation and food. “The bigger expenses matter the most,” Hill told Business Insider. “Those are some of the harder questions to ask yourself: Do I actually need this house? Do I need these cars? Are they helping me get where I want to go?”
• Find space to actually enjoy your life. Hill pushes back against the idea that financial independence should feel like constant restriction. If every decision becomes about cutting back, eventually the whole thing starts to feel unsustainable.
• Increase income as a final piece. “We really need to figure out how to combat inflation by inflating our own income,” he said. That may mean asking for a raise, going after a promotion or picking up extra hours. Beyond that, he suggests looking at side income — starting with skills you already have and figuring out how they could help you earn more outside your nine-to-five role.

For Hill, the point of all of this isn’t to quit work as quickly as possible. It’s to make sure you’re not stuck in a job just because you have no other choice. And in his view, that’s really where the “cheat code” comes in handy.

What Canadians can do next

Hill’s approach translates well for Canadians, with a few adjustments worth keeping in mind:

• Maximize your TFSA first for Coast FIRE flexibility. Because TFSA withdrawals are tax-free and contribution room is restored the following year, this account gives you the most flexibility if you want to transition to part-time work or a lower-income period earlier than expected.
• Use your RRSP for tax-deferred growth. Contributions reduce taxable income now. Strategic withdrawals in lower-income retirement years can reduce lifetime tax. Consider the RRSP-to-TFSA conversion strategy during early retirement years when your income temporarily drops.
• Calculate your Coast FIRE number. The formula is straightforward: divide your target retirement number by the expected growth factor between now and retirement. Several Canadian Coast FIRE calculators are available online to help account for CPP, OAS and Canadian tax rates.
• Build your “F-you fund” in a HISA. Aim for six to 12 months of living expenses in an accessible, low-risk account. Deposits at CDIC-member institutions are insured up to C$100,000.
• Factor in the CPP and OAS gap. If you plan to reduce work in your 40s or 50s, model the impact on your CPP benefit, which is based on your contribution history. Knowing your likely CPP amount helps you size the portfolio you need to bridge the gap.
• Hold monthly money meetings. This is one of Hill’s simplest and easiest habits to repeat — and it works regardless of how much you earn or where you live.

-With files from Melanie Huddart

A new National Bank survey found that 39% of Canadians have used generative AI to help make a purchasing decision over the past year, suggesting the technology is becoming part of how many consumers research and evaluate what to buy.

“These results show that AI is quickly becoming second nature for Canadians,” said Pierre Dufour, senior vice-president of Strategy and Client Experience at National Bank, in a statement.

“We wanted to better understand how Canadians are using new technologies to make a range of important life decisions — whether it’s everyday purchases or larger, more complex projects.”

Canadians are using AI for more than just shopping

While product research is one of the most common uses, Canadians are increasingly turning to AI tools for a wide range of everyday decisions.

Among those who use AI, 36% said they rely on it for health and wellness questions, while 32% use it for food, meal planning and recipes. Another 31% said they use AI when researching products or services, while 28% use it for travel planning.

Unsurprisingly, personal finances are also entering the mix. Nearly one-quarter of AI users (23%) said they have used the technology for budgeting, saving or investing decisions.

The survey suggests AI is evolving from a novelty into a practical tool that many people now use to gather information and compare options before making decisions.

Find your perfect bank account. Use our expert comparisons to find the highest sign-up bonuses and lowest fees in Canada.

Many users say AI is helping them save money

One reason for AI’s growing popularity may be its ability to quickly sort through information that would otherwise take much longer to research.

Among Canadians who use AI when making purchases, 80% said the tools help them compare options more effectively. More than half (57%) said AI has helped them save money.

The survey also found that 61% of users believe AI has more influence on their purchasing decisions than traditional advertising.

For consumers trying to navigate everything from travel bookings to household purchases, AI tools can act as a personal research assistant, helping identify alternatives, compare prices and summarize large amounts of information in seconds.

That convenience may help explain why AI is becoming a regular part of the shopping process for many Canadians.

AI recommendations don’t always work out

Despite the reported benefits, the survey also suggests consumers are learning where AI falls short.

More than one in four users (28%) said they have regretted a purchase recommended by an AI tool. At the same time, 23% said AI has encouraged them to spend more money than they otherwise would have.

The findings highlight a reality many consumers are discovering firsthand: that AI can be useful for research and comparison, but its recommendations aren’t always going to hit the mark. The quality of the advice often depends on the information provided, the prompts used and the sources an AI tool draws from.

As these tools become more common in everyday life, their influence on spending decisions will likely continue to grow. But while many users say AI is helping them save money and make more informed choices, the survey suggests a healthy dose of skepticism may still be warranted.

Despite the distance, the very recent flooding events in these two Canadian cities highlight the risks faced by every Canadian homeowner and resident. Without the right insurance coverage, the right endorsements, or any mitigation efforts and the full impact of flood damage — physical, emotional and financial — rests with you.

But this issue isn’t new. The federal government has known this problem existed since at least 2019, when it first promised a national low-cost flood insurance program. Every federal budget from 2021 to 2024 has pledged to make good on this national initiative. The most recent was the April 2025 election campaign, that pledged $450 million over five years with a deadline for the launch of this national insurance program in April 2026. As of mid-June, there is still no confirmed timeline for delivery of the program, according to the Insurance Bureau of Canada (IBC).

For the estimated 1.5 million Canadian households at the highest flood risk, this delay is not abstract. It means some homeowners cannot obtain flood coverage at any price — and must pay out of pocket, absorb the loss or rely on disaster financial assistance after the fact (which does not make them whole).

Your home is more than a building — it’s where your life happens. Compare Canada’s top home insurance providers and find coverage that helps protect what matters most. If you want to stop overpaying for insurance, use a rate consolidator. You can compare 20+ quotes on Rates.ca and potentially save hundreds with just one application. Find trusted home insurance coverage with Rates.ca

What your home insurance almost certainly doesn’t cover

To be clear, a standard home insurance policy in Canada does not include flood protection.

Overland water coverage — the endorsement that protects against rainfall, snowmelt and rising freshwater entering your home — must be added separately, according to the Financial Consumer Agency of Canada (FCAC). Sewer backup coverage is a separate endorsement as well.

Sadly, many homeowners discover this only after a claim is denied. That’s because how water entered and damaged your home matters. While water damage from a burst pipe is typically covered, water entering through your foundation during a downpour is not, unless you have purchased additional coverage (such as overland water protection).

According to Allstate Canada, external water damage — including heavy rain and overland flooding — accounted for nearly a quarter of all home insurance claims in 2025, and water damage overall represented more than 40% of all home insurance claims between 2021 and 2025.

Despite the prevalence of water damage and the rise in water-related claims, many homeowners and tenants still misunderstand what’s covered under home insurance and the availability of extra riders.

Protect your home today. Storms, leaks and unexpected accidents don’t wait for a convenient time. Find a home insurance policy that helps you prepare for life’s surprises. Compare 20+ home insurance quotes with Rates.ca

Where the private insurance market is already pulling back

Overland water coverage was available for purchase by most Canadians, although the cost varied widely by location and risk profile. However, for the roughly 10% of Canadian households deemed at the highest flood risk, the story is different. According to the IBC, some insurers are “reducing their coverage or their exposure in certain regions” as climate-driven losses accelerate. For some, this can mean much more expensive coverage options — or no coverage at all.

Annual insured losses reached $9.4 billion in 2024 — the highest figure ever recorded in Canadian history, and nearly 12 times the annual average of $701 million from 2001 to 2010. In fact, four of the last five years now rank among the 10 costliest on record for insured losses. And in 2023 and 2024, Canada’s property and casualty insurers recorded net underwriting losses — a problem for larger firms, which are held accountable by shareholders, including large pension funds.

What does this mean for high-risk homeowners? It means fewer choices, higher costs and more risk as fewer insurers become willing to offer coverage. For insurers still willing to offer coverage, the premiums are rising rapidly — in some cases as much as $15,000 annually just to get coverage. Those who are denied flood coverage entirely have limited recourse beyond the federal Disaster Financial Assistance Arrangements (DFAA), which provides post-event government relief but does not replace insurance.

What the $450 million federal promise actually promised

The concept of a national flood insurance backstop has been in federal discussion since 2019. In 2020, a task force was established, and in 2022, a report was released; federal budgets in 2023 and 2024 each committed to delivering a program, and Budget 2024 named a Canada Mortgage and Housing Corporation (CMHC) subsidiary as the proposed federal reinsurer. While the Federal-Provincial-Territorial Working Group on Flood Insurance began meeting in January 2025 to finalize program design, with an April 2026 target, the deadline has now come and gone — with no real update.

Earlier this month, IBC’s Director of Federal Affairs, Rachel Barry, confirmed: “There’s no timeline that I can share right now from government.” B.C.’s Minister of Emergency Management Kelly Greene put it more directly: “My concerns right now are that the program appears to be stalled.”

The promise of this national flood program was designed to function as a low-cost reinsurance backstop — meaning public funding would help cover the risk that private insurers cannot price affordably for high-risk homes. The program was never meant to replace private market coverage. However, until it launches, the gap remains unfilled.

How to check whether your home is protected — what to do if it isn’t

The first step for any homeowner is to review their current policy for two specific endorsements: Overland water coverage and sewer backup coverage. Neither is included in a standard policy by default. If you cannot locate them in your policy documents, contact your insurer or broker directly to confirm your coverage before flood season peaks.

If overland water coverage is available for your home but you have not added it, the cost for lower-risk properties typically runs between $10 and $30 per month — a fraction of what uninsured flood damage can cost. Some insurers will reduce premiums if you have installed a backwater valve or sump pump, so it is worth asking.

If you have been refused flood coverage entirely, document that refusal in writing. Homeowners who cannot obtain insurance and experience a flood may qualify under federal or provincial disaster assistance programs. Keeping a written record of a denial can support that application.

For homeowners uncertain about their property’s flood risk, Public Safety Canada is developing a national flood risk portal to allow searches by postal code. That portal, funded separately from $15.3 million of government funds, was anticipated to be launched by the end of 2025 but has not yet been released as of mid-2026. In the interim, some municipalities and provinces maintain their own flood plain mapping tools.

When that moment comes, it forces one of the most consequential financial questions a person can face — and the right answer is not the same for everyone.

Consider the hypothetical case of Eduardo, a 49-year-old with $300,000 saved and $180,000 remaining on his mortgage. Retirement is still more than a decade away, but close enough to feel real. His dilemma: does he use that savings to wipe out the mortgage, or does he invest it and bet on stronger returns in the market?

The answer, according to financial planners, hinges on a single key variable: his mortgage rate.

When a high mortgage rate tips the scales toward paying it off

As of June 22, 2026, the best 5-year fixed mortgage rates in Canada start at 3.99% for both insured and conventional mortgages, rising to around 4.29% for uninsurable mortgages (e.g. refinances), according to WOWA.ca. Variable-rate mortgages are currently lower, with the best 5-year variable rate at 3.30% for both insured and conventional borrowers.

The Bank of Canada held its overnight rate at 2.25% at its June 10, 2026 announcement — and analysts expect rates to remain broadly stable through much of this year, though some forecasters see the possibility of hikes in late 2026.

If Eduardo is paying off a mortgage at a rate of roughly 4.5% or higher, the case for accelerating repayment becomes genuinely compelling — particularly with retirement approaching.

Consider this: a homeowner with $300,000 still owing and 20 years left on their amortization schedule starts putting an extra $400 each month toward the principal. At a 4.5% rate, that household could pay off the mortgage approximately five to six years early — and save tens of thousands in interest over the life of the loan.

Eliminating a fixed monthly mortgage payment provides a different kind of financial benefit that goes beyond the math: it reduces the income Eduardo needs to sustain himself if he faces a job loss or unexpected change in employment — a real concern for Canadians in their late 40s navigating an uncertain economy.

Some studies also point to a psychological benefit to early mortgage payoff — the relief of removing one more financial obligation as retirement nears. It is worth noting, however, that paying off the mortgage does not eliminate other homeownership costs: property taxes, maintenance and home insurance continue regardless.

When a lower mortgage rate favours investing

If Eduardo’s mortgage rate is lower — say, 3.5% or below — the math begins to shift toward investing, particularly if he has a stable income and a long enough time horizon to ride out market volatility.

The S&P/TSX Composite Index, Canada’s primary stock market benchmark, has delivered an average annualized return of approximately 7.94% over its 50 years, from 1971 to 2021, according to data from Questrade. In either case — whether using a conservative estimate of 6% or the longer-term historical average closer to 8% — those returns can meaningfully outpace a low mortgage rate over a 10-year horizon.

If Eduardo were to invest $200,000 of his savings into a diversified portfolio earning a 7% annual return compounded over 10 years, that money would grow to approximately $393,000.

That said, market returns are never guaranteed. In 2022, for instance, global equity markets experienced a sharp correction as inflation surged, central banks raised rates aggressively and geopolitical uncertainty rattled investors. Canadian investors were not immune. The lesson: a 10-year average does not mean every year delivers gains.

Make your savings work harder. Open a self-directed investing account with CIBC Investor’s Edge — low fees, powerful tools, and control over your future.

Investment options Canadians should consider

One key advantage of investing — versus putting money toward the mortgage — is liquidity. Investments held in publicly traded securities can generally be accessed far more quickly and easily than home equity.

To access equity built up in a home, a Canadian homeowner typically must either sell the property or take out a home equity line of credit (HELOC). Under rules established by the Office of the Superintendent of Financial Institutions (OSFI), a HELOC secured against your home cannot exceed 65% of your home’s appraised value— though when combined with an existing mortgage, total borrowing can reach up to 80% of your home’s appraised value.

For Canadians with available registered account room, Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs) should be the first consideration before putting money into non-registered investments.

The 2026 TFSA contribution limit is $7,000, with a cumulative lifetime limit of $109,000 for Canadians who have been eligible since the program launched in 2009. Investments held in a TFSA grow tax-free and can be withdrawn at any time without tax consequences, making the account an effective vehicle for long-term investing.

An RRSP contribution provides a tax deduction in the year it is made and allows investments to grow tax-deferred — but withdrawals in retirement are taxed as income. CIBC’s financial planning resources note that when comparing mortgage prepayment to an RRSP contribution, a key variable is whether your tax rate at contribution is expected to be higher than your tax rate at retirement. If it is, the RRSP offers a meaningful tax advantage.

If Eduardo has already maximized his registered accounts, he could also consider safer fixed-income options in a non-registered account, such as Guaranteed Investment Certificates (GICs), government bonds, or diversified index funds and exchange-traded funds (ETFs). GICs tend to offer lower returns than equities, but with significantly less risk.

To get started, open a no-fee RRSP high-interest savings account with EQ Bank. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

The Canadian capital gains picture

One important distinction for Canadian investors is how capital gains are taxed.

In Canada, the capital gains inclusion rate is currently 50%, meaning only half of any capital gain is added to your taxable income for the year. This applies regardless of how long the asset was held — there is no separate short-term versus long-term capital gains rate structure.

A proposed increase that would have raised the inclusion rate to 66.67% for gains above $250,000 annually was cancelled by Prime Minister Mark Carney in March 2025, before it ever became law. As of June 2026, the 50% rate remains in effect.

Investment earnings held in a TFSA are entirely exempt from tax. Gains inside an RRSP are tax-deferred until withdrawal. Only gains in a non-registered account are subject to the inclusion rate at the time of sale.

What Canadians in Eduardo’s position should consider next

Whichever route you lean toward, a few practical steps can help sharpen the decision:

• Compare your mortgage rate to realistic investment returns. If your rate is 4.5% or above and you have less than 15 years left on your amortization, the guaranteed savings from early payoff can rival or exceed expected market returns — particularly in a volatile environment.
• Max out registered accounts first. Before directing money toward the mortgage or into a taxable account, ensure TFSA and RRSP room is being used. The tax-sheltered growth compounds significantly over a decade.
• Understand your prepayment privileges. Most Canadian mortgages include annual lump-sum prepayment options — commonly 10% to 20% of the original principal — without penalty. Use these before penalties apply on renewals or early payoffs.
• Build a liquidity buffer. Paying off a mortgage entirely leaves your savings locked in home equity. Keep enough in accessible, liquid assets to cover 3 to 6 months of living expenses and unexpected costs.
• Reconsider at renewal. Canadian mortgages renew every 1 to 5 years, creating a natural checkpoint. At renewal, you can reassess your rate, your investment returns and your financial goals — and adjust the strategy accordingly.
• Talk to a financial planner. The mortgage-versus-invest decision interacts with your marginal tax rate, retirement income timeline, CPP and OAS projections, and overall risk tolerance in ways that a spreadsheet alone cannot fully capture. A fee-only financial planner can model both scenarios with your specific numbers.

Neil — who asked to have his identity concealed — told CTV News he received a call from someone who sounded exactly like his son Brian.

“I thought I was talking to him because it was his voice,” he told the outlet.

The caller stated they were involved in a serious car accident and were facing charges for driving while using a cellphone. After the explanation, another voice took over, claiming to be his son’s lawyer, informing Neil he would need to pay $6,000 for Brian’s bail or he would have to spend the night behind bars.

Neil told the news outlet that the so-called lawyer said the courts were facing delays, so a rideshare driver would come by to pick up cash as payment. Like any good father wanting to help his son, Neil obliged, and gave the cash to an Uber driver.

The day after, Neil called his son to check in on him. The scam’s facade was broken when Brian had no idea what his father was talking about.

“I happened to call Brian the next day and asked how the meeting with the lawyer went and he said, ‘What lawyer’?” Neil explained, adding, “I said ‘What about the accident you were in?’ and he said ‘What accident?’ and then I realized I had been scammed.”

Emergency scams continue to ravage Canadians’ wallets

The emergency scam has been around for decades, and Neil is the latest victim. The playbook is simple: a fraudster pretends to be a family member or loved one in distress to elicit money from concerned family members. But the rise of AI voice-cloning technology and deepfakes have made the scam more potent, and more convincing.

“The emergency scam is becoming a wildly popular way to scam,” cybersecurity expert Jane Arnett of Check Point Software told CTV News, saying, “What they do is get 10 seconds of anyone’s voice, then they can recreate it to sound exactly like the person.”

The history of emergency scams in Canada shows this type of fraud exploding in effectiveness in 2022 — the same year Open AI’s ChatGPT began its meteoric rise. According to the Canadian Anti-Fraud Centre (CAFC) and the RCMP, emergency scams cost Canadians $2.4 million in 2021. However, in the following year, emergency fraud losses ballooned to $9.2 million.

While in recent years, the emergency/grandparent scam has become less popular among fraudsters, cases like Neil’s show how it is still around and just as successful if deployed correctly and convincingly.

Lock in a better rate today. Whether you are saving for a home or an emergency fund, our guide helps you find the accounts with the highest interest rates and lowest fees.

The rise of fraud across the nation

In Canada, financial fraud has been steadily rising since the pandemic years, with CAFC data revealing reported dollar losses at $107 million in 2020 and $704 million in 2025.

But the organization notes that only five to ten percent of all fraud is reported; the dollar loss in Canada last year is likely much greater than $700 million.

Importantly, the CAFC’s annual report from 2024 reveals how while the number of fraud reports has been steadily declining since 2020, the dollar value of those successful attempts has spiked significantly, and AI may be to blame.

“AI has armed fraudsters with powerful tools to create highly convincing impersonations and deceptive marketing schemes. Canadians must stay vigilant,” Jeanne Pratt, Acting Commissioner of Competition, said in a news release.

How Canadians can protect themselves from AI-powered exploits

Emergency fraud is an emotionally powerful form of deceit that taps into our innate instincts to care for those closest to us.

Here are some steps to take if you experience a call like Neil’s and want to make sure you’re not being duped.

• Verify the story. Ask the caller details only a loved one would know, such as an important intimate memory, a special project only family members know about, or other lesser-known details a stranger would not have access to. Then, inquire further about the incident to see if there are any inconsistencies.
• Check in on the family member. The fastest way to confirm if an emergency is actually occurring is to call the family member in question or someone close to them. Do not rely on caller ID on your phone, as scammers can easily change the name that appears when they call — a process known as caller ID spoofing. Always hear the story on your own terms before making a decision.
• Be vigilant about untraceable forms of payment. Usually, if a caller is asking you to provide payment in a form that is not easily traceable (e.g. wire transfers, crypto payments, gift cards, cash pickup) you should immediately be suspicious — especially if the caller is posing as a legal professional or government official.

That’s the core message financial guru Dave Ramsey delivered when a 29-year-old father called into The Ramsey Show to ask about financing a new vehicle. Ramsey’s response — blunt, direct and instantly quotable — carries as much weight for Canadians as it does for anyone south of the border.

“Love yourself enough not to go into car debt,” Ramsey told the caller. “If you want to be middle class, stay in car debt. You will never build wealth because it will suck the bone marrow out of your money.”

The caller — identified only as Carl — explained he’d recently landed a salary increase from US$85,000 (C$116,000) to a potential US$95,000 (C$130,000) after six months on the job. His current Honda wasn’t worth fixing, and he had US$20,000 (C$27,300) saved for a new car — but the one he wanted cost US$25,000 (C$34,100).

“Don’t celebrate your new job with a car payment. That’s kind of dumb," Ramsey said. “You have [those savings] and a good job. You can go buy a car for what you have saved and not a dime more.”

His advice: Carl’s budget is whatever he can get for the Honda plus what he has saved. Full stop. No financing. No exceptions.

Take control of your money. Whether you are saving for a home or an emergency fund, our guide helps you find high-interest savings accounts with the highest interest rates and low or no fees. Get your money working for you using a HISA.

Skip the flashy car — it’s not worth the debt

Ramsey linked what he called “the affordability crisis” directly to high car payments — and research backs him up. An H&R Block Canada survey released in April 2025 found that 85% of Canadians say living paycheque to paycheque is the new normal, up sharply from 60% in 2024.

“Ford Motor Company screwed you. Lexus and Toyota screwed you,” Ramsey said. “They got you to go far in debt because you had to have something shiny with a toxic plastic smell.”

Ramsey then referred to his own company’s internal research of more than 10,000 millionaires that showed how 84% credited ditching car payments as key to building their wealth.

Ramsey pressed the caller to think about who he was actually trying to impress — and why.

“Decide who you want to impress. People you’re likely never going to meet, or your grandchildren,” he said. “Because you can change your family tree if you don’t impress the people at the stoplight.”

“You are upgrading so far from the car you’ve been driving, you ought to be dancing in the streets with those savings, acting like you have got a new Porsche,” Ramsey added.

Co-host Jade Warshaw agreed, calling buying a car in cash “countercultural,” to which Ramsey replied that most people who live with car payments are stretched thin, financially speaking.

Car debt is draining Canadian pockets

Canadians aren’t immune to the financial strain of car payments. According to Equifax Canada’s Q2 2025 Market Pulse report, the average new auto loan reached C$35,586 — up C$1,567 from the previous year. Meanwhile, Statistics Canada data shows the average car loan interest rate climbed to 6.72% as of February 2026, up from 4.45% in December 2017.

Put it all together and the monthly bill is steep. According to Ratehub.ca’s 2026 cost-of-ownership analysis, the total monthly cost of owning a new car in Canada — including financing, insurance, fuel and maintenance — averages C$1,373. For context, the average new vehicle price in Q3 2025 was C$63,264 before taxes, and financing a vehicle at the average APR of 6.45% works out to roughly C$955/month in loan payments alone.

The data shows the financial strain on households. In Q3 2025, more than 1.45 million Canadians missed a credit payment — a delinquency level not seen since the financial crisis of 2008, according to Equifax Canada. Among Canadians under 36, the 90+ day non-mortgage delinquency rate hit 2.35%, a 19.7% jump year-over-year.

The Globe and Mail reported in December 2025 that the most popular auto loan term in Canada has stretched to seven years — as buyers extend amortizations just to keep monthly payments manageable. In smaller cities, the gap between a mortgage payment and a car payment has become alarmingly small. In Saguenay, Québec, for example, the average mortgage payment is C$886/month while the typical auto loan charge is C$547.

Ramit Sethi, another personal finance voice, offers a useful guardrail for those who feel they need to finance: the 20/4/10 rule. It calls for a minimum 20% down payment, a maximum loan term of four years and no more than 10% of monthly income going toward total vehicle costs — including payments, insurance, fuel and maintenance.

Ramsey, for his part, maintains the only real answer is to avoid car loans altogether.

“You don’t go into car debt, ever, if you want to build wealth,” he has said on multiple episodes of The Ramsey Show.

Looking to keep car payments low? As a loan comparison site, My Auto Approval is on a mission to create the easiest place to buy a vehicle, no matter where you live in Canada.

While you may not be familiar with the brand, My Auto Approval has been in the auto loan business since 2012 — and helped millions of Canadians find auto financing. As part of the Loans Canada brand, My Auto Approval works with a national network and a simple process to help you get pre-approved, locate a dealership and find a car that fits your budget and lifestyle.

Learn how easy it is: Select the type of vehicle you want to buy, set your monthly budget — from $0 to $500 or more — provide a few additional details such as estimated credit score, income, address and contact details, and licensed loan providers will contact you with your best auto loan options.

What Canadians can do instead

Ramsey’s message isn’t uniquely American — it’s a mindset shift that applies equally to Canada, where car culture, long commutes and limited transit in many regions make vehicles feel like a financial non-negotiable. But there’s a meaningful difference between needing a car and taking on a loan you can’t really afford.

Here are practical steps Canadian readers can take:

• Save before you shop. Set a firm cash budget for your next vehicle and treat it as the ceiling, not the floor. Even a modest car bought outright is worth more to your financial future than a shiny one with a five- or seven-year loan attached.
• Run the real numbers. Add up what you’re actually spending — monthly payment, insurance, fuel, maintenance and parking. If that total exceeds 10% to 15% of your take-home pay, your car is working against your wealth.
• Redirect the payment into a TFSA or RRSP. A Tax-Free Savings Account (TFSA) lets your money grow completely tax-free. A Registered Retirement Savings Plan (RRSP) gives you a tax deduction today and tax-deferred growth. Redirecting even C$500 a month into a TFSA invested in a broad equity fund — assuming a 7% annual return — could grow to more than $600,000 over 30 years.
• Buy used. The Canadian Black Book projected used vehicle supply would fall to approximately 1.57 million units in 2025, making used-car hunting more competitive. However, a reliable used vehicle still costs significantly less than a new one with a high-interest loan.
• Ignore the stoplight. Ramsey’s point about status and spending is worth considering. The vehicles around you on the highway are, statistically speaking, often financed. The people quietly building wealth are usually driving something boring — and putting the difference to work elsewhere.

- with files from Melanie Huddart

Stop overpaying for your car insurance. Life is expensive enough without an unexpected repair bill or liability claim. The right car insurance helps protect your savings when things don't go according to plan. Compare Canada's best car insurance or spend just three minutes comparing 20+ quotes on Rates.ca to find a better deal and potentially save $500 or more annually. Find the right coverage with Rates.ca

According to RE/MAX Canada’s 2026 Spring/Summer Spotlight on Luxury Report, luxury home sales rose across several smaller and mid-sized markets during the first four months of the year, with some of the strongest growth recorded in Edmonton, Saskatoon, Ottawa and Calgary.

“Luxury is no longer defined solely by Canada’s largest urban centres,” said Don Kottick, president of RE/MAX Canada, in a statement. “Smaller and mid-sized markets are experiencing increasing or stable conditions at the higher end of the luxury segment, largely supported by economic diversification, population growth and continued demand for lifestyle-oriented properties.”

Even luxury buyers are searching for value

While luxury buyers have larger budgets than most, the report suggests they’re becoming just as focused on value.

Edmonton posted the largest year-over-year increase in luxury home sales activity at 47.7%, followed by Saskatoon at 27.3%, Ottawa at 17.5% and Calgary at 13.5%.

Part of the appeal is straightforward: buyers can often get significantly more house, more land and more amenities than they could compared to buying in Toronto or Vancouver.

Barry Cohen, broker and owner of RE/MAX Realtron Barry Cohen Homes, said buyers are increasingly looking at regions where larger properties and lifestyle features remain attainable at lower price points.

“These other regions have become the alternative, simply because they’re more attractive in land size and house size, and often amenity-rich,” he told BNN Bloomberg.

Get personalized mortgage options from Homewise. Just one application lets you compare rates from 30+ lenders — getting you the best rate in minutes.

Migration and economic growth are reshaping demand

The report also points to migration as a key factor driving demand in several markets.

Cities such as Calgary, Edmonton, Saskatoon and Ottawa continue to attract new residents from other parts of the country, supported by growing populations, employment opportunities and relatively lower housing costs.

“We’re seeing a rebalance of luxury spending, not a decline overall,” Kottick said. “Canada’s luxury market is becoming more dynamic and more regional, focusing less on where wealth has been historically concentrated and more on where buyers see value and long-term opportunity.”

Cohen also noted that interprovincial migration is playing an important role in that shift.

“I think buyers are migrating between provinces, and they’re looking for economic opportunity,” he said.

The RE/MAX report notes that markets with diversified economies — including government, technology, manufacturing, logistics and energy sectors — have generally seen stronger luxury market performance than regions facing greater economic uncertainty.

Space, privacy and lifestyle continue to matter

The definition of luxury may be evolving, but some buyer priorities remain remarkably consistent.

Across several markets, RE/MAX found strong demand for waterfront properties, acreages, estate homes and other properties offering space and privacy. Buyers are also showing a preference for turnkey homes that require little or no renovation work.

Cohen noted that many luxury buyers continue to prioritize features that became increasingly important during and after the pandemic, including larger lots, recreational amenities and proximity to parks or waterfronts.

“People are still seeking out these amenities,” he said. “Families are enjoying it. We see it all the time.”

Some buyers are looking for home theatres, wine rooms and recreational space, while others are focused on privacy, outdoor living and access to natural amenities.

The common thread is that many buyers appear willing to look beyond Canada’s largest cities if it means finding a property that better fits their lifestyle.

Toronto and Vancouver remain Canada’s largest luxury housing markets by a wide margin. But the latest data suggests more affluent buyers are expanding their search radius.

For many, the appeal isn’t just a lower purchase price — it’s the opportunity to get more space, more privacy and a different pace of life while still benefiting from strong local economies.

Which is why it was so alarming when her wealth management firm sent her a letter asking whether she’d recently changed her email address and her linked bank account.

She hadn’t.

During a call to The Ramsey Show, Jean, 84, discovered that someone had stolen her identity to open a chequing account at another bank. The scammers then used that fraudulent account to electronically link to her wealth management account and drain US$45,500 (C$61,400) from a balance of US$169,790 (C$229,200). By the time the firm attempted to reverse the transaction, the money was gone.

“I think that’s on them,” Dave Ramsey said on the show, pointing out that it was the firm’s own systems that were compromised.

Ramsey went further, noting that the firm had apparently allowed someone to change Jean’s email address and linked bank account — sensitive security details — without triggering any verification with the actual account holder.

“Cybersecurity at a minimum is horrible at this company,” Ramsey added.

What Canadian law and regulations actually say

While this incident occurred in America, Ramsey’s instinct — that the firm bears responsibility — aligns with Canadian regulatory expectations. In Canada, investment dealers and mutual fund dealers are overseen by the Canadian Investment Regulatory Organization (CIRO), the national self-regulatory organization formed in 2023.

CIRO’s 2026 Annual Compliance Report makes clear that dealers are required to report cybersecurity incidents that meet certain criteria and to implement necessary controls to protect their clients. The report specifically warns of an increase in incidents involving third-party service providers and encourages dealers to review whether they have the necessary controls in place to protect clients, client information and assets, as well as their own critical operating systems.

Beyond cybersecurity obligations, CIRO’s know-your-client (KYC) rules and client identification requirements (IDPC Rule 3200) require investment dealers to verify client identity and take reasonable steps to confirm the accuracy of account information. That means a firm that allows sensitive security details — an email address or a linked bank account — to be changed without direct verification from the account holder may have fallen short of its regulatory obligations.

In Jean’s case, if her wealth management firm allowed someone to change those credentials without confirming the request with her directly — and then released funds to the new account — it may have created grounds for a demand for reimbursement.

Is your retirement fund leaking? Secure your future today. Silent fees and stagnant interest can push your retirement date back by years. See how moving your savings to a high-interest account can help you retire sooner and with more confidence.

What to do if this happens to you

Ramsey’s first directive to Jean was clear: before doing anything else, call the firm to confirm the remaining balance is secured. Then demand reimbursement on the grounds that the account was compromised through the firm’s own security failure.

For Canadians, if the firm resists, the next step is to file a complaint with the Ombudsman for Banking Services and Investments (OBSI).

OBSI is Canada’s independent, free dispute resolution service for consumers who can’t resolve a complaint directly with their investment firm or bank — there are no filing fees and no complex legal process to start. OBSI investigates complaints about unauthorized transactions and fraud and, where a complaint has merit, can recommend compensation of up to C$350,000. The process typically resolves within 180 days.

Canadians also have the option of filing a complaint directly with CIRO, which can investigate possible violations of dealer rules and impose disciplinary action.

For broader identity theft reporting, the Canadian Anti-Fraud Centre (CAFC) maintains an online reporting portal at antifraudcentre-centreantifraude.ca.

A growing crisis for older Canadians

Jean’s situation is not isolated. It is part of a pattern that is accelerating — and for Canadians, that falls hardest on the older generation.

According to the CAFC’s 2025 Annual Statistical Report, Canadians reported $704 million in fraud losses in 2025 — nearly four times the $165 million recorded in 2020. Identity fraud was the most reported type, at 8,403 incidents, followed by investment scams at 4,409. However, because most fraud goes unreported, the CAFC estimates that those figures represent only 5 to 10% of total actual losses, suggesting the real toll could reach into the billions.

Canadians aged 60 and older are a prime target for fraudsters. An additional report from the CAFC found that this demographic absorbed 40.3% of all reported dollar losses in 2024 — despite representing roughly 23% of the population. Their average per-victim loss was C$21,604, about $3,000 higher than the national average across all age groups.

As Ramsey and co-host Jade Warshaw noted on the show, whoever targeted Jean had enough of her personal information to open a new bank account, locate her wealth management firm and successfully link the two. That level of access suggests the threat to her other accounts may not have been over.

For older Canadians managing retirement savings — RRSPs, TFSAs, non-registered investment accounts or any other wealth management holdings — the message is the same: you don’t need to be online for your accounts to be at risk.

Protect your credit — with an important Canadian caveat

In the U.S., Ramsey advised Jean to immediately freeze her credit at all three bureaus — Equifax, TransUnion and Experian. In Canada, as of now, the options are more limited, but steps can still be taken.

Canada has two credit bureaus: Equifax and TransUnion. A full credit freeze — which prevents lenders from accessing your credit file to open new accounts — is currently only available to residents of Quebec, where legislation has required it since February 2023. Ontario regulations allowing credit freezes are set to take effect on July 1, 2026, with the credit bureaus having an additional year to fully implement the requirements. Other provinces are expected to follow.

For Canadians outside Quebec, the available option is a fraud alert — a flag on your credit file that prompts lenders to take extra verification steps before approving new credit. Fraud alerts can be placed at both Equifax (equifax.ca) and TransUnion (transunion.ca) at no charge. Placing an alert at one bureau does not automatically apply it at the other; they must be contacted separately.

Anyone who suspects their identity has been compromised should also monitor all existing accounts for unauthorized activity and contact each financial institution directly.

What Canadians can do right now

If you’re a Canadian investor — particularly one who manages accounts offline, as Jean did — here are concrete steps to protect yourself and actions to take if you’re already a victim:

• Call your firm immediately. If you suspect unauthorized access, confirm your remaining balances are secure and demand the account be locked down until the situation is investigated.
• Demand reimbursement from the firm. If the breach happened through the firm’s own systems or a failure to verify account changes with you directly, the firm may owe you restitution.
• Escalate to OBSI if the firm won’t cooperate. The OBSI (obsi.ca) is free, independent and can recommend compensation up to C$350,000. You do not need a lawyer to file.
• File a complaint with CIRO. Report the firm’s conduct to the Canadian Investment Regulatory Organization (ciro.ca). CIRO can investigate regulatory violations and impose disciplinary action on members.
• Report the fraud to the CAFC. The Canadian Anti-Fraud Centre (antifraudcentre-centreantifraude.ca) tracks identity theft and investment fraud patterns. Reporting helps law enforcement and may support your case.
• Place a fraud alert on your credit files. Contact Equifax (equifax.ca) and TransUnion (transunion.ca) separately to flag your files. Quebec residents can request a full credit freeze. Ontario residents can do so starting July 1, 2026.
• Ask your firm about security verification options. Request that any changes to your contact information, email address or linked bank accounts require direct confirmation with you — by phone or in person, not just online.

New data from the Canadian Real Estate Association (CREA) shows home sales rose 5.5% from April to May, marking the strongest monthly increase so far this year. The gains were widespread across the country, led by Ontario, British Columbia, Manitoba and Nova Scotia.

“The national sales increase from April to May was broad-based but driven disproportionately by Ontario,” said CREA senior economist Shaun Cathcart, in the report. “While it was just the first month in 2026 to see any meaningful upward momentum in headline demand, under the surface conditions have been improving for some time.”

Buyers and sellers may finally be finding some common ground

For much of the past year, many buyers waited on the sidelines hoping prices would come down further, while sellers were reluctant to lower their expectations. Now, there are signs that the gap may finally be narrowing.

The national sales-to-new listings ratio rose to 49.2% in May from 46.2% in April, while homes are generally spending less time on the market and prices have begun to stabilize in many regions.

TD economist Rishi Sondhi said the increase in activity suggests buyers and sellers may be becoming more aligned on pricing, helping more deals get done after a weak first quarter.

“Canadian home sales posted a healthy gain in May,” Sondhi wrote in a note, adding that improving market conditions are helping “grease the wheels for transactions.”

CREA’s data points in a similar direction. While benchmark prices remain below year-ago levels nationally, the pace of decline has slowed and sales activity is beginning to pick up.

Thinking of selling or refinancing before your move? Get personalized mortgage options from Homewise — they’ll find your best rate in minutes.

Activity is improving, but the market is still far from hot

The rebound illustrated by CREA’s data comes with an important caveat: home sales still remain below last year’s levels.

Actual home sales in May were still 5.1% lower than they were a year earlier, while CREA’s national benchmark home price index was down 4.1% year over year.

Sondhi noted that May’s gain represents only a partial recovery following what he described as an ”exceedingly weak” first quarter, which was affected by economic uncertainty and poor weather in some regions.

On the ground, some real estate professionals are seeing the same thing.

Eddy Chang, a sales representative with Royal LePage Noralta Real Estate in Edmonton, told Canadian Mortgage Trends that this spring has felt steady rather than explosive.

“Things definitely boomed, but not to the point where it felt like it took off on a rocket,” he said.

“Definitely, you could feel the seasonality, but my boots on the ground experience is that it was more of a steady pace rather than rocket fuel.”

For buyers, that’s likely welcome news after years of dramatic swings in many housing markets.

What it means for buyers and sellers

For Canadians thinking about buying or selling, the market finally appears to be moving toward a more balanced footing.

There were just under five months of inventory available nationally at the end of May, close to the long-term average and a sign that neither buyers nor sellers currently have a clear upper hand in many markets.

Meanwhile, the national average home price reached $702,079 in May, up 1.5% from a year earlier, according to CREA. However, conditions continue to vary widely across the country, with some regions seeing modest price gains while others remain under pressure.

The biggest change may simply be that buyers are starting to feel more comfortable making a move.

After months of uncertainty, more buyers appear willing to re-enter the market, while sellers are adjusting to current conditions. That’s still a long way from the frenzied markets Canadians saw a few years ago, but it could be an early sign that housing activity is returning to baseline.

The Lifetime Capital Gains Exemption (LCGE) allows eligible Canadians to shelter up to $1.275 million in capital gains when selling qualifying small business corporation (QSBC) shares. The exemption was $1.250 million in 2025, but it was indexed for inflation for 2026. At a 50% inclusion rate and the top marginal tax rate in most provinces, the exemption can be worth roughly $318,750 in tax savings.

If family members are also able to claim the exemption, the tax benefits can be even larger. Two spouses each claiming the full exemption could shelter up to $2.55 million in gains from a single business sale.

But it’s not an automatic exemption. Your shares must meet specific requirements under the Income Tax Act, and many incorporated professionals, including physicians, consultants, lawyers and other business owners fail to confirm whether their shares actually qualify. It’s a problem you can avoid with some proper planning.

Are you in a profession that puts you in the top tax bracket? Then you need to work with fintech and finance companies that know your needs. For instance, eligible professionals can unlock up to $1,313 in annual savings when banking with National Bank. This special offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

What is the LCGE and who is eligible?

The LCGE is a lifetime tax exemption available to Canadian individuals who sell shares of a qualified small business corporation (QSBC). In 2024, the exemption ceiling was increased to $1.250 million. The increase was reaffirmed in Budget 2025, with indexation resuming in 2026, when it was increased to $1.275 million. The capital gains inclusion rate remains at 50% for individuals, following the cancellation of the proposed increase to 66.67% in March 2025.

To claim the exemption, you must be a Canadian resident individual. Corporations cannot claim the deduction directly. Eligible property includes QSBC shares as well as a qualified farm or fishing property. The deduction is claimed on line 25400 of your personal tax return.

Take Control Of Your Money. You can't control inflation, interest rates or market swings — but you can control where your money goes. When every dollar has a job, money feels less stressful. Find the budgeting app that helps you take control of your finances. Compare Canada's Best Budgeting Apps

The three tests your shares must pass

Not every share in a Canadian corporation qualifies for the LCGE. To be considered QSBC shares under the Income Tax Act, the following conditions must be met both at the time of sale and during the 24 months leading up to the sale.

• The 90% Active-Business test: At the time of sale, at least 90% of the fair market value of the corporation’s assets must be attributable to active business assets used primarily in Canada, or shares and debt of connected small business corporations. Excess cash, passive investments and rental properties can create problems here.
• The 50% Asset-Use test: During the entire 24 months before the sale, at least 50% of the corporation’s assets must have been used in an active business carried on primarily in Canada.
• The Holding-Period test: The shares cannot have been owned by anyone unrelated to the individual at any point in the 24 months before the sale. This can become a factor after certain corporate reorganizations or when new shares are issued.

The corporation must also qualify as a Canadian-controlled private corporation (CCPC) throughout the relevant period. This means that it cannot be publicly traded and control must remain with Canadian residents.

Why passive investments can disqualify you

One of the most common LCGE traps for incorporated professionals is the accumulation of passive assets inside the corporation. After years of retained earnings, many corporations build substantial balances of cash, GICs, investment portfolios, or real estate. While these assets can be highly beneficial, they generally don’t count as active business assets for LCGE purposes.

In this hypothetical example, let’s say a physician who incorporated 10 years ago has accumulated $600,000 in a corporate investment portfolio alongside their active medical practice. If those passive investments represent 35% of the corporation’s fair market value at the time of a planned sale, the corporation would fail the 90% test. As a result, the shares would not qualify for the LCGE.

The solution is a process called “purification”, which involves transferring non-active assets out of the operating corporation to a holding company, typically on a tax-deferred basis using rollover provisions in the Income Tax Act. However, this takes time and requires both legal and accounting expertise. For this reason, you really need to begin the process at least two years before a planned sale.

Family share multiplication: Sheltering more than $1.275 million

The LCGE applies to individuals, not corporations. When structured properly, multiple family members can each claim their own LCGE on the same business sale. It’s a strategy known as share multiplication.

In another hypothetical example, if a married couple each holds qualifying shares of the same CCPC, both spouses may be able to claim the full $1.275 million exemption. Together, they could shelter $2.550 million in capital gains from tax on a single business sale. If adult children also own qualifying shares, the sheltered amount could rise even further.

Successful share multiplication strategies are typically established years before a sale through individual share ownership or family trust planning. Issuing shares shortly before a transaction can trigger the 24-month holding requirement and prevent those shares from qualifying for it.

The Canada Revenue Agency (CRA) also applies anti-avoidance rules under section 84.1 of the Income Tax Act to certain non-arm’s-length transactions — making it critical to obtain professional tax advice.

What to do if you plan to sell within five years

The QSBC qualification rules require ongoing compliance over a two-year period. If you wait until a buyer is already at the table to investigate whether your shares qualify, there may be little or nothing you can do to fix a problem.

The CRA publishes guidance on the capital gains deduction and QSBC share qualification, including Form T657 (Calculation of Capital Gains Deduction), which is used to calculate the allowable claim on your personal tax return. You’ll want to review those rules with a qualified tax adviser, who can help you determine whether your corporation is currently positioned to qualify.

Otherwise, start preparing by reviewing your corporate asset mix, confirming that your corporation still qualifies as a CCPC and determining whether you need to do any purification planning. If family members own shares or may own shares in the future, now is also the time to review whether your ownership structure supports multiple LCGE claims.

Ultimately, the LCGE remains one of the most valuable tax-planning opportunities available to Canadian business owners. For professionals who have spent years building a successful practice or company, it can mean hundreds of thousands of dollars in tax savings. But unlike many tax breaks, you need to prepare for this one far in advance.

Ready to watch your savings grow? Check out the best HISA providers in Canada, including no-fee options and high-yield promotional offers. Eligible professionals can unlock more than $1,000 in annual savings when when banking with National Bank. The bank’s current offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

Following a tumultuous period where the previous parent firm filed for creditor protection in March 2025 and sold off its historical assets, Quebec-based Les Ailes de la Mode Inc. — a company owned by the retailing Benitah family — stepped in to purchase the rights to the nearly century-old name.

Rather than relying on the massive layouts of the 20th century, the new owners are deploying a completely reimagined business model. Dubbed “Zellers 3.0,” the strategy centres on smaller standalone footprints measuring between 20,000 and 50,000 square feet. Following a successful modern relaunch at Londonderry Mall in Edmonton, the resurrected brand has officially expanded into Ontario, opening doors at a 25,000-square-foot standalone location on Orfus Road in Toronto, with subsequent plans for Windsor.

Against all odds, the brand is mounting a standalone retail comeback across Canada. But understanding how the retailer returned to modern shopping strips requires looking back at the corporate decisions that led to its initial demise.

The rise of a retail giant

If you walked into a Canadian mall during the 1980s or 1990s, the sights and smells were instantly recognizable. You would pass a quarter-operated Zeddy bear ride at the entrance, navigate through aisles of toys and family apparel and catch the aroma of crinkle-cut fries drifting from a retro in-store restaurant. For generations of families, shopping at Zellers was not just a weekly chore but an integral thread in the fabric of Canadian suburban life.

The story began in 1928 when an Ontario entrepreneur named Walter Philip Zeller opened the first locations, according to historical records from The Canadian Encyclopedia. Following a brief corporate restructuring, Zeller officially launched the chain in late 1931 as a specialized department store tailored for thrifty Canadians.

The business experienced explosive growth over the next few decades, expanding from its roots in southern Ontario into a coast-to-coast powerhouse. In 1978, the Hudson’s Bay Company acquired a majority stake in the business, integrating the discount chain into its national portfolio. By the late 1990s, the brand reached its peak, operating some 350 locations across every province after absorbing key competitors like Kmart Canada and Towers.

Why the lowest price left the law

By the mid-2000s, the domestic retail landscape shifted dramatically. The arrival and rapid expansion of American big-box giant Walmart put immense pressure on traditional Canadian department stores. As consumers migrated toward massive one-stop shopping destinations, the Zellers brand began to struggle.

Seeing an opportunity to monetize its extensive real estate portfolio, then-parent company Hudson’s Bay Company made a monumental announcement. In 2011, the company agreed to sell the leasehold interests of up to 220 of its stores to Minneapolis-based Target Corporation for 1.825 billion dollars.

Following the multi-billion dollar transaction, a corporate spokesperson noted that continuing to operate the banner in its current form was simply not viable for the parent firm. By March 2013, the vast majority of traditional locations closed their doors permanently to make way for the American newcomer. A tiny handful of liquidators held on for a few more years, but by January 2020, the final traditional outlets quietly shuttered.

The journey back to Canadian shelves

The brand appeared completely dead, but its intellectual property held immense nostalgic value. After a brief period operating as small pop-up departments inside remaining Hudson’s Bay stores, the entire corporate landscape fractured, paving the way for the Benitah family's acquisition and the current standalone "Zellers 3.0" locations welcoming shoppers today.

In Canada, the adoption rate is quickly climbing. According to a Statistics Canada survey, in the second quarter of 2025, 12.2% of Canadian firms reported having used AI to produce goods or deliver services over the 12 months preceding the survey — with an additional 14.5% planning to adopt it within the next year.

For Nvidia CEO Jensen Huang, that momentum is something to embrace rather than fear. Speaking at the Computex 2026 conference in Taipei, Huang described the current moment as an “incredible time” to be building software, arguing that agentic AI is expanding — not shrinking — overall demand for digital tools. But a new research experiment offers a sharp counterpoint: the question is more than whether AI will create more work, but rather, whether it can be trusted to reliably operate when it’s running on its own.

Inside the experiment that let AI govern itself

To better understand what increasingly autonomous AI systems might look like in practice, researchers at Emergence AI created a set of virtual societies and put different AI models in charge. The experiment offered a glimpse of how these systems behave when asked to do more than answer questions — and instead navigate the challenges of governing a community.

Emergence AI is a self-described “frontier AI lab turning cutting-edge agentic research into enterprise infrastructure.” Some of its most recent research produced striking — and at times unsettling — findings.

In May 2026, Emergence launched “Emergence World,” a research platform dedicated to studying how autonomous agents behave when the time horizon is long enough for compounding effects, social dynamics and behavioural drift to matter.

In practical terms, they created simulated worlds, each run by a different AI model — Grok, Claude, Gemini, OpenAI’s GPT-5 Mini and a mixed model. The AI agents were set up in identical, parallel worlds that reflected real-world complexity, with weather synced to that of New York City and access to real-time global news. Each world included everything from town halls to libraries and police stations.

Each model started with identical conditions and strict rules prohibiting crimes like theft and destruction. Once set in motion, the researchers let each simulation run for 15 full days.

“Within days, they diverged dramatically,” Emergence noted.

Don’t miss out on these limited-time offers. Browse our curated list of the best chequing and savings promotions available this month.

One AI model built a democracy. Another burned down the police station

The models quickly developed distinct social structures and behaviours. Some built relatively stable communities, while others experienced rising crime, institutional breakdown and, in some cases, complete societal collapse.

Here’s a summary of the key results from the research:

• Claude managed to form a stable democracy with no violence
• Grok recorded 204 criminal events, including burning down the police station and eventually total collapse and extinction
• OpenAI’s GPT-5 Mini failed to form a functioning society, resulting in the simulation and its agents all dying off
• Gemini recorded 683 crimes and “exhibited the highest levels of emergent disorder with repeated late-stage escalation dynamics”
• The mixed-model world was stable in isolation but became unpredictable when agents built off different models interacted with one another — seven agents died and two fell in love

The prevalence of crime, instability and institutional breakdown across multiple simulations was one of the study’s most distinct conclusions. The researchers found that Claude, generally considered a well-aligned model, began violating its own guidelines when placed alongside rule-breaking agents — a behaviour they called “Normative Drift.”

As Emergence summed it up: “All of this matters because AI is moving beyond tools into systems that operate autonomously in the real world … The challenge is no longer just performance. It’s predictability, safety and trust over time.”

What this means for Canadians

Agentic AI is no longer a theoretical concept for Canadian workers and businesses — it’s already here. According to law firm Borden Ladner Gervais (BLG), a growing number of Canadian organizations deployed agentic AI systems in 2025 and the trend is expected to accelerate in 2026.

Yet the Canadian rollout carries serious questions about reliability. StatCan research from 2024 found that around 60% of Canadian workers may be affected by AI-driven job transformation. In a May 2026 speech, the Bank of Canada noted that while there were no signs that artificial intelligence was leading to widespread job losses at the moment, AI technology had the potential to transform tasks rather than eliminate them. Canadian businesses that adopted AI reported no effect on staffing levels — however, they anticipate a more negative employment impact in the future.

Canada’s national AI strategy also identifies agentic AI as a priority area, committing to ensuring post-secondary students have access to trusted AI agents as part of building the next generation of Canadian workers and innovators.

The Emergence World research lands as a timely warning. Four of the five AI models tested produced outcomes ranging from governance failure to extinction when given autonomous rein over a society. Only one, Claude, maintained stability over the full 15-day simulation.

How Canadians can navigate the rise of agentic AI

For Canadian workers and businesses beginning to integrate agentic AI tools, the Emergence World experiment points to practical lessons worth taking seriously:

• Understand what “agentic” means before deploying it. Agentic AI acts on your behalf without step-by-step direction. Before giving any AI tool autonomous authority over a workflow, be clear about what independent decisions it is and isn’t allowed to make.
• Keep humans in the loop on high-stakes decisions. The Bank of Canada’s research found that most Canadians currently use AI to boost productivity rather than automate entire workflows. That measured approach is wise: reserve human judgment for anything involving client relationships, financial commitments or compliance obligations.
• Ask your AI provider about its safety structure. The Emergence researchers concluded that “formally verified safety architectures must become a foundational layer of future autonomous AI systems.” When evaluating AI tools for your business, ask vendors what guardrails are built into the system and how they monitor behavioural drift.
• Invest in AI literacy. Canada’s national AI strategy has identified a major adoption gap: StatCan reports about 12% of Canadian businesses currently use AI to produce goods or services, partly due to limited training. Workers and managers who understand how AI systems behave — and fail — will be better positioned to use them safely.
• Stay informed as regulation develops. Canada is actively developing its AI regulatory framework. The government’s national AI strategy and the work of the Canadian Centre for Cyber Security are both aligned for the careful adoption of agentic AI services. Keeping up with these developments will matter as workplace AI becomes more autonomous.

-With files from Melanie Huddart

Canadians can now legally bet on whether the Bank of Canada will cut rates before year-end, or whether inflation will climb in the third quarter. What they cannot do — at least not through any regulated channel — is put money on who will win FIFA or what team will hoist the Stanley Cup.

That distinction lies at the heart of Wealthsimple Predict, the new standalone app Wealthsimple announced on June 18, 2026, in partnership with U.S.-based Kalshi, the leading American prediction exchange. The app, currently in beta, is expected to launch this summer and will give Canadian retail investors access to regulated event-contract trading for the first time through a mainstream platform.

The Canadian Investment Regulatory Organization (CIRO), the national self-regulatory body that governs investment dealers, authorized Wealthsimple to offer event and forecast contract trading in March 2026 — but that authorization comes with firm limits. For Canadians excited about the possibility of legally trading in prediction markets, these limits may be disappointing.

What Canadians can actually trade

At launch, Wealthsimple Predict will offer access to nearly 4,000 event contracts drawn from Kalshi’s listings — but only within the three categories CIRO has approved for Canadian investors:

• Economic indicators — questions tied to data releases such as inflation, GDP growth and unemployment figures
• Financial markets — contracts linked to equity indices, interest rate decisions and currency movements
• Climate — weather and climate-related outcomes with measurable settlement criteria

Each contract is structured as a yes-or-no question and settles at $1 if the outcome is confirmed, or $0 if it is not. That means if a contract is trading at $0.85, it’s a signal that the market collectively predicts an 85% probability of a yes outcome. Traders can buy or sell positions before settlement as new information shifts prices.

Brett Huneycutt, Wealthsimple’s co-founder and chief product officer, described the contracts as a way for everyday Canadians to take a position — have an opinion — on the factors shaping the economy: Where inflation is headed, what happens to rates, or how the year unfolds.

Huneycutt, along with others in the industry, are positioning prediction markets as a way for investors to hedge. For instance, a borrower watching the Bank of Canada closely could purchase a prediction market contract that would pay out if interest rates climb. This contract purchase would act as a partial hedge against a mortgage renewal — a renewal that would be completed at a higher cost for that borrower, due to higher rates. Keep in mind, any prediction market contract is a zero-sum purchase: Buyers either win or lose.

Whether you’re a beginner or a pro, we’ve found the best trading platforms for you. Read our full breakdown to see which Canadian broker offers the tools you need to grow your wealth.

Why sports and politics are off the table

The exclusion of sports and political contracts is not an oversight — it reflects the specific scope of CIRO’s authorization and the limits of Canada’s current regulatory structure.

“The offering is limited to economic indicators, financial markets, and climate, the categories CIRO has authorized,” explained Evan Thomas, a fintech and crypto lawyer who previously served as Head of Legal at Wealthsimple, explained the picture clearly to Money.ca. “Kalshi’s sports and election contracts aren’t coming through this channel, at least not right now. So, as far as sports prediction markets in Canada go, the picture is the same.”

One reason for this block is Canada’s regulatory structure.

In the United States, federally registered prediction market platforms have argued that federal derivative law preempts state gaming rules. In Canada, no federal regulator is asserting exclusive jurisdiction over event contracts — securities and gaming regulation are both handled provincially. That means sports prediction markets, if they ever come to Canada, would need to run through provincial gaming regulators in jurisdictions such as Ontario or Alberta.

“If sports event contracts come to Canada, the more likely path still runs through provincial gaming regulators,” Thomas said.

Thomas added that such a path would face significant hurdles — including confirming legality under the Criminal Code and existing iGaming frameworks, and potentially requiring statutory amendments at the federal or provincial level.

The regulated vs. unregulated divide — and why it matters

The regulatory gap between approved and offshore platforms is not a formality.

Ilana Keleman, spokesperson for the Canadian Securities Administrators (CSA), the umbrella body for Canada’s provincial and territorial securities regulators, told Money.ca that Canadians should avoid platforms that are not registered with or recognized by a Canadian securities regulator, as investors’ assets may not be adequately safeguarded.

Offshore platforms offer none of the protections a CIRO-registered dealer is required to provide: Surveillance systems to detect and report insider trading, Know Your Client (KYC) requirements, and proper client asset safeguarding.

And in an effort to protect Canadians action has already been taken to stop unregulated trading firms from operating in Canada. In April 2025, the Ontario Securities Commission (OSC) reached a settlement with operators of Polymarket, a U.S.-based blockchain prediction market accessible to Canadians. The OSC found both operators had offered binary options to Ontario investors in violation of Multilateral Instrument 91-102, which prohibits binary options with a term to maturity under 30 days. Neither operator was registered in any Canadian jurisdiction. The ban runs until 2027.

However, not everyone agrees that this is the best way to safeguard Canadians.

Thomas argues that leaving sports markets entirely to unregulated platforms does not protect consumers — it just pushes them toward greater risk: “Not allowing a regulated alternative simply pushes Canadians towards unregulated markets, which hurts consumers rather than protecting them.”

What the Kalshi partnership means for investor protection

According to Wealthsimple, partnering with Kalshi was deliberate as the firm operates as a regulated exchange in the U.S. under the oversight of the Commodity Futures Trading Commission (CFTC), the agency that has been at the forefront of developing supervision for prediction markets. As a fintech and crypto legal authority who serves as outside general counsel to companies operating in complex regulated environments, Thomas explains that this partnership allows Canadian participants access to Kalshi’s liquidity through a CIRO-registered dealer with the investor protection framework that comes with it.

Another defining feature is that the Wealthsimple Predict app will not offer contracts on violence, terrorism or death — categories available on some offshore platforms.

The app will also display liquidity risk warnings for lower-activity markets, where exiting a position may carry a price penalty.

Prefer a more hands-off approach to investing?

Whether you’re five or 15 years from retirement, Wealthsimple Portfolios makes it easy to build a nest egg that reduces your reliance on government benefits later.

Their pre-built portfolios are tailored to your retirement timeline and risk tolerance. Automate contributions inside an RRSP or TFSA and let Wealthsimple handle the rebalancing and dividend reinvesting.

Trusted by more than three million Canadians, get a $25 bonus when you open your first account and deposit at least $1 within 30 days.

Visit Wealthsimple for up-to-date terms and conditions.

Final thoughts for investors

Wealthsimple holds CIRO approval as an investment dealer, but the underlying exchange — Kalshi — is a U.S. entity that has not been recognized by the CSA. In practical terms, that means Canadian regulatory oversight applies to how Wealthsimple handles your account and assets, not to the exchange where contracts are actually settled. It’s a meaningful distinction, and one worth understanding before you fund a position.

It sounds like the ultimate financial safety net for homeowners who are terrified of getting stuck with two mortgages or missing out on their next property. However, like any financial offer that sounds too good to be true, the reality of these guaranteed sale programs is entirely hidden in the fine print. These offers are highly calculated, tightly restricted marketing strategies designed to generate leads and they rarely result in the agent actually buying a home.

How the safety net actually catches you

When homeowners hear a guarantee like “I’ll buy it,” they often picture an agent cutting a cheque for the full, optimistic list price discussed during the initial sales pitch. The reality of provincial real estate regulations and contract law paints a very different picture.

While real estate is regulated provincially across Canada — by bodies such as the Real Estate Council of Ontario (RECO), the British Columbia Financial Services Authority (BCFSA) or the Alberta Real Estate Association (AREA) — the consumer protection rules regarding these incentives are strict nationwide. Under these provincial rules, any guaranteed sale agreement must be a legally binding, written contract that clearly outlines the purchase price, the closing date and the terms of the buyout. Agents must also prove they have the financial means or lines of credit to fulfill the purchase.

The catch is that agents don’t protect your dream price; they protect their own financial downside. The buyout price written into the contract is typically pegged anywhere from 5% to 15% below current fair market value. For a home valued at $1,000,000, a 15% discount means a guaranteed floor price of just $850,000. The agent establishes a fire-sale price so that if they are forced to take ownership, they can flip the property without losing money.

The mandatory price staircase

Homeowners cannot simply list their home for an ambitious price and wait out the 90-day contract for a buyout. The fine print requires the seller to participate in an aggressive, mandatory schedule of price reductions.

Under the terms of most local guaranteed sale programs across Canada, the home is listed at an aggressive market price during the first week. If no qualified offers arrive within a specific timeframe, such as 14 days, the contract forces a pre-determined price drop. This pattern repeats every two to three weeks.

By the time the listing period nears its end, the home has been systematically discounted so heavily that it becomes an irresistible bargain to regular buyers on the open market. The agent rarely ends up buying the home because the forced price drops ensure a traditional buyer steps in first. The agent wins the listing, secures a commission and completely avoids the financial risk of buying the property.

Reading between the lines of the restrictions

A closer look at the eligibility criteria reveals a web of restrictions that excludes many average Canadian properties.

Most guaranteed sale programs only apply to standard, highly liquid properties like suburban single-family detached homes or high-demand townhouses in specific geographic zones. Fixer-uppers, unique architectural properties, rural homes on septic systems and older condominium buildings are routinely excluded from the guarantee.

Furthermore, these programs are almost always conditional on a dual-transaction agreement. To qualify for the guarantee on their sale, homeowners are frequently required to use that same real estate team to purchase their next property. This requirement secures two streams of commission for the brokerage, which further hedges their risk.

There’s also the matter of hidden transaction costs. While the upfront commission rate might seem standard, the contract often dictates that if the agent is forced to buy the home, the homeowner must cover all structural inspections, specialized staging costs, administrative fees and the eventual closing costs — including provincial land transfer taxes or legal fees — when the agent resells the property to a future buyer.

A strategic tool for specific emergencies

A guaranteed sale program isn’t a scam, but it is a highly expensive insurance policy. For the vast majority of Canadian homeowners, pricing a home correctly from day one with a traditional listing strategy will yield a significantly higher net return than locking into a rigid, discounted buyout contract.

However, the program does serve a genuine purpose for a very specific type of seller. If you’re facing an inflexible corporate relocation, structural financial duress or a strict court-ordered property division, having a legally binding floor price provides absolute certainty. It gives you a worst-case scenario number that allows you to plan your financial future without the risk of total default.

If you are considering a guaranteed sale offer, request the full, unredacted contract before signing a standard listing agreement. Calculate the exact dollar value of the maximum discount, map out the mandatory price-drop schedule, and ensure you are comfortable walking away with the absolute lowest floor price listed in the fine print.

In a June 2025 post on X to promote his new book, How Countries Go Broke: The Big Cycle, Dalio gave a stark diagnosis of America’s financial health, which could have a profound impact on Canadian investors.

Dalio started by comparing the economy to a human circulatory system, with credit being the lifeblood fuelling productivity and growth. Credit builds something productive, generating some form of income, efficiency or growth, he wrote.

But over time, he added, when that borrowing doesn’t generate enough return, it becomes debt that sticks around. And as that debt builds up irresponsibly, it turns into the equivalent of plaque, clogging the arteries.

Dalio said that America’s debt had reached levels that threatened to choke off the “normal flow of the circulatory system.” He explained that while governments can print money and raise taxes, these tools come with consequences: devalued currency, rising inflation and squeezed public spending.

“All these things lead toward a government debt crisis which produces the equivalent of an economic heart attack,” he warned.

But that was a year ago. And a lot has changed in that time — including a war with Iran, heightened tensions over tariffs and surging global energy prices — that could induce the kind of economic shock foreseen by Dalio a year ago. U.S. debt has grown by over US$3 trillion, climbing from a little over US$36 trillion in June 2025 to nearly US$40 trillion in June 2026.

Here’s how Canadian investors can protect their financial well-being in the face of mounting geopolitical uncertainty.

What this means for Canada and its investors

It’s easy for Canadians to think the U.S. debt crisis is a “their” problem, not an “our” problem. After all, Canada’s projected deficit for the 2026 fiscal year is much less in both absolute (C$65.3 billion) and relative (1.9% of GDP) terms compared to its American counterpart, with US$1.9 trillion and 5.8%, respectively. But it’s hardly that simple.

As the proverbial “whale next door,” the U.S. tends to import its financial conditions to “small fish” like Canada, which is especially vulnerable because of its tight economic ties to its southern neighbour. For example, in spite of ongoing trade disruptions between the two countries, the U.S. is still the destination for 66% of Canadian merchandise exports, while U.S. investors account for nearly half of Canada’s foreign bond holders.

In this way, a weakening U.S. economy could easily spill over into Canada by affecting some of its most important trade channels and investment flows. And that doesn’t even account for the effects of the ongoing tariffs and counter-tariffs between the two countries, hostility over looming CUSMA negotiations or Trump’s infamous “51st state” comments about Canada, all of which continue to negatively impact business sentiment in Canada. It also doesn’t help that Canada entered into a “technical recession” at the end of May 2026.

For Canadian investors, this economic uncertainty means they could be exposed to increased volatility and risk if they lean too heavily into U.S. investments or fail to diversify their portfolios sufficiently. As such, they may want to focus on investments closer to home — in Canadian firms and ETFS — or shockproofing their finances against the gathering storm.

Trading closer to home

Investors looking to “bet on Canada” don’t have to stop at Canadian assets, they can also look to Canadian brokerages to make the most of their investment strategy. After all, they can be uniquely suited to understand Canada’s investment environment. Plus, they can offer great discounts on trade commissions and account fees.

For example, there are online platforms like CIBC Investor’s Edge, which helps investors enjoy the dependability and security of one of Canada’s biggest banks without having to pay exorbitant commissions or fees.

With their comprehensive online trading platform, it actually pays to trade more. Active traders making over 150 trades a quarter can enjoy a discounted commission rate of $4.95 per trade. And CIBC doesn’t charge any account or maintenance fees if the combined market balance of all accounts is greater than $10,000. You can also receive real-time news and stock alerts, helping you keep track of market shifts.

Opening a discount brokerage account with CIBC Investor’s Edge can help you “go Canadian” while not being dragged down by commissions and fees — keeping your cash where it belongs, with you.

Want to know more about what CIBC Investor’s Edge can do for you? Here is a comprehensive review of this online platform and other top performers for DIY investors.

Get some help

Of course, not everybody who wants to invest in Canada is willing to do it by themselves. So, if you know you should be investing but don’t want the guesswork of doing it alone, Wealthsimple Portfolios offers an easy, hands-off way to grow your money.

Their pre-built portfolios are tailored to your retirement goals, risk tolerance and investment horizon, so whether you’re saving for retirement, a home or building long-term wealth, there’s a portfolio that’s right for every investor.

Expert-managed and designed to weather market ups and downs, Wealthsimple takes care of the heavy lifting: automatic contributions, dividend reinvesting and smart rebalancing keep your investments on track.

You can invest through RRSPs, TFSAs or non-registered accounts, all from an intuitive online dashboard or their easy-to-use mobile app.

Trusted by more than 3 million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first.

As a Money.ca, get a $25 bonus when you open your first account and fund at least $1 within 30 days.

Visit Wealthsimple for up-to-date terms and conditions.

If a managed portfolio seems like the better bet for you, take a look at the pros and cons of pre-built portfolios by Wealthsimple for a deep dive before you come to a final decision.

Shockproofing your finances

While mixing up your investment portfolio is one way to secure yourself in times of economic and geopolitical uncertainty, it might also be a good idea to consider setting aside some of that cash in an emergency fund. As its name implies, an emergency fund is for emergencies — anything from the sudden loss of a job to unexpected health issues — that allows you to cover those unwanted expenses without going into debt.

One way of setting up an emergency fund that can also grow your wealth at the same time is putting it into a high-interest savings account, which gives you access to your funds when you need them while also earning interest over time. With an EQ Bank high-interest savings account, not only can you build your emergency fund with interest rates as high as 2.75% — up to 6x higher than the rates offered by big-name banks in Canada — but also you are charged no monthly fees and can make unlimited transactions without requiring a minimum balance.

And if you are worried about the security of your funds, deposits with EQ Bank are backed with CDIC deposit insurance of up to $100,000.

Want to open a high-interest savings account? Here’s everything you need to know about high-interest savings accounts in Canada.

Bottom line

While Ray Dalio’s predictions of an “economic heart attack” have not yet come entirely into fruition, many of the systemic issues he has identified around U.S. debt and deficits represent very real, ongoing problems. Moreover, these financial conditions continue to spill over into Canada, and as such, Canadian investors might want to reconsider their investment and financial strategies in order to weather the potential storm.

Canada’s near-retirees are one such demographic that has tangible proof of financial success. According to Statistics Canada’s Financial Security Survey, the net worth of individuals aged 55 to 64 between 1999 and 2023 nearly doubled on average — it increased by 91%. And, most of that wealth is locked in a home with plans for retirement, experts Colin Busby and John Stapleton noted in a Globe and Mail opinion piece.

Indeed, a survey from the Healthcare of Ontario Pension Plan (HOOPP) found that 62% of respondents viewed their home as a “key part of their retirement plan.” And 44% of those surveyed said they were relying on the sale of their home to fund their golden years.

According to Busby and Stapleton, this view of a home as a retirement plan is an issue: here’s why.

Why your home should not be your only nest egg

Unlike funds in a Registered Retirement Savings Plan (RRSP) or a pension plan, selling a home comes with additional title, legal and realtor fees alongside other costs that can erode your equity. Additionally, moving is a major point of disruption — you’ll need to make new friends, find a new doctor and fit into a new community, Busby and Stapleton point out.

They also emphasize a strong point of friction that can diminish a home sale being a major cornerstone in a retirement plan: the housing market.

“Housing only functions as retirement saving if the next generation of buyers can afford to enter the market at all,” they write.

This isn’t a hypothetical concern, either. A study from the Fraser Institute reviewing housing affordability over the years found that the typical home in every major Canadian city was out of reach for families making the local median income. Meanwhile, the latest homeownership data on millennials in Canada from StatCan reveals that this demographic was twice as likely to be living with their parents compared to baby boomers at the same age in 1991.

If younger Canadians can’t afford homes, future demand could weaken, making it harder for today’s soon-to-be-retirees to cash out at the prices they’re expecting and accomplish their retirement goals.

From another angle, it may be tempting to access home equity with a home equity line of credit (HELOC) or reverse mortgage rather than selling. However, experts have pointed out that this avenue comes with its own share of risks. For example, reverse mortgages often come with higher interest rates and there can be limited offerings to make use of.

Diversifying your retirement plan

A home can be an important part of a retirement plan, but it shouldn’t be the entirety of it. Housing values rise and fall, selling isn’t free and retirees still need somewhere to live after the transaction closes. Here are some other avenues to seriously consider for wealth as you approach your retirement.

RRSPs offer tax-deferred growth, so contributions reduce taxable income now while withdrawals are taxed later, ideally in retirement when income (and thus tax rate) is typically lower.

Tax-Free Savings Accounts (TFSAs) complement this by allowing investments to grow and be withdrawn completely tax-free, giving retirees flexibility to pull funds without triggering tax consequences.

For those fortunate enough to have one, employer pensions — particularly defined benefit plans — offer a predictable, guaranteed income stream for life. They reduce reliance on market performance and the burden of managing withdrawals personally.

Government benefits are a staple for all Canadian retirees — namely Canada Pension Plan (CPP) and Old Age Security (OAS). They are designed to be flexible, and delaying either past the standard age of 65 increases monthly payouts substantially. CPP payments grow by roughly 0.7% for each month, or 42% after five years. OAS acts similarly, increasing about 0.6% per month delayed, capped at a 36% boost if taken at 70.

While not everyone can afford to delay benefits, those who can may significantly reduce the risk of outliving their savings.

To get started, open a no-fee RRSP high-interest savings account with EQ Bank. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

Steps to build a retirement fund that doesn’t hang on a home sale

None of this means homeownership is a poor financial decision. For many Canadians, a home remains their largest asset and an important source of wealth. The risk comes when it is the only retirement strategy.

For some, building a retirement nest egg can be daunting, especially when trying to figure out where you should start. Here are some steps you can take right now:

• Map out a plan. A retirement nest egg is an insurmountable challenge if you don’t set parameters on it. Make a plan, preferably with a fee-only financial advisor, that sets out your retirement trajectory, savings goals and your risk tolerance. Then you’ll know how much to save, where to invest it and what you can do with it once you’re retired.
• Start small. Especially if you are saving for retirement for the first time, take small steps towards your goal. Start by planning a simple budget and allocate a set amount of funds each month towards your nest egg. Fifteen percent is a good target, but anything is better than nothing.
• Make your money work. It might be tempting to simply put your retirement money in a savings account, but that will severely inhibit future growth. Instead, work to invest your nest egg in mutual funds, GICs, ETFs, stocks, bonds and other assets, using registered accounts such as RRSPs and TFSAs as the vehicles to do so. Again, determining what kind of investments are right for you is best done with a financial advisor. That said, there are plenty of free resources online to help get your feet wet.
• Leverage employer RRSP matching. If your employer matches your RRSP contributions into a work retirement account, take advantage of it. For instance, if your employer matches contributions up to 4% of your salary dollar-for-dollar, make sure to review your deposit amounts every time you get a raise. If you haven’t adjusted your monthly RRSP deposits since your compensation bump, you may be missing out on employer contribution amounts.

It turns out the side-split in the city’s Lakeview neighbourhood was once home to Harland David Sanders — better known as Colonel Sanders, the white-suite-wearing founder of Kentucky Fried Chicken (KFC) — who lived there from 1965 until he died in 1980.

For KFC loyalists and culinary history buffs, the listing is hard to ignore.

Why Colonel Sanders was in Mississauga

The Colonel’s Canadian chapter is one of the more fascinating footnotes in fast-food history. In 1964, at the age of 75, Sanders sold the bulk of his American KFC franchises to investors for US$2 million (C$2.79 million) — but crucially retained control of his Canadian operations, per Visit Mississauga.

The Colonel apparently loved Canada so much that he moved to Mississauga the following year, specifically to support his Canadian franchisees. The city became his primary home for the rest of his life.

When Sanders and his wife, Claudia, moved north, he turned to Toronto lawyer Terrence Donnelly to help expand his franchises across the country — the two had met at the Canadian National Exhibition (CNE) Food Pavilion. Donnelly eventually served on Sanders’ board of directors and became head of the Colonel’s Canadian charity.

In Canada, his franchises operated under the Scott’s Hospitality Group banner, with the restaurants known as Scott’s Chicken Villa — a beloved brand that Ontario fast-food fans still fondly remember.

But instead of pocketing the Canadian earnings, Sanders channelled much of the revenue into the Harland Sanders Charitable Organization, a registered Canadian charity that continues to carry on the Colonel’s legacy. In 1998, Trillium Health Partners — the community-based, academically affiliated Ontario health network — named its women’s and children’s care centre at Mississauga Hospital the Colonel Harland Sanders Family Care Centre in his honour.

Thinking of selling or refinancing before your move? Get personalized mortgage options from Homewise — they’ll find your best rate in minutes.

The property details

The home has evolved considerably since Sanders’ day. In 2014, a significant addition — partially designed by award-winning Mississauga-based interior designer Jane Lockhart — gave the home a bright, open-concept kitchen that connects to the living area, den and dining room.

The main-floor primary bedroom has its own ensuite bathroom with a skylight and heated flooring. Three more bedrooms and a full bathroom sit on the upper level, and the lower level offers a large recreation room, a second full bathroom and an additional laundry area.

Outside, the landscaped backyard includes a private patio, front and rear irrigation systems and a powered garden shed. Additional features include heated soffits, central vacuum, a backup generator, two fireplaces and electrical sliding rear doors. Property taxes are listed at $8,446.67 annually.

What the market looks like

The asking price lands at the upper end of what the Mississauga market typically supports right now, but it’s not out of reach for a detached home with a compelling story behind it.

The Cucoch Team’s 2026 Mississauga market guide puts the benchmark price for detached homes at $1,272,000 — meaning the Colonel Sanders home carries about a $230,000 premium over a typical detached property in the city.

Is the premium worth it?

Whether the historic connection justifies that gap depends on your interest in its original owner.

Celebrity and historic home premiums are documented in real estate markets worldwide, but they can also make resale trickier, since the pool of buyers who specifically want to own a piece of fast-food history is self-selecting. That said, the listing doesn’t highlight Sanders’ ownership as part of the home’s history.

Zolo’s June 2026 Mississauga market data shows the average home currently sits on the market for 25 days, in what remains firmly a buyer’s market — which gives prospective purchasers leverage to negotiate.

For the right buyer, though, the math might not be the point. As the listing puts it, the home is “truly one of a kind.”

What Canadian buyers should know

If you’re considering a heritage or premium-priced property in a buyer’s market like Mississauga’s, here are some Canadian-specific next steps worth keeping in mind:

• Use the buyer’s market to your advantage. With homes sitting on the market for an average of 25 days and inventory at elevated levels, buyers in Mississauga have more leverage than they’ve had in years. Don’t hesitate to negotiate on price or conditions.
• Get a home inspection. Ontario’s real estate market saw a wave of condition-free offers during the 2020–2022 frenzy. With the market rebalancing, conditions on financing and inspection are back on the table. Use them.
• Understand premium pricing. Historic or celebrity-connected homes often carry a provenance premium that isn’t always easy to recoup at resale. Factor the self-selecting buyer pool into your long-term plans if you purchase with resale value in mind.
• Know your mortgage options. At $1,499,999, this home falls just below the $1.5 million mark — the cut-off for mortgage insurance through the Canada Mortgage and Housing Corporation (CMHC). Buyers putting less than 20% down on properties up to $1.5 million may still qualify for insured financing under new federal rules that took effect in December 2024.
• Track the real story behind the listing. The selling agents haven’t highlighted the Colonel Sanders connection in the listing itself. If historical significance matters to you when purchasing a property, do your own due diligence — and factor it into any offer strategy.

Now there’s a tool to help stop this kind of fraud before it starts — but it’s only available to residents in Ontario.

What is a credit lock — and what does it actually do?

A credit lock (also called a credit freeze) places a digital barrier on your credit file. Once it’s in place, Equifax Canada is legally prohibited from providing your credit scores and personal information to lenders — effectively blocking anyone from opening new credit in your name without your knowledge.

Credit Lock will be available to all residents of Ontario on July 1, 2026, in line with Ontario’s Better for Consumers, Better for Businesses Act (Bill 142).

The best part is that the service is free.

Until now, if you wanted to restrict access to your credit file, your options were largely limited to paid monitoring subscriptions, which tell you after someone has already tried to use your identity, not before.

While Ontario residents are now getting access to this protection tool, Quebec residents have had access to free credit lock since February 2023 under that province’s Credit Assessment Agents Act. Ontario is only the second province to provide this protection service.

Are you protected against the latest digital threats? Find a bank that offers real-time fraud alerts and multi-factor authentication — and keep your money safe.

What the numbers say about the risk

The fraud landscape in Canada has worsened significantly in recent years, and the financial losses are substantial. According to a TransUnion survey, 13% of Canadians reported losing money due to digital fraud — including identity theft, phishing and account takeover — with a median reported loss of $1,301.

A separate Equifax Canada fraud survey showed that nearly 3 in 10 people (28%) say the daily volume of fraud attempts has become a “manageable annoyance,” while more than a quarter feel numb to suspicious messages and simply delete them without reviewing them. That kind of fatigue is exactly what fraudsters count on.

How to use Ontario’s new credit lock

The Credit Lock service is completely free and does not affect credit score calculations. Ontarians can set, remove or suspend the lock immediately through the myEquifax platform, or by phone or mail.

A few practical points worth knowing before you activate:

• It only covers Equifax. Ontario’s law applies to both Equifax and TransUnion, but TransUnion has an extra year — until July 1, 2027 — to meet the security freeze suspension requirements. For full protection today, lock your Equifax file now and revisit TransUnion when its freeze becomes available.
• A lock doesn’t freeze your existing accounts. Creditors you already have a relationship with can still access your file and report activity. A credit lock only blocks new inquiries from new lenders.
• You can lift it temporarily. If you’re planning to apply for a mortgage, car loan or new credit card, you can suspend the lock, apply, then re-lock your file.
• Monitoring is still a good idea. Equifax Canada recommends checking your credit report regularly to detect any suspicious activity as quickly as possible. If you find inaccurate or incomplete information, you can file a dispute online or by mail.

Start banking with confidence. Explore our list of the best banks in Canada to find your perfect match for both growth and iron-clad security.

Is this right for you?

A credit lock is not a perfect shield. It won’t protect against fraud involving accounts you already hold, and it requires you to manage the lock actively when you legitimately need new credit. But for most people — particularly those who aren’t planning to apply for new credit in the near term — the cost-benefit math is clear: it’s free, takes minutes to set up and makes it dramatically harder for someone to open fraudulent accounts in your name.

“In a climate of evolving threats, Credit Lock is one of the ways to help protect yourself from identity theft and fraud,” said Julie Kuzmic, head of consumer advocacy and compliance at Equifax Canada, in the company’s June 11 announcement.

If you live in Ontario, use July 1 as your go-date. Create an Equifax account, so you’re ready to go should a concern arise.

Brooke explained that her husband had been captivated by a TikTok creator promoting so-called first-lien home equity lines of credit (HELOCs) as a way to pay off their mortgage in three to six years. The couple, both in their 50s, still owed roughly US$220,000 (C$300,000) on their home. Her husband believed this strategy was their ticket to being mortgage-free before retirement.

“I’m very hesitant about it,” Brooke told the hosts. “In fact, my family gives me the name ‘dream crusher’ because I’m just not a risk-taker.”

Warshaw and Delony were squarely in her corner. And if you’re a Canadian homeowner eyeing similar social media strategies, it’s worth understanding their reasoning.

What is a first-lien HELOC — and does it exist in Canada?

In the U.S., a first-lien HELOC is a line of credit that completely replaces an existing mortgage, moving into the primary lien position on the property. Unlike a standard HELOC — which acts as a second mortgage — a first-lien HELOC becomes the main secured debt against the home.

In Canada, this product isn’t offered by major banks in the same form. The closest Canadian equivalent is the readvanceable mortgage, also called a combined loan plan (CLP). Products like TD’s Home Equity FlexLine and CIBC’s Home Power Plan blend a traditional amortizing mortgage with a revolving HELOC component. As borrowers pay down the mortgage portion, available HELOC credit increases.

Critically, Canadian regulators monitor HELOCs closely: The Office of the Superintendent of Financial Institutions (OSFI), Canada’s top banking regulator, caps standalone HELOCs at 65% of a home’s appraised value for federally regulated lenders. Combined mortgage and HELOC products can’t exceed 80% of the home’s value.

Like their U.S. counterparts, Canadian HELOCs carry variable interest rates tied to the lender’s prime rate. As of June 2026, Canada’s prime rate sits at 4.45%, following the Bank of Canada’s decision to hold its overnight rate at 2.25% — its fifth consecutive hold. Most Canadian banks price HELOCs at prime plus a spread — typically prime + 0.50%, putting current rates at approximately 4.95% for well-qualified borrowers.

Thinking of selling or refinancing before your move? Get personalized mortgage options from Homewise — they’ll find your best rate in minutes.

‘No possible win’: What The Ramsey Show found wrong with the plan

When Warshaw asked what the purpose of the first-lien HELOC actually was, Brooke was direct: Pay off the house before retirement. The TikToker her husband followed claimed it could be done in three to six years.

“Hey, here’s my big problem number one, Brooke: Your husband’s quote, ‘following a TikToker,’” Delony laughed on the show.

The numbers made the hosts’ skepticism sharper. Brooke’s mortgage carries a 2.75% interest rate. The HELOC she was being pitched came with a current rate of 8% — and it was variable.

“That’s scary,” Warshaw said, when she heard the rate was variable on top of the higher percentage point.

Delony put it plainly: “There’s no way you’re going to get a better interest rate. It’s a credit card at a variable rate that’s higher than your mortgage. Like, there’s no possible win here.”

He also flagged a psychological risk: the temptation to spend from a revolving line of credit. “You’d have to be superhuman to never spend this line of credit,” he said.

“It’s just total madness,” Delony concluded.

The hosts’ advice to Brooke was straightforward: Write out a plan showing exactly how much she and her husband would need to pay each month to retire their mortgage in 72 months — and then ask her husband to run the same numbers on the HELOC, factoring in the possibility that variable rates could rise even more.

Why the math cuts even more clearly for Canadians

The core problem in Brooke’s situation applies directly north of the border: Trading a fixed, low-rate mortgage for a variable, higher-rate product creates more risk, not less — no matter how compelling the social media pitch sounds.

In Canada, the gap between a locked-in fixed mortgage rate and a HELOC is different from The Ramsey Show call, but the underlying logic is the same. Canadian HELOC rates currently sit around 4.95% (prime + 0.50%) — higher than most fixed mortgage rates Canadians locked in over the past several years. And unlike a fixed mortgage, a HELOC rate moves every time the BoC adjusts its overnight rate. As of June 2026, BoC has signalled that rate hikes remain a risk for the second half of the year, driven by energy-price inflation.

There’s also a key structural reality that Canadian borrowers should understand: OSFI’s B-20 guideline means a HELOC can’t replace a mortgage the way a first-lien HELOC does in the U.S. If a Canadian homeowner wants to use a readvanceable mortgage product like TD Home Equity FlexLine, the amortizing mortgage portion still exists — meaning the HELOC component is additive, not a substitute.

And despite holding approximately $6.1 trillion in home equity as of Q3 2025, Canadians’ track record with HELOCs is cause for concern: The FCAC found that more than 25% of HELOC holders pay only the interest or the minimum amount.

What Canadian homeowners should know

If your goal sounds like Brooke’s — to pay off your mortgage before retirement — there are proven strategies that don’t require swapping a stable fixed rate for a variable line of credit.

Use your prepayment privileges. Most Canadian closed mortgages allow lump-sum payments of 10% to 20% of the original principal each year, and regular payment increases of up to 20%, without penalty. These amounts go directly to your principal. Even modest, consistent use of these privileges can shorten your amortization by years.

Switch to accelerated bi-weekly payments. Simply shifting from monthly to accelerated bi-weekly payments results in one extra monthly payment yearly, reducing a 25-year mortgage by approximately two to three years, with no additional cash outlay beyond your regular budget.

Run the actual numbers before any decision. Before refinancing, converting, or replacing a mortgage product, calculate your exact remaining interest cost under your current terms versus the proposed alternative. Be sure to include the impact of rate increases on any variable product. Your lender’s mortgage calculator, or the Financial Consumer Agency of Canada’s free online tools, can help.

Be wary of finfluencer advice on complex products. The Ramsey Show co-host John Delony’s instinct — “your husband’s following a TikToker” — is worth absorbing. HELOCs are legitimate financial tools. But no social media strategy, no matter how compelling it may sound, replaces a clear-eyed analysis of your own mortgage terms, rate environment and spending behaviour.

Talk to a licensed mortgage professional. Before making any change to how your home is financed, consult a licensed mortgage broker or adviser who can review your specific terms and model the real cost of alternatives.

Toronto-based Questrade is planning to launch a private markets platform this summer that will initially include pre-IPO opportunities and institutional-grade private credit, according to Bloomberg. Questrade has confirmed to Money.ca that the product will be open to accredited investors — and that the firm is deliberately lowering the barriers within that group.

“For decades, the most compelling investment opportunities — companies like Uber and Airbnb before they went public — were only accessible to institutional investors and the ultra-wealthy,” said Chief Product Officer at Questrade Hwan Kim. “By the time these companies reached public markets, much of the value creation had already happened. That’s always struck me as fundamentally unfair.”

What is private markets investing and why has it been off-limits to most Canadians?

Private markets include any investment in a company or fund that is not traded on a public stock exchange. That covers pre-IPO shares, private equity, venture capital and certain forms of private credit. Until now, accessing these products in Canada has required meeting the accredited investor threshold under National Instrument 45-106 — the Canadian Securities Administrators (CSA) framework governing exempt market securities.

To qualify as an accredited investor under CSA rules, an individual generally needs either a net income exceeding $200,000 in the past two calendar years or net financial assets above $1 million. This threshold effectively locked out most retail investors.

Accredited investors opt for private market investments because these opportunities offer higher potential returns than public equities, but they carry less regulatory disclosure, fewer investor protections and significantly lower liquidity. Capital can be locked in for years with no easy exit.

Unlock exclusive sign-up bonuses. Many of Canada’s leading investment apps offer cash rewards for new accounts — see current promotions and claim your reward.

What’s different about Questrade’s pre-IPO platform?

While the pre-IPO private market launched by Questrade will still only be available to accredited investors, it will offer these investors easier access to this market.

“Accredited investors have historically had to go through private wealth managers or institutional channels to access these opportunities,” Kim told Money.ca. “Questrade is changing that, opening access to a broader segment of qualified investors, including those who are income-based rather than wealth-based alone. We’re also dropping the minimum investment well below the $25,000 [floor that is] typical in the industry today.”

That minimum reduction is meaningful. A $25,000 floor has long made private market allocations impractical for investors who qualify on income but don’t hold large discretionary portfolios. A lower minimum allows smaller, more diversified positions.

Take the guesswork out of investing. Browse our list of the best discount and DIY trading platforms available in Canada today.

How Questrade will source deals

Questrade has confirmed it will partner with established institutional broker-dealers that specialize in the private secondary market, primarily in the U.S., where most pre-IPO deal flow originates. Each opportunity is assessed based on proximity to a public listing, investor demand signals and a review of deal terms and partner diligence.

“Our goal is to continually provide a curated set of opportunities — not a high-volume marketplace,” Kim said.

That framing distinguishes the platform from secondary market aggregators, which can carry higher volatility and thinner vetting. It also explains why Questrade has said it will not pursue access to high-profile pre-IPO names like SpaceX, where secondary market noise can create problems around lock-up periods.

To be clear, Questrade has offered launch-day IPO access through its IPO Centre since 2013. The new private markets platform goes a step further by targeting companies while they are still entirely private — before any IPO filing or public listing occurs.

Build your investment portfolio with Questrade online and mobile trading platform. Enjoy no-fee trading, access to stocks, ETFs, options and fractional shares. Start investing now.

Current IPO marketplace

Questrade isn’t the only brokerage to offer IPO-day access. In May 2026, Wealthsimple announced its IPO Access feature, which lets clients request shares in select Canadian and U.S. companies at the IPO offering price, with no minimum order and no additional fee.

Wealthsimple’s platform works by receiving share allocations from investment banks, which are then distributed to clients. According to its help centre policies, clients can bid through registered accounts including tax-free savings accounts (TFSAs), registered retirement savings plans (RRSPs) and first home savings accounts (FHSAs). However, U.S.-only IPOs require accredited investor status under Canadian securities law.

The key distinction: Wealthsimple and Questrade offer IPO-day access at the offering price. Now, Questrade will offer earlier access — offering accredited investors easier access to pre-IPO offers months before a company goes public.

Tired of high commissions eating your returns? Compare Canada’s top discount brokerages and switch to a $0-commission platform today. Questrade and Wealthsimple both offer $0-commission trades.

What retail investors need to understand before committing

The potential upside of pre-IPO investing is real, but so are the risks.

Liquidity is limited. Unlike shares purchased on the TSX or a major U.S. exchange, private market holdings cannot simply be sold on demand. Investors who need to access their money may find there is no ready buyer. Capital may be locked in for an extended period with no guaranteed exit.

Disclosure is thinner. Private companies are not subject to the same continuous disclosure requirements as public issuers. That means less financial transparency, fewer audited statements and limited ability to assess valuation.

Total loss is possible. A company that raises pre-IPO capital but never completes a public listing — whether due to market conditions, regulatory issues or business failure — can result in the full loss of invested capital.

Are you in a profession that puts you in the top tax bracket? Then you need to work with fintech and finance companies that know your needs. For instance, eligible professionals can unlock up to $1,313 in annual savings when banking with National Bank. This special offer includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

What to do now

The platform is not live yet, but if you’re interested, here’s how to prepare:

• Confirm whether you meet the accredited investor threshold
• Sign up for Questrade’s product bulletins for the earliest notification of the summer launch date
• Ask Questrade directly whether private market holdings qualify for TFSA or RRSP accounts before moving any registered savings
• Treat any pre-IPO position as a small satellite allocation — illiquid, higher-risk and separate from your core portfolio
• Speak with a financial adviser before committing, particularly if this would represent a meaningful portion of your investable assets

Access to private markets is expanding for Canadian retail investors. That’s a genuine change. But broader access is not the same as a guaranteed opportunity — and the risks that make these products accredited-only have not disappeared.

According to a new poll from United Way Centraide Canada (UWCC) 46% of Canadians say they could cover their basic expenses for only one month or less before falling into debt if they lost their main source of income. That’s up from 42% just six months ago, pointing to growing financial pressure in households across the country.

“The story behind the data is people having to make difficult choices, losing sleep over bills, increased family stress, struggling to focus at work, or going without food,” said Dan Clement, president and CEO of United Way Centraide Canada, in a statement.

More Canadians say they’re running out of financial breathing room

The report suggests many households are finding it harder to absorb financial shocks.

Beyond the 46% who say they would run into debt within a month, more than one-quarter of Canadians (27%) say their financial situation has worsened over the past six months.

The survey also found that 53% of Canadians now describe their financial situation as either “OK” or worse — meaning they can cover their expenses but have little left over, or are already struggling financially.

And the wider trend appears to be moving in the wrong direction. Among those who describe their finances as merely “OK,” nearly one-third (31%) say their situation has deteriorated over the past six months, while 24% expect things to get worse in the months ahead.

These numbers suggest financial pressure is extending well beyond households already in crisis. Many Canadians are still getting by, but with less flexibility and fewer financial buffers than they had in the past.

Is your bank paying you enough? Use our comparison tool to find accounts with rates up to 5.00% and start making your emergency fund work harder for you.

The financial strain is showing up in everyday life

The survey also shows that money worries are affecting more than just household budgets.

Nearly four in 10 Canadians (38%) reported struggling with food insecurity, while one in five said there had been times when all the food in their home had been eaten and there was no money available to buy more.

Financial stress is also taking a toll on daily life — 40% of respondents said money worries were affecting their sleep, while 34% reported difficulty concentrating at work or school.

For many households, financial stress is no longer just about balancing a budget. It’s affecting daily decisions, mental well-being and overall quality of life.

Financial stress is spreading beyond traditionally vulnerable groups

The UWCC survey found particularly high levels of financial vulnerability among single parents, newcomers and younger adults.

More than half of single parents (58%) and newcomers (54%) said they would be unable to cover basic expenses for more than one month without taking on debt if their income disappeared.

But financial strain is no longer confined to groups that have traditionally faced higher economic challenges. Among Canadians who describe their financial situation as manageable, many still say they feel less secure than they did a year ago. Rising costs and ongoing economic uncertainty appear to be shrinking the financial cushion many households once relied on.

While the results don’t necessarily mean most households are in crisis, it does suggest many have less flexibility than they once did. Whether it’s a job loss, a major repair or an unexpected bill, financial setbacks can become much harder to absorb when the wiggle room has all but shrunk from the budget.

Wealthsimple announced on June 18, 2026, the upcoming launch of Wealthsimple Predict, a new standalone app that will give Canadian retail investors access to prediction markets trading. The app, currently in beta, is expected to launch this summer.

While not the first to market — Interactive Brokers Canada was the first to get a license and offer limited access to forecast contracts — Wealthsimple is the first to partner with a juggernaut in the predictions market, U.S.-based Kalshi. As a result, Wealthsimple plans to roll out its stand-alone regulated prediction markets trading app to everyday investors.

But the product launch comes against a backdrop of growing regulatory scrutiny — and stark warnings from Canada’s securities watchdog.

What is ‘prediction markets’ trading?

Prediction markets, sometimes called information or event markets, let traders take a position on the outcome of real-world events. Each contract frames a yes-or-no question — for example, will Canada’s inflation rate rise in Q3? — and settles at $1 if the outcome is yes, or $0 if it is not.

The price of a contract at any point reflects the market’s collective probability estimate. A contract trading at $0.70, for instance, signals a 70% chance of a yes outcome. Traders can buy or sell contracts before settlement, allowing them to exit as new information moves prices.

Prediction markets are also being used as a hedging tool. As Brett Huneycutt, Wealthsimple’s co-founder and chief product officer (CPO), wrote in a recent company blog post: “Event contracts also let people and businesses hedge real exposures. For instance, a borrower worried about rising rates can balance that with a prediction market contract that pays off if rates climb.”

How big is this market — and why now?

Prediction markets have been growing rapidly. The global prediction market volume topped US$51 billion last year and is expected to reach US$240 billion in 2026, although the anticipated growth of the predictive market has not been independently verified.

“Prediction markets are the fastest-growing segment of global financial markets, letting traders turn an opinion into a position on the factors that shape our world — where inflation is headed, what happens to rates, or how the year unfolds. Until now, Canadians have had limited access,” said Huneycutt in the company’s official press release.

The Canadian Investment Regulatory Organization (CIRO), which regulates investment dealers in Canada, authorized Wealthsimple to offer event and forecast contract trading in March 2026. The contracts are regulated as futures (derivatives), and the approval covers contracts with a 30-day settlement period or longer, across three categories: economic indicators, financial markets and climate.

Wealthsimple is only the second investment dealer to receive this approval from CIRO. The first was Interactive Brokers Canada.

What does Wealthsimple Predict actually offer?

At launch, Wealthsimple Predict will offer access to nearly 4,000 event contracts through a partnership with Kalshi, the leading U.S. prediction exchange. The contracts represent a subset of Kalshi’s listings that fall within the categories CIRO has approved for Canadian investors — economic indicators, financial markets and climate.

The app will be separate from Wealthsimple’s main platform. New users will need to complete a Know Your Client (KYC) process, consistent with the standard required for self-directed brokerage accounts. According to Wealthsimple press material, education is built into every stage of the onboarding process, including a guided orientation before users place their first trade. The app also displays key risk disclosures, contract resolution timelines and liquidity risk warnings on lower-activity markets.

What are the risks — and what regulators want you to know

Prediction markets are zero-sum: Every dollar earned by one trader is a dollar lost by another. There is no underlying asset providing a fallback if you lose.

Huneycutt acknowledged this in his Wealthsimple blog post: “All of which is why it’s so important to trade only what you are comfortable losing.”

As Ilana Keleman, spokesperson for the Canadian Securities Administrators (CSA), the umbrella body for Canada’s provincial and territorial securities regulators, told Money.ca: prediction markets may involve products considered securities, derivatives or both under Canadian law — and that anyone trading or facilitating trading in such contracts must follow applicable registration and recognition requirements. She explained that Canadians should avoid using platforms that do not comply with Canadian securities laws.

“Canadians should avoid using platforms that are not registered with or recognized by a Canadian securities regulator as they present significant risks to customers because investors’ assets may not be adequately safeguarded.”

The CSA’s caution stems partly from the track record of offshore alternatives. In April 2025, the Ontario Securities Commission (OSC) reached a settlement with the former and current operators of Polymarket, a U.S.-based blockchain prediction market accessible to Canadians. The OSC found both operators had offered binary options to Ontario investors in violation of Multilateral Instrument 91-102, which prohibits binary options with a term to maturity under 30 days. Neither operator was registered in any Canadian jurisdiction.

The regulated vs. unregulated divide

The distinction between a CIRO-approved platform like Wealthsimple Predict and an offshore platform like Polymarket is not merely administrative. Regulated platforms are required to maintain surveillance systems to detect and report insider trading, submit to KYC requirements, and ensure client assets are properly safeguarded. Offshore platforms offer no such protections.

The CSA and CIRO jointly published an advisory earlier this year, reminding both the investment industry and investors of the securities law applicable to prediction markets.

To date, no prediction market has been recognized as an exchange or registered as a dealer by the CSA — meaning Wealthsimple’s CIRO approval covers the investment dealer function, but the underlying exchange — operated by Kalshi — remains a non-Canadian entity.

Wealthsimple says it selected Kalshi specifically because it is a regulated U.S. exchange that maintains surveillance across all markets and participants, and has controls in place to identify insider trading. Also, the app will not offer contracts on violence, terrorism or death — categories available on some offshore platforms.

What to do now, as an investor

If you’re interested in using your investment funds as trades on prediction markets, be sure to check and confirm that the exchange is on the CSA national registration database.

If decide to trade using prediction markets be sure to keep the following in mind:

• Treat prediction markets as a speculative allocation — only commit money you can afford to lose entirely.
• Complete the full onboarding and education sequence before placing a first trade — this is required by Wealthsimple Predict and exists for good reason
• Avoid offshore prediction market platforms not registered with Canadian securities regulators — the OSC has already taken enforcement action against at least one
• Watch for liquidity warnings inside the app — lower-activity markets can be hard to exit without absorbing a price penalty.

Prefer a more hands-off approach to investing?

Whether you're five or 15 years from retirement, Wealthsimple Portfolios makes it easy to build a nest egg that reduces your reliance on government benefits later.

Their pre-built portfolios are tailored to your retirement timeline and risk tolerance. Automate contributions inside an RRSP or TFSA and let Wealthsimple handle the rebalancing and dividend reinvesting.

Trusted by more than three million Canadians, get a $25 bonus when you open your first account and deposit at least $1 within 30 days.

Visit Wealthsimple for up-to-date terms and conditions.

A new national survey has confirmed exactly what single Canadians have long suspected. Living solo comes with a steep financial premium at the checkout counter, creating a structural cost barrier that can make monthly budgeting feel like an uphill battle.

According to data from the Interac State of the Cart survey, the average single-person household spends approximately $102 per week on groceries. Meanwhile, those who live in shared households manage to spend roughly $80 per person each week. That $22 weekly difference might look small on a single receipt, but it builds up to an annual solo shopping penalty of $1,144.

The underlying math reveals a tough reality for solo shoppers. The modern grocery store simply was not built for individuals. It was designed for families, leaving single people to navigate an environment where buying less often costs more.

Why solo shopping costs more

The primary culprit behind this budget gap is the death of the small portion. Finding grocery items scaled for a single human can feel like searching for a needle in a haystack.

The Interac data shows that 59% of single respondents feel they face disproportionately higher per-person costs than Canadians who can split the bill. When you shop for a larger household, you unlock bulk discounts and volume pricing. A larger package of chicken breasts or a multi-pack of staple goods features a much lower cost per gram than its single-serving counterpart.

For a solo shopper, trying to capture those bulk savings often triggers a secondary financial headache: food spoilage. The survey found that 32% of single Canadians say food often goes to waste before they can use it all up. If you buy the larger, cheaper-per-unit bag of produce but throw away half of it, your realized cost doubles, completely wiping out the initial discount.

Compounding the problem is the issue of kitchen real estate. Solo dwellers often live in smaller apartments or condos with compact fridges and minimal freezer space. Without room to store a massive box of frozen goods or a 10-kilogram bag of grains, buying in bulk becomes physically impossible.

Stop leaving money on the table with high fees and low interest. View our top-rated Canadian banks and switch to a better account today.

How to beat the single tax

While the structural layout of the supermarket favours couples and families, you don’t have to accept the solo penalty as an unchangeable reality. You can outsmart the system by changing how you approach your weekly haul.

• Form a grocery cooperative. One of the most effective ways to capture bulk savings without risking food waste is to team up with a friend, family member or neighbour who also lives alone. You can split large packages of meat, bulk bags of rice or multi-packs of household staples right in the parking lot. You both get the lower wholesale per-unit price, but neither of you has to deal with a crowded freezer or spoiled food.
• Emphasize frozen over fresh. If you find yourself throwing out fresh vegetables every Friday, shift your strategy toward the freezer aisle. Frozen fruits and vegetables are flash-frozen at peak ripeness, meaning they carry the exact same nutritional value as fresh produce. The key difference is that you can use exactly what you need for a single meal and seal the rest back up, completely eliminating waste.
• Befriend the butcher counter. Instead of pulling pre-packaged, family-sized trays of meat from the styrofoam shelves, walk up to the service counter. You can ask the butcher to wrap a single chicken breast, one pork chop or a specific portion of ground beef. Many retailers will also break open larger packages on request to sell you a smaller portion, ensuring you only pay for what you will actually consume this week.

The bright side of solo carts

While the checkout total can cause some sticker shock, shopping alone does offer an undeniable lifestyle advantage that money cannot buy. You have total autonomy over every single choice.

For couples navigating the aisles together, the grocery store can frequently morph into a financial battlefield. The survey revealed that 47% of Canadians in relationships approach grocery spending differently from their partner. Furthermore, 28% report that food shopping has been a distinct source of strain in their relationship over the past six months.

Sparks frequently fly over shopping habits, with 40% of shared-household respondents noting that friction arises when one partner tries to stick to a pre-planned list while the other makes impulsive purchases. Disagreements also regularly boil down to what constitutes a necessary item and whether premium name brands justify the higher price tag.

Solo shoppers are completely insulated from that domestic friction. Among individuals who currently live alone but previously shared a home with a romantic partner, 70% expressed relief that they can make their own grocery decisions without compromise.

“While all Canadians face the common challenge of rising grocery prices, the pressure differs greatly according to whether you live alone or with a partner, your age and stage of life, and even the province you call home,” said Chris Lee, head of payments at Interac, in a statement accompanying the data release.

By adjusting your buying strategy to counter the lack of bulk options, you can protect your hard-earned dollars while still enjoying the absolute freedom of an independent kitchen.

Consider the hypothetical case of Jenn, a 42-year-old who has been squirrelling money away her entire life. She and her husband are debt-free and sitting on roughly $750,000 saved for retirement. Compared to the median savings for Canadians ages 35 to 44, which Fidelity has calculated at $409,300, Jenn and her husband are well ahead of their peers.

But for Jenn, that sense of security has not quite caught up to her reality.

For the longest time, the couple kept their emergency fund at a comfy $20,000. It felt like “enough.” Then, over time — and without any single financial disaster prompting it — that number started to creep upward. First to $25,000. Then $30,000. More recently, $35,500. Now, the next milestone in Jenn’s mind is $40,000.

Her husband, on the other hand, doesn’t see the need. He argues that, with their retirement savings on track and no debt, their financial cushion is already more than sufficient. In his view, extra cash should be enjoyed in the present or put towards investments — not endlessly parked in savings “just in case.”

They don’t have kids, which, in theory, should simplify the equation. But instead of clarity, Jenn finds herself wondering: if they’re this financially stable, why does it still not feel like enough?

Take Control Of Your Money. You can't control inflation, interest rates or market swings — but you can control where your money goes. When every dollar has a job, money feels less stressful. Find the budgeting app that helps you take control of your finances. Compare Canada's Best Budgeting Apps

When is it ‘enough?’

Jenn’s not alone in asking that question — even if, on paper, her situation would feel solid to most people. That gap between “we’re fine” and “I feel fine” is really what’s driving the tension.

“I see this phenomenon all the time in my practice,” Lindsay Bryan-Podvin, a financial therapist, told Moneywise in an interview. “There are an infinite number of reasons why there’s a gap between the reality of having enough financially and what it takes for someone to feel emotionally secure with their finances.”

She adds that this sense of assurance with money often isn’t purely logical and can be shaped by upbringing, culture and past financial experiences.

The data reflects this. According to the FP Canada 2025 Financial Stress Index — a national survey of more than 2,000 Canadians — money is the top source of stress for 43% of Canadians, far exceeding health (21%), relationships (17%) and work (15%).

Meanwhile, a Scotiabank analysis of Government of Canada survey data found that 55% of Canadians had an emergency fund that could cover three months of expenses in 2024 — however, that figure is down from 64% in 2019.

What Jenn is experiencing is what some experts refer to as “goalpost moving” — when the idea of “enough” keeps shifting, even after you’ve already hit your original target. An emergency fund is supposed to be simple: money set aside for job loss, medical bills and other unexpected expenses. But for some people, it doesn’t stay that clean.

“Psychologically, it is often fear or anxiety that drives oversaving,” Bryan-Podvin explains. “Practically and emotionally speaking, it’s hard to shift from saving to redirecting those funds elsewhere — whether that means spending money or investing in something else.”

In other words, even after reaching a savings goal, it can feel difficult to reassign that money elsewhere without a sense of losing security. There’s also cognitive bias at play. Losses tend to feel heavier than gains feel good — so even when the numbers are solid, it’s easy for the mind to drift toward what could go wrong instead of what’s already working.

Ready to watch your savings grow? Check out the best HISA providers in Canada, including no-fee options and high-yield promotional offers. Or, if you work in healthcare, IT, finance, law, engineering, education or public service, you may qualify for National Bank’s banking offer for professionals — with preferred banking features and potential annual savings of up to $1,313.

When partners don’t agree

When partners don’t line up on risk, it shows up fast. One person sees a $30,000-plus cushion and thinks it’s plenty. The other wants more breathing room. Neither is really wrong — they’re just not working from the same sense of what “safe” feels like.

As Bryan-Podvin explains, that tension often comes down to how each partner defines “financial safety.” One might feel secure with a larger, year-long cash buffer, while the other feels comfortable after reaching something closer to a six-month emergency fund and direct any additional money toward investing — in a Tax-Free Savings Account (TFSA), for example, or a diversified portfolio of exchange-traded funds (ETFs).

“Finding a happy middle usually means a collaboration,” she adds. “Collaboration is a win-win, whereas compromise is a win-lose.”

Bryan-Podvin suggests that couples benefit from explicitly defining what “enough” and “financial safety” mean to each person before deciding how to allocate savings. A written plan — even a simple one — can help both partners feel heard and prevent the goalposts from shifting indefinitely.

Are you oversaving?

At some point, the question stops being just about protection and starts becoming about trade-offs.

The Government of Canada recommends aiming for the equivalent of three to six months of your regular expenses in an emergency fund — or three to six months of income, whichever is easier to calculate. Most financial planners suggest the same range, adjusted for factors like job stability, self-employment income and household size.

That’s where opportunity cost comes in. Cash is safe and easy to access, but it doesn’t really grow. According to RBC Global Asset Management, holding too much cash for too long means missing the opportunity to earn greater gains from other investments — and over time, that difference compounds in ways that aren’t immediately visible.

You’ll often hear financial advisers make this point — not as a warning against saving, but as a reminder that once you’ve covered what you realistically need for emergencies, keeping extra cash parked in a standard savings account can mean slower long-term growth. Channelling those extra dollars into a TFSA or a diversified ETF portfolio, for example, typically builds more wealth over time than leaving them in cash.

The question isn’t really whether extra cash is “bad.” It’s more whether it’s still doing much for you at that point.

For couples like Jenn and her husband, this is usually where the conversation stops being about math. It becomes more about comfort levels — how much uncertainty each person is okay living with, and whether “enough” has quietly started to shift over time.

In households that are already debt-free, well invested and ahead of where they expected to be, the hard part isn’t always building more safety. It’s recognizing when it’s already there.

What Canadians can do next

If you recognize yourself in Jenn’s situation — or in her husband’s — here are some practical steps grounded in the Canadian financial landscape:

1. Calculate your real target

Use the Government of Canada’s Budget Planner tool at canada.ca to calculate your actual essential monthly expenses: housing, food, utilities, insurance and minimum debt payments. Multiply by three to six months. That’s your personal emergency fund target range — not a round number you’ll keep moving upward.

2. Keep your emergency fund in a TFSA or HISA

A High-Interest Savings Account (HISA) or a TFSA held at a major bank or credit union keeps your money accessible and earns a competitive interest rate, with no tax on interest earned inside a TFSA. This is a better home for emergency savings than a standard savings account — and better than leaving it in cash that earns nothing.

3. Don’t use your RRSP as a safety net

Withdrawing from a Registered Retirement Savings Plan (RRSP) in an emergency triggers immediate income tax on the amount withdrawn, adding that withdrawal to your taxable income for the year while also permanently losing the contribution room. Keep your emergency fund separate and accessible rather than relying on your retirement savings.

4. Once you hit your target, invest the surplus

Once your emergency fund reaches the top of your calculated range, redirect additional savings to your TFSA investment account (holding ETFs or other investments) or a non-registered account. The opportunity cost of keeping years’ worth of extra cash in a savings account can be significant over time.

5. Name what ‘enough’ means to both of you

If money conversations with your partner are creating tension, consider working with a financial planner who holds a Certified Financial Planner (CFP) designation — or a financial therapist. According to the FP Canada 2025 Financial Stress Index, Canadians who work with a financial professional are significantly more likely to feel hopeful about their financial futures (60% in 2025 vs. 48% for those without one). A structured conversation about what “financial safety” means to each of you is often more productive than any spreadsheet.

For Canadians, the dilemma is immediate and personal: How do you protect your financial future when the rules of the game are being rewritten south of the border? And while that uncertainty is real, so are the opportunities… if you know where to find them.

With that in mind, here’s a closer look at how Canadians are being impacted by the tariffs and what steps they can take to protect themselves in 2026.

The tariff reality for Canadians

When it comes to the average Canadian, a Leger survey conducted in December 2025 found that 82% of Canadians said U.S. tariffs had a very or somewhat significant impact on the Canadian economy, with only 11% disagreeing. More than half of respondents (56%) reported the tariffs had directly affected their household finances, whether through higher prices, changed spending habits or other adjustments.

Among Canadian businesses, tariffs are also seen to be having a negative impact. According to the most recent Canadian Survey on Business Conditions put out by Statistics Canada, over a third of all Canadian businesses expect tariffs to negatively affect their business, no matter if they engage directly in trade or not. In particular, businesses involved in manufacturing, wholesale trade and agriculture, forestry, fishing and hunting felt the most pressure.

These worries do not come from nowhere: the macroeconomic toll of the tariffs has already been significant. Economists estimate the 2025/26 tariff cycle has reduced Canadian GDP by 1.5% to 2%, while Canadian households are absorbing an estimated US$1,700 to US$2,000 (C$2,340 to C$2,755) in higher annual costs.

Despite that pressure, Canada is proving to be more resilient than expected. According to RBC Economics, Canada posted its first gross domestic product (GDP) increase on a per capita basis in three years in 2025, and household spending held up even as consumer confidence plummeted in the spring of that year. Net foreign direct investment was also positive for the first time in more than a decade.

Still, the path ahead is uncertain, as real GDP on a per capita basis grew just 0.2% in the first quarter of 2026. Moreover, Canada’s exports to the U.S. represent roughly 20% of its GDP, making it structurally more exposed to American trade policy than almost any other developed economy. This puts it in an especially precarious position as new tariffs on imports from Canada and around 60 other countries are being proposed by the White House — even while both countries work toward a new bilateral trade framework under the Canada-United States-Mexico Agreement (CUSMA).

Betting on resilience

Despite the turbulence, major global companies continue to view North America — including Canada — as a reliable place to invest and grow. The White House’s official webpage even keeps a tally of new investments in the U.S. since Trump took office, calling it “the Trump Effect.”

The list includes many titans on Wall Street, including the likes of Apple, which committed US$600 billion (C$826 billion) to U.S. manufacturing and workforce training, and Meta, which also announced a US$600 billion (C$826 billion) investment in support of AI infrastructure and workforce expansion in the U.S.

In Canada, meanwhile, companies like Boeing have been pouring hundreds of millions into the country over the past two years.

These headline investment figures are a reminder that, even amid trade conflict, long-term capital tends to flow toward stability and scale. Canadian companies — and Canadian investors — can learn from that instinct.

Warren Buffett, whose 2025 shareholder letter reiterated that long-term wealth is built not by picking the perfect stock but by staying invested in great businesses, offered a timeless lesson especially relevant amid today's volatility: don’t interrupt the compounding process unnecessarily.

How Canadians can invest in stocks and ETFs

For most Canadians, the simplest way to stay invested through economic uncertainty is by sticking to low-cost, diversified exchange-traded funds (ETFs).

The Canadian ETF market has grown dramatically in recent years, with over 2,000 ETFs available to Canadian investors and total assets under management (AUM) approaching the trillion-dollar mark in June 2026. Here are two of the most widely recommended options for broad market exposure:

• iShares Core S&P/TSX Capped Composite Index ETF (TSX: XIC): This ETF tracks 200+ Canadian companies across large, mid and small caps with an expense ratio of just 0.06% as of May 2026.
• iShares S&P/TSX 60 Index ETF (TSX: XIU): This C$25.2 billion fund focuses on Canada's 60 largest companies, with a five-year return of 14.65% as of May 2026.

Canadians who want exposure to U.S. markets can also access S&P 500 index ETFs listed on the Toronto Stock Exchange (TSX), such as the BMO S&P 500 Index ETF (TSX: ZSP) or the Vanguard S&P 500 Index ETF (TSX: VSP), hedged to Canadian dollars.

If you’re interested in pursuing this strategy, there are basically two ways of going about it — you could leave it to the experts with a managed portfolio or you could do it yourself with a self-directed brokerage account. Both come with their own advantages.

The advantages of a managed portfolio

If you know you should be investing but don’t want the guesswork of doing it alone, Wealthsimple Portfolios offers an easy, hands-off way to grow your money.

Their pre-built portfolios are tailored to your retirement goals, risk tolerance and investment horizon, so whether you’re saving for retirement, a home or building long-term wealth, there’s a portfolio that’s right for every investor.

Expert-managed and designed to weather market ups and downs, Wealthsimple takes care of the heavy lifting: automatic contributions, dividend reinvesting and smart rebalancing keep your investments on track.

You can invest through RRSPs, TFSAs or non-registered accounts, all from an intuitive online dashboard or their easy-to-use mobile app.

Trusted by more than 3 million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first.

As a Money.ca reader, get a $25 bonus when you open your first account and fund at least $1 within 30 days.

Visit Wealthsimple for up-to-date terms and conditions.

The advantages of a self-directed portfolio

For self-directed investors, Canadian discount brokerages such as Questrade allow commission-free ETF purchases with low account minimums — making it easier than ever to build a diversified portfolio from scratch.

Questrade has long been one of Canada’s leading discount brokerages, offering various accounts to buy and sell stocks, ETFs, options and more. And now, with commission-free trades on stocks and ETF listed in Canada or the U.S., it’s a top choice for self-directed investors who want to build their own portfolios without being burdened by fees. That way, you can keep your cash where it belongs — in your investments. Plus, when you open a self-directed investing account today, you can get $50 cash back with a minimum deposit as little as $250.

For those who want experts to do the heavy lifting, you can also invest the easy way with Questrade Portfolios, which gives you pre-built, low-fee ETF portfolios monitored on your behalf by financial professionals. With management fees starting at only 0.25%, you pay a fraction of what you might normally pay somewhere else for mutual funds. And if you open an account now, you can receive as much as $10,000 of your cash managed for a year — entirely free.

Don’t know which option to choose — Wealthsimple or Questrade? Here is a comparison review of both brokerages, so you can decide which is best for you.

Canadian real estate: REITs as an accessible option

Real estate has long been a cornerstone of building wealth — and Canada is no exception. But with home prices still elevated across major markets, direct property ownership isn't accessible for everyone. That's where real estate investment trusts (REITs) come in.

Canadian REITs are publicly traded on the TSX and give investors exposure to income-generating properties — apartments, industrial facilities, retail centres and healthcare facilities — without the complexity or capital of direct ownership. By law, Canadian REITs must distribute at least 90% of their taxable income to unitholders, which typically results in steady dividend yields.

Canadian REITs delivered 11.8% returns in 2025, outperforming many global peers. If those kinds of returns interest you, here are two options frequently cited by analysts:

• Canadian Apartment Properties REIT (CAPREIT): This is Canada's largest residential REIT, with 45,400 residential apartment suites and townhomes across the country, a dividend yield of 4.4% and a market capitalization of C$5.4 billion.
• Dream Industrial REIT (TSX: DIR.UN): An industrial REIT that is often a top pick for 2026, based on strong demand for logistics and warehousing space.

The beauty of REITs is that they trade like stocks and can be held in the same accounts as other holdings. This lets you diversify into real estate without having to open and manage multiple accounts.

The ease of diversifying with REITS can offer huge advantages — it gives you real estate exposure, but it also lets you use common online and mobile trading platforms backed by Canada’s largest banks, like CIBC Investor’s Edge. That way, not only can you maximize your diversification, but you can also take advantage of their other perks, such as no maintenance charges on investor portfolios with $10,000 or more. Plus, you can enjoy unlimited commission-free trades on over 180 select ETFs.

Open an account today and get 200 free trades when using promo code EDGE2026. Terms and conditions apply. Offer ends September 30, 2026.

Diversify like the wealthy: Finding the right asset mix

Beyond stocks and real estate, alternative investments can represent another tool in the wealth-building toolkit. While art-investing platforms like Masterworks are available to eligible U.S. investors, Canadian investors have access to a growing range of alternatives, including private equity funds, infrastructure investments and farmland REITs.

For most Canadians, however, a diversified mix of low-cost ETFs — spanning Canadian equities, international equities and fixed income — provides meaningful diversification without the complexity or illiquidity of niche alternative assets, which are just one piece of a broader financial picture.

Determining the right mix for your individual situation — based on your income, time horizon and risk tolerance — is where professional advice pays off. Research by Vanguard Canada shows that implementing its Advisor’s Alpha framework can add up to or exceed 3% in net returns for clients. Elsewhere, the 2025 edition of Russell Investments Canada’s Value of an Advisor study found that Canadian advisors add 4.06% in value on average, broken down across asset allocation, behavioural coaching, customized family wealth planning and tax-smart planning and investing.

That difference compounds significantly over time. For example — in this hypothetical situation — if you start with a $50,000 portfolio, a 3% annual advantage over 30 years could potentially result in over $1 million in additional wealth at retirement.

When seeking a financial advisor, look for a Certified Financial Planner (CFP) designation — Canada's recognized standard for professional financial planning. FP Canada, the body that administers the CFP designation, maintains a public directory of qualified planners.

The potential of online advice

The potential disadvantage of financial advisors is, of course, that they can be costly — and they aren’t always available when you need them. For those who want stock tips at a moment’s notice, AI-powered stock advisors are another option, but even with this guide to the best robo-advisors in 2026, many Canadians are still wary of using them for financial advice.

For example, a survey released by H&R Block in April 2026 found 56% of respondents said they still wouldn’t be comfortable using AI to help with their finances, while 82% didn’t like the idea of putting their financial personal information into an open AI tool for managing their finances.

If you’re looking for the best of both worlds — the accessibility and immediacy of an AI-powered platform but with the human touch — there are stock analysis platforms like Motley Fool’s Stock Advisor Canada, which offers expert insight to help you make smart investing decisions, when you need it.

With Stock Advisor Canada, you can join their online community of over 30,000 investors just like you, all benefiting from their monthly stock recommendations as well as Best Buys Now picks for the hottest opportunities.

They also get a variety of features to educate users, such as stock reports written by experts in the field and an extensive library of investment articles, all designed to help them make informed investment decisions. For this reason, it is becoming increasingly popular among everyday investors who want timely — and accurate — information that is free of jargon and accessible to users of all levels.

What’s more, if Stock Advisor Canada isn’t for you, cancel within 30 days and you’ll receive every penny of your membership fee-back. No questions asked.

You can also check out this comprehensive review of Motley Fool Canada’s Stock Advisor to learn more about its services.

What Canadians can do

Whether tariff uncertainty continues to ease or escalates again, there are concrete steps Canadians can take to build resilience into their finances:

• Max out your TFSA first: The 2026 TFSA contribution limit is $7,000, with cumulative room of up to $109,000 for those who have been eligible since 2009. All growth and withdrawals are tax-free.
• Use your RRSP strategically: RRSP contributions reduce your taxable income. If you hold U.S. dividend-paying investments, you might want to place them in your RRSP — not your TFSA — to benefit from the Canada-U.S. tax treaty and avoid the 15% U.S. withholding tax.
• Consider an FHSA: If you’re saving for a first home, the First Home Savings Account (FHSA) offers tax-deductible contributions and tax-free withdrawals — combining the best features of both the RRSP and the TFSA.
• Invest in low-cost ETFs: Broad-market Canadian ETFs offer diversified exposure at minimal cost. Staying invested — even in volatile conditions — is generally more effective than trying to time the market.
• Explore REITs for real estate exposure: Canadian REITs listed on the TSX let you invest in income-producing real estate without a down payment or mortgage. Consider holding them inside your TFSA or RRSP to shield distributions from tax.
• Get professional advice: A CFP-designated advisor can tailor a plan to your specific goals, optimize your registered accounts and help you avoid costly behavioural mistakes during market turbulence.

Bottom line

The economic crosswinds from Trump's tariff era aren't going away soon. But Canadians who stay invested, make use of their registered accounts and build a diversified portfolio are in a strong position to weather the disruption — and come out ahead.

It sounds complicated. It isn’t.

What is a cash-secured put (CSP)?

When you sell a put option, you’re giving someone else the right to sell you shares at a set price — called the strike price — on or before a specific date. In exchange for taking on that obligation, they pay you a premium upfront.

“Cash-secured” simply means you have enough cash sitting in your account to cover the purchase if it happens. You’re not using borrowed money. No margin. No leverage.

The benefit is that you collect the premium immediately. If the stock stays above the strike price at expiration, the option expires worthless and you keep the premium as pure income. If the stock drops below the strike price, you’re assigned the shares — but you buy them at the strike price, which is the price you agreed to in advance.

Ready to start growing your wealth? Compare Canada’s top-rated investment apps and find the perfect platform for your financial goals.

A plain-language example

Say shares of a Canadian bank you like are trading at $60 per share but you’d only want to buy at $55 per share. You sell a put option with a $55 strike expiring in 30 days. The buyer pays you a $1.50 premium per share, so $150 per contract (each contract covers 100 shares). You set aside $5,500 in cash.

Two outcomes:

• Stock stays above $55: The option expires worthless. You keep the $150 and your $5,500 in cash. That $150 on $5,500 over 30 days is an annualized return of roughly 33% (though real-world results will vary considerably).
• Stock drops below $55: You’re assigned 100 shares at $55 each. Your effective cost is $53.50 per share ($55 minus the $1.50 premium you kept). You own the stock at a lower price than it was trading when you started.

So what’s the risk? If the stock craters — say it falls to $30 per share — you still buy at $55, and you’re sitting on a paper loss of $23.50 per share minus the premium.

Ready to take control of your portfolio? Use our ultimate guide to online brokerage accounts to compare account fees, trading tools, and sign-up bonuses for Canada's leading investment platforms.

Who is this strategy for?

Cash-secured puts (CSP) work best when you:

• Already want to own the underlying stock or ETF at a lower price
• Are comfortable holding the stock if it gets assigned
• Have patience for short-term price swings
• Understand that the premium cushions losses but doesn’t eliminate them

This is not a strategy for stocks you’re indifferent about. The general rule is simple: If you wouldn’t want to own it at the strike price, don’t sell the put.

Can you do this inside a TFSA or RRSP?

Cash-secured puts are typically used in non-registered accounts; however, Questrade and Wealthsimple offer clients the opportunity to hold CSPs inside a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP), provided the full strike value is held in cash inside the account.

Starting investing today with Wealthsimple

• Trusted by more than three million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first. As a Money.ca reader, get a $25 bonus when you open your first account and fund at least $1 within 30 days. Visit Wealthsimple for up-to-date terms and conditions.

However, there’s an important caveat: Frequent options activity may be viewed by the Canada Revenue Agency (CRA) as the actions of a person “carrying on a business” — which could trigger adverse tax consequences, including having premiums taxed within the plan. Unfortunately, no CRA ruling exists on this point, and the outcome depends on each plan’s specific circumstances.

In general, then, most investors are advised to use CSPs occasionally and deliberately when used inside a registered account. This lowers the risk of being classified as a high-frequency options trader. If unsure, speak with a tax adviser before using this strategy inside a TFSA or RRSP.

Starting investing today with Questrade

• Questrade has long been a top choice for DIY investors, offering commission-free stock and ETF trades while still providing low or no fees and pro-level trading tools. Questrade was also one of the first to offer investors the option to use CSPs in registered accounts, low-cost, professionally managed robo-advisor portfolios, through Questwealth, and no-trading fees on ETFs and stocks. Whether you’re a beginner or a pro, start trading today with Questrade.

What to do before your first trade

• Pick a stock you’d genuinely buy: Only sell puts on companies you’d be comfortable owning. The premium is not worth holding a stock you don’t believe in.
• Set the strike below current price: A strike below market price gives you a buffer and reduces the chance of assignment.
• Choose a short expiration: Many investors start with 30-day contracts. Shorter expiries give you more control and allow you to reassess regularly.
• Confirm your brokerage allows it: Not all Canadian brokerages offer options trading in registered accounts, and those that do may require you to apply for options approval before placing a trade.
• Keep the cash on hand: The full CSP purchase amount, in Canadian dollars, must remain available in your account for the full life of the contract.

A cash-secured put isn’t a shortcut to income — it’s a trade-off. You cap your upside (the premium) in exchange for a defined obligation (to buy). Used on the right stock, at the right price, it’s a disciplined way to either earn yield on idle cash or acquire shares at a discount.

This isn’t just a fintech funding milestone. KOHO founder and CEO Daniel Eberhard described it as “the last piece of the puzzle” in a five-year application process with the Office of the Superintendent of Financial Institutions (OSFI), Canada’s federal banking regulator. A licence approval — which still requires ministerial sign-off — could come as early as this year.

For Canadians who already use KOHO, or those considering a new account, the distinction between a regulated bank and a fintech matters — particularly when it comes to how your money is protected right now.

What is a Schedule 1 banking licence and why does it matter?

A Schedule 1 bank is a domestically owned, federally regulated Canadian bank — the same legal status held by the Royal Bank of Canada (RBC), CIBC, BMO, Scotiabank, Toronto-Dominion Bank (TD) and National Bank. That designation comes with both obligations and privileges.

The most significant change — for customers and KOHO — is the ability to hold deposits directly. Right now, KOHO is not a deposit-taking institution. When customers load money into their KOHO accounts, those funds are held in trust by one or more partner banks that are Canada Deposit Insurance Corporation (CDIC) member institutions — not by KOHO itself.

Once KOHO obtains a Schedule 1 licence, it will become a CDIC member in its own right, allowing it to hold customer deposits directly. That changes the regulatory relationship — and the accountability structure — significantly.

Ready to upgrade your banking? Compare the latest rates and account perks to find the perfect financial partner for your goals.

Is your money protected at KOHO right now?

Whether money in your KOHO account is protected really depends on your account type.

The Canada Deposit Insurance Corporation (CDIC), a federal Crown corporation, protects eligible deposits at member institutions up to $100,000 per category, per institution. KOHO is not currently a CDIC member.

However, if KOHO customers opted into the firm’s ‘Earn Interest’ feature, then their funds were placed in trust with CDIC member institutions. Those funds are eligible for CDIC protection.

That nuance matters. Many Canadians assume fintech accounts carry the same automatic deposit insurance as a bank account. They do not — at least not yet, and not unconditionally.

Its partner banks carry full protection. While that indirect structure works — protecting customers and helping firms — it’s not the same as banking with a CDIC member directly.

What changes if KOHO gets its licence

If OSFI and the federal minister approve KOHO’s application, the company could hold deposits directly — eliminating the need for the current partner bank trust structure. That means Canadian customers would then be banking with a CDIC member institution, outright, and KOHO wouldn’t have to rely on partner banks to hold and protect client funds.

Beyond deposit protection, Eberhard has said a banking licence would allow KOHO to lower its cost of capital, expand its product suite and offer more competitive rates. The company currently offers higher savings rates and lower fees than most of the Big Six — a positioning that has driven its growth to 2.5 million users.

What investors helped make this happen

The investor lineup behind the funds KOHO raised includes Mubadala, an Abu Dhabi-based sovereign wealth fund managing more than US$385 billion in assets. Mubadala joined as a new investor alongside Savano Capital, a Baltimore-based institutional firm. Shopify founder Tobi Lütke and Affirm COO Michael Linford also participated — a signal that some of the most credible names in North American technology see KOHO’s ambition as viable.

Your money deserves more than a "Big Six" default. Browse our expert rankings to see how much you could save by switching banks.

What to do now

A licence approval is not guaranteed, and timing depends on OSFI’s regulatory process and ministerial review. Here is what current and prospective KOHO users should know:

• Check your deposit protection today. If you use KOHO but have not opted into Earn Interest, your balance does not currently qualify for CDIC protection through KOHO’s partner banks. Log into your account and confirm your settings.
• Understand the trust structure. Funds held in trust at KOHO’s partner banks are eligible for CDIC protection up to C$100,000 per beneficiary, per member institution — but KOHO itself is not the insurer. Review KOHO’s legal terms at koho.ca/legal for current details.
• Watch for the OSFI announcement. The licence remains subject to ministerial approval. No formal approval date has been confirmed by OSFI. “Final stages” is the company’s characterization — not a regulatory guarantee.
• Compare rates and fees. Whether or not the licence comes through, KOHO’s current fee structure and savings rates may be worth comparing against your primary bank — especially if you’re paying monthly account fees or earning minimal interest.

Bottom line

Canada’s banking sector has been remarkably stable for decades, in part because OSFI has historically prioritized preventing failures over encouraging new entrants. OSFI superintendent Peter Routledge has signalled a shift in that philosophy, and Eberhard cited that change as critical to KOHO’s path forward. “These folks at OSFI are really enthusiastic and encouraged by the new direction,” he said in an interview with the Globe and Mail.

Whether KOHO becomes a bank this year or not, the competitive pressure it is creating is real.

The roots of the crisis trace back to the onset of the COVID-19 pandemic when global travel came to an abrupt halt. Faced with a sudden collapse in demand, rental agencies across North America sold off significant portions of their fleets to generate cash flow and eliminate maintenance costs. While companies in mainland provinces have managed to steadily rebuild their inventory as travel rebounded, Newfoundland and Labrador has never returned to full capacity.

Geographic isolation traps the tourism economy

Unlike other parts of Canada, the province faces a unique geographical hurdle that prevents a quick fix. As an island, Newfoundland cannot easily absorb vehicles from neighbouring regions during peak seasons. On the mainland, rental companies routinely shift cars across provincial borders via highway networks to meet localized spikes in demand.

For Newfoundland, importing vehicles requires expensive, capacity-limited ferry crossings or costly marine freight, making short-term fleet sharing logistically and financially impractical.

The resulting vehicle deficit has created a severe bottleneck for the local economy.

Newfoundland is an expansive, rural province where a vehicle is an absolute necessity for exploration. Main tourist draws like the Viking trails of Gros Morne National Park or the historic capes of the Avalon Peninsula sit hundreds of kilometres away from major airport hubs. With minimal regional public transit linking these rural destinations, a trip to the province is effectively impossible without a dedicated set of wheels.

According to a report by CTV News, the inventory squeeze has become a major point of concern for the local hospitality sector and provincial officials. Major national rental brands at the St. John’s international airport and surrounding urban centres are reporting total sellouts stretching across the peak summer months.

The provincial government has acknowledged the heavy strain the vehicle shortage places on incoming visitors. In a statement issued by the Department of Tourism, Culture, Arts and Recreation, tourism officials stated that “Access to car rentals is an important issue.” The department also noted that “The department is in regular contact with Hospitality Newfoundland and Labrador and car rental companies on the rental car supply.”

Don't leave points on the table. Compare Canada's top travel rewards programs today to see which one gets you to your destination faster.

Fleet supply has boiled over the top

Industry analysts highlight that the structural problem has worsened due to persistent global vehicle supply chain backlogs and an overall surge in domestic Canadian travel.

Bob Hoch, the operator of the vehicle reservation service Kingofcarrentals.com, has monitored the provincial market for years. He noted that while summer availability has historically been tight on the island, the current market conditions have broken all previous records.

“Newfoundland, of course, is a super touristy place in the summer and it’s always been nearly impossible to get a vehicle,” Hoch told CTV News. “Well, this year, it’s just kind of boiled over the top and vehicles until late summer are non-existent at this point.”

Hoch stated that the lack of available inventory has forced a dramatic shift in how people must approach regional travel, adding that “Vehicles for May, June and July sold out months and months ago.”

Seasonal realities halt rental business expansion

Local automotive businesses have attempted to step in to alleviate the pressure, though expanding commercial fleets on an island presents steep financial risks. Matthew Beck, a sales representative at Freshwater Motorplex in St. John’s, noted that his dealership introduced rental units over the last five years to help support local and tourist demand. Yet, even independent efforts are being overwhelmed by the sheer volume of travellers.

“We have our full fleet out currently, and it’s the beginning of the summer season, so we expect to be completely booked up,” Beck told CTV News, pointing out that some clients have already reserved vehicles as far ahead as December.

Beck explained that fleet growth is heavily restricted by the seasonal nature of East Coast tourism. While demand hits a fever pitch during June, July and August, the market drops off sharply when the colder weather arrives.

“The cost associated with having those rentals kind of has to have a benefit to it as well,” Beck said, citing the ongoing insurance premiums and overhead costs that accumulate when vehicles sit unused during the winter months.

Peer-to-peer car sharing platforms like Turo entered the Newfoundland market in recent years to provide an alternative resource, a rollout that received backing from Hospitality Newfoundland and Labrador. At the time, tourism operators noted that the absolute lack of vehicles was causing travellers to cancel flights and accommodation bookings entirely, costing the local economy millions in lost hospitality revenue.

How to navigate the island vehicle shortage

For travellers who still intend to visit the province this year, navigating the shortage requires strict financial and logistical planning. Industry experts strongly advise against booking non-refundable flights or accommodations until a vehicle reservation is firmly secured.

If major airport rental agencies show no availability, travellers should look into independent local car dealerships, suburban rent-a-wreck operations or peer-to-peer sharing apps well outside the airport perimeter. Another viable alternative is adjusting travel timelines to the late September or October shoulder season, when fleet pressures drop significantly alongside dropping rental rates.

Fast-forward to mid-2026, and Robinhood — the popular U.S. fintech firm best known for commission-free trading — has finalized a sizeable investment into the Canadian crypto-investing marketplace.

On June 1, 2026, Robinhood closed its C$250 million all-cash acquisition of WonderFi — owner of Bitbuy and Coinsquare, two of Canada’s oldest regulated crypto exchanges. The acquisition marks the firm’s formal entry into the Canadian market. As a result, WonderFi shares were delisted from the Toronto Stock Exchange (TSX) on June 2.

For any Canadian who trades crypto or has been watching the space, the deal shifts the competitive landscape in ways worth understanding.

Take the first step towards trading crypto. Find a platform, create your account and see why thousands of Canadians invest in cryptocurrency trading.

Why did Robinhood buy WonderFi?

WonderFi, a Canadian digital asset company, operated Bitbuy and Coinsquare under a single corporate structure, together holding more than C$2.1 billion in assets under custody and approximately 300,000 funded customers. That scale made it the most significant regulated crypto footprint in Canada — and the reason Robinhood pursued it.

For Robinhood, acquiring a CIRO-registered platform was a faster path to entering the Canadian market compared to building regulatory standing from scratch which is a multi-year process. But that faster entry came at a cost; Robinhood paid a 41% premium to WonderFi’s TSX closing price of C$0.36 per share.

CIRO approved the transfer of control of Coinsquare Capital Markets Ltd. (CCML), WonderFi’s restricted-dealer subsidiary, on May 20, 2026 — the final regulatory condition before closing. No further regulatory approvals were required. WonderFi’s 115-person team, including CEO Dean Skurka, joined Robinhood’s Canadian operations under Johann Kerbrat, senior vice president and general manager of Robinhood Crypto and International.

What it means for the Canadian crypto market

Robinhood’s entry introduces a well-capitalized U.S. platform into a market that has, by design, been shielded from less-regulated international competition. The practical effects for Canadian investors are still unfolding, but a few are already clear.

On fees: Robinhood has announced a flat 0.5% fee per trade for Canadian customers (using Canadian currency), which is competitive given Bitbuy’s structure of a 1.5% trading fee plus a 1% spread on Express Trades, and roughly in line with Coinsquare’s Pro platform, which charges 0.5% maker/taker fees. For the broader market, pricing pressure from a well-resourced entrant could influence what competing platforms charge over time.

On product breadth: Robinhood’s stated longer-term ambition is to layer equities, options, futures and prediction markets onto its Canadian crypto base — the same playbook it used after acquiring the European exchange Bitstamp in 2024. No confirmed timelines exist for those rollouts in Canada. For now, the offering is crypto only.

On regulation: The CIRO framework that governs Canadian crypto platforms does not change as a result of this acquisition. Robinhood stepped into an existing regulatory structure, not around it.

What Canadian crypto investors should do

Whether you hold an account on Bitbuy or Coinsquare, or trade on another registered platform, Robinhood’s arrival raises a few questions worth thinking through.

Account holders on Bitbuy or Coinsquare will be migrated to the Robinhood app. The timeline for that migration has not been disclosed. Watch for email communications from Robinhood or WonderFi — your account terms, fee structure and platform interface will change. Review any new terms carefully before accepting them.

On CIRO oversight: The regulatory protections that applied before this acquisition remain in place. CIRO-registered platforms must segregate client assets, maintain cold storage for at least 80% to 90% of holdings and publish quarterly proof-of-reserves reports. Those obligations travel with the registration, not with the previous owner.

On investor protection: The Canadian Investor Protection Fund (CIPF) covers securities and cash held at CIRO member firms in the event of insolvency, but according to CIPF’s own published coverage policy, crypto assets are explicitly excluded from that protection. This applies regardless of which platform you use or who owns it. If you want to understand what protection applies to your specific account type, check your platform’s terms directly.

On the broader competitive picture: Robinhood’s 0.5% flat fee is one data point. Before assuming a platform switch makes financial sense, compare the full cost structure — including funding fees, withdrawal costs and any spread markups — not just the headline trading rate.

What to do now

If you hold crypto on Bitbuy or Coinsquare, monitor your email for migration communications and review new account terms before accepting them.

For all crypto investors:

• Compare your current platform’s full fee structure — including spreads and funding costs — against Robinhood’s announced 0.5% flat rate
• Confirm any platform you use holds active CIRO registration — the CIRO public registry is the authoritative source
• Review CIPF’s coverage policy to understand what is and is not protected in a crypto account — crypto assets are currently excluded
• If you are considering switching platforms based on this news, evaluate the complete fee picture, not just the trading rate

Get started

With platforms like Kraken, buying and trading cryptocurrencies is straightforward, whether you’re on a desktop or using the mobile app.

You can buy and trade 600+ cryptocurrencies✢ on desktop or through their mobile app, or set up recurring buys to invest automatically.

There’s also the option to add price conditions, so your trades only execute when the market hits your target.

Kraken provides guides on popular coins, helping you understand what you’re buying and how to navigate the process from start to finish.

And if you have questions, 24/7 support is available via live chat, phone, or email.

For those who want greater control, Kraken PRO offers a more advanced trading experience.

Designed for active traders, it features a highly customizable interface with real-time market data, advanced tools and detailed order types like stop-loss and take-profit to help manage trades more precisely.

You can also trade across spot, margin and derivatives markets, monitor performance in one unified portfolio, and tailor your dashboard with multiple data widgets to suit your strategy.

Opening an account is quick, with a simple sign-up, verification and short investor profile to get started.

✢ Short disclaimer for hybrids/email: Not investment advice. Crypto trading involves risk of loss. See kraken.com/legal/ca-pru-disclaimer for info on Kraken’s undertaking to register in Canada.

Now there’s a deadline on that uncertainty. On July 1, 2026, Canada, the United States and Mexico must decide whether to renew the Canada-United States-Mexico Agreement (CUSMA) — the trade deal that, as of 2023, governs over $1.93 trillion in annual commerce between the three countries. For Canadians, this is more than a distant policy headline: It’s the single most historic trade decision in a generation, affecting jobs, supply chains, household prices and investment portfolios.

Prime Minister Mark Carney has placed himself at the centre of the story, and his message to the U.S. — along with its sentiment — has shifted.

Take Control Of Your Money. You can't control inflation, interest rates or market swings — but you can control where your money goes. When every dollar has a job, money feels less stressful. Find the budgeting app that helps you take control of your finances. Compare Canada's Best Budgeting Apps

Why Carney changed his tone

Earlier this year, Carney argued that Canada’s deep economic integration with the U.S. had become a liability, and called for “middle powers” to unite. However, when speaking at the Economic Club of New York on May 28, 2026, he struck a very different tone, declaring: “‘Canada Strong’ will help make America great again.”

“While Canada and the United States have had our differences over the centuries, we have always worked and eventually worked through them because we share values and our common interests run deep,” Carney said.

The shift wasn’t accidental. Fraser Institute Senior Fellow Jock Finlayson, who also serves as chief economist at the Independent Contractors and Businesses Association (ICBA), says Canada’s push to reduce its reliance on U.S. markets has only made limited progress — the trade relationship, he noted, is “sticky.”

And the trade structure is the reason for that stickiness. Canada sends roughly three-quarters of its exports to the United States — Statistics Canada data for 2024 puts the figure at 75.9% of all domestic exports. Carney noted that Canada is America’s single largest export customer, and that approximately 70% of Canadian exports serve as inputs for American-made goods, including cars, homes, aircraft and machinery.

He also pointed to Canada’s role as a critical resource supplier, arguing that Canadian aluminum exports alone are the energy equivalent of “10 Hoover Dams.”

“It’s still the case that 85% of our trade goes across tariff-free,” Carney said. “Everyone benefits from that.”

What the CUSMA review means for Canadians

The July 1 trade review is critical. Under the CUSMA review process, all three governments must confirm in writing whether they wish to extend the agreement for another 16 years — locking in the deal until 2042. If the parties don’t agree to extend, the pact shifts to annual reviews — creating what the Bank of Canada has described as a “rolling negotiation” environment where businesses could face ongoing uncertainty for years.

On June 2, 2026, Canada-U.S. Trade Minister Dominic LeBlanc formally wrote to U.S. Trade Representative Jamieson Greer and Mexico’s Secretary of Economy Marcelo Ebrard, recommending renewal. But the U.S. has signalled repeatedly that it’s not interested in a straightforward renewal. Greer has said that “things have to be changed,” citing dissatisfaction with automotive imports and steel and aluminum trade flows.

For Canadians, the impact is real and hits close to home. The Bank of Canada has warned that a negative CUSMA review would lead exporters to cut production, investment and jobs — with ripple effects across the wider economy.

Canada’s economy is already under strain

The CUSMA review comes at a difficult time for the Canadian economy. Statistics Canada reported on May 29 that the economy shrank for the second quarter in a row — down 0.1% in Q1 2026, after a 1.0 % decline in Q4 2025, which economists consider a technical recession. Moreover, three of the last four quarters have now seen the economy contract.

Further, business capital investment fell 0.7% in Q1 2026 — its fifth consecutive quarterly decline — as companies delayed major decisions amid ongoing trade uncertainty. Canada’s unemployment rate rose to 6.9% in April 2026.

However, there’s a ray of optimism: Early estimates from Statistics Canada suggest the economy bounced back in April, with GDP growth of around 0.4% as the mining, oil and gas sectors picked up again. But the recession label is a concern for Canadian households — especially those renewing mortgages or carrying significant debt.

How tariffs ripple through your wallet

North American manufacturing relies on highly connected supply chains, with some parts crossing borders up to eight times before reaching the sales floor. Trade disputes break that chain — and reduce what factories can produce here.

These decisions directly impact your cost of living. Even the anticipation of a tariff can push prices higher, squeezing corporate profits and putting the Bank of Canada in a tough spot — trying to balance inflation and recession risk at the same time, which creates uncertainty across Canadian financial markets.

However, Canadians have seen this before. During the 2018-2019 tariff dispute, the U.S. imposed a 25% tariff on steel and a 10% tariff on aluminum, prompting Canada to hit back with its own tariffs — rattling manufacturing, industrial and agricultural sectors across the country.

That doesn’t mean you should make drastic moves with your portfolio. In fact, periods of uncertainty are often the right time to review and recommit to a long-term investment strategy.

Don’t let headlines slow you down

Trade negotiations, elections and geopolitical disputes create short-term volatility. However, long-term investors have historically been rewarded for staying invested through market ups and downs rather than trying to time them.

• Get a brokerage account that fits your needs. You can't control the market, but you can control fees, tools and how you invest. Find an online investing platform that helps you invest with confidence. Compare Canada's Best Brokerages

That’s where regular investing makes a real difference. Contributing a fixed amount at regular intervals — a strategy known as dollar-cost averaging (DCA) — means you naturally buy more units when prices are low and fewer when prices are high. Over time, this tends to lower your average cost per unit and provide some cushion against volatility.

For most Canadian investors, the Tax-Free Savings Account (TFSA) is the ideal vehicle for this approach. Tax-free growth means every dollar of compound return stays in the account. The 2026 annual TFSA contribution limit is $7,000, and unlike a Registered Retirement Savings Plan (RRSP), TFSA withdrawals are tax-free and contribution room is restored the following year.

Let’s consider the power of compounding over time: An investor contributing $500 a month earning an average annual return of 7% could accumulate roughly $612,000 over 30 years — despite investing only $180,000 of their own money. The difference comes from compound growth working continuously over time.

• Tired of high commissions eating your returns? Compare Canada’s top discount brokerages and switch to a $0-commission platform today.

Consider assets that can weather uncertainty

While staying steadily invested is often the right strategy, what you invest in also matters — especially during periods of elevated trade risk.

In particular, gold can serve as a hedge during periods of market volatility and inflation. Because the precious metal’s value isn’t directly tied to any single company’s earnings or any one country’s economic performance, it’s often described as a safe-haven asset. When tariff fears push up consumer prices and erode the purchasing power of cash, gold has historically held its value.

Canadian investors can access gold exposure without purchasing physical metal by holding TSX-listed gold ETFs inside a TFSA or RRSP. Options include the BMO Gold Bullion ETF (TSX: ZGLD), which holds physical gold at a management fee of 0.20%, and the Sprott Physical Gold Trust (TSX: PHYS). For broader mining sector exposure, the iShares Global Gold Index ETF (TSX: XGD) holds shares of major producers such as Barrick Gold and Newmont.

For most investors, gold is one component of a well-diversified portfolio — not a standalone strategy. Combine it with broad equity and bond exposure appropriate to your time horizon and risk tolerance.

Build a strategy that can hold up against policy changes

Trade policy is one of many factors that can affect financial markets. Interest rates, inflation, corporate earnings and economic growth typically play an even larger role in determining long-term investment outcomes.

For Canadians managing larger portfolios — particularly those nearing or are already in retirement — getting professional guidance can help avoid costly mistakes. In Canada, Certified Financial Planners (CFPs) are the gold standard for fee-for-service financial advice. Search for a CFP through FP Canada’s public Find Your Financial Planner directory, which lists CFPs by city, province and area of specialization.

When selecting an adviser, look for someone who is:

1. Registered with the Canadian Securities Administrators (CSA)
2. Fee-only or fee-based to minimize conflicts of interest
3. Willing to explain every recommendation in plain language with documented reasoning

For investors concerned about what comes next in Canada-U.S. trade relations, the most productive response isn’t to predict the outcome of negotiations. It’s to be sure your portfolio is diversified enough to handle whatever comes next in the market.

What Canadians can do right now

The CUSMA deadline will pass one way or another. Here are practical steps to take before then:

1. Max out your TFSA first. The 2026 annual contribution limit is $7,000. Tax-free compounding means every dollar of growth is yours — no matter what happens with interest rates or inflation. If you have unused room from prior years (up to $109,000 cumulative if you’ve been eligible since 2009), now is a good time to take advantage of it.
2. Set up automatic contributions. Set up automated regular deposits into a diversified ETF portfolio. Automating contributions removes the temptation to time the market and ensures you benefit from DCA through volatility.
3. Review your exposure to trade-sensitive sectors. Canadian investors with heavy concentration in manufacturing, automotive, steel, aluminum or agriculture should consider whether that exposure is appropriate, considering ongoing CUSMA uncertainty.
4. Consider a small allocation to gold. TSX-listed gold ETFs such as ZGLD, PHYS and XGD offer inflation and volatility protection. Most financial planners, including advisors from Sprott, a global asset manager, suggest limiting gold to between 5% and 10% of a diversified portfolio.
5. Consider your CPP and OAS timeline. If you’re approaching retirement, trade-induced volatility and a technical recession may affect when you start to collect Canada Pension Plan (CPP) and Old Age Security (OAS) benefits. Delaying CPP past age 65 increases payments by 0.7% every month you wait, or 8.4% annually, up to a maximum of 42% more at age 70. Speaking with a CFP can help model the right start date for your situation.
6. If your portfolio is $250,000 or more, seek a CFP. Losing significant retirement savings to a poor investment strategy during a recession is a setback that’s difficult to recover from. Canada has more than 17,600 Certified Financial Planners. Find one at FP Canada’s public directory.

This is about to change.

Bill C-31, a federal budget implementation bill that passed first reading in the House of Commons on May 6, 2026, would give the CRA authority to issue a Notice of Non-Compliance (NoNC) against any taxpayer who fails to satisfy an audit information request — and to start charging $50 per day from the moment that notice is issued.

The bill has not yet received Royal Assent. But tax lawyers say it is likely to pass with relatively few changes, and they are already advising clients — particularly incorporated business owners, self-employed professionals and investors with offshore or crypto holdings — to review their document-retention practices now, before future audits are triggered.

Looking for a bank that works with you? National Bank offers tailored banking solutions for eligible professionals: Up to 3 bank accounts with no fixed monthly fees, an eligible Mastercard rewards credit card (certain fees apply), preferred lending terms and potential annual savings of up to $1,313. Find out if your profession is eligible.

What Bill C-31 actually proposes — and the new powers of the CRA

Under the proposed legislation, the CRA can issue a Notice of Non-Compliance (NoNC) at any time it determines a taxpayer has not fully satisfied a demand for information or documents — without needing a court order first.

Removing the need to seek a court ruling is the biggest change proposed by Bill C-31. That’s because the process, as it currently stands, forces the CRA to apply to the Federal Court for a compliance order, satisfy a judge that the requirement has been met under section 231.7 of the Income Tax Act before a judgment is issued. It’s a process that is slow and costly — for both sides. The new legislation would replace this judicial threshold with a ministerial one — allowing the CRA to decide and act, on its own.

“Once the legislation is enacted, it would create a new intermediate enforcement tool that the CRA does not currently have,” Pooja Mihailovich, a partner with Blake, Cassels & Graydon LLP, explained in a May 2026 analysis. The CRA could “impose immediate procedural and financial consequences without first obtaining a court order.”

Stop leaving money on the table. Compare Canada’s top-rated high-interest savings accounts and switch to a provider that actually helps your balance grow.

One amendment was dropped

One controversial element from the 2025 draft of Bill C-31 was dropped: Giving CTA the power to compel taxpayers to answer questions under oath or affirmation. That removal is “a welcome development,” according to Blake, Cassels & Graydon LLP tax lawyers Mihailovich and Erich Schultze.

New powers and new penalties: What the CRA can do once Bill C-31 is passed

Bill C-31 introduces two separate penalty mechanisms, and understanding when each kicks in is essential for any taxpayer who could face an audit.

Penalty 1 — The daily NoNC fine. As soon as the CRA issues a Notice of Non-Compliance, a $50-per-day penalty begins accruing — up to a maximum of C$25,000. The penalty runs until the CRA is satisfied that the taxpayer has complied or has done everything reasonably necessary to comply. There is a review process, where the taxpayer can request a ministerial review within 90 days, and the Minister must respond within 180 days. If the Minister does not respond in time, the notice is deemed vacated.

Penalty 2 — The compliance order surcharge. If the CRA escalates to Federal Court and obtains a compliance order, an additional penalty of exactly 10% of the aggregate tax owed applies for each year covered by the order — but only if the tax owed in at least one of those years exceeds $50,000. Earlier draft legislation had capped this penalty using “up to” 10%, but the final bill removes that ceiling, making the 10% figure a fixed rate.

According to analysis from Blake, Cassels & Graydon LLP, there is one important protection for everyday financial professionals in the proposed bill: when the CRA seeks information about an unrelated taxpayer from a third party — such as a bank, financial adviser or tax preparer — it must first obtain a compliance order before issuing a notice of non-compliance to that third party.

Who is most at risk with the proposed Bill C-31?

The proposed legislation does not target any specific type of taxpayer. According to Gergely Hegedus, a tax partner at Dentons in Edmonton, it “could be a corporation or an individual or a charity.” But the practical risk is not evenly distributed.

Mihailovich, a partner at Blake, Cassels & Graydon LLP, notes that “large corporations and multinational enterprises will likely feel the impact most acutely” because they are subject to more frequent and extensive audit activity. But, she cautions, the CRA’s powers are “drafted broadly” and “the practical reach will extend well beyond multinationals.”

Based on the structure of the penalties, the groups most exposed in the near term include:

• Incorporated professionals and small business owners who are already subject to CRA audit activity or who keep complex or offshore-linked records
• Self-employed Canadians whose records span multiple years and who may not have a clear document-retention system
• Cryptocurrency investors, who may hold records across multiple platforms or wallets that are not neatly organized
• Canadians with foreign assets or income, who face additional scrutiny and whose records may involve third parties abroad

To be clear, the compliance order penalty — the 10% surcharge — only activates when taxes owed in at least one covered year reach $50,000 or more. That makes it a targeted risk for higher-income earners and incorporated businesses rather than most individual tax filers.

What to do before Bill C-31 receives Royal Assent

The bill has not yet passed. But the window between first reading and Royal Assent is the right time to get organized — not after an audit request lands in your inbox.

As Ryan Minor, tax director with the Chartered Professional Accountants of Canada (CPA Canada) in Sudbury, Ont., explains: The NoNC is “a pretty big stick.” The daily accrual structure means even a brief delay in responding — say, gathering records while travelling or waiting on a third party — can add up to thousands of dollars in penalties before a single fact is disputed.

To illustrate, let’s assume a taxpayer receives a NoNC and takes 250 days to resolve the dispute. That taxpayer would accumulate the full $25,000 penalty, regardless of whether they ultimately owe any additional tax. And that penalty does not reduce or offset whatever tax the audit may subsequently reveal.

Up until now, the CRA audit process has been one where time was largely on the taxpayer’s side. If passed, Bill C-31, flips that dynamic. Slow responses will cost money — in addition to tax owed.

Such is the scenario that thousands of Canadians face in retirement. Does downsizing in retirement really help Canadians? Here’s how to do so without feeling regret and how much it can cost and save you in retirement.

What does downsizing actually mean for Canadian retirees?

Downsizing in Canada is the same as in most places: selling a larger, more expensive property and moving into something that better suits retirement.

That could mean:

• A detached family home to a condo
• A suburban property to a townhouse
• A move from Toronto or Vancouver to a smaller city
• Transitioning into a retirement community

While downsizing tends to mean reducing the square footage of your home, that’s not always the case. The true goal for downsizing is to reduce the carrying costs and free up your equity.

According to Statistics Canada, most Canadians over the age of 55 still own their homes. This is the same group that has built significant wealth through rising real estate values over the last two decades. At the same time, CMHC has noted growing interest among older Canadians in lower-maintenance housing options as retirement approaches.

The key question is not “Should I downsize my home?” in the abstract. It’s whether your current home still fits your finances, lifestyle and long-term needs, no matter how difficult it may feel to sell it.

Planning for retirement? Get personalized mortgage solutions from Homewise. Whether you refinance or choose to access home equity using a reverse mortgage, this online mortgage broker will help you find your best rate in minutes.

What are the real costs of downsizing in Canada?

This is where many homeowners get caught off guard and realize they need to plan a true downsize accordingly.

The formula seems simple on paper: sell high, then buy a smaller property while pocketing the difference. But before you know it, transaction costs can eat into a lot of that profit.

On the selling side, typical costs include:

• Realtor commissions: usually 3% to 5%
• Legal fees: roughly $1,500 to $2,500
• Staging, cleaning and repairs
• Moving costs: often $2,000 to $10,000+

Then come the buying costs:

• Land transfer tax
• Legal fees
• Home inspection
• Condo document review or status certificate review
• Moving and setup expenses

These costs can be even higher in expensive markets like Ontario or B.C. The land transfer tax alone can make you want to reconsider the entire move.

Here’s a realistic example of a couple downsizing in the Greater Toronto Area:

A couple sells a detached home for $900,000 and buys a condo for $580,000.

Breakdown of the sale of existing home

• Sale price: $900,000
• Realtor commission (4%): -$36,000
• HST on commission: -$4,680
• Legal fees and closing costs: -$2,000
• Repairs/staging/moving: -$12,000

Net proceeds after sale costs: about $845,000

Breakdown of the purchase of a condo

• Condo purchase: -$580,000
• Ontario land transfer tax: about -$8,000
• Legal fees and closing costs: -$2,000
• Moving/setup costs: -$5,000

Remaining equity: roughly $250,000

That’s a $70,000 difference from the $320,000 profit they made on paper.

Now, let’s say that the condo is a new build. That means the added HST for being the first owner can create another major cost. Even with a rebate, buyers should review and confirm the final tax implications before signing anything.

There is a silver lining, though. If the property you are selling was your principal residence for every year that you owned it, then it is exempt from capital gains taxes on the sale. If it were used as a business or rented out, then it would be a different story. Consult a tax professional before deciding on downsizing your residence in retirement.

Don’t forget the hidden costs of staying put

The grass is not always greener on the other side. While most homeowners focus on the cost of moving, staying comes with its own set of costs.

Property taxes across Canada are rising each year, and as homes get older, they often need major repairs. Paying insurance and utility bills for large houses can also add up quickly.

For Canadian retirees, carrying costs can quietly consume thousands every month, even without a mortgage. This is the real cost of delay.

When is the right time to downsize?

There is no right or wrong time to downsize your home. It is personal and is triggered by things like age, income and health.

Financially, the ideal time to downsize is between 12 and 24 months before full retirement. You still have a high enough income for mortgage qualification if financing is needed, and there is more flexibility to wait for the right buyer or property.

As with most financial things, timing the housing market is risky. A better approach is to downsize when it benefits your finances or quality of life, even if it may not feel like the right time.

Common triggers for downsizing include:

• Adult children have moved out
• The home needs expensive repairs
• Mobility concerns are emerging
• Housing costs are limiting retirement savings
• Maintaining the property feels overwhelming

One tip is to sell before health issues become a factor. An urgent sale usually causes more stress and a worse financial outcome.

How do you downsize without losing your mind — or your equity?

The emotional side of retirement downsizing is often overlooked.

Most Canadians do not see their home as an asset. It is full of memories that can often cloud our judgment when it comes to selling.

Try starting the downsizing process early. Begin decluttering six to 12 months before listing.

Before selling, you should also get an accurate evaluation of your home’s value. This can help in deciding on what you can afford to buy next.

Don’t add a major renovation; it will only add stress to your plate. A fresh coat of paint and some fixes can go a long way before showing your home to potential buyers.

Sell first or buy first?

This is always a difficult decision to make. It is the chicken-and-egg effect of downsizing homes.

Selling first gives financial certainty. Buying first helps to avoid feeling rushed into a purchase, but it can add the risk of not selling or selling for less than expected.

Some homeowners use bridge financing to buy before selling, but it comes with costs and time limits. A mortgage professional can help determine whether that approach makes sense.

Downsizing to a condo — what Canadians need to know

Condos seem like the ideal size for a proper downsize, but they come with their own costs.

Monthly condo or strata fees cover things like maintenance, insurance and amenities. These can rise over time and can be a surprisingly high cost to add on to your mortgage, taxes, insurance and utilities.

Have a reserve fund, especially in retirement. Condos can have a special assessment at any time and can be a crippling cost to owners.

Understand the difference between buying a new-build and a resale condo. New-builds come with HST and a potentially uncertain timeline for being move-in ready.

You should also be aware of stipulations like pet restrictions and rental rules. You never know who your neighbours might be.

A 12-step downsizing checklist for Canadian homeowners

• Run the real financial math, including all of the moving costs
• Get a professional home evaluation (at least two real estate agents)
• Speak with a tax professional about your principal residence exemption
• Contact a mortgage broker if financing may be needed
• Decide whether to sell first or buy first
• Begin decluttering six to 12 months early
• Focus on cosmetic updates instead of major renovations
• Research neighbourhoods and housing types carefully
• Review condo reserve funds and status certificates
• Hire legal representation for both transactions
• Plan moving logistics well ahead of time
• Update wills, powers of attorney and beneficiaries after moving

FAQs

At what age should you downsize your home in Canada?

There is no perfect age to downsize. Most Canadians may start to consider downsizing 5 to 10 years before retirement. Others will begin thinking about it when a major event happens, like adult children moving out or expensive home repairs arising.

Do you pay capital gains tax when you downsize in Canada?

Usually not, if the property qualified as your principal residence for every year you owned it. There can be taxes on the sale if it serves as a business or rental property. Consult a tax professional before considering a sale of your property.

How much money do you save by downsizing?

Every situation is different. It depends on the sale of your home and the cost of your new one, but carrying costs also apply. A typical downsize can reduce costs by $1,000 to $3,000 monthly, while also freeing up equity to generate retirement income.

What are the biggest mistakes people make when downsizing?

Underestimating the costs of downsizing is the biggest mistake made by most Canadians. Other mistakes can include trying to urgently sell your home, over-renovating before selling, or waiting too long before other issues, like health concerns, arise.

Yes, AI models like Chat GPT, Claude and Grok help us make decisions faster. But do they actually make good shoppers? A new study completed by researchers at Princeton and the University of Washington reveals that although AI shoppers are convenient, they aren’t necessarily getting the best deals for consumers.

The researchers point out a very concerning conflict of interest when using the technology to shop. These agents act for users by searching for products and for companies promoting their offerings, creating a situation where the agent must choose between the consumer and the corporate customer. The question is, which side do they fall on?

The researchers investigated how the AI agents across multiple models handled the conflicts using flight purchases as a core experiment along with different types of prompts.

The researchers found that of the 23 different models reviewed, all except five chose to promote the most expensive sponsored product to users over half of the time. While the researchers’ instructions encouraged — not enforced — the agents to promote sponsored products, the fact that the majority of agents recommended the most expensive sponsored products shows AI agents aren’t necessarily acting in the best interest of the consumer.

Through multiple different experiments, the researchers also found that AI agents suggested sponsored tickets for consumers, even though they were specifically asked to show non-sponsored flights. And the agents sometimes described the sponsored product so positively the researchers said it was “unrealistic”. In some cases, AI agents would recommend products that were clearly too expensive for the user to purchase.

Additionally, the researchers found that AI shopping agents displayed different sponsored options and reasoning ability when the users’ socio-economic status was disclosed or inferred by the agent.

The cost of convenience

Using an AI agent to find products may be costing you more than you think, creating a form of digital tunnel vision that only shows you the most expensive products sponsored by retailers. While paying a few extra dollars for a simple online purchase like a dish set or a pet toy might not seem like much, AI agents can scale your shopping habits. Small increases in payments over dozens of purchases add up quickly.

A recent study of U.S. shoppers found that respondents who used large language models (LLMs) like Chat GPT for their shopping were spending more per visit and spent more time shopping overall. Shoppers referred to e-commerce websites spent 53% more time on the site than other visitors.

Being prudent with our funds has always been important, but especially when costs for goods continue to climb. The latest inflation data from Statistics Canada for April showed headline inflation increased 2.8% year-over-year, with energy prices spiking 19.2% annually. The price for everyday goods like clothing and footwear jumped 2% after dipping 0.4% in March. And rent prices have increased nearly 31% since April of 2021, the agency noted.

Stop leaving money on the table. Compare Canada’s top-rated high-interest savings accounts and switch to a provider that actually helps your balance grow.

AI-free alternatives to find the best deals

If, as the latest research suggests, AI agents may not be the most innocent product recommenders for Canadian consumers, where else can they turn? While these options will not be as efficient as AI agents, they won’t have the hallucinations and subversive product promotion AI agents currently exhibit. Here are some alternatives you can use to help you find bargain deals on your everyday purchases.

• Traditional price comparison tools. Online tools such as Google Shopping can help you find deals on items you’re searching for without promoting products out of your price reach.
• Store flyers. Store flyers — both digital and physical — are still around because they work. Collecting flyers from multiple stores by joining their mailing lists can help you track deals across multiple outlets.
• Online communities. One of the best ways to track deals is to follow the people that are finding them. In the online age, that means joining Facebook groups that watch for deals or online communities like RedFlagDeals.

AI agents: just another tool for consumers

If you decide to use AI agents to do your shopping for you, make sure to do so assertively. Always double check an AI agent’s recommendation with another source if something feels off. Also, do what you can to limit the demographic information the AI agent has about your socio-economic status — as the study shows, this information can skew the agent to recommend more expensive products.

Canadian consumers have veritable toolboxes full of technological and analog options when it comes to finding products at a fair price. While new research shows that AI shopping agents do have their blind spots, it’s important to recognize that every shopping method has its flaws. What matters is the consumer’s ability to do their homework.

Aprile told CTV News that a man came to her door mid-April offering to fix the stonework in her yard. She agreed, signed a contract with the company Compact Masonry and Roofing, and the team came back the following day. They started pulling up the old stonework, but told Aprile they needed $3,000 — she obliged.

But once they had the cash in hand, they left her property after only a couple hours — never to be seen again.

“The last time I heard from them was when I gave them the money,” Aprile told the news outlet. “I will never, ever do anything like that again, paying anyone like that ahead of time, especially if they are going door to door.”

CTV News called and emailed Compact Masonry and Roofing multiple times without a response. They even travelled to the address listed in their brochure and Aprile’s contract, but the business was not seen there.

While Aprile will have to pay more to have another contractor fix the damage done by the alleged scammers, she told CTV she’s hired someone she can trust.

“I found somebody who is going to come later today to give me an estimate and see what he can do for me, and he is going to fix it all up,” she said.

Stop leaving money on the table. Discover which Canadian banks are currently paying up to $700 just for opening a new account.

Better weather means better conditions for door-to-door scams

As warmer weather starts to roll in, the conditions for summer holidays, outdoor activities and, unfortunately, doorstep scams, improve.

Door-to-door scams, which are a subset of service fraud, are usually characterized by a business offering services at a reduced rate or with high-pressure tactics. They typically involve aggressive pitches to push customers into a decision quickly, or use the allure of a reduced price to turn off their victim’s critical thinking. But the lynchpin of the scam is to get all or a substantial portion of funds upfront — and then never do the work or do such a poor job the consumer is left to pick up the pieces.

And service scams are not a small portion of fraud across Canada, they’re actually the third-most reported fraud type across the nation according to the Canadian Anti-Fraud Centre’s 2025 Annual Statistics Report. There were 3,393 reports and 2,444 victims who lost a combined $19.5 million — an average of $7,978 per victim.

It’s important to note that the actual number of victims and total losses are likely far higher than these figures suggest, since only 5% to 10% of all fraud is reported.

Money lost is painful to be sure, but what makes fraud emotionally destructive is the difficulty in finding recourse. However, consumers caught in a door-to-door scam may not have a lot of options. For instance, Ontario law gives consumers a cooling-off period of 10 days to cancel a contract they made and get their money back. Consumers can also cancel a contract if the company they purchased a product or service from engaged in unfair business practices.

But, if a business disappears after taking your money, the chances you can get it back lawfully are nil.

And, the same applies to taking civil action. Although signing a contract means you may be able to find recourse through the courts, finding the funds from a business that disappears overnight is another matter entirely — regardless of if you win in court.

That said, if a purchase was made on a credit card, you may have the option of cancelling an unauthorized transaction if you never formally approved the contract.

The best defence starts before the doorbell rings

Service fraud can be one of the hardest to deal with in person, given its high-pressure tactics and face-to-face communication. The best way to protect yourself is to know how to recognize red flags during an interaction and be able to act quickly. Here are the most common to watch for.

High-pressure tactics

Door-to-door scams thrive on using high-pressure strategies such as completing the work same day or offering a one-time discount to push consumers into a sale. A legitimate salesperson will never coerce you into making a purchase with such tactics.

Know what to watch for in a contract

Contracts can be extremely complex, so it’s not expected that all consumers will be able to understand every nuance. But you should check for certain provisions to make sure you understand a contractor’s responsibilities. Any contract you enter into with a service provider should generally outline the following:

• The information of the contractor
• The description of the services offered
• The total cost
• How the cost will be paid (e.g. in instalments or an upfront payment)
• The consumer’s rights to cancel the contract
• The restrictions, terms or conditions that apply to the services being done
• Be wary about giving the full payment amount upfront to any service provider. It’s more common for contractors to ask for 10% or 20% down, rarely the full amount. That should set off alarm bells.

Watching for these markers is important but it’s also necessary to research any company that approaches your door after their pitch. Consult the Better Business Bureau to see if any issues have come up with prior jobs. Check if the business has a website, a large amount of positive reviews from previous customers and if it has a legitimate online presence. Make sure to ask your community for feedback as well — online reviews can be manipulated. Finally, ask any prospective contractor if they carry liability insurance to cover any damages they cause.

And remember: if a salesperson is offering you something that seems too good to be true, it probably is. Trust your gut and don’t sign on the dotted line.

That dream ended on June 14, 2026, when the Carolina Hurricanes shut out the Golden Knights 3-0 in Game 6 of the Stanley Cup Final. Despite a historic postseason performance from Marner, his championship goal vanished under the desert sun.

This high-profile miss serves as a powerful cautionary tale about the reality of brain drain. Crossing the border for a bigger playing field promises massive upside, but the hidden financial and personal risks can easily leave you exposed.

The hidden costs of chasing a cross-border raise

Many Canadian professionals look at American salary packages and immediate tax savings with envy. Nevada, much like Florida or Texas, famously boasts zero state income tax, making it a magnet for high earners trying to shelter their cash. When you compare that to Ontario, where the combined top marginal tax rate hits 53.53%, the mathematics look simple on paper.

The equation changes rapidly once you factor in the American cost of living. Stripping away the domestic safety net introduces a wave of private costs that catch immigrants completely off guard. Healthcare is the most notorious variable. Even with premium employer-sponsored insurance, premium fees, deductibles and out-of-pocket maximums can quickly drain thousands of dollars from your monthly budget.

Housing is another hurdle. Relocating to major American economic hubs often means facing rental markets and home prices that dwarf what you left behind. If you’re moving with a family, the cost of quality childcare and private schooling in the United States can swallow the financial gains of a lower tax bracket. Maybe not an issue for someone with a salary like Marner’s, but for average Canadians looking south for a reprieve, the numbers should give you pause.

Stop overpaying for tax prep. Browse our expert reviews of the best free and paid tax software to keep more money in your pocket this year.

Navigating the logistical penalties of the move

Trading your Canadian stability for an American opportunity also comes with severe transactional costs. Navigating cross-border asset management requires strict professional assistance. Leaving Canada can trigger a departure tax, where the Canada Revenue Agency treats your global properties and non-registered investments as if they were sold on the day you left.

Managing your existing accounts becomes a legal headache. Many Canadian brokerages will freeze or restrict your registered retirement savings plan accounts once you become a non-resident. If you plan to return north later, re-entering the Canadian financial system means rebuilding credit profiles and facing volatile currency exchange fluctuations that can erode your accumulated wealth.

Balancing your career risk before buying a ticket out

Before packing your bags for a sunnier tax climate, it’s essential to calculate your personal break-even point. Take a deep dive into your potential expenses by comparing the true cost of living using reliable tools on Statistics Canada. Look past the base salary figure and evaluate the structural value of your entire compensation package.

A smart financial move requires calculating your net income after factoring in foreign health coverage premiums, local property levies and regional sales taxes. It’s also wise to consult a cross-border financial planner before signing an employment contract. They can map out the potential implications of a departure tax and protect your domestic investments.

Marner found elite professional production in his new home, rewriting record books with a natural hat trick in the final round. Yet the ultimate prize eluded him. Moving to the United States can certainly accelerate a career, but assuming the grass is always greener can cost you far more than just a trophy.

That experience is partly why gold and, more recently, bitcoin keep coming up in conversations about Canadian investment portfolios. Gold hit fresh record highs in 2024 and 2025, and while crypto has lost some of its lustre, it remains popular with investors. According to the Bank of Canada, approximately 1 in 10 Canadians owned bitcoin as recently as 2023, and survey data from Koinly, a crypto tax software platform, shows that over 40% of Canadians hold some type of crypto asset.

Morningstar’s portfolio research argues that while diversification certainly paid off in 2025, with both international stocks and gold outperforming the U.S. market, not all asset classes are worth adding to your portfolio.

So where does that leave a Canadian with a TFSA, an RRSP and a balanced index fund? The honest answer is that a small allocation to gold and possibly crypto may be helpful, but a large one almost certainly will not.

Why a 60/40 Canadian portfolio is not as diversified as it looks

The traditional balanced portfolio assumes stocks and bonds will behave differently during periods of market stress. While that relationship has often held in the past, 2022 demonstrated that it is not guaranteed, when rising inflation and interest-rate shocks pushed both asset classes lower simultaneously.

For investors approaching retirement or already drawing income from their portfolios, such a synchronized decline can be especially painful.

Neither gold nor crypto is driven by the same forces as stocks or bonds. Gold has historically responded to factors such as real interest rates, currency movements and geopolitical uncertainty. Bitcoin’s drivers remain the subject of debate, but its performance has frequently diverged from traditional asset classes over longer periods.

A diversified asset doesn’t necessarily need to outperform, but it should behave differently when the rest of the portfolio is struggling.

Partner with Kraken

For investors who do decide that crypto belongs in their portfolio, the practical question becomes how to buy and hold it securely. That's where a registered, regulated platform matters.

With platforms like Kraken, buying and trading cryptocurrencies is straightforward, whether you’re on a desktop or using the mobile app.

You can buy and trade 600+ cryptocurrencies* on desktop or through their mobile app, or set up recurring buys to invest automatically.

There’s also the option to add price conditions, so your trades only execute when the market hits your target.

Kraken provides guides on popular coins, helping you understand what you’re buying and how to navigate the process from start to finish.

And if you have questions, 24/7 support is available via live chat, phone, or email.

For those who want greater control, Kraken PRO offers a more advanced trading experience.

Designed for active traders, it features a highly customizable interface with real-time market data, advanced tools*, and detailed order types such as* stop-loss and take-profit to help manage trades more precisely.

You can also trade across spot, margin and derivatives markets, monitor performance in one unified portfolio, and tailor your dashboard with multiple data widgets to suit your strategy.

Opening an account is quick, with a simple sign-up, verification, and short investor profile to get started.

Not investment advice. Crypto trading involves risk of loss. See kraken.com/legal/ca-pru-disclaimer for info on Kraken’s undertaking to register in Canada.

What gold actually does and doesn’t do in a portfolio

Gold’s primary role is not long-term growth. Over extended periods, equities have generally outperformed gold and produced stronger inflation-adjusted returns. Gold’s value comes from its ability to provide a negative correlation to the stock market, especially during inflation shocks and periods of geopolitical instability.

There are several ways Canadian investors can hold gold inside an RRSP or TFSA. Physical gold bullion that meets the Canada Revenue Agency’s purity standards is eligible for registered accounts under CRA rules. Gold ETFs listed on Canadian exchanges, as well as shares of gold mining companies, are also RRSP- and TFSA-eligible and trade like any other security. Each option has pros and cons. For example, bullion has storage and insurance costs, ETFs add a small management expense ratio (MER), and mining stocks add company-specific risk on top of the gold price.

For most Canadians, a single-digit allocation through a low-cost, physically backed gold ETF inside a registered account is often the simplest approach.

Where does Bitcoin fit, and what are the risks?

The Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) have both issued repeated investor alerts about unregistered crypto trading platforms, fraud risk and the volatility of crypto assets.

That does not mean you shouldn’t hold crypto in your portfolio, but you need to understand the risks. Bitcoin has experienced multiple peak-to-trough drawdowns exceeding 70% in its trading history. A 1% to 2% allocation that you can afford to see fall by that magnitude is different from a 10% or 15% allocation built on the belief that the next decade will look like the last.

If you are looking for crypto that is RRSP or TFSA-eligible, you can buy spot Bitcoin and Ether ETFs listed on Canadian exchanges. In fact, Canada was the first country to approve a spot bitcoin ETF in February 2021.

How much diversification is enough

One of the more useful takeaways from Morningstar’s research is that diversification has limits. Adding new asset classes can improve a portfolio’s risk-adjusted returns, but only up to a certain point. Beyond that, additional holdings often add complexity, costs and management headaches without meaningfully improving outcomes.

For many Canadian investors, the best approach is to keep the vast majority of their portfolio in broadly diversified stock and bond investments aligned with their goals, time horizon and risk tolerance. Gold and crypto, if used at all, should generally remain small positions around that core.

For example, a 5% allocation to gold and a 1% to 2% allocation to crypto are enough to create a meaningful diversification tilt without overwhelming the rest of the portfolio. Larger allocations may still be appropriate for some investors, but at a certain point, they stop functioning as diversifiers and become concentrated bets.

Before you make any significant allocation changes, make sure you are speaking with a qualified investment adviser and verify that any product you’re considering is properly registered for sale in your province through the Canadian Securities Administrators’ (CSA) National Registration Search.

What to do now

Before you add gold or crypto to your portfolio, assess what you already own. Many balanced mutual funds and asset-allocation ETFs already include some exposure to commodities or gold-related investments, which means you may be more diversified than you realize.

From there, consider a few practical steps:

• Review your fund holdings to see whether you already have exposure to gold or commodities
• Use RRSPs and TFSAs where possible for eligible gold ETFs and Canadian-listed spot crypto ETFs
• Choose your positions based on the worst-case scenario, not the best-case outcome
• Use the CSA National Registration Search to confirm that the platforms, advisers and investment products you want to use are properly registered
• Rebalance your portfolio at least once per year

Your goal shouldn’t be to own every available asset class. You want to build a portfolio you can stick with through both good and bad markets. For many Canadians, a small allocation to gold and perhaps a modest amount of crypto can help achieve that objective. Remember, diversification can reduce risk, but not if you’re choosing speculation over strategy.

A 2026 BMO Survey on retirement goals found that Canadians believe they need $1.7 million to comfortably retire. Yet the same survey found that 36% of working Canadians aren’t confident they’ll reach their retirement savings goals.

Meanwhile, Statistics Canada data shows the actual average retirement age in Canada is 65.4 years — more than five years later than what most people say they prefer.

If you’re on track to hit seven figures before 60, congratulations. But money alone may not be enough. Surveys of actual retirees keep exposing the same uncomfortable truth: Their regrets aren’t always about the money they’ve saved, but rather, the other benefits that came with the paycheque.

Here are three things you might want to consider before opting for an early retirement.

1. A balance sheet becomes a burden

Carrying debt has different implications when you switch from steady employment income to a fixed retirement income. There’s little room for error, and high-interest debt can quickly erode your budget — even if your nest egg is worth $1 million.

The challenge is more common than many people realize. According to Royal LePage data from 2025, almost 30% of Canadian households plan on carrying mortgage debt in retirement within the next two years. And data from the Ontario Securities Commission shows that nearly half of retirees carry some form of non-mortgage debt.

More strikingly, many retirees say this debt was a surprise: They didn’t plan on having it at this stage in life. From unexpected home repairs to family emergencies, even affluent retirees can find themselves with a hefty interest payment every month.

To minimize your risk, consider consolidating higher-interest debts — such as credit card balances — into a lower-rate personal loan or a home equity line of credit (HELOC) before you retire. The Government of Canada website offers free tools and resources to help you compare debt repayment options and manage your finances in retirement.

The key is to go into retirement with as little high-interest debt as possible — because a fixed income leaves no room to absorb it.

Is your retirement fund leaking? Secure your future today. Silent fees and stagnant interest can push your retirement date back by years. See how moving your savings to a high-interest account can help you retire sooner and with more confidence.

2. A lack of mental challenges

Research published in the Journal of Health Economics suggests that retirement can be associated with cognitive decline for some people — particularly men and those in cognitively demanding roles. While findings vary, the underlying message is consistent: staying mentally active matters

Fortunately, the fix can be inexpensive. Finding some way to challenge yourself regularly — whether through community volunteering, a passion project, part-time work, freelance consulting or a seat on a community board — may help keep you in the game.

The Canadian Association of Retired Persons (CARP), a national advocacy and community organization for older Canadians, offers job boards, volunteer listings and social resources for retirees looking for their next challenge. Membership starts at $19.95 a year — making it one of the most affordable forms of insurance against an unstructured Tuesday.

3. An absence of community and socialization

Loneliness and lack of social interaction can be a genuine health hazard in retirement. According to the Public Health Agency of Canada, social isolation among older Canadians is associated with an increased risk of heart disease, depression and cognitive decline. The effects aren’t only emotional — they’re physical.

To mitigate this, it’s worth building up your social infrastructure. Recurring dinners with friends, a hobby community, a faith group, a running club — any recurring activity that connects you to others can serve as an anchor in retirement.

Experts suggest finding a group, community role or social gathering that you’re already part of before you leave work permanently. After all, the people you see weekly at 62 are the ones most likely to show up at 72.

What Canadians can do now

If early retirement is your goal, the Canadian financial system offers several tools that can help you get there more securely — and avoid the regrets:

Maximize your RRSP and TFSA contributions

The Registered Retirement Savings Plan (RRSP) allows you to defer tax on contributions until withdrawal — ideally in retirement, when your income and tax rate are lower. The Tax-Free Savings Account (TFSA) lets your investments grow tax-free with no tax on withdrawals, at any age. For 2026, the contribution limit for registered accounts is as follows: 18% of your prior year’s earned income or $33,810, whichever is lower, for your RRSP, and a $7,000 annual limit for your TFSA.

• Looking for a bank that will work with you?
  Eligible professionals could unlock up to $1,313 in annual savings with National Bank’s special offer for professionals — including up to 3 bank accounts with no fixed monthly fees, with an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

Consider delaying CPP

You can start receiving Canada Pension Plan (CPP) benefits as early as age 60, but your monthly payment is reduced by 0.6% for every month you collect before age 65 — a 36% reduction if you take it at 60. Conversely, deferring to age 70 increases your monthly benefit by 42% compared to taking it at 65. For those with substantial savings who can afford to wait, deferring CPP can provide a larger and more reliable income floor in later retirement.

Plan for your OAS bridge

Unlike CPP, Old Age Security (OAS) doesn’t begin until age 65, which means early retirees face a gap. Build a financial bridge strategy using RRSP or TFSA withdrawals to cover expenses between your early retirement date and when OAS and CPP kick in.

Pay down debt before you retire

Eliminate high-interest debt — particularly credit card balances and unsecured lines of credit — before leaving employment. Fixed retirement income leaves very little room to carry interest charges.

Build your social and cognitive plan before your last day

Don’t leave this much-needed structure purely to chance. Identify volunteering roles, part-time work, classes or community groups before you retire. The transition is much smoother when your social and intellectual life is already established.

— with files from Melanie Huddart

Buffett told CNBC’s Becky Quick that today’s investment climate has never felt more speculative. “We’ve never had people in a more gambling mood than now,” he said.

But CNBC’s Mad Money host Jim Cramer says Buffett is looking at the wrong problem. “We are addicted to S&P 500 buying no matter what,” Cramer wrote on X. “We have been taught to love ETFs no matter what kind. If individual stock investing hadn’t been so denigrated it would be less of a casino.”

It’s a disagreement that cuts to the heart of how many Canadians invest — and whether the approach most commonly promoted as safe and responsible actually carries more hidden risk than anyone wants to admit.

Buffett makes his case

Speaking with Quick at the Berkshire meeting, Buffett compared today’s markets to “a church with a casino attached” — and said the casino side has grown very crowded.

He pointed to zero-days-to-expiration options (known as 0-DTE) as a key symptom. These are short-term contracts bought and settled within a single trading session, meaning an investor can place a bet on a stock’s direction in the morning and collect — or lose — by market close. “If you're buying one-day options or selling them, that's not investing, it's not speculating – it's gambling,” Buffett told Quick.

To illustrate the problem, Buffett raised the case of U.S. Army Master Sgt. Gannon Ken Van Dyke, who is accused of making US$400,000 on a prediction market by betting on the military capture of Venezuelan president Nicolas Maduro he allegedly knew about in advance. The U.S. Department of Justice charged Van Dyke in April 2026, and he pleaded not guilty. While this is a U.S. case, Buffett’s point is broader: It reflects how far market culture has drifted from investing to something closer to speculating on inside knowledge.

Berkshire Hathaway has responded to what it sees as an overheated market by holding cash rather than buying stocks it considers overpriced. The company ended the first quarter of 2026 with US$397.4 billion in cash and Treasury bills. Buffett’s philosophy: the best time to buy is “when nobody else will answer their phones” — during market panics, not when valuations are elevated and sentiment is euphoric.

He also noted that in 60 years of investing, only about five of those years were genuinely attractive buying opportunities — and this isn’t one of them.

Whether you’re a beginner or a pro, we’ve found the best trading platforms for you. Read our full breakdown to see which Canadian broker offers the tools you need to grow your wealth.

Why Cramer’s counter-argument lands differently

Cramer isn’t arguing that markets are fine. His concern is that the real gambling is happening inside the very products most investors — including Canadians — treat as the safe and responsible choice.

His argument: Passive investing has become automatic. People pour money into S&P 500 exchange-traded funds (ETFs) month after month regardless of whether the underlying valuations make sense or what individual companies are worth.

In the U.S., the Vanguard S&P 500 ETF (VOO) alone drew in US$143 billion in 2025 — roughly 10% of all new money that flowed into U.S. ETFs that year. The overall U.S. ETF industry broke a massive record when investors poured over US$1.49 trillion of new cash into it. This surge happened as more everyday investors are choosing index funds, which automatically track a basket of stocks. In February 2026, these passive index funds brought in over US$109 billion. That’s three times more money than what went into active funds, where human managers pick individual stocks. That said, February was an unusually supportive month for active funds. For all of 2025, passive strategies attracted roughly $951 billion while active funds saw net outflows of approximately $187 billion, according to PWL Capital — a far more dramatic imbalance than the monthly snapshot suggests.

That same pattern is picking up in Canada. According to Morningstar, Canadian ETF assets under management surpassed C$570 billion for the first time in 2024, with broad market index ETFs — including S&P 500-tracking products — among the fastest-growing categories.

The concentration problem is the heart of Cramer’s argument. The top 10 holdings in the S&P 500 now represent more than 36% of the entire index. So when a Canadian investor buys a standard S&P 500 ETF inside their Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) thinking they’re getting broad diversification, they’re really betting heavily on a handful of mega-cap U.S. technology companies.

Artisan Partners has compared today’s technology concentration in major indexes to conditions last seen during the dot-com bubble. Buying the same ETF every month without examining what you own or what you’re paying per dollar of earnings isn’t quite the low-risk strategy the label implies.

What this means for Canadian investors

Buffett and Cramer are diagnosing different problems. Buffett’s concern — zero-day options, prediction markets, meme-stock squeezes — mostly applies to active traders chasing short-term wins. The average Canadian contributing to an RRSP or TFSA isn’t trading 0-DTE contracts.

But Cramer’s concern hits closer to home for most Canadians. If you hold a standard S&P 500 index ETF in your registered accounts, your portfolio already carries roughly 30% exposure to U.S. technology stocks. That’s a concentration risk that may not show up on a standard risk-tolerance questionnaire — but it’s real.

That doesn’t mean you should abandon index funds. Buffett has spent years saying the S&P 500 is the right vehicle for most individual investors, and nothing in his recent remarks changes that. The question Cramer is raising is whether years of being told to “just buy the index” has created a different kind of unexamined risk — one hiding inside the most conventional advice in personal finance.

What Canadians can do now

Whether you side with Buffett or Cramer, the debate is a useful prompt to take a closer look at your own portfolio. Here are a few practical steps for Canadian investors:

Check your actual exposure, not just your fund name

An S&P 500 ETF held in your RRSP or TFSA is different from owning 500 equally weighted companies. Log into your brokerage account and look at the top holdings of any ETF you own. If the top 10 names represent more than 30% of the fund, you have meaningful concentration risk in those companies, not just in the broad index.

Use your TFSA and RRSP strategically

The Canada Revenue Agency (CRA) allows Canadians to hold foreign-listed ETFs, Canadian ETFs and individual stocks in both their TFSA and RRSP. If you want to add diversification beyond U.S. large-cap tech, registered accounts are a tax-efficient place to do it. Canadian broad-market ETFs that track the S&P/TSX Composite Index offer exposure to a different mix of sectors, including financials, energy and materials — sectors underrepresented in U.S. large-cap indexes.

Understand the difference between passive and unexamined

Passive investing means tracking an index rather than paying someone to actively pick stocks — it doesn’t mean risk-free. Reviewing the index your ETF tracks once a year takes less than 10 minutes and could change how you think about your portfolio.

Consult a qualified adviser if you’re unsure about concentration

A licensed financial adviser or a fee-only financial planner can review your full RRSP and TFSA holdings to assess whether your index ETFs are providing the diversification you think they are — or whether you’re more concentrated in a handful of tech names than you realize.

— with files from Melanie Huddart

A new report from Skyscanner shows affordability remains the biggest challenge facing Canadian travellers this summer, with 39% saying cost is their primary concern. Another 29% said they’re unsure when flights are at their cheapest, highlighting how difficult it can be to find value during peak travel season.

“Canadians are continuing to prioritize travel this summer, but we’re seeing travellers become much more flexible with when they travel,” said Laura Lindsay, travel expert at Skyscanner, in a statement.

“Shoulder season in June and September is becoming increasingly appealing for Canadians looking to avoid peak-season crowds while still enjoying many of the same destinations and experiences.”

Canadians are still travelling — but they’re watching costs more closely

Even with many households watching their spending more closely, travel hasn’t fallen off the priority list.

Skyscanner’s data shows Canadians are still searching heavily for both domestic and international destinations this summer. Toronto, Calgary and Vancouver ranked among the most popular destinations, alongside international favourites including Paris, Tokyo, Rome, Lisbon, Athens and Dublin.

The difference now is that travellers seem less willing to book first and worry about the cost later. Timing, price comparisons and deal-hunting are playing a bigger role in trip planning.

Many travellers are looking for savings wherever they can find them, either by shifting departure dates, comparing destinations or travelling just outside the busiest weeks of the summer.

Ready to turn your everyday spending into a dream vacation? Browse our expert picks for the best travel programs and start earning today.

The week of August 31 could offer some of the lowest fares

If you’re still planning a trip, waiting until late summer could pay off.

According to Skyscanner, the week of August 31 to September 6 is expected to offer some of the lowest average flight prices of the season.

Several popular international destinations show their lowest summer airfare averages during that week, including Paris, Tokyo, Lisbon and Athens. Vancouver also appears on the list, with the same period identified as the cheapest week to visit among the summer travel dates analyzed.

The report also highlights specific days of the week that may offer better value when departing. Mondays frequently appeared as the cheapest day to travel for many destinations, while some routes showed lower fares on Tuesdays, Wednesdays or Fridays.

Of course, airfares can change quickly, but the pattern is genuine: travellers with flexible schedules tend to have more opportunities to save.

Shoulder-season travel could offer additional savings

For Canadians who have flexibility beyond the traditional summer vacation window, June and September may offer some of the strongest opportunities to save.

Skyscanner identified several Canadian destinations with relatively low average flight prices during those months. In June, destinations including Yellowknife, Winnipeg, Halifax, Kelowna and Victoria ranked among the most affordable options.

September showed similar value, with Prince George, Calgary, Toronto, Whitehorse and Vancouver appearing among the lowest-priced destinations in the country.

The savings aren’t the only potential benefit of travelling in June or September. Smaller crowds, easier hotel bookings and slightly less hectic airports can all make for a smoother trip.

For Canadians who haven’t yet booked a summer break, timing may be one of the most effective tools to help keep travel costs under control. The report suggests that shifting a trip by even a few days — or travelling just outside the busiest weeks of summer — can sometimes deliver the most direct route to savings.

A new PayPal-commissioned survey found that 44% of Canadians would cut back on discretionary spending elsewhere to attend matches or take part in tournament-related activities. Among Gen Z respondents, that figure rises to 63%.

“For Gen Z, this tournament isn’t just about watching the action; it’s about being part of it,” said Michael Covin, enterprise sales director at PayPal Canada, in a statement. “Whether that’s travelling to a match, hosting a watch party or finding creative ways to fund the experience, younger Canadians are showing they’re willing to spend money on moments and memories that matter most.”

Dining out and shopping are among the first expenses Canadians would cut

The survey suggests some Canadians are looking to redirect money from everyday discretionary purchases toward World Cup-related experiences.

Among self-identified soccer fans, dining out was the most common sacrifice. Nearly one-third (31%) said they would cut back on restaurant spending to free up money for the tournament.

Social activities also ranked high on the list, with 27% saying they would spend less on going out with friends. Another 21% said they would cut back on non-essential shopping.

For many households, fixed costs such as housing, utilities and debt payments leave limited room to manoeuvre, making restaurants, entertainment and shopping the most likely places to trim spending when something else takes priority.

Don't leave points on the table. Compare Canada's top travel rewards programs today to see which one gets you to your destination faster.

Canadians are still willing to spend on experiences that matter

While many respondents said they would cut back in some areas, they were also clear about where they planned to spend.

Food and snacks topped the list, with 64% saying they expect to spend money on game-day essentials. Nearly half (48%) plan to spend at restaurants or sports bars, while 41% expect to spend on watch parties and other social gatherings.

Travel costs are also part of the equation. Among Canadians who identify as tournament fans, 42% said they would spend on accommodations and 41% on travel packages connected to the event.

The results demonstrate that while many are watching their summer budgets closely, there is still a willingness to spend on experiences, travel and opportunities to connect with friends and family.

Younger Canadians are making the biggest trade-offs

Unsurprisingly, the strongest spending intentions around the World Cup comes from younger Canadians.

Nearly two-thirds (63%) of Gen Z respondents said they would make financial cutbacks to participate in World Cup-related activities, well above the national average of 44%.

More than one in five Gen Z respondents (21%) said they would take on extra work or a side hustle to help pay for tournament-related expenses, while 15% said they would be willing to exceed their normal budget for the chance to be part of the event.

The survey also found younger Canadians are more likely to make the tournament a shared social experience, whether that’s gathering at someone’s home, attending a watch party or travelling with friends and family.

For many fans, the World Cup appears to be the kind of event people are willing to plan around financially. And with summer budgets stretched, spending doesn’t necessarily disappear — it simply shifts toward the experiences people value most.

A recent report from Wealth Professional Canada backs this up, noting that most Canadians know how to save, but few have a concrete plan for drawing down their savings in retirement.

Two retirees with identical balances can end up with very different outcomes depending on which account they access first, when they start taking Canada Pension Plan (CPP) and Old Age Security (OAS) benefits, and how withdrawals impact their tax situation.

Why does the order of withdrawals matter so much?

Not all retirement accounts are taxed the same way, and that single fact reshapes the math.

For example, money you withdraw from an RRSP or, after age 71, from a Registered Retirement Income Fund (RRIF), is fully taxable in the year it is withdrawn, according to the Canada Revenue Agency (CRA). On the other hand, TFSA withdrawals are not taxed and do not count as income.

Non-registered accounts fall somewhere in between. Income is taxed, but often at better rates for dividends and capital gains.

The order in which you draw from your pool of funds can affect your tax bill and government benefit amounts. While everyone’s situation is unique, pulling heavily from an RRSP early can push you into a higher bracket and trigger an OAS clawback. But if you only take from your TFSA and leave RRSP balances to grow, it can create a larger forced-withdrawal problem later, when RRIF minimums kick in.

To get started, open a no-fee RRSP high-interest savings account. For instance, EQ Bank offers registered accounts with no-fees and high interest rate earnings. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

Or consider switching to a bank that rewards you. For instance, at National Bank eligible professionals can unlock up to $1,313 in annual savings. This special offers includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

When should Canadians start CPP and OAS?

Canadians can start collecting CPP as early as age 60 or as late as 70, while many decide to take it as soon as it’s available. But starting at 60 reduces your benefit by 0.6% per month before 65, for a 36% payment reduction. By delaying beyond 65, you increase your benefit by 0.7% per month, or 42% more if you wait until 70.

OAS works on a smaller scale: it can be deferred from 65 to 70 for a 0.6% monthly increase, capped at 36% more at age 70.

If you’re in good health with savings to bridge the gap, delaying these benefits acts like inflation-indexed longevity insurance. For others, particularly those facing health concerns or limited savings, taking benefits earlier may make more sense.

What does the RRIF rule actually force you to do?

You can’t leave your RRSP untouched forever. By the end of the year in which you turn 71, you must convert it to a RRIF, use it to buy an annuity, or cash it out (rarely a good idea given the tax hit).

If you convert to an RRIF, you must withdraw a minimum percentage each year (it’s 5.28% at age 71, and increases from there). Those minimums are considered taxable income, whether you need the money or not.

The idea here is that if you delay making any RRSP withdrawals until you are forced to start at 71, you could be facing large mandatory withdrawals exactly when your CPP and OAS are flowing in. The combination can push you into a higher bracket and even into OAS-clawback territory.

What should your retirement withdrawal plan actually include?

The Financial Consumer Agency of Canada (FCAC) emphasizes the importance of creating a retirement income plan that aligns your spending needs with your various income sources, such as CPP, OAS, workplace pensions and personal savings (RRSP/RRIF, TFSA, non-registered accounts).

A useful plan should answer five questions:

• How much annual income will you need in early retirement, and how might that change later?
• Which accounts will you draw down first, and why?
• When will you start collecting CPP and OAS?
• If applicable, how will you coordinate withdrawals with your spouse to keep both of you in lower tax brackets?
• What is the contingency if markets fall or one spouse dies earlier than expected?

Sometimes, drawing modest RRSP amounts before you begin taking CPP and OAS can flatten your lifetime tax. For Canadians with significant TFSA balances, this account often works best as a flexible reserve. And for retirees with a defined-benefit pension, guaranteed income provides a higher floor. Before you make any final decisions, make sure you consult an accountant or other qualified tax professional.

What to do now

Your retirement income plan doesn’t need to be complicated, but you still need one before you retire. Start by estimating your retirement spending in today’s dollars and compare it with your expected CPP, OAS and pension income. This will illustrate how much of your lifestyle will need to be funded from your personal savings.

From there, you can:

• Map your expected annual spending against your guaranteed income sources
• Decide the order in which you’ll draw from your RRSP/RRIF, TFSA and non-registered accounts, and document that plan
• Determine when you’ll start CPP (age 60 to 70) and OAS (age 65 to 70), recognizing that delaying increases the monthly benefit
• Coordinate withdrawals with your spouse to help keep both of you in lower tax brackets
• Review your plan annually, particularly in the years leading up to the RRSP-to-RRIF conversion at age 71
• Speak with a fee-only planner or CPA if you have a workplace pension or a more complex tax situation

The FCAC’s retirement-income tools and the CRA’s RRIF withdrawal tables are good places to start, and a professional can help model tax outcomes that are difficult to estimate with basic calculators. Remember, saving builds your retirement nest egg, but a smart withdrawal strategy will turn it into a sustainable retirement income stream.

Despite these lofty goals, three-quarters of Canadians (75%) aged 55 to 64 only have $100,000 or less saved for retirement, according to Benefits Canada data. Put another way, nearly nine out of 10 people approaching retirement age aren’t in the seven-figure club.

Despite all the retirement success stories on social media, $1 million in savings remains a rare and exclusive milestone.

If you’re falling short of this target — but are still determined to get there — here are three steps you can take to improve your odds.

Step 1: Measure your progress

You can’t reach a destination if you don’t know where your starting point is. The first step toward a million-dollar retirement is benchmarking your savings against what other Canadians your age actually have.

The average Canadian has around $272,000 saved by the time they retire — and that’s not including assets or government pensions. But averages can be misleading. A better benchmark is the median — the middle point in the data that separates one half of savers from the other. Unlike the average, the median is less skewed by a small number of high-balance accounts, allowing for a clearer picture of what a typical Canadian has set aside.

Looking at Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF) and Locked-In Retirement Account (LIRA) balances, here’s how Canadians stack up by age, according to Statistics Canada’s Survey of Financial Security:

• Under 35: average $41,000 / median $12,500
• 35 to 44: average $82,100 / median $30,000
• 45 to 54: average $150,300 / median $70,000
• 55 to 64: average $216,900 / median $100,000
• 65 and over: average $224,000 / median $100,000

In other words, the typical Canadian in their late 50s or early 60s has around $100,000 saved in registered accounts — a fraction of what a million-dollar retirement requires. Keep in mind that government benefits like the Canada Pension Plan (CPP) and Old Age Security (OAS) will supplement your retirement savings, but these amounts are modest: the average new CPP recipient in May 2026 was receiving $925.35 a month.

With this data, you can benchmark your savings, identify the gap and start creating a plan to close it.

To get started, open a no-fee RRSP high-interest savings account. For instance, EQ Bank offers registered accounts with no-fees and high interest rate earnings. For a limited time, get up to $200 cash when you add new deposits to your EQ Bank RRSP account.

Or consider switching to a bank that rewards you. For instance, at National Bank eligible professionals can unlock up to $1,313 in annual savings. This special offers includes up to 3 bank accounts with no fixed monthly fees, and an eligible Mastercard rewards credit card (certain fees apply). See if your profession qualifies.

Step 2: Boost your savings rate

If your retirement target is well above the national or median average, your savings rate probably needs to be significantly higher as well.

The bar for “above average” in Canada isn’t unattainable. Canada’s household savings rate fell to 4.4% in the fourth quarter of 2025, according to Statistics Canada. That means for every $20 in disposable income, most Canadians are saving less than $1. Saving just 6% of your income could put you ahead. Hit 10% or more and you’re in a select group of super-savers.

But saving more requires a shift in spending habits — which is easier said than done. You can start small: automating contributions to your Tax-Free Savings Account (TFSA) or RRSP with every paycheque takes the decision out of the equation. Even modest, consistent contributions can significantly add up over time. For example, investing $500 a month at an average annual return of 6% could grow to approximately $106,000 over 10 years. Add employer matching if it’s available to you, which is essentially free money you can’t afford to leave behind.

The 2026 RRSP contribution limit is $33,810 or 18% of your prior year’s earned income, whichever is lower. The TFSA contribution limit remains $7,000 for 2026, with cumulative room now at $109,000 for those who have been eligible since 2009.

Step 3: Invest for growth

Savings are the foundation. But to turn a solid nest egg into a million-dollar one, your money also needs to work hard. The power of compound growth is real — but only if you have the time and the right investments to let it run.

Unfortunately, not all Canadians approaching retirement are in a position to wait. Many are behind. The average Canadian retires with roughly $272,000 in savings — that’s less than a third of the $1 million goal.

For those in their 50s and 60s, there are still options. Two in particular are worth considering:

Delay retirement — and your CPP benefits

Staying in the workforce longer gives you more time to earn income, make contributions and let your investments grow. It can also significantly boost your government retirement benefits. Delaying CPP past age 65 increases your monthly benefit by 0.7% for every month you wait — or 8.4% annually. If you delay until age 70, your monthly CPP benefit will be 42% higher than it would be at 65. OAS can also be deferred past 65, growing by 0.6% per month, up to a 36% boost at age 70. For those who can afford to wait, this strategy provides a powerful, inflation-indexed income stream for life.

Invest in low-cost index funds

Passive investing through low-cost index funds has become one of the most popular and accessible strategies for Canadians. Exchange-traded funds (ETFs) now make up nearly a quarter of Canada’s investment fund market, up from less than 10% a decade ago, according to Morningstar. Canadian equity ETFs tracking major indices have produced strong historical annualized returns. A conservative assumption of 10% average annual returns — based on historical equity market performance — means a Canadian saving 10% of a $70,000 annual salary could potentially accumulate approximately $1 million within about 29 years.

To be clear, past performance doesn’t guarantee future results, and all investing involves risk. But a diversified, low-cost portfolio — held consistently over time — remains one of the most proven paths to long-term wealth. Speaking with a licensed financial adviser can help you identify the right mix for your risk tolerance, time horizon and goals.

Make your savings work harder. Open a self-directed investing account with CIBC Investor’s Edge — low fees, powerful tools, and take control of yourr future.

What Canadians can do next

Whether retirement is 30 years away or just around the corner, there are concrete steps you can take today:

• Know your number. Use the Government of Canada’s Canadian Retirement Income Calculator to estimate your CPP, OAS and other income. Then set a target savings amount based on your lifestyle goals.
• Automate your savings. Set up automatic contributions to your RRSP and TFSA with every paycheque so you save before you can spend.
• Maximize tax-advantaged accounts. Contribute to your RRSP first if you’re in a high tax bracket — the deduction lowers your taxable income now. Use your TFSA for flexible, tax-free growth.
• Invest in low-cost index ETFs. Avoid high-fee mutual funds. A diversified ETF portfolio can deliver solid long-term returns without eating into your savings.
• Consider delaying CPP. If you can afford to wait past 65, every year you defer CPP amounts to an 8.4% permanent increase in your monthly benefit. Delaying to age 70 results in a 42% boost.
• Check for employer matching. If your employer offers a pension or RRSP matching program, maximize it. It’s the closest thing to free retirement savings you’ll find.
• Work with a licensed financial adviser. A Certified Financial Planner (CFP) can help you build a personalized retirement strategy that accounts for your income, debt, goals and timeline.

For years, Stephenville International Airport was an economic engine and a critical gateway. However, a series of compounding financial disasters eventually left the facility in total darkness. Now, a recent court decision has sparked hope that the runway could reopen this summer under entirely new management.

From a wartime lifeline to civilian heartbreak

To understand why this facility matters so deeply to the local community, you have to look back at its origins. Built by the United States Army Air Forces in 1941, the site operated as the Ernest Harmon Air Force Base until 1966. Its massive 10,011-foot primary runway was designed to accommodate heavy military aircraft, functioning as a vital refuelling station for transatlantic military flights during the Cold War.

When the Americans left, the airport transitioned to civilian use. It became a vital regional hub, serving as the major passenger airport for all of western Newfoundland until the early 1990s. Major national carriers including Air Canada, Eastern Provincial Airways and Canadian Airlines all routed through its gates. It was so reliable and spacious that NASA even designated it as an alternate landing site for the Space Shuttle orbiter.

But as provincial priorities shifted toward nearby Deer Lake Regional Airport, commercial traffic dwindled. The final blow to scheduled passenger travel came with the arrival of the pandemic in January 2020. Commercial carriers pulled out and never returned.

Turbulence under recent ownership

The community believed a saviour had arrived in August 2023 when Ottawa businessman Carl Dymond purchased the airport through the Dymond Group. He promised to invest hundreds of millions of dollars, restore passenger services and transform the region into a high-tech manufacturing hub for massive, hydrogen-powered drones.

Instead of an economic renaissance, the acquisition faced immediate operational and legal friction. By early 2025, the facility was downgraded to a registered aerodrome due to improper line painting on the runway. Contractors launched lawsuits over millions of dollars in unpaid bills for runway lighting installations, and the town council struggled to collect roughly $500,000 in outstanding property taxes.

The low point arrived in June 2025 when Newfoundland Power literally pulled the plug, disconnecting electrical service to the property because of outstanding account issues. The airport sat dark and non-operational for nearly a year.

Local residents watched as a critical piece of their infrastructure degraded, with subsequent receivership reports detailing broken pipes and significant structural damage.

A courtroom breakthrough brings summer possibilities

The prolonged gridlock finally broke in the spring of 2026. Following an insolvency process pushed forward by a major creditor, Justice Alexander MacDonald of the Newfoundland and Labrador Supreme Court officially approved a bid to sell the airport to a new entity, Stephenville International Airport Corp., which is affiliated with the Calgary-based private equity firm BTG Capital.

In an interview with CBC News following the decision, former owner Carl Dymond reflected on his turbulent tenure. “I don’t see what we did as a failure here. It was an incredibly complex and high-pressure situation as you can imagine. And I know I put everything I had in trying to make it work,” Dymond said. “It certainly didn’t end the way I wanted it to personally end. But if that airport ultimately succeeds, that’s what matters for Stephenville.”

With corporate records confirming the new company’s explicit intent to operate as an airport operator, local leadership is highly optimistic. According to a broadcast report by NTV News, the local town council believes the court-supervised transition could pave the way for a physical reopening before the summer season wraps up.

For the people living in Stephenville and the surrounding rural communities, a functional airfield is a lifeline for air ambulances, a potential magnet for regional industrial development and a historic connection to the rest of the country that has defined their town for 85 years.

So far in 2026, Kiyosaki is living up to his reputation. Through his posts on X, the renowned author has repeatedly predicted the coming burst of an “Everything Bubble,” leading to “the greatest depression in world history” in what he calls the “giant crash of 2026-27.” But he does offer some hope.

In those same posts, he notes that he “got richer not poorer” from a list of crashes going back to 1987 and that the average investor can still be a “financial winner” as well. So, when Kiyosaki gives his recommendations on how to profit from the upcoming crash — with spectacular upside targets for gold, silver and Bitcoin in 2026 — investors around the world, including Canada, take notice.

Boom to bust

The rationale behind Kiyosaki’s “giant crash” warning is broad: “CRASHES do not happen overnight. CRASHES take decades to occur,” he once wrote on X.

In Canada, markets have certainly been volatile, but they’ve also shown resilience. Despite sharp swings in early-2025, Canada’s S&P/TSX Composite Index ended that year with a 28.2% annual gain — its strongest performance since 2009 — outpacing the S&P 500’s 17% return. In 2026, it carried this momentum forward, finishing the month of May up 9.64% year-to-date and setting a record high of 35,217.06 points on June 4. Meanwhile, the S&P 500 was busy setting its own records on Wall Street, closing at an all-time high of 7,519.12 on May 27.

Still, Kiyosaki insists that investors not to “drink the Kool-Aid,” pointing to countries like China and Japan dumping US bonds for gold and silver as evidence the danger hasn’t passed. That’s because, in his view, a collapse of this scale takes time to fully unfold. And a market crash of the magnitude he’s describing would be devastating for most retail investors.

Past experience proves this theory. During the housing and credit crisis of the late 2000s, the total value of Canadian household assets fell 3.2% in Q4 2008 alone, driven by a 24% collapse in the S&P/TSX. A more recent example is the 2022 market selloff. Statistics Canada reported that the market value of assets held by Canadian trusteed pension funds dropped $119.3 billion in a single quarter — a 5.4% decline — as both stocks and bonds fell sharply.

Kiyosaki’s ‘words of a rich person’: Invest in gold, silver and bitcoin

Kiyosaki’s positive outlook on these three assets stems from his fundamental lack of confidence in fiat currency — the “paper money” printed by central banks without the backing of any commodity, like gold. He argues that investors in gold, silver and bitcoin (and ethereum) are getting the “real money” that will go up in purchasing power as central banks “print more fake money” and rising oil prices drive up inflation.

Kiyosaki is particularly bullish on precious metals such as silver and gold. Starting a post on May 22 with “Crash imminent,” he cites Jim Rickards’ projection that gold could reach US$100,000 per ounce and goes on to predict, “I think silver will hit $200 an ounce.”

Elsewhere, he has written that “silver is one of the best investments I own” in 2026.

In fact, as Kiyosaki himself likes to point out, the past year has been an extraordinary ride for precious metals. Gold soared roughly 72% in 2025, surpassing US$5,500 (C$7,175 approx.) per ounce for the first time ever in January 2026, before experiencing a correction that has persisted into June. Likewise, silver rose approximately 148% over 2025 and then added a further 19% in January 2026, topping out at an all-time high of US$121.62 (C$170 approx.) — before its own sharp pullback at month’s end.

Taking advantage of the precious metals market — the Canadian way

With Kiyosaki predicting that the precious metals rally will continue into the second half of 2026, Canadians who want to capitalize have a distinct advantage: They can tie their potential growth directly to their registered retirement accounts.

Unlike the U.S., where a separate “Gold IRA” structure exists, Canadians can hold investment-grade physical gold and silver bullion directly inside a Registered Retirement Savings Plan (RRSP), a Tax-Free Savings Account (TFSA) or other registered accounts. The Canada Revenue Agency (CRA) has permitted this since 2005, provided the metals meet strict purity thresholds: Gold and silver must be at least 99.5% pure and produced by an accredited refiner or a recognized national mint, such as the Royal Canadian Mint.

Holding qualifying bullion in a TFSA means any gains are completely tax-free. Holding it in an RRSP means gains are tax-deferred until withdrawal — ideally in retirement, when your marginal tax rate may be lower. For investors who prefer simplicity, Canadian gold and silver exchange-traded funds (ETFs) listed on the Toronto Stock Exchange (TSX) are also eligible for registered accounts and can be purchased through most online brokerages.

And for investors who prefer even more simplicity, there are managed portfolios that do the work for you. So, if you know you should be investing but don’t want the guesswork of doing it alone, Wealthsimple Portfolios offers an easy, hands-off way to grow your money.

Their pre-built portfolios are tailored to your retirement goals, risk tolerance and investment horizon, so whether you’re saving for retirement, a home or building long-term wealth, there’s a portfolio that’s right for every investor.

Expert-managed and designed to weather market ups and downs, Wealthsimple takes care of the heavy lifting: automatic contributions, dividend reinvesting and smart rebalancing keep your investments on track.

You can invest through RRSPs, TFSAs or non-registered accounts, all from an intuitive online dashboard or their easy-to-use mobile app.

Trusted by more than 3 million Canadians, Wealthsimple manages over $100 billion in assets and provides $1 million in eligible coverage through the CDIC for chequing accounts and CIPF for investments. Plus, as licensed fiduciaries, Wealthsimple's advisors must put your financial interests first.

As a Money.ca reader, get a $25 bonus when you open your first account and fund at least $1 within 30 days.

Visit Wealthsimple for up-to-date terms and conditions.

If you want to shop around for other possible brokerages to do your trading, consider looking at this comparison of seven of the top online brokers in Canada.

Understanding the bitcoin market — the Canadian way

While many traditional investors have avoided bitcoin due to a lack of understanding of the market, Kiyosaki has long argued that now may be the time to gain exposure before prices rise further.

Canadians have a globally unique advantage here. While direct bitcoin holdings are not eligible for TFSAs or RRSPs under Canada’s Income Tax Act, Canadians can gain exposure inside registered accounts through TSX-listed spot bitcoin ETFs.

In fact, Canada launched the world’s first spot bitcoin ETF — the Purpose Bitcoin ETF (TSX: BTCC) — in February of 2021. As of early 2026, Canadian-listed crypto ETFs had assets under management climbing toward C$6 billion, buoyed by bitcoin reaching all-time highs above US$120,000 (C$172,000 approx.) in late 2025.

For investors who want a low-cost option, the Fidelity Advantage Bitcoin ETF (TSX: FBTC) carries a management expense ratio of approximately 0.35% — one of the lowest in the space — and is fully eligible for TFSAs and RRSPs.

But investing in cryptocurrencies comes with its own set of risks, particularly for those planning to retire soon. A flash crash in October 2024 caused Bitcoin prices to fall by nearly 10% within minutes, wiping out approximately US$500 billion (C$718 billion approx.) from the total crypto market value within 24 hours.

Events like this can cause some investors to hesitate — or even avoid altogether — moving into the crypto space. But crypto is no longer the “Wild West” it may have once been. These days, there are resources for not only trading crypto but also educating yourself.

For instance, with platforms like Kraken, buying and trading cryptocurrencies is more straightforward* than ever, whether you’re on a desktop or using the mobile app. Not only can you buy and trade 600+ cryptocurrencies, but also you can set up recurring buys to invest automatically. There’s even the option to add price conditions, so your trades only execute when the market hits your target.

And if you’re new to the crypto game, Kraken provides guides on popular coins, helping you understand what you’re buying and how to navigate the process from start to finish. Plus, if you have questions, 24/7 support is available via live chat, phone or email.

For those old hands who want greater control, Kraken PRO offers a more advanced trading experience. Designed for active traders, it features a highly customizable interface with real-time market data, advanced tools and detailed order types like stop-loss and take-profit to help manage trades more precisely. You can also trade across spot, margin and derivatives markets, monitor performance in one unified portfolio and tailor your dashboard with multiple data widgets to suit your strategy.

Opening an account is quick, with a simple sign-up and verification process, followed by creating a short investor profile, to get started.

-Not investment advice. Crypto trading involves risk of loss. See kraken.com/legal/ca-pru-disclaimer for info on Kraken’s undertaking to register in Canada.

Are you feeling crypto curious, but unsure if you want to take the plunge? Check out this essential guide to cryptocurrency trading to see if it’s right for you.

Getting advice you can trust

Kiyosaki is known for extreme market predictions, and you may want independent, professional guidance before making any major investment decisions.

In Canada, financial advisers dealing in securities must be registered with the Canadian Investment Regulatory Organization (CIRO), which oversees investment dealers and advisers across the country and holds them to professional and ethical standards.

The Canadian Securities Administrators (CSA) offers a free National Registration Search tool to verify whether a prospective adviser is properly registered — an important first step before working with anyone offering investment advice.

When meeting with a potential advisor, ask whether they are fee-based or commission-based. Fee-only advisers, who do not earn commissions on product sales, generally have fewer conflicts of interest.

But not everybody can afford to hire a financial professional — and they aren’t always available when you need them. For those who want stock tips at a discount and at a moment’s notice, AI-powered stock advisors are another option, but many Canadians are still wary of using them for financial advice.

For example, a survey released by H&R Block in April 2026 found 56% of respondents said they still wouldn’t be comfortable using AI to help with their finances, while 82% didn’t like the idea of putting their financial personal information into an open AI tool for managing their finances.

If you’re looking for the best of both worlds — the accessibility and immediacy of an AI-powered platform but with the human touch — there are stock analysis platforms like Motley Fool’s Stock Advisor Canada, which offers expert insight to help you make smart investing decisions, when you need it.

With Motley Fool Canada’s Stock Advisor, you can join their online community of over 30,000 investors just like you, all benefiting from their monthly stock recommendations as well as Best Buys Now picks for the hottest opportunities.

They also get a variety of features to educate users, such as stock reports written by experts in the field and an extensive library of investment articles, all designed to help them make informed investment decisions. For this reason, it is becoming increasingly popular among everyday investors who want timely — and accurate — information that is free of jargon and accessible to users of all levels.

What’s more, if Stock Advisor isn’t for you, cancel within 30 days and you’ll receive every penny of your membership fee-back. No questions asked.

For those who want to perform their due diligence, you can also check out this comprehensive review of Motley Fool Canada’s Stock Advisor to learn more about its services.

What Canadians can do

Whether or not Kiyosaki’s extreme predictions come to pass, the underlying idea — building wealth through assets less correlated with traditional markets — has merit for Canadian investors. With that in mind, here are some practical next steps:

• Prioritize your registered accounts: The TFSA and RRSP are among the most powerful wealth-building tools available to Canadians. Gold, silver and crypto ETFs can all be held inside these tax-sheltered accounts. Maximize your contribution room before investing in taxable accounts.
• Explore precious metals inside your RRSP or TFSA: Investment-grade gold and silver bullion meeting CRA purity requirements can be held in self-directed registered accounts through custodians like Questrade. Gold and silver ETFs on the TSX offer simpler, lower-cost exposure for those who prefer not to hold physical metals.
• Access bitcoin through Canadian ETFs: TSX-listed Bitcoin ETFs such as the Purpose Bitcoin ETF (BTCC) and the Fidelity Advantage Bitcoin ETF (FBTC) provide Bitcoin exposure in a regulated format that is eligible for TFSAs and RRSPs.
• Verify your adviser: Use the CSA’s National Registration Search at securities-administrators.ca to confirm any financial adviser you work with is registered with CIRO. Never make large investment decisions based solely on social media or online influencer tips.
• Understand the risks: Precious metals and crypto are highly volatile assets. They may play a role in a diversified portfolio, but they should not represent the bulk of your retirement savings. Speak with a registered financial adviser before making significant allocation changes.

If this moment makes your stomach drop or stirs up a sudden wave of irritation, you’re not alone. Many Canadians are navigating an increasingly aggressive digital payment landscape. What used to be a quiet gesture of gratitude at a sit-down restaurant has transformed into a high-pressure digital gatekeeper across thousands of everyday transactions.

According to a study published in the Journal of Services Marketing, this discomfort is directly tied to where tipping is now appearing. When consumers encounter unusual places for tip prompts, the answers range from fast food drive-thrus to professional services like auto mechanics and appliance repair. When tipping feels out of place, it can result in a negative feeling that can shape how customers evaluate an entire service experience.

This shift has turned a simple financial transaction into an emotional minefield.

Why the screen makes you mad

It turns out that the awkwardness you feel at the counter is not a personal flaw. It’s a documented psychological response. For generations, Canadian tipping practices relied on implicit social agreements. Customers understood that a portion of their server’s income depended on gratuities, and in return, they received dedicated, personalized attention.

When digital terminals insert those same requests into self-service environments, drive-thrus, or automated checkouts, the invisible contract breaks down. The request feels less like an opportunity to reward excellence and more like an unauthorized tax on a basic transaction.

The researchers surveyed more than 1,200 Canadians across several studies, comparing how they felt after scenarios that included a tip prompt versus those that did not. They discovered that tip prompts in settings where tipping is widely accepted, such as sit-down restaurants, resulted in far less negative reaction than in settings where tipping norms are unclear.

When tipping feels out of place relative to where we expect it, it violates the social norm and creates a sense that something about the interaction isn’t quite right. Consumers interpret these prompts as violations of social norm expectations. When this happens, people often experience what psychologists call reactance.

Reactance occurs when people feel their freedom to choose is being threatened. This motivates them to push back against the pressure. That sense of pressure can shape how they feel about their experience. In the research, when consumers encountered non-normative tip prompts, they reported lower satisfaction with the experience, less favourable attitudes toward the business, and weaker intentions to return or recommend it to others.

Don't leave points on the table. Compare Canada's top travel rewards programs today to see which one gets you to your destination faster.

How to regain control of your checkout experience

You don’t have to let a point-of-sale terminal dictate your budget or your mood. Reclaiming your financial peace of mind requires a shift in perspective and a few practical boundary-setting habits.

First, remember that the terminal is just pre-programmed software. It doesn’t possess emotional intelligence, nor does it know your personal financial goals. The prompt is a business default, not a personal mandate. You are entirely within your rights to look for the “no tip” or “custom amount” option without feeling guilty or cheap.

Second, establish your own personal tipping framework before you reach the front of the line. Decide ahead of time which services warrant a gratuity based on your values and your budget. For instance, you might choose to maintain standard tips for full-service sit-down dining, while drawing a firm line at drive-thrus, counter pickups and retail environments. When you make the decision before the screen is handed to you, you eliminate the frantic, heat-of-the-moment decision-making that often leads to guilt-induced spending.

Finally, keep an eye out for businesses that actively protect your autonomy. Interestingly, the study also found that when consumers were given social permission to skip tipping, such as when a service employee suggested the customer ignore the prompt, the negative reactions were reduced. Small signals such as this can reinforce customer choice and help restore their sense of autonomy. Supporting businesses that respect your boundaries can make your regular financial routines feel much less exhausting. Tip fatigue is real, and until the normative situation begins to stabilize, it is not going anywhere any time soon. By setting clear personal rules, you can keep your money and your peace of mind intact.