For years, Ankrum has hunted for what he calls “100-baggers”: companies whose share prices multiply a hundredfold or more over decades. Rather than parking his picks in an ordinary brokerage account, he’s been slipping the physical stock certificates into an old coffee can, with a plan to leave them untouched for at least 30 years. If he’s picked correctly and compounding does the rest, he believes the stash could eventually be worth as much as US$500 million (~C$700 million).

Asked what changed his thinking, Ankrum said that the moment he started planning for his daughters’ futures, his own time horizon stretched out: “You start thinking about it in the decades.” That mindset is now the subject of a new book, The Coffee Can Investor, written by Neeraj Khemlani, the former president of CBS News and Stations. Khemlani, a longtime friend of Ankrum’s, became fascinated watching the strategy unfold in real time and decided the story was worth telling. He argues that the coffee can is really designed to hand the three girls something no lump sum can buy: The freedom to change their minds later without financial consequence.

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Origins of the coffee-can strategy

This idea is decades older than Ankrum’s daughters. It traces back to an experience investment manager Robert Kirby had with a client in the mid-1950s, which he wrote about in a 1984 paper for the Journal of Portfolio Management.

A client’s husband had followed Kirby’s stock recommendations but ignored his advice on when to sell. Instead, he put about US$5,000 (~C$7,000) into each pick and filed the certificate away. When the man died years later, Kirby found a portfolio that dwarfed the actively managed account it was meant to mirror. Some positions had shrunk to under US$2,000 (~C$2,800), but several had grown past US$100,000 (~C$140,000) — and one small stake, in a company called Haloid that later became Xerox, had ballooned to more than US$800,000 (~C$1.1 million), worth more on its own than the professionally managed portfolio Kirby had built for the man’s wife.

The takeaway Kirby drew, and the one Ankrum has built his own approach around, is that investors tend to destroy their own returns by trading too often. The edge comes from investors picking outstanding companies, then getting out of their own way and letting the magic happen.

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Why this is landing at a significant time for Canadians

The instinct to think in decades rather than quarters is arriving at a loaded moment for Canadian households. Chartered Professional Accountants of Canada estimates that more than $1 trillion will move from baby boomers to their Gen X and millennial children between 2023 and 2026 alone, with other estimates putting the full transfer as high as $2 trillion over the next two decades.

Yet the generation set to inherit most of that wealth is starting from a thin base. Despite making up the largest share of Canada’s labour force, millennials hold only 10% of the country’s total wealth, while baby boomers control almost half, according to TD Asset Management. Plenty of younger Canadians also aren’t using the tools already sitting in their own accounts: a 2025 TD survey found that 41% of Gen Z and millennial Canadians who hold a Tax-Free Savings Account (TFSA) aren’t investing the money inside it at all, leaving it parked in cash.

That’s precisely the gap a coffee-can mindset is built to close. It isn’t really a stock-picking strategy — it’s a patience strategy, and patience is available to anyone with an open account.

What a coffee-can strategy looks like north of the border

Few Canadian investors will ever hold an actual paper stock certificate anymore. Most shares in Canada are now held electronically, either in a brokerage’s “street name” through the Canadian Depository for Securities, or registered directly in an investor’s own name through the Direct Registration System offered by a company’s transfer agent. The paper itself was never really the point. What matters is the account the shares sit in, and in Canada, that choice can matter as much as the stock picks themselves.

A parent building a coffee can for their own kids also has options. Contributions to a Registered Education Savings Plan (RESP) earn a 20% top-up from the federal Canada Education Savings Grant (CESG), worth up to $500 a year and $7,200 over a child’s lifetime — a guaranteed return before a single dollar is even invested. For money meant to stay invested for 30 years rather than fund tuition, a TFSA offers something Ankrum’s actual coffee can can’t: shares bought, held for decades and eventually sold or passed on without a cent of capital gains tax owing, since all growth inside a TFSA stays tax-free.

Outside a registered account, the tax treatment is still relatively forgiving. Canada’s capital gains inclusion rate sits at 50% — meaning only half of any gain gets added to taxable income and taxed at the investor’s marginal rate.

The human side of the strategy

What Ankrum is really building, by his own account, isn’t a stock portfolio so much as a set of open doors. One daughter is currently drawn to nursing, but he’s said that she may feel differently in a decade — and he wants the freedom for her to change course by the time she needs the funds.

That flexibility, more than any single 100-bagger, is the actual point. The coffee can is just how he’s funding it.

Lessons for Canadian families

Building a coffee can of your own doesn’t require a book deal or a lucky stock pick. A few takeaways translate directly:

• Open the account before you pick the stock. An RESP’s 20% government match, or years of tax-free room inside a TFSA, do more more for a child’s long-term wealth than any single stock chosen inside it.
• Decide what you won’t sell. Kirby’s 1984 discovery wasn’t about which stock to buy — it was that the client who traded the least ended up with the most.
• Treat patience itself as the strategy. A holding period measured in decades is available to any Canadian investor with a TFSA or RESP already open — no coffee can necessary.
• Know the tax bill before you need it. Because TFSA growth is entirely tax-free, and only half of capital gains outside a registered account are taxable, the account a stock sits in can matter as much as the stock itself.

-With files from Melanie Huddart

But if you look up at the skyline today, you already know the real estate pressures facing these landmarks. The spaces that defined Toronto’s counterculture are increasingly finding themselves in the crosshairs of a massive building boom.

The conversation around urban development often feels like a strict binary. We’re told we must choose between preserving the nostalgic soul of our neighbourhoods or building the high-density housing the city desperately needs. Lately, developers have pitched a third option: demolish the old building, construct a modern highrise and bring the original venue back as a shiny ground-floor tenant.

It sounds like a win-win on paper, but the reality of commercial real estate is rarely that simple.

The promises on the table

A prime example unfolded when a developer submitted a proposal to build a 16-storey condominium that would require tearing down the building housing Sneaky Dee’s, which has occupied the spot since 1990.

Recognizing the immediate public outcry, the developer attempted to soften the blow. Michael Goldberg of the Goldberg Group told Exclaim! that arrangements were in place to protect the business. He noted that the venue could remain until construction started, receive help finding interim accommodations and get the first opportunity to lease a new 3,173-square-foot commercial space inside the finished condo.

“Under the current planning regime, we can’t turn it down. This is a really deeply loved and valued music venue. It’s a cultural gem,” Toronto City Coun. Dianne Saxe told Exclaim! at the time, highlighting the limited tools local officials have to protect private commercial tenants from redevelopment.

Ultimately, that specific project came to an abrupt halt. The proposal was formally withdrawn after a community-led title search revealed the developer didn’t actually own all the parcels of land included in the application — specifically, a neighbouring piece owned by the Royal Bank of Canada.

While Sneaky Dee’s won a dramatic, unexpected reprieve, its story is part of a broader real estate trend. The idea of integrating historic music venues into brand-new luxury condo podiums is becoming a standard compromise at City Hall.

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The hidden costs of displacement

For a small business, such as Sneaky Dee’s, a developer’s invitation to return after a multi-year construction process is an incredibly risky financial proposition.

First, there’s the timeline. Building a mid-rise or high-rise condo in Toronto typically takes anywhere from three to five years, assuming there are no unexpected zoning, labour or supply chain delays. A grassroots music venue or independent restaurant cannot simply pause its revenue for half a decade.

Finding an interim location is equally challenging. Moving commercial kitchen equipment, sound staging and liquor licences is prohibitively expensive. In a tight real estate market, temporary spaces with affordable rent are practically non-existent. By the time the new condo opens its doors, the original business has often evaporated.

The intangible value of character

Even if a business manages to survive the years of displacement, the physical environment of a modern retail condo is entirely different from an old, character-rich building.

New developments are built to modern commercial standards. They feature high ceilings, floor-to-ceiling glass windows, concrete pillars and strict property management rules. For a slick pharmacy chain or a corporate coffee shop, these spaces are perfect. For a dive bar or a gritty rock venue, especially one with history, the atmosphere can feel clinical and corporate.

The financial structure changes completely, too. Rent in a brand-new building is typically priced at premium market rates per square foot. Property taxes and common area maintenance fees are also tied to the value of the new high rise. An independent operator who used to get by on thin margins suddenly faces corporate-level overhead costs.

Preserving a city’s culture requires understanding that a venue is more than just a name on a lease. It is the decades of history, the worn-in benches and the community that grows within a specific, affordable space. When the physical structure disappears, the financial ecosystem that allowed the venue to exist usually goes with it.

Let’s take Robert as an example. He retired at 67 with $3 million saved across a Registered Retirement Savings Plan (RRSP), a workplace pension and some taxable investments. Three years later, at 70, he’d already spent $1 million of it, leaving $2 million, and he’s worried about making the rest last.

Robert's $3 million puts him well ahead of most Canadians approaching retirement — for context, even total net worth (including home equity) for near-retirees with a pension and a home sat at a median of $1.4 million in 2023, according to the Survey of Financial Security. Still, having a large portfolio doesn’t guarantee it will last throughout your sunset years. What matters just as much is the withdrawal rate — how much comes out of the accounts every year. Spend too fast, and even several million dollars can run out well before retirement does.

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Take stock of where the money went

Before making any changes, the first step is figuring out exactly where the first $1 million went. One-time costs — paying off a mortgage, buying a vehicle outright, a major renovation or helping a child with a down payment — don’t repeat every year and shouldn’t be confused with your ongoing spending. If most of that money went to one-time expenses, the situation may be less alarming than it first appears. If it was mostly daily lifestyle spending, that’s a sign the withdrawal rate needs to come down before the remaining $2 million disappears just as quickly.

Set a sustainable withdrawal rate — and watch the RRIF and OAS traps

With $2 million left, Robert can’t keep spending at the pace he started with. A common starting point is the 4% rule, which suggests withdrawing 4% of the portfolio balance in the first year of retirement, then adjusting the dollar amount for inflation every year thereafter. Applied to $2 million, that works out to about $80,000 in year one — a steep drop from the roughly $333,000 a year Robert has been taking out.

Canadian retirees must make mandatory withdrawals. An RRSP must be converted into a Registered Retirement Income Fund (RRIF), or an annuity, by December 31 of the year the account holder turns 71. After that, the Canada Revenue Agency (CRA) sets a minimum percentage of the RRIF balance that must come out every year — regardless of how the markets are doing. That minimum starts at 5.28% at age 71 and rises steadily after that, reaching 6.82% by 80 and 8.51% by 85. For a retiree with a large RRIF, those mandatory withdrawals can eventually push well past a comfortable 4% rate on their own.

Larger RRIF withdrawals can also trigger another cost: the Old Age Security (OAS) clawback. In 2026, Canadians who collect the government pension start losing 15 cents of it for every dollar of net income above $95,323, with the pension fully clawed back once income passes $155,109 for someone 65 to 74.

Because of this, a fixed 4% isn’t necessarily the right number for every Canadian retiree. Reviewing your withdrawal rate every year — spending less after a weak year in the markets and allowing a bit more room after a strong one — tends to work better than locking in one percentage and never revisiting it. Keeping one to two years of living expenses in a high-interest savings account or a short-term investment, like a GIC, can also help you avoid selling investments at a loss during a downturn. Drawing down non-registered accounts first, RRSPs or RRIFs next and a Tax-Free Savings Account (TFSA) last can help manage both taxes and the OAS clawback over the course of retirement.

Invest the money wisely

Finally, Robert needs to make sure the $2 million that’s left is invested in a way that matches how much risk he’s comfortable taking. A mix of equities and fixed-income investments is standard advice for retirees who need both growth and stability. Some retirees also look at an annuity to lock in a guaranteed stream of income that doesn’t depend on how markets perform.

What Canadian retirees can learn from this

• Separate one-time expenses from regular spending before assuming your withdrawal rate is too high
• Revisit the withdrawal rate every year instead of setting one percentage and leaving it alone
• Know when an RRSP must convert to a RRIF, and how the minimum withdrawal grows with age
• Watch the OAS clawback threshold before taking large RRIF withdrawals
• Keep one to two years of expenses outside the market in a high-interest savings account or a short-term GIC
• Talk to a fee-only Certified Financial Planner (CFP) about a withdrawal order and rate that fits your accounts

Bottom line

A portfolio that shrinks faster than expected isn’t always a sign of reckless spending — but it’s a sign that the plan needs a closer look. For Robert, and for any Canadian retiree watching their savings disappear, the most important questions are the same: where did the money actually go? Is the withdrawal rate sustainable? And are mandatory RRIF withdrawals or the OAS clawback making things worse?

A proposal to build 10,000 new homes near Port Dover is drawing sharp dividing lines. The debate highlights a deep conflict playing out across southwestern Ontario: the desperate need to create housing versus the financial and social costs borne by smaller municipalities. The unfolding situation serves as a prime case study of the cost of rapid growth.

The friction between progress and preservation

The clash centres on a massive housing plan that would inject tens of thousands of new residents into Haldimand County, right on the doorstep of Port Dover. To put it in perspective, a development of this scale could eventually accommodate roughly 40,000 people, transforming a predominantly rural pocket of land into a busy suburban hub.

Supporters of the expansion view it as an essential step toward economic prosperity, noting it would bring an influx of construction jobs, long-term employment and much-needed housing stock to ease Ontario’s chronic supply shortages. They argue that expanding the local housing footprint is the only logical path forward to keep the regional economy competitive and thriving.

Conversely, many long-time residents and local officials see the project as an overwhelming threat to their way of life. The visual landscape leading toward the town has changed recently, with “No MZOs” signs popping up along local roads. These signs target Ministerial Zoning Orders — provincial legislative tools designed to bypass traditional local planning processes to fast-track development projects. Critics feel these orders strip the community of its voice and push growth through at an unsustainable pace.

Assessing the municipal price tag

Development on this scale introduces significant economic risks for existing property owners. A sudden population spike requires immense up-front capital investments in infrastructure, including upgraded water systems, expanded wastewater treatment facilities, new roads and emergency services.

If a municipality takes on debt or overextends its budget to fund these foundational upgrades, the financial burden often filters down to everyday citizens. Existing homeowners could face higher property taxes or rising utility fees to support the expanded grid. Haldimand Mayor Shelley Ann Bentley has been vocal about her opposition to using accelerated provincial measures to force the development through. In a public statement on the matter, Bentley said, “It is a bad idea. This MZO will create residential use in an industrial park.”

The conflict underscores a broader challenge facing smaller Ontario municipalities. While developers often cover a portion of hookup fees and initial infrastructure through development charges, the long-term maintenance of sprawling suburban neighbourhoods remains the permanent responsibility of the local government and its taxpayers.

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What this means for the local housing market

The situation around Port Dover represents a classic high-stakes balancing act. Increased housing supply can help stabilize skyrocketing property prices, offering younger families or retirees a chance to secure a piece of real estate outside of major urban centres like Toronto or Hamilton.

Yet, part of what gives real estate in lakeside communities its premium value is scarcity and charm. If a small town loses its distinct rural identity to rapid sprawl, the very character that drove demand in the first place can become diluted. Investors and residents alike are left wondering whether the massive influx of homes will boost overall economic prosperity or diminish the unique appeal of the region.

A community identity hanging in the balance

As the province pushes forward with aggressive housing targets, the future layout of communities near Port Dover remains hanging in the balance. It serves as a reminder that the cost of a new home is measured in more than just the purchase price; it is also measured in the long-term financial health, infrastructure costs, and identity of the community it joins.

That’s because the same companies dominating U.S. markets also make up a growing share of the funds sitting inside many Canadians’ Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs) and even the Canada Pension Plan.

Jim Paulsen, a market strategist with a 40-year career reading market cycles, says the warning signs are piling up. In a July 2 post to his Substack newsletter, Paulsen wrote that investors have let their guard down while chasing gains from artificial intelligence (AI), quantum computing and a handful of “new era” stocks.

“[What] is becoming clear is that the S&P 500 index — and probably most portfolios — is becoming much riskier,” he wrote.

The hidden tech bet inside Canadian portfolios

Many popular broad-market index funds tracking the S&P 500 are now about 38% weighted in information tech, with Alphabet, Amazon, Microsoft and Meta together expected to pour a collective US$700 billion (~C$985 billion) into AI infrastructure this year alone. For Canadians, the exposure often runs deeper than it first appears.

Consider the Canada Pension Plan Investment Board (CPP Investments), the Crown corporation that invests on behalf of more than 22 million Canadians. In its fiscal year-end results for 2026, the fund disclosed “significant concentration in public equities, with relatively heavier exposure to large-cap technology and communication services companies largely tied to artificial intelligence.”

The Bank of Canada has taken notice, too. In its 2026 Financial Stability Report, the central bank named AI-driven stock market concentration as a new category of financial risk for the first time, warning that a shock to a handful of large tech companies could trigger an outsized correction across broader indexes.

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Why Canada’s stock market tells a different story — for now

Unlike the S&P 500, the S&P/TSX Composite Index (TSX Composite), Canada’s benchmark stock index, isn’t dominated by tech. As of May 2026, financials made up about 31% of the index, materials about 19% and energy about 18%, while information technology accounted for just over 7%. Together, the three largest sectors made up close to 68% of the index.

That means Canadians who stick close to home avoid the AI concentration risk rattling U.S. markets — but they trade it for a different one. The Canadian market’s reliance on banks, miners and oil and gas producers leaves it vulnerable to interest rate swings and commodity price shocks instead.

This is part of why Canadian investors have historically kept a heavy “home bias” toward domestic stocks. Prior to 2005, the Income Tax Act limited how much foreign content Canadians could hold inside an RRSP, but that cap was eliminated more than two decades ago, and there’s no longer any regulatory reason to avoid international diversification.

Even so, many Canadian portfolios remain tilted toward the TSX Composite — one recent analysis found the top 10 Canadian holdings make up almost 37% of the domestic equity market. That means a “Canadian-only” portfolio can be just as concentrated as an all-in tech bet, only in different sectors.

How Canadians can position more defensively

If you don’t want to lean too heavily into the AI boom on either side of the border, there are a few ways to build in some stability:

• Diversify into non-tech sectors. In Canada, that means looking at utilities, consumer staples and financials — sectors that historically hold up during downturns. The BMO Low Volatility Canadian Equity ETF (TSX:ZLB), for example, leans toward financials, utilities and consumer staples, with the former making up about 26%, while the other two each make up roughly 17% of its portfolio as of June 2026, a much larger share than either sector carries in the broader TSX Composite.
• Look outside Canada’s borders. Since Canadian equities make up a small slice of global stock markets, a global fund that spreads exposure beyond U.S. tech mega-caps, or an equal-weighted U.S. fund, can help smooth out concentration risk without abandoning growth entirely.
• Watch your sector and position caps. A common rule of thumb is capping any single sector at about 25% of your portfolio and any single stock at about 5%, and keeping 15% to 20% of your holdings outside your home country.
• Remember that “safe” sectors can carry indirect AI exposure. Real estate (particularly data centre, office and retail real estate investment trusts), industrials, materials and financials all have ties to the AI buildout, even if they aren’t traditional tech plays.

Next steps: Lessons for your own portfolio

You don’t need to predict when — or if — the AI trade unwinds to take a few sensible steps now:

• Check your overlap. If you hold a TSX Composite fund, an S&P 500 fund and a handful of individual tech stocks, you may be more concentrated than you realize. Many discount brokerages and portfolio-tracking tools can show you your combined sector weightings.
• Rebalance on a schedule, not a headline. Set a regular time, such as once or twice a year, to bring your portfolio back to its target sector and geography mix, rather than reacting to every market swing.
• Use the accounts you already have. Since the RRSP foreign-content limit no longer exists, there’s no tax-related reason to keep a Canadian-only RRSP or TFSA. You can build a diversified mix of Canadian, U.S. and international holdings entirely within your existing registered accounts.
• Talk to a professional before making big changes. A licensed financial advisor can help you assess how much risk makes sense for your timeline and goals. Always do your research, and remember: This article isn’t meant as a substitute for personalized investment, tax or legal advice.

A growing body of research suggests the panic may be based on an incomplete picture. It’s one that leaves out home equity, workplace pensions and government benefits — things that make up a much bigger share of what a retiree actually has to live on than what a single account balance may suggest.

For Canadians, that omission matters more than it might elsewhere. Canada’s retirement system leans harder on those other pieces, particularly the Canada Pension Plan (CPP), Old Age Security (OAS) and, for many households, the value of a paid-off home: here’s why.

Your registered accounts probably understate your wealth

If you only scrutinize how much the typical Canadian has saved in a Registered Retirement Savings Plan (RRSP), the numbers can look thin. In 2023, only 21% of tax filers contributed to an RRSP at all, down from 24% in 2010, according to Statistics Canada. Those who did contribute typically put in a median of $3,420 to an RRSP-only account, or $6,500 to a Tax-Free Savings Account (TFSA)-only account.

Looking at savings balances alone, though, misses most of the picture. StatCan’s 2023 Survey of Financial Security found that Canadians nearing retirement — those aged 55 to 64 — who own their home outright and have an employer-sponsored pension have a median net worth of $1.4 million. Renters in that age group with no workplace pension had a median net worth of only $11,900.

In other words, your bank statement is a poor representation for retirement readiness in Canada, where home equity and pension entitlements typically make up a bigger share of your net worth.

What government benefits are actually worth

CPP and OAS often get treated as an afterthought next to personal savings, but for many retirees, they’re the foundation the rest of your retirement plan sits on.

The average new CPP retirement pension for someone starting at age 65 in April 2026 was $877.01 a month, while the maximum was $1,507.65, according to the Government of Canada. Very few retirees hit that maximum — it requires close to 40 years of near-maximum contributions — which is why the average is the more realistic number for most households.

OAS adds another layer. For the July-to-September 2026 quarter, the maximum monthly OAS payment is $751.97 for those aged 65 to 74 and up to $827.17 for those 75 and older. Unlike CPP, OAS isn’t based on how much you contributed through work — it’s based mainly on how long you’ve lived in Canada after age 18.

Combined, an average CPP payment plus a full OAS pension can add up to more than $20,000 a year per person, before any RRSP, TFSA or workplace pension income is added.

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Why home equity also matters

For most Canadians nearing retirement, their home is the single largest asset they own. Yet when people tally up "how much they have for retirement," they tend to count only liquid savings and skip their house entirely, even though it's sitting on the other side of the same net-worth statement.

In practice, home equity can support retirement in a few concrete ways:

• Downsizing. Selling a family home and moving to a residence that is smaller or less expensive frees up equity that can be invested or spent directly, while also lowering ongoing costs like property tax, utilities and maintenance.
• A reverse mortgage. Products like CHIP allow homeowners who are 55 and older to borrow against their home equity without monthly payments — the loan gets repaid when the home is eventually sold. This comes with real trade-offs — interest compounds over time and reduces the estate left behind — so it's worth comparing carefully against other options.
• A home equity line of credit (HELOC). This option offers more flexibility than a reverse mortgage but requires ongoing interest payments, which only makes sense if there's income to cover them.
• Staying put, mortgage-free. Even without tapping the equity, not having a mortgage or rent payment in retirement is itself a major reduction in monthly expenses — arguably as valuable as an income source.

However, home equity isn't as liquid or flexible as an RRSP or TFSA. That's part of why it may get left out of any mental math. But for a soon-to-be retiree trying to answer "am I actually ready," ignoring it means understating readiness by a wide margin, especially for the large share of Canadians who own their home outright.

‘One-more-year syndrome’ isn’t unique

Financial planners have a name for the habit of repeatedly pushing retirement back to build a bigger cushion: One-more-year syndrome. It shows up when retirement savings feel like a moving target, or when an individual has an unclear picture of their own wealth — one that leaves out CPP, OAS, home equity and pension value. This can make the target look further away than it actually is.

That doesn’t mean personal savings aren’t important. Only 45% of the Canadian labour force is covered by an employer-sponsored pension plan or group RRSP, according to the Office of the Superintendent of Financial Institutions (OSFI), the federal regulator that oversees pension plans. For everyone else, RRSPs, TFSAs and non-registered savings are doing more of the work that CPP, OAS and a workplace pension might otherwise cover.

Get your own number

Because CPP and OAS depend on your specific contribution and residence history, the only way to know your real numbers is to check them. The Government of Canada’s Canadian Retirement Income Calculator lets you estimate CPP, OAS and other retirement income sources, and compare scenarios such as starting your pension at 60, 65 or 70.

What this means for you

• Don’t judge your retirement readiness by your RRSP or TFSA balance alone. Add in CPP and OAS estimates, workplace pension value and home equity before deciding whether you’re behind.
• Get your CPP estimate through your My Service Canada Account. Know this number rather than guessing — there’s a big difference between the average payment and the maximum payment.
• Treat your RRSP and TFSA contributions as essential. If you rent and have no workplace pension, you’re missing the two biggest cushions many other retirees rely on.
• Run your numbers through the Canadian Retirement Income Calculator. Get the full picture before you decide to work “one more year” — you may be closer than the headlines suggest.

-With files from Melaine Huddart

“So our landlord wants to sell our house. Kindly he has come to us to let us know, and would like to ideally sell it to us (obviously this is more convenient, quicker for him) in a private sale,” the discussion began on the PersonalFinanceCanada subreddit, where the Ontario tenant shared their high-stakes financial dilemma. The Redditor explained they were currently on maternity leave, and while they hoped to purchase a home in the next couple of years, they were not sure if now was the right time.

The unexpected offer brought a mix of anxiety and opportunity. The tenant noted that the option was appealing because they had just finished putting together a beautiful nursery, adding that “it would be very chaotic if we had to move.” The post sparked a massive debate among Canadian real estate investors, homeowners and financial experts about what a tenant should do when a landlord offers to bypass the open market.

It highlights a common crossroads for Canadian renters when a property owner decides to liquidate an investment.

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Weighing the value of a private sale

A private sale can eliminate real estate agent commissions, which typically range from 3.5% to 5% of the purchase price. On a $600,000 home, that represents savings of up to $30,000. But those savings are realized by the seller, not the buyer. So, if you’re the buyer in the transaction, you don’t save anything by going through a private sale — but that doesn’t mean you can’t use this to your advantage.

Because the seller saves on staging, marketing and commission fees, buyers can use this to negotiate a lower purchase price. The best way to do this is to consider the fair market value (FMV) of the property and to offer a sale price that’s aligned with FMV. Determining FMV without agents requires looking at recent sales of comparable properties in the immediate neighbourhood and then doing a bit of analysis. Consider the number of bedrooms, bathrooms, overall square footage and recent updates when trying to establish a fair value for the property.

When considering a private sale purchase be sure to consider the lifespan costs. For instance, if you were to purchase a smaller home with the intention of selling within five years, you need to consider transaction costs for both the purchase and sale. Transaction costs include land transfer taxes, legal fees, inspections as well as marketing (such as staging a home). Keep in mind that real estate market fluctuations can also occur — and in extreme situations market fluctuations can erase short-term equity gains.

The debate over alternative financing

If you opt to pursue a private sale be prepared for some scrutiny from lenders. While you are still eligible for big bank mortgages the use of a private sale may prompt mainstream lenders to ask for an independent market assessment — an expense that comes out of your pocket.

Another option is to pursue alternative financing options. The online discussion surrounding the Ontario tenant’s dilemma eventually turned into a discussion about alternative financing structures, specifically a vendor take-back mortgage. In this scenario, the seller acts as the lender, and the buyer makes mortgage payments directly to them instead of a traditional bank.

Some market participants view this as a mutually beneficial arrangement. “I just went through this. I inherited a home that had tenants. I asked if they wanted to buy it for less than market value. We had a lawyer draft up a vendor take back mortgage and now their rent payments are mortgage payments,” wrote one person in the online discussion.

The individual noted that they remained responsible for upfront legal and closing costs, but no longer had the burden of property taxes or maintenance, concluding, “They didn’t need a deposit and I don’t have the headaches.”

However, others cautioned that such arrangements are rare and depend heavily on the landlord’s financial situation. If a seller needs to clear an existing mortgage or wants immediate liquidity, a take-back mortgage is unfeasible.

Assessing risk and market alternatives

For landlords who do own their property outright, deferring a lump-sum payout carries distinct tax and investment implications. Spreading capital gains over a five-year period can reduce an immediate tax burden, but it introduces credit risk if the buyer defaults.

“A market downturn is largely a passive problem. A borrower default is an active problem,” one commenter noted, arguing that a diversified investment portfolio spreads risk more effectively than concentrating capital in a single borrower.

Conversely, defenders of vendor financing point out that sellers retain the right to initiate a power of sale if payments stop. Real estate investors also utilize these structures to generate steady income or command a premium. “I sell on VTB all the time. It’s never below market FMV,” another contributor stated.

For renters facing a sudden sale — like the Redditor on maternity leave — provincial tenant laws offer a crucial safety net. Under Ontario law, a lease automatically transfers to a new owner when a property is sold; a tenant cannot be evicted simply because the building is changing hands. This means that even if the Reddit poster decides against buying, they won’t be immediately forced to pack up that newly completed nursery. Unless a new buyer intends to move in personally and issues a formal 60-day notice, the tenancy remains secure.

Ultimately, these protections give anxious renters in the same predicament as the Reddit user the one thing they need most: the time to consult a mortgage broker, weigh their options and decide if buying their rental truly makes financial sense, or if they are better off letting the lease ride.

Reddit user Valorenn laid out their financial situation in the popular Subreddit: Personal Finance Canada. The 27-year-old takes in $6,200 a month after taxes between their job and a rental unit in the house they live in. They say their expenses are around $3,200 a month, leaving them with a surplus of $3,000.

Of that $3,000, the Redditor said they’ve been putting an extra $1,750 towards their mortgage, which is at an interest rate of 4.19%, and saving the rest in a number of different savings accounts for various events (e.g. vacations, house upgrades, emergency fund, etc.).

As explained in their post, Valorenn has $10,000 as an emergency fund, $3,000 in a vacation fund, as well as $6,000 in a separate home renovation fund, and is paying quite a large chunk in income tax. To offset this, they have been putting more into their Registered Retirement Savings Plan (RRSP).

Although they feel financially well-off — including having zero debt other than their mortgage — they recognize a gap in their financial abilities.

“I’m sure I could make more investing but I honestly don’t know where to start and my tolerance for risk is pretty low,” they write. Fellow Redditors chimed in.

The comments section was awash with a variety of takes, many mentioning maxing their Tax Free Savings Accounts (TFSAs) or RRSPs and increasing their investing knowledge with an online course. Others suggested the user open a self-directed investing account and invest in newsworthy tech companies, such as Microsoft (TSX: MSFT.TO), Google (TSX: GOOG) and Nvidia (TSX: NVDA.TO).

Some focused on a longer-term horizon, saying the user should invest 10% of their pre-tax income toward retirement. Other Redditors had a more near-term perspective, suggesting the user should simply enjoy themselves or “buy a good time in a lot of countries.”

One user even suggested investing in Pokémon trading cards, saying they are “in a period of stable growth.”

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A post that resonates beyond Redditors

While the surplus income of $3,000 is not relatable to many Canadians, the feeling of uncertainty about investing is a common motif across the country. An Ipsos poll completed on behalf of CIBC’s Investor’s Edge found that just a small majority of respondents (56%) were comfortable investing their personal cash, while only 51% categorized themselves as knowledgeable about investing.

The problem is, hesitancy about investing can erode your purchasing power. Simply having money sitting idle in an account can actually result in a net loss when taking into account inflation.

Canada’s Consumer Price Index (CPI) sat at 2.8% in June, down from 3.2% in May, but essential items that make up the CPI are hitting Canadians’ purchasing power the most. Gasoline was still up 20.5% year-over-year, and grocery costs were up 3.9% annually and have exceeded the headline CPI figure for 17 consecutive months.

And this data is starting to show signs in consumer sentiment as well. A survey from United Way found that 46% of Canadians surveyed could only cover basic expenses for a month or less.

Yes, having funds easily accessible in a savings account is important, but if you don’t have a way to outpace inflation through investing, that’s money that you can’t get back.

How to put your money to work

Like that Redditor and many other Canadians, you might feel unsure how to start investing your money. It doesn’t take much to see returns over a long-term horizon, but you need to start on the right foot. Here’s some beginner-friendly advice to get you more comfortable with making your money work.

Build your financial foundation first

Before beginning your investment journey, make sure you have an emergency fund that can cover three to six months’ worth of essential expenses. It’s important to have one in place so you can leave invested funds in the market — allowing gains to flourish and not locking in losses by selling.

Keeping this money in a high-interest savings account (HISA) allows it to remain accessible while earning interest, and if you still have available contribution room, holding a HISA inside a Tax-Free Savings Account (TFSA) can help those interest earnings grow tax-free. With many online HISAs currently paying around 2% to 3% annually, your emergency fund can at least keep pace better than cash sitting in a standard chequing account.

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Make the most of registered accounts

Canada’s registered accounts can help your money grow faster by reducing or eliminating taxes. A TFSA lets your investments grow tax-free and allows you to withdraw money without paying tax, giving it a greater sense of immediacy if needed. A Registered Retirement Savings Plan (RRSP) provides an upfront tax deduction while allowing investments to compound tax-deferred until retirement. And if you’re planning to save for a child’s education, a Registered Education Savings Plan (RESP) offers access to generous government grants in addition to tax-deferred growth. Which account makes the most sense depends on your goals, income and when you’ll need the money.

You can also place investments inside these accounts, further benefitting any compound growth that can help augment any retirement, education or sizeable savings.

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Invest for the long haul

Once your emergency savings are in place, consider investing regularly in a diversified portfolio rather than trying to pick winning stocks or time the market. Broad-market exchange-traded funds (ETFs) or diversified mutual funds spread your investments across hundreds or even thousands of companies, reducing the impact of any single investment underperforming.

For ETFs, a good rule of thumb for any investor is to keep their costs low, diversify broadly across the entire globe and to simplify their portfolio whenever possible.

For most beginners, that means choosing an all-in-one asset allocation ETF that best suits your risk tolerance and time horizon. Some examples include:

• Vanguard Conservative ETF Portfolio (TSX: VCNS.TO) for a Canadian equity ETF
• iShares Core Equity ETF Portfolio (TSX: XEQT.TO)
• Vanguard All-Equity ETF Portfolio (TSX: VEQT.TO)
• Vanguard FTSE Global All Cap ex Canada Index ETF (TSX: VXC.TO) for a global equity ETF
• iShares S&P/TSX 60 Index ETF (TSX: XIU.TO) to gain exposure to major Canadian industries like financials, energy, and materials from the 60 largest companies on the TSX
• iShares S&P/TSX Capped REIT Index ETF (TSX: XRE.TO) to gain exposure to top real estate companies in Canada

Don’t be afraid to ask for help

If you’re unsure where to start, speaking with a qualified financial planner or advisor can help turn uncertainty into action. While many Canadians still go it alone, research from firm Edward Jones found that Canadians were far more confident in their financial future working with a financial adviser versus handling their finances without one.

In Cochrane, Ontario’s most expensive community for home insurance, premiums jumped 16.4% in a single year to $3,322, nearly 49% above the provincial average. It’s a sharp contrast to Newmarket, where homeowners paid some of the lowest rates in the province, an average of $1,709.

Here’s a closer look at what’s affecting Ontario premiums, why your bill can go up even without a claim and what you can do before your next renewal.

Why are Ontario’s home insurance premiums rising this year?

Two types of claims are behind much of this year’s increase: system backups caused by overwhelmed sewers, sump pumps or septic systems, and damage from wind and hail. At the same time, insurers are paying more to rebuild homes after a loss. Residential rebuild costs in Ontario increased 23.8% between 2021 and 2026, according to Verisk’s analysis of construction costs, with ongoing labour shortages in the skilled trades adding even more pressure.

Those trends are part of a much bigger picture. According to the Insurance Bureau of Canada (IBC), insured losses from severe weather nearly tripled to $37 billion between 2016 and 2025, compared to $14 billion during the previous decade. In 2025 alone, severe weather caused more than $2.4 billion in insured losses across Canada.

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Why do northern Ontario towns pay so much more?

Cochrane, Fort Frances and South Porcupine top the list for home insurance costs in the province, with premiums in all three over 45% above the provincial average. In fact, all 10 of Ontario’s most expensive towns for home insurance are located in the province’s north region.

Remote communities generally cost more to rebuild after a loss since labour, materials and emergency services can all be more expensive or harder to access. This increases an insurer’s potential claims costs.

Interestingly, crime doesn’t appear to be the biggest factor behind these price differences. More than half of Ontario’s postal codes are considered high risk for theft, yet seven of the province’s 10 least expensive communities carry that same rating. That suggests insurers are placing far greater weight on weather-related risks like water damage and wind than on break-ins.

Can your premium rise even if you’ve never filed a claim?

Yes, because insurers don’t base premiums solely on your personal claims history. According to Steve Cohen, vice-president of insurance and chief underwriting officer at Rates.ca, insurers also price policies based on the level of risk within your postal code.

Premiums actually declined in nearly 18% of Ontario communities in 2026, even as the provincial average increased, because insurers continually adjust rates based on neighbourhood-level risks.

That means two homeowners living only a few streets apart could receive very different renewal premiums if the risks differ within their forward sortation area (FSA), which is defined by the first three characters of a postal code.

What can you do before your next renewal?

While you can’t control rising construction costs or increasingly severe weather, you can still take steps to lower your risk and make sure you’re paying a competitive price.

For example:

• Get quotes from two or three insurers before your policy renews instead of automatically accepting your renewal offer.
• Ask your insurer whether installing a backwater valve or a sump pump with battery backup qualifies you for a discount.
• If you live in Toronto, check whether you’re eligible for the city’s basement flooding protection subsidy, which offers up to $6,650 toward qualifying upgrades.
• Review your policy to confirm whether overland flood and system backup coverage are included, since they’re often optional add-ons.
• If your roof is nearing the end of its life, consider upgrading to impact-resistant roofing materials, which can reduce your exposure to one of Ontario’s costliest insurance risks, hail.

The reality is that many of the biggest drivers of home insurance costs, such as aging infrastructure, rising rebuild costs and increasingly severe weather, are outside your control. But understanding what’s behind your premium puts you in a much better position to make informed decisions.

Today, thanks to a strong stretch in the markets, that inheritance has grown to roughly $900,000. But at 28, Lucy isn’t convinced buying property is the obvious next step — and in Canada right now, the math is more complicated than the old adage “renting is throwing money away.”

In this example, we’ll follow Lucy, a hypothetical 28-year-old, based on a common dilemma among young Canadians who come into money early: what to do when you can afford to buy, but the numbers don’t obviously favour it.

Lucy isn’t sitting on a six-figure salary wondering what to do with extra cash. She works in a restaurant in Ottawa, pays her bills and has been careful with the one big financial break she’s had. She pays $1,900 a month in rent, has no debt, no kids and no car payment. Her building was first occupied before November 15, 2018, which means it falls under Ontario’s rent increase guideline — in 2026, that guideline caps most rent increases at 2.1%. Her landlord can’t raise her rent by more than that without approval from the Landlord and Tenant Board (LTB), Ontario’s rental dispute tribunal, and must give her 90 days’ written notice before doing so. That gives Lucy more predictability.

Her mom sees things differently, though. To her, Lucy is in the perfect position to buy. One-bedroom condos in Ottawa have been selling for an average of about $385,500, according to Nesto. Lucy could purchase one without carrying a mortgage.

It’s the kind of situation that challenges the usual rent-versus-buy advice. Home prices across Canada climbed back above $700,000 on average in May 2026, and with affordability still stretched in many cities, the advice to buy as soon as you can doesn't fit every situation.

When renting can actually come out ahead

There are plenty of people who’ll say renting is “throwing money away,” but that only tells part of the story.

Owning a home comes with costs that don’t disappear after closing day: property tax, home insurance, maintenance, the occasional unexpected repair and, in Lucy’s case, condo fees. Even someone who pays cash still carries ongoing housing costs.

For Lucy, the comparison gets especially interesting. If she used $400,000 of her investments to buy a condo outright, she’d eliminate her monthly rent of $1,900, or roughly $22,800 a year. But she’d also be pulling a large sum out of the market and locking it into a single property.

The question Lucy keeps coming back to is whether saving that rent is worth giving up the chance for $400,000 to keep growing in a diversified portfolio.

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The tax bill a Canadian buyer can’t ignore

Here’s where the Canadian math looks different from the “just buy” advice Lucy keeps hearing.

Her $900,000 didn’t get there entirely tax-free. Anything beyond what fits inside a Tax-Free Savings Account (TFSA) is generally sitting in a taxable, non-registered account, and selling investments that have grown in value triggers a capital gain.

In Canada, only 50% of a capital gain is added to taxable income, and that amount is taxed at the seller’s regular marginal rate; there’s no separate, lower capital gains tax rate the way some assume. That means if Lucy sells part of her portfolio to fund a condo purchase, a share of the growth in that money becomes taxable income the year she sells.

Here’s the twist that works in her favour over the long term: a principal residence in Canada is exempt from capital gains tax when it’s sold, under the principal residence exemption. Money left in a non-registered investment account keeps facing tax on its growth, whereas a home someone lives in doesn’t. That’s a real argument for eventually owning — however, it’s just not a reason on its own to rush the purchase while she’s still deciding.

What buying would still cost her on the way in and out

Buying with cash also means budgeting for costs that a lot of first-time buyers underestimate. In Ontario, buyers typically pay land transfer tax (LTT), legal fees of roughly $1,000 to $1,600 and other administrative costs, generally totalling 1.5% to 4% of the purchase price. If Lucy ever sold, she’d also owe a real estate commission of 4% of the sale price, plus sales tax on that commission. On a $400,000 condo, that’s easily $20,000 or more leaving her pocket before moving costs are even counted.

Those transaction costs matter most to buyers who might move again within a few years. And they vary widely based on region. For example, real estate commissions across Canada range between 3% and 7%, and not all provinces charge LTT. Lucy, at 28, can’t say for certain where she’ll be living in five years — and that uncertainty is part of what’s keeping her on the sidelines.

What homeownership would still buy

For a lot of people, buying a home is about more than the numbers. Owning gives people something harder to measure: control. Generally, a landlord can’t decide to sell and leave a tenant searching for a new place in Canada — the new owner assumes responsibility for the tenancy, lease terms and rights established on day one. However, the rules on evicting or forcing a move are nuanced in each province and territory. Rent-controlled or not, a tenant is still living in someone else’s property, on someone else’s terms. If, for whatever reason, a tenant is forced to be evicted, they must be given 60 days’ notice and the termination date must fall on the last day of the rental period.

Homeowners can also use the equity they build later on, whether by downsizing, selling or borrowing against it, in a way renters simply can’t. Someone who enters retirement mortgage-free often has far more room in their budget than someone still paying rent every month, even with rent control in place.

But buying is also a bigger commitment. Selling requires time, planning and money in a way that ending a lease doesn’t. For someone who isn't sure where life is heading next, that flexibility carries real value.

Where this leaves Lucy

Lucy isn’t trying to figure out how to scrape together a down payment. She already has close to $900,000 invested and a rental situation that works, with rent increases capped by law. For now, she’s choosing to let her portfolio keep growing rather than concentrate a large share of her wealth into one property, in one city.

That could change. Someone who’s comfortable renting at 28 may feel differently in a few years — if they want more space, want to start a family or simply want a place they can make entirely their own.

Lessons for Canadians weighing rent versus buy

Lucy’s situation is unusual, but the questions she’s asking apply to anyone deciding between renting and buying in Canada right now.

• Know your rent protections before assuming buying is automatically cheaper. Check whether your unit is covered by your province's rent-control rules and what the current guideline actually allows.
• Price in the full cost of owning on top of the purchase price. Property tax, insurance, ongoing monthly condo fees and closing costs of roughly 3% to 7% for buyers across Canada add up fast.
• Understand what selling investments to buy a home will cost at tax time. Any capital gain in a non-registered account is 50% taxable the year it’s sold, at the seller’s marginal rate.
• Remember the principal residence exemption cuts both ways. It’s a long-term tax advantage of owning, but it only applies once someone owns and lives in the home, not before.
• Don’t let “everyone says” pressures replace the actual math. A parent’s advice, a friend’s timeline or a stranger’s opinion online isn’t a substitute for running the numbers on rent, ownership costs and what you give up when you move invested money into a property.

-With files from Melanie Huddart

The Insurance Bureau of Canada (IBC) says Alberta drivers are now six months away from the province’s new Care-First auto insurance model, noting that the reforms are expected to reduce premiums by an average of $260 a year while expanding medical and recovery benefits for people injured in collisions.

“Alberta drivers pay some of the highest auto insurance premiums in Canada, but the trend of rising premiums will be reversed when Care-First takes effect on January 1, 2027,” said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada, in a statement.

Why Alberta expects premiums to come down

The Care-First system represents one of the biggest changes to Alberta’s auto insurance system in decades.

Instead of relying heavily on lawsuits to resolve injury claims, the new model shifts toward guaranteed medical care, rehabilitation, income support and other recovery benefits for people injured in crashes, regardless of who caused the collision. In exchange, the ability to sue for compensation will be more limited than under the current system.

The province and IBC both argue that reducing litigation will lower costs throughout the insurance system, allowing insurers to charge lower premiums while improving benefits for injured drivers. According to IBC, legal costs related to bodily injury claims have risen sharply in recent years, contributing to higher insurance premiums.

According to Statistics Canada data cited by IBC, auto insurance premiums in the province were up 26% year over year, making it one of the fastest-growing household expenses in Alberta.

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Not every driver will see the same savings

While the oft-cited figure is an average annual savings of $260, the precise value of savings available to drivers will be based on individual risk factors such as driving history, vehicle type and where a driver lives.

The Alberta government has also introduced a new adjustable rate-cap system that limits how much premiums can increase at renewal for many drivers, while still allowing insurers to price policies according to risk. Drivers with recent at-fault collisions or serious driving convictions may not receive the same protections.

Drivers welcome relief, but many remain skeptical

The promise of lower premiums comes after several years of steep increases that have left many Alberta drivers frustrated.

In recent discussions on Reddit’s r/Edmonton and r/PersonalFinanceCanada, drivers described receiving renewal notices hundreds of dollars higher than the previous year despite having clean driving records. Others said they planned to wait until their first 2027 renewal before deciding whether the reforms had delivered meaningful savings.

Those comments reflect the level of skepticism many drivers have developed after years of rising insurance costs.

Support for the reforms nevertheless appears relatively strong. A recent Yorkville Strategies poll commissioned by IBC found that roughly two-thirds of Albertans support the Care-First model, with lower premiums ranking as the most important expected benefit.

Whether the reforms ultimately deliver on those expectations won’t become clear until drivers begin renewing their policies under the new system next year. For now, the province’s projected savings remain hypothetical, and many Albertans will likely be watching their first 2027 renewal notice more closely than ever.

Add in a recent BMO survey that found 59% of Canadians still call homeownership one of their biggest life goals, and it’s easy to see why so many people feel pressure to buy as they near retirement — even after years of happily renting.

But not everyone wants to become a homeowner again.

Let’s consider the hypothetical Samantha and Ryan. They’re in their early 60s and planning to retire in two years. They’ve been renting and want to keep doing so, since they don’t like maintenance costs and hate the headache of unexpected repairs.

However, Samantha and Ryan feel a lot of pressure to buy a home, since everyone they talk to says they should own a property so they don’t have to worry about rent in retirement. Is this good advice? Financial planners who work with Canadian retirees don’t necessarily think so, and there are a few reasons why.

The cost of buying may be higher — and it may not be affordable

The first major factor to consider is that renting may actually be cheaper than owning in most of the country right now.

A recent analysis of 30 Canadian housing markets found that renting remains the more affordable monthly option almost everywhere outside of Regina and Winnipeg, where buying edges out renting by a small margin. In Toronto, renters can save close to $2,000 a month over what they’d pay to own a comparable home. In Ottawa, Montréal and Calgary, renters typically save $400 to $450 a month.

“What a lot of people fail to realize about the shift to renting is the bills and costs that are associated with ownership are gone, and you have a giant sum of money that can now produce an income,” said Adam Chapman, a certified financial planner in London, Ontario.

Samantha and Ryan don’t want to struggle to afford higher payments just to become homeowners again in their golden years, especially if they’re already worried about making ends meet.

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Neither way of paying for a home is a sure win

The next thing Samantha and Ryan have to consider is how they’d actually pay for a home. They have two options, and both come with their own problems.

They could borrow: Nearly three in 10 Canadians (29%) planning to retire in 2025 or 2026 expect to still be paying off a mortgage after they leave the workforce, up from just 8% in 1999. Taking on a monthly mortgage payment — especially one higher than rent — could strain a fixed retirement budget.

They could pay cash: This would likely mean a large withdrawal from a Registered Retirement Savings Plan (RRSP) or a Registered Retirement Income Fund (RRIF), and that comes with its own tax bite. RRIF and RRSP withdrawals count as taxable income, and a large one can push a retiree’s net income above $95,323 for the 2026 tax year, triggering the Old Age Security (OAS) recovery tax — better known as the OAS clawback, which takes back 15 cents of OAS for every dollar of income above that threshold. Samantha and Ryan also risk pulling so much out of their accounts that they don’t have enough left invested to generate the returns they’ll need to cover other costs later on.

If they do choose to buy, they’ll need to build a full retirement income plan first, ideally with the help of a professional, to make sure a purchase won’t derail their finances over the long term. The last thing a retiring couple wants is to overextend themselves right as their paycheques stop.

Maintenance and unexpected repairs could become a bigger issue than expected

Beyond mortgage or RRIF costs, there’s another factor: the cost and effort of maintaining a home. Owning means dealing with wear-and-tear repairs and emergencies, such as a broken-down furnace or leaky roof — costs a fixed retirement income needs to be able to manage.

That’s not something renters have to think about. Being able to move easily also matters more than people expect. “It’s easier to get out of a rental apartment if your health deteriorates or if you need to move into an assisted-care facility. Selling a home can be more challenging, especially if the market is slow,” said Julie Seberras, head of wealth planning and practice management at Manulife.

And maintaining a home only gets harder with age. If Samantha and Ryan’s health starts to decline or their finances get tight, there’s little reason to add homeownership responsibilities to the mix.

So, it turns out Samantha and Ryan aren’t wrong to keep renting — and anyone who insists otherwise may not have compared the numbers against their specific situation.

What Canadians nearing retirement can learn from this

Before buying a home because it feels like the responsible thing to do before retiring, here are a few things to consider:

• Run the actual rent-versus-buy math for your own city and your own numbers, rather than relying on the general belief that owning always wins.
• Check how a lump-sum RRSP or RRIF withdrawal affects your OAS clawback threshold before pulling the trigger.
• Renting is only more cost effective if the difference between rent and a mortgage payment is actually invested rather than spent. Being a financially secure renter takes as much saving and investing discipline as paying down a mortgage does.
• Talk to a fee-only certified financial planner before making a major housing decision this close to retirement, since they don’t make a commission from selling you anything.
• Factor in flexibility — a rental allows for more mobility if health or family circumstances change compared to owning a home.

None of this means buying is the wrong move for every retiree. But for Canadians who already have a comfortable rental setup, the pressure to buy before retiring is exactly that — pressure, not necessarily good math or sound advice.

-With files from Melanie Huddart

SpaceX President Gwynne Shotwell and her husband, Robert, just gave more than 2 million children in the U.S. one share each of SpaceX stock. It’s a striking gesture — and it raises a question that matters just as much for parents here in Canada: Is a single stock gift actually worth much to a kid, or is it more of a symbolic head start?

Shotwell, who has run SpaceX as president since 2008, made the donation through Trump Accounts, a newly introduced U.S. federal savings account for children. Eligible kids born between 2025 and 2028 receive a one-time US$1,000 deposit (~C$1,420) from the federal government, and families, employers and now philanthropists like Shotwell can add more on top, up to US$5,000 (~C$7,100) a year. Shotwell said the gift will go to children ages 11 to 17 in lower-income areas, with a bit of extra weight given to kids living near her home in Texas.

When the donation was first announced, President Donald Trump publicly thanked the Shotwells and valued the gift at as high as US$325 million (~C$461 million). However, stock gifts are a moving target. As of July 20, SpaceX stock is valued at US$119.85 a share (~C$169) — meaning the real-world value of 2 million single-share gifts is actually closer to US$240 million (~C$338 million).

A wild ride for a brand-new stock

SpaceX went public on June 12, 2026, at US$135 a share (~C$189), opening at US$150 (~C$210) before an early rally briefly pushed the price above US$225 (~C$315). Since then, the stock has slid back down — dipping below its own IPO price for the first time in mid-July, and continuing to slide to its current level by July 20.

That swing is where the real lesson lies. A single share handed to a child today could be worth significantly more, or less, within weeks — let alone by the time that child turns 18. Analysts are split on where it goes from here, with 12-month price targets ranging from US$62 to US$800 a share (~C$87 to ~C$1,120).

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The Canadian version of ‘free money for kids’

Canada doesn’t have a program that hands children a share of stock, but it already has something built for a similar purpose: the Registered Education Savings Plan (RESP), paired with the Canada Education Savings Grant (CESG). If you contribute $2,500 a year to a child’s RESP, the federal government adds 20%, up to $500 a year, with a lifetime CESG cap of $7,200 per child. Lower- and middle-income families can qualify for a bit more on top of that.

There are two big differences from the U.S. program. First, RESP money is earmarked for post-secondary education rather than general retirement savings. Second, Canadian families can contribute up to $50,000 over a child’s lifetime, with no annual limit, though only the first $2,500 contributed each year draws the CESG match.

What if you wanted to gift stock to your own kids?

If a Canadian parent wanted to do something similar to what Shotwell did — hand a stock directly to a child rather than contribute cash to a registered account — the tax treatment works differently than a straightforward cash gift. Under Canada’s income-attribution rules, any dividends or interest earned on property gifted to a minor child are attributed back to the parent and taxed in the parent’s hands, not the child’s.

Capital gains work differently. If the child eventually sells the gifted shares for a profit, that gain is taxed in the child’s hands, not the parent’s — a distinction that matters if growth is the point of the gift, rather than generating income. It’s also worth remembering that gifting appreciated stock triggers a deemed disposition at fair market value, so the parent may owe capital gains tax on the transfer itself, even before the child owns anything.

What could a single share potentially grow into?

Let’s say a 13-year-old received one SpaceX share today, at roughly US$119.85 (~C$169). Under a conservative outlook of a 10% annual return, that share would be worth about US$193 (~C$272) in five years, when the child turns 18. Under a bullish outlook of 40% annual growth, it would be worth about US$644 (~C$908). And under a more modest scenario — roughly what the S&P 500 has returned annually over the past 5 years, adjusted for inflation, at just over 7% — the share would be worth about US$168 (~C$236) in real terms.

Whether Shotwell’s gift turns into a couple hundred dollars or much more by the time these kids turn 18 depends entirely on how SpaceX performs over the next several years. That uncertainty is exactly why financial planners generally don’t recommend building a child’s financial future around a single stock — gifted or otherwise — however exciting the company behind it might be.

Lessons for Canadian families

• Claim the free money that already exists here. A Registered Education Savings Plan with the CESG match is Canada’s version of “free government money for kids,” and it’s available to virtually every family. Consider this account before any individual stock gift.
• Know the tax split if you directly gift stock. Dividends and interest are taxed to you, but capital gains are taxed to your child, and the gift itself can trigger capital gains tax for you at the time of transfer.
• Don’t concentrate a kid’s account in one stock. A single share — however exciting the company — is a lottery ticket, not a plan.
• Start small and regularly. Steady RESP contributions, even modest ones made consistently from birth, generally do more for a child’s long-term future than a one-time windfall in a volatile stock.

A new survey commissioned by Money Mart found that 84% of Canadians say they understand what influences their credit score, yet nearly half (47%) report facing barriers to improving it. Fewer than half (45%) say they're actively taking steps to build or improve their credit, while almost three in ten (29%) say doing so feels difficult.

"Many Canadians understand what affects their credit, but turning that knowledge into progress can be challenging," said Peter Kalen, CEO of Money Mart, in a statement. "Our findings suggest the issue isn't simply awareness, it's having access to practical options that help people build a positive credit history over time."

Why improving your credit can feel harder than understanding it

The survey suggests the biggest obstacle isn't a lack of information — it's turning good intentions into consistent habits.

Among those who said they faced challenges improving their credit, 22% said they knew what to do but hadn't followed through, while 18% said they weren't sure where to begin. Another 11% said they had tried to improve their credit in the past but eventually stopped.

Elsewhere in the survey, nearly two-thirds of respondents (62%) also said they feel the credit system is designed for people who are already financially stable. That view was even more common among younger Canadians, with 71% of Gen Z and 70% of Millennials saying the system feels stacked against those trying to build a credit history.

As a result, those perceptions appear to be influencing real-life decisions. More than one in five respondents (22%), for example, said concerns about their credit had delayed buying a home, while others reported putting off financing a vehicle, renting an apartment or even starting a business. Younger Canadians were consistently more likely to say their credit had affected these milestones, according to the survey.

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Small habits make a big impact

Improving a credit score usually takes time, but there are several steps that can help.

Making payments on time remains one of the most important factors in building a strong credit history. Keeping credit card balances relatively low, avoiding missed payments and limiting applications for new credit over a short period can also have a positive impact.

It's also worth checking your credit report regularly to make sure the information is accurate. Canadians can request their credit reports from the country's major credit bureaus, TransUnion and Equifax, and many banks now provide customers with free credit score monitoring through their online platforms.

The Money Mart survey found that nearly three-quarters of Canadians (72%) would be open to seeking help with their credit in the future, with financial advisors, credit counsellors, banks and credit unions ranking among the preferred sources of guidance.

For many Canadians, building better credit isn't about finding a quick fix. More often, it's the result of small financial habits repeated consistently over time — something that can make future borrowing, housing and other financial goals easier to reach.

According to the 2023 Canadian Insurance Barometer Study conducted by LIMRA and Life Happens, 31% of Canadian adults — 8.4 million people — say they need or need more life insurance coverage. A separate analysis by Toronto-based firm MyChoice found that the average Canadian household carries roughly $509,000 in coverage against an estimated need of $595,000, a national shortfall of $86,000.

Ontario households face the steepest gap. MyChoice’s data shows Ontario families need close to $794,000 in coverage but hold an average of just $552,000 — a shortfall exceeding 30%, or roughly $242,000. Alberta and Quebec follow with gaps of 21% and 25% respectively. British Columbia households are underinsured by just over 16%.

The core reason is timing. Most life insurance policies are purchased once and then left unchanged — but household debt has not stood still.

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Why your existing policy may no longer be enough

“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 increased, consumer debt has risen, and average salaries are higher, all of which materially change how much protection a household actually needs.”

A study published in Insurance Business Magazine, which drew on provincial data from Statistics Canada, the Canada Mortgage and Housing Corporation (CMHC) and the Canadian Life and Health Insurance Association (CLHIA), found that mortgage debt now accounts for roughly three-quarters of total household debt. That concentration matters: unexpected income loss does not just threaten monthly cash flow — it puts housing, retirement savings and education plans directly at risk.

Life insurance is often treated as a “set-and-forget” product, Starov noted. Policies are bought at a single point in time, then left unchanged as households take on more debt, have more children, change jobs or see incomes rise significantly. The result is coverage that quietly falls behind real financial obligations, without any obvious warning.

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 debt trap: how rising balances created a hidden shortfall

The timing problem is most acute for households that entered the housing market in recent years. A family that bought a home in 2020 or 2021 likely purchased a policy — or updated an existing one — based on the debt levels, income and family circumstances of that moment. Several years later, none of those numbers may look the same.

Mortgage balances in Ontario, Alberta and British Columbia have grown substantially over that period. But because life insurance policies do not automatically adjust, the coverage gap widens each time a mortgage renewal increases the outstanding balance or a second property is purchased.

For younger families, the exposure is sharper still. Those who entered the market with large mortgages and thinner savings buffers have less financial slack if a primary income earner dies. Without adequate coverage, families in that position may be forced to sell assets, divert retirement savings or take on additional debt to cover day-to-day costs and existing obligations.

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Does your employer group plan cover the gap?

A common assumption among working Canadians is that employer-provided group life insurance fills the coverage gap. In most cases, it does not.

Group life benefits are typically set at one to two times base salary. For a household earning $100,000 per year, that means $100,000 to $200,000 in coverage — well below the national estimated need of $595,000 and far below the $794,000 threshold identified for Ontario families.

Group coverage also has practical limitations. It is tied to employment, meaning coverage ends when a job ends. Portability options exist, but converting group coverage to an individual policy typically happens at higher premiums and without the underwriting advantages available when a person is younger and healthier.

Employer benefits should be considered a starting point for life insurance planning, not the end of it.

What underinsurance actually costs — and who it falls on

The LIMRA data puts the human dimension of the coverage gap in sharp relief. Among Canadians who identified a life insurance shortfall, 4 in 10 said their families would face financial hardship within six months should the primary wage earner die unexpectedly. Another quarter said they did not know how long their families would remain financially stable.

The financial consequences compound quickly in households already stretched by higher interest rates and living costs. Without enough coverage, families may be forced to sell assets, divert savings or take on additional debt just to cover everyday expenses and existing obligations.

Awareness alone is not solving the problem. The LIMRA study found more than half of Canadians (53%) say they have not purchased the coverage they know they need because they believe it is too expensive. A third cited other financial priorities as the barrier.

How to close your coverage gap without necessarily paying more

Reviewing a life insurance policy does not always lead to higher premiums. Some experts suggest that many households can meaningfully reduce their exposure by restructuring existing coverage rather than purchasing a new policy.

For households that do need to increase coverage, the DIME method — Debt, Income, Mortgage, Education — offers a structured starting point for calculating real coverage needs. Adding up outstanding debts, the number of years of income replacement required, the remaining mortgage balance and estimated post-secondary education costs for dependents provides a more accurate target than a salary multiple alone.

Underwriting standards and pricing vary widely across Canadian insurers, which makes comparison shopping practical and worthwhile. Rate differences between providers can be significant, particularly for applicants under 40. Reviewing coverage and getting at least three quotes before making a decision gives households the clearest picture of their actual options.

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

• Use the DIME method (Debt, Income, Mortgage, Education) to calculate your real coverage need — not just a salary multiple
• Review your policy if you have bought a home, had a child or changed jobs since you last applied for coverage
• Check whether employer group life coverage (typically one to two times salary) accounts for the full gap — in most cases, it does not
• Compare your current coverage amount to your current mortgage balance, not the one you held when you bought the policy
• Get at least three term life quotes — pricing and underwriting vary significantly across Canadian insurers, particularly for applicants under 40
• If cost is a barrier, ask about reallocating coverage between partners or adjusting term lengths before purchasing additional coverage

But the math isn’t working in their favour. Between high interest rates and the Office of the Superintendent of Financial Institutions mortgage stress test, which requires qualifying at the contract rate plus 2%, your kids are hitting a wall.

Then comes the pitch. They don’t want your cash. They just need your signature. They want you to co-sign the mortgage so they can cross the finish line. It feels like a low-risk way to give them a leg up. But before you pick up a pen, you need to understand the true cost of this financial favour.

The soaring math of the bank of mom and dad

The desire to help is entirely understandable. According to a Bank of Canada analysis, the share of mortgages issued to first-time buyers that were co-signed by parents rose from about 4% in 2004 to approximately 11% by 2025.

The central bank found that in 74% of those cases, adult children would not have qualified for their homes at all without a parent signing on. On average, having a parent co-sign boosted a young buyer’s purchasing power by 72%, moving them from a $458,000 home to a $787,000 home.

“The practice is especially prevalent in Canada’s largest and most expensive housing markets, such as Toronto and Vancouver, where affordability pressures are most intense,” the Bank of Canada report stated. It added that co-signing “enables many adult children to take on larger mortgages than they could afford on their own.”

But that extra purchasing power is exactly where the hidden danger lies.

The hidden trap on your credit report

When you co-sign a mortgage in Canada, you aren’t acting as a character reference. You are becoming a joint borrower. The Government of Canada clarifies that as a joint borrower, you become “equally responsible for repaying the unpaid balance on the borrowed amount.” You can learn more about your legal rights on the Financial Consumer Agency of Canada website.

The moment you sign, the entire six- or seven-figure mortgage debt lands squarely on your credit bureau report with Equifax and TransUnion. It doesn’t matter if your child makes every single payment on time from their own bank account. To any future lender you encounter, that debt belongs to you.

If you want to downsize your own home, buy a vacation property or take out a line of credit to fund your retirement lifestyle, your borrowing capacity will be severely restricted. Your debt-to-income ratios will be calculated as if you are paying that entire child’s mortgage yourself.

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When the perfect storm hits home

Many parents assume their children are responsible enough to never miss a payment. But financial emergencies rarely happen out of malice. Job losses, illnesses and relationship breakdowns happen to the most reliable people.

The broader Canadian economic picture shows that financial stress is real. An Equifax Canada report revealed that mortgage delinquency balances surged 32% nationally year-over-year. In high-priced Ontario, delinquency balances jumped by 52%.

“This missed payment level highlights severe financial strain in high-priced markets,” Equifax Canada stated, noting that homeowners who miss mortgage payments carry an average of $54,000 in non-mortgage debt.

If your child hits a rough patch and misses a payment, the bank is not required to warn you first. The missed payment hits your credit score immediately. If they default entirely, the bank will turn to you for 100%t of the remaining balance, plus property taxes and insurance.

“Blowing a mortgage when you’re 25 is something you can recover from,” mortgage expert Clay Jarvis told Global News. “Paying off two mortgages when you’re in your 50s and trying to prepare for the next 30 years without a salary would scare me.”

How to protect your retirement if you say yes

If you choose to move forward and co-sign, you must treat it as a formal business transaction.

First, understand that getting off the mortgage is not automatic. Your child cannot simply remove your name when the term ends. They must entirely re-qualify for the mortgage on their own income and credit score. If interest rates remain high, you could be stuck on the title for decades.

To protect your financial health and your family dynamic, consider these essential guardrails:

• Draft a co-ownership agreement: Work with a real estate lawyer to create a legal document before closing. This contract should outline exactly who pays what, what happens if a payment is missed, and what triggers an automatic sale of the property.
• Mandate independent legal advice: You and your children should use different lawyers for the transaction to ensure your specific financial interests as a retiree are protected.
• Set up account transparency: Ensure you have direct online viewing access to the mortgage account. You should not have to ask your child if the mortgage was paid this month; you should be able to see it yourself.
• Build an emergency structural buffer: Require your child to keep three to six months of mortgage payments in a separate account that can be accessed if they face a sudden income disruption.

Helping your children build a life is a wonderful goal, but it should never come at the cost of your own financial independence. Saying no to a request to co-sign is not turning your back on your family; sometimes, it’s simply protecting the retirement you worked a lifetime to earn.

However, you don’t need any of that to reach the seven-figure club. You can chart a course to the $1 million milestone by focusing on three numbers:

1. Net worth
2. Savings rate
3. Rate of return

Here’s a closer look at each of these wealth-building blocks — and how Canadians can put them to work.

Net worth

You can only begin to make intentional progress if you know where you stand today. That’s why the most basic number to track is your net worth — what you own minus what you owe.

Calculating net worth sounds simple, but many Canadians never do it. The Financial Consumer Agency of Canada (FCAC) found that while 72.5% of Canadians showed strong financial knowledge in early 2025, only 56.7% reported good overall financial well-being. In other words, knowing what to do with your money and actually doing it are two different things.

According to Statistics Canada’s Survey of Financial Security, the median net worth for families headed by someone aged 35 to 44 was $409,300 in 2023, up from $270,800 in 2019. Net worth climbs with age and homeownership, since home equity is typically the single largest asset on the balance sheets for most Canadians.

Fortunately, you don’t need sophisticated tools or AI to track your net worth. A simple spreadsheet listing your assets — cash, a Tax-Free Savings Account (TFSA), a Registered Retirement Savings Plan (RRSP), non-registered investments and home equity — minus your debts — will do the job. Free compound interest calculators like the one from Get Smarter About Money or your own bank can also generate a quick benchmark against other Canadian households.

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Boosting your net worth through real estate

Knowing your net worth is only the first step. Growing it is what counts.

One of the most reliable ways to build long-term wealth is real estate — an asset that can generate income, appreciate over time and offer tax advantages. For most Canadians, that means home ownership. But you don’t need a mortgage or a downpayment to get some exposure to real estate.

Real Estate Investment Trusts (REITs) let Canadians invest in portfolios of income-producing properties — apartment buildings, industrial space, retail — without buying or managing a single property. Most Canadian REITs trade right on the Toronto Stock Exchange (TSX) and will typically pay monthly rather than quarterly distributions, unlike many U.S. REITs.

Because REIT distributions don’t qualify for the Canadian dividend tax credit, many investors prefer to hold them inside a TFSA or RRSP, where the income grows tax-free or tax-deferred rather than being taxed as regular income each year.

If you have more capital and want to invest directly in a single property or a private real estate fund, several licensed Canadian platforms let investors buy into individual properties for as little as $100. These platforms operate through a registered Exempt Market Dealer (EMD), with your money held in trust at a Canadian bank. As with any private investment, make sure you understand the fees, how easily you can access your money and the track record of whoever is managing the fund before you commit.

Whichever route you choose, having a professional review your full financial picture can make a real difference. Only about 43% of Canadians sought advice from a financial advisor in the past year, according to a joint study by Edward Jones and Gallup — but among those who did, 90% said they felt confident managing their finances, compared with 70% of those who didn’t seek advice. That number rises sharply with wealth: Roughly 68% of high-net-worth Canadians work with a financial planner, compared with about 23% of everyday investors, according to a 2025 industry survey.

A Certified Financial Planner (CFP) or Qualified Associate Financial Planner (QAFP) can help align your real estate, tax and retirement strategy under one plan. FP Canada maintains a public directory of licensed planners, which is a more reliable starting point than a random online referral.

Savings rate

If you’re trying to reach your number, tracking how much you or your family save every year is essential. Raise your savings rate high enough to meet your goal, and you shorten the whole journey.

To raise this figure, keep a close eye on expenses that quietly climb every year. Two of the biggest culprits for Canadian households are home and auto insurance.

Home and mortgage insurance costs rose 4.6% year-over-year as of May 2026, according to Statistics Canada’s Consumer Price Index (CPI) as cited by Ratehub — well above general inflation. The Insurance Bureau of Canada reports that severe weather-related insured losses topped $2.4 billion in 2025, on the heels of a record $9.4-billion year in 2024, and insurers continue to pass much of that cost on to policyholders by raising their premiums.

Auto insurance hasn’t been any kinder to household budgets, with premiums rising 6% year-over-year in June, mainly due to inflationary concerns, according to Ratehub. However, historical trends in auto theft have also played a part in elevated rates. Over a 10-year period beginning in 2015, claim counts spiked 38%, while the dollar value of theft claims surged 169%, according to the Insurance Bureau of Canada. This has resulted in a plethora of carriers being more cautious when underwriting high‑theft vehicles and introducing surcharges or minimum deductibles, with some requiring additional anti‑theft measures — such as tracking devices — before even offering comprehensive coverage.

Shopping around at renewal, bundling home and auto policies, and raising your deductible — only if you can comfortably cover it — are reliable ways to claw back some of that increase and redirect the difference into savings.

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Rate of return

The final ingredient in the wealth-building recipe is the rate of return on your savings.

Where you place your money matters as much as how much you save. Stack $20,000 a year in a low-interest chequing account, and it will take decades to reach millionaire status — and inflation will have eaten away much of that dollar’s value by the time you get there. Investing through a TFSA, RRSP or non-registered account, rather than letting cash sit idle, gets you there faster.

Some Canadians also look to alternative assets like gold to diversify. Gold has climbed sharply since 2023 amid economic uncertainty, and J.P. Morgan Global Research forecasts prices could push toward US$6,000 an ounce by the end of 2026. The World Gold Council generally finds that a strategic allocation of roughly 2% to 10% of a one’s holdings — with 5% often cited as a reasonable starting point — can improve a portfolio’s risk-adjusted returns without making gold the primary holding.

Canadians can gain exposure through gold exchange-traded funds (ETFs) that trade on the TSX, held inside a TFSA or RRSP so gains grow tax-free or tax-deferred. Physical bullion, sold through the Royal Canadian Mint or select banks, is another option, though it comes with storage and insurance costs that ETFs avoid.

As with real estate, a licensed financial advisor can help you decide how much — if any — of your portfolio belongs in gold, based on your goals, timeline and risk tolerance.

In summary: Know your net worth, then grow it with the right accounts and the right team behind you.

Key takeaways for Canadians

• Calculate your net worth today. Free calculators from Get Smarter About Money or your bank make it a five-minute task.
• Compare home and auto insurance at every renewal. A short call or online comparison can offset years of premium increases.
• Prioritize your TFSA and RRSP contribution room. Do this before you invest in an unregistered account, since both accounts shelter growth from tax.
• Talk to a licensed CFP or QAFP. Get professional advice before you add alternative assets like gold or private real estate to your portfolio.

For Canada’s hockey equipment industry, anchored by national brands Bauer, CCM and Sherwood, the timing is brutal: Manufacturers are placing their orders for the 2026-27 season right now.

Hockey equipment wasn’t the only item affected. Products facing the new 50% duty are wide-ranging, spanning dairy products, alcohol and alcohol-related products, and some food products. The tariffs also cover construction materials, clothing, furniture, technology and car parts.

President Trump’s latest proclamations were for tariffs under Section 338 of the Tariff Act of 1930, an authority a senior White House official said has not been used this way before. Unlike some earlier U.S. tariffs on Canada, these apply to all covered goods regardless of whether they would otherwise qualify for duty-free treatment under the Canada-United States-Mexico Agreement (CUSMA).

Three of Canada’s best-known hockey brands sit in the middle of this, though each carries different exposure depending on where — and to whom — they sell.

Here is what is actually in the order, how Bauer, CCM and Sherwood could be affected, and what Canadian hockey families and investors should watch over the next 30 days.

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What is in the new tariff order

Each proclamation targets a different set of Canadian goods, together covering products ranging from wine and dairy to cement, construction materials, clothing, furniture, technology and car parts -- plus hockey sticks, named specifically as an example. The duties will not apply to energy, potash, goods already covered under separate Section 232 tariffs, or certain other products such as fish or critical minerals.

The White House says the action responds to Canadian measures it considers discriminatory toward American autos, alcohol and dairy, including provincial restrictions on U.S. liquor sales and Canada’s supply-managed dairy system. Prime Minister Mark Carney called the move a unilateral step Canada has already matched with its own countermeasures, and said Ottawa remains ready to negotiate.

Why Bauer, CCM and Sherwood are not equally exposed

Bauer’s global head office sits in Exeter, New Hampshire, but its core skate and protective-equipment manufacturing is concentrated at plants in Blainville and Saint-Jerome, Quebec, with custom sticks and some apparel produced in Asia. That means goods moving from Bauer’s Quebec facilities into the U.S. market could face the new duty, even though its corporate parent is American.

CCM is headquartered in Montreal and owned by Altor Equity Partners through Sport Maska Inc. Its sticks, skates and protective gear are stocked widely by major U.S. retailers, including Dick’s Sporting Goods and Pure Hockey, both of which list extensive CCM product lines on their sites. A 50% duty on top of existing wholesale pricing would land directly on that cross-border retail relationship.

Sherwood, meanwhile, is a brand owned by Canadian Tire Corporation (TSX: CTC.A), with roots in a Sherbrooke, Quebec, factory dating to 1949. Its U.S. retail footprint is smaller than Bauer’s or CCM’s, but the tariff still touches the supply chain of a publicly traded Canadian company — worth watching for anyone holding Canadian Tire (TSX: CTC.A) shares.

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Will Canadian hockey families feel it too?

The tariff applies to goods entering the United States, so a stick or pair of skates bought at a Canadian rink shop is not directly taxed by this measure. But manufacturers facing a sudden cost increase on their U.S. business have, in the past, spread that cost across global price lists rather than absorb it in one market. During an earlier 2025 tariff scare, Graeme Roustan of Roustan Hockey — which sells more than 100,000 sticks a year into the U.S. — said uncertainty alone was already causing American buyers to delay or cancel bulk orders.

For now, the 30-day runway before the tariff takes effect is being treated by both governments as a negotiating window. The Canadian Chamber of Commerce called the move a regrettable escalation but urged both sides to use the time productively, while Ontario Premier Doug Ford said Canada should respond tariff for tariff, dollar for dollar, if the measure proceeds.

What to watch over the next 30 days

The most useful thing Canadian hockey families and investors can do right now is watch, not react. There is no confirmed price increase yet on hockey gear sold in Canada, and the 30-day window gives Ottawa and Washington room to reach a deal, extend the deadline or narrow the list of covered goods. What is worth tracking are supplier notices or price-sheet changes from Bauer or CCM ahead of the fall ordering season, and any tariff-exposure language Canadian Tire includes in its next investor update given its ownership of Sherwood. A 50% tariff on paper does not automatically mean a 50% price jump at the till, but it is the kind of cost shock that tends to surface somewhere in the supply chain before the season is out.

For investors who hold Canadian Tire (TSX: CTC.A) shares, watch its next investor update for tariff-exposure language tied to Sherwood and adjust your position according to your investment plan.

Take the hypothetical case of Lauren, who’s concerned that her 75-year-old father may be slowly costing himself a fortune with the way he handles his money in retirement.

He has spent decades building up his nest egg, yet refuses to invest any of it. Instead, he keeps most of his money in a chequing account and the rest in cash in a lockbox under his bed. He doesn’t trust financial institutions or the stock market, and he’s convinced that investing could leave him with nothing.

But Lauren worries the opposite is happening. She’s heard that money sitting in cash gradually loses purchasing power over time, but she doesn’t feel confident enough to explain why. She’s not sure whether it’s her place to try to change her father’s mind at all.

It’s a situation some adult children will eventually face. They want to help ageing parents make sound financial decisions, but without overstepping or dismissing concerns that have been shaped by decades of life experience.

Why playing it safe with money can come with a cost

Lauren’s concern is valid, because money sitting in a chequing account can slowly lose its buying power. The balance might look exactly the same every year, but if those dollars aren’t earning much interest, they will not stretch as far as they once did, thanks to inflation.

The Consumer Price Index (CPI) shows Canada’s annual inflation rate climbed to 2.8% in June 2026. While that figure declined from 3.2% in May, it’s still above the Bank of Canada’s inflation control target of 2%, which it aims to hold within a range of 1% to 3% over the medium term.

For example, $100,000 sitting entirely in cash for 10 years would keep only somewhere between roughly $73,000 and $82,000 of its purchasing power, depending on whether inflation runs closer to the Bank of Canada’s 2% target or its recent pace. The account balance would still show $100,000 — but that money would buy less.

Still, it’s easy to understand why Lauren’s father feels the way he does. At 75, after spending decades saving, he may see investing as a risk he doesn’t need to take. Watching an account balance rise and fall with the market can be uncomfortable, especially when that money represents years of hard work.

There’s nothing wrong with keeping some cash on hand. Many retirees like having money they can quickly access for bills, home repairs, medical costs or other unexpected expenses. The bigger question is whether every dollar needs to stay there.

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Safer options than a lockbox under the bed

For Lauren’s father, the answer probably isn’t putting all of his savings into stocks. Luckily, there are options that sit somewhere between a chequing account and the stock market, including High-Interest Savings Accounts (HISAs), Guaranteed Investment Certificates (GICs) and Treasury bills.

As of mid-2026, HISA rates in Canada range from about 1.5% to 4.75%, depending on any promotions available. Meanwhile, GIC rates for terms of 1 to 5 years range from about 2.25% to 3.85%, depending on the institution and any promotional offers. These options mean his money will earn something while still giving him a level of security.

It’s also worth noting that money held at a bank is protected, contrary to what Lauren’s father assumes. Deposits are insured by the Canada Deposit Insurance Corporation (CDIC) for up to $100,000 per insured category, per institution. This includes chequing accounts, savings accounts and GICs at member institutions. His “trust” issue may be about something else entirely.

The cash hidden in the lockbox is a separate issue

Unlike money held at a financial institution, cash kept at home can be stolen or destroyed, and there could be no way to recover it.

It can also create problems in the future if someone needs to help manage his finances or settle his estate. If he keeps cash at home, he should make sure someone he relies on knows it exists and where important records are kept — or else it can become a headache for family members down the road.

Lauren could also be looking at her father’s decision the wrong way. He says he doesn’t trust banks, but he already keeps the majority of his money in one. What he may actually be worried about is losing money in investments.

That’s an important difference. A conversation about moving some money into a higher-interest account or exploring conservative options could be prudent given his current reservations.

The first question Lauren will want to ask is what, exactly, is he afraid will happen? Is he worried about a market crash? Losing access to his money? Not understanding how investments work? Once she knows the reasons behind his hesitation, she could have a better chance of helping him find an approach he’s comfortable with.

Getting professional, unbiased help

If Lauren brings this up with her father, the conversation probably shouldn’t start with investments.

Telling someone who has spent decades avoiding the stock market that they need to invest more is unlikely to change their mind. A better place to start is understanding what’s making him uncomfortable in the first place.

Maybe he watched his savings drop during a past market downturn. Maybe he’s worried about scams. Or maybe he simply likes knowing that his money is sitting somewhere he can access whenever he wants.

Once Lauren understands the “why” behind her father’s concerns, the conversation might become less about convincing him to invest and more about finding an approach that he feels confident in. He could be more open to moving a portion of his savings into a place where he can earn something while still keeping it safe and accessible.

It would also help if Lauren’s father took a holistic look at his finances rather than focusing only on where his money is sitting. How much does he need for monthly expenses? How much is set aside for emergencies? A clear picture of his situation might make the decision feel less like a gamble and more like a choice.

A fee-only financial planner the client pays directly, rather than through commissions on products they sell, could help him review his options without feeling pressured into a particular investment. Looking for the Certified Financial Planner (CFP) designation is one way to confirm a planner has received the required education, while also meeting both examination and ethics standards. For someone who’s cautious with money, having an outside person explain the tradeoffs may feel very different from a family member telling him what he “should” do.

That doesn’t mean he needs to move every dollar, either. Many retirees keep cash available for regular expenses and unexpected costs. The goal is simply to make sure fear isn’t causing all of his savings to sit on the sidelines for years.

Lauren’s biggest hurdle will be helping her father understand that protecting his money and making it work a little harder don’t have to be opposite goals.

What Canadians can learn from this situation

• Ask what’s behind the fear before suggesting a fix. A parent who avoids banks may really be worried about losing money in the market, not the bank itself
• Check whether the accounts are CDIC-insured. Deposits at member institutions are protected up to $100,000 per category, which can ease safety concerns
• Look at HISAs, GICs and Treasury bills before jumping to stocks. These offer more growth potential than cash with far less risk than the stock market
• Know where cash and important documents are kept. Make sure someone trusted at home knows where to access a family member’s money and paperwork
• Talk about a power of attorney and an up-to-date will. These documents make it far easier for family members to step in and help later
• Consider a fee-only or advice-only CFP. A professional can give you a neutral second opinion, especially when a family conversation on money isn’t hitting home

A new RBC poll suggests that’s a worry shared by many households. More than half of Canadians (52%) said they don’t think they’ve saved enough for an emergency, while 42% said a single major unplanned expense could throw their finances off course. One-third (33%) said even a smaller surprise bill would be difficult to absorb.

“Financial stress in any form can affect how secure and in control people feel,” said Erica Nielsen, group head of RBC Personal Banking, in a statement. “We want to help Canadians build the habit of setting some money aside regularly, even a small amount, so that when expenses arise without warning, they have the financial breathing room to handle them.”

Why building an emergency fund feels so difficult

The biggest obstacle is one that will sound familiar to many Canadians: the cost of everyday life.

More than three-quarters of respondents (76%) said the high cost of living has made it harder to build or maintain emergency savings. More than half (55%) said they struggle to save for emergencies while also working toward other financial goals, and 45% said their finances are simply stretched too thin to make meaningful progress.

The survey also found that nearly one in three Canadians (32%) don’t have an emergency fund at all. That rises to 38% among households earning less than $100,000 a year.

When surprise costs do come up, many people rely on whatever resources they have available. Four in ten respondents (41%) said they would use savings, 35% said they would turn to a credit card and 15% would borrow from family or friends.

Car repairs topped the list of emergency expenses Canadians worry about most, followed by major home repairs and medical or health-related costs.

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How to start an emergency fund

An emergency fund isn’t built overnight. In fact, the poll suggests many Canadians who have one are growing it gradually through small, consistent contributions rather than large lump sums. Nearly half (49%) of respondents with an emergency fund said they add to it at least once a month.

Financial experts generally recommend setting aside enough money to cover several months of essential living expenses, but that goal can take time. The important first step is simply getting into the habit of saving, even if it’s only a small amount each month.

“It’s encouraging to see how many Canadians are adopting two of the most effective ways to build their emergency fund: by using a dedicated savings account and through consistent contributions,” Nielsen noted.

“Keeping your emergency fund in a separate account makes it less likely you’ll spend that money until you truly need it. And by setting up pre-authorized contributions — from your paycheque, for example — your emergency fund can grow steadily in the background while you focus on other priorities,” she added.

Finally, remember that an emergency fund is there to be used. If an unforeseen expense means you need to draw on those savings, rebuilding the fund gradually afterward can be more realistic than trying to replace it all at once.

For many households, setting aside money for the future is far from easy when today’s bills already demand so much. But even small, regular contributions can make the next surprise bill feel a little more manageable — and offer some valuable peace of mind along the way.

But what happens if you’re expecting an inheritance and another family member gets it changed behind your back?

In this hypothetical situation, Tom was promised a $400,000 inheritance from his grandmother. Instead, Tom’s father convinced her that her estate should only go to her children — not her grandchildren. Grandma updated her will, and Tom’s expected windfall was snuffed out in tandem.

Does Tom have any way to get his inheritance back? Should he push his grandmother to reverse the change, or is there a better path forward? Here’s what Canadian estate law says about situations like this.

Tom can talk to his grandmother, but he needs to tread carefully

Tom’s most logical first move is a conversation with his grandmother. But how he approaches it is of utmost importance — and he needs to accept he may not get the outcome he wants.

Under Canadian law, a mentally capable adult has the right to leave their estate to anyone they choose, even if that decision disappoints the people who expected to inherit. This is known as testamentary freedom, and it’s one of the foundations of estate law in every Canadian province and territory.

That means pressuring his grandmother to reverse the change carries real risk. If Tom pushes too hard, he could end up looking like he’s doing exactly what he accused his father of doing.

A better approach, according to Canadian estate lawyers, is encouraging Grandma to meet with her own independent lawyer — without any family members present. A good estate lawyer will assess her mental capacity directly and can bring in a doctor or social worker if there’s any doubt. That lawyer will also plainly ask her why she changed her will and document what she says — this creates a record that protects her true wishes either way.

If Grandma genuinely wants her children — not her grandchildren — to inherit, that record backs her up. If she was pressured into it, an experienced lawyer will often pick up on it.

This approach may not get the will changed back. But it does give Grandma the chance to make her own decision about her legacy — which, in the end, is probably what Tom really wants.

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Tom should figure out whether Grandma acted of her own free will

Whether Tom confronts his grandmother directly or not, the real question is why she made the change.

Canadian courts draw a clear line between a person simply changing their mind and a person being coerced into a decision they didn’t actually want to make. The Supreme Court of Canada set the modern Canadian test for undue influence in Vout v. Hay, ruling that anyone challenging a will must show — on a balance of probabilities — that the pressure was strong enough to override the person’s own free will. Simply making a persuasive argument doesn’t meet that bar.

In other words, if Grandma changed the will because she agreed with her son’s reasoning, that’s not undue influence — even if Tom isn’t particularly fond of the outcome. But if she was pressured, isolated or manipulated into a decision she wouldn’t otherwise make, that’s a different story, and could be grounds to challenge the will in the future.

According to Canadian estate litigation lawyers, warning signs to watch for include a grandparent who:

• Seems confused, fearful or isolated from the rest of the family
• Has become financially or emotionally dependent on one relative
• Can’t explain, in their own words, why they made the change
• Suddenly replaces the beneficiary with someone in a position of trust

If any of those signs are present, the priority shifts from recovering an inheritance to protecting an older adult from possible financial abuse — keeping evidence in case a legal challenge materializes is also necessary.

The courts can help, but usually only after death

If Tom’s grandmother was truly pressured into changing her will, he may eventually be able to ask a court to step in — however, in almost every case, that must wait until after she passes away.

After Grandma’s death, if her will goes into probate, Tom — as someone who would have inherited under the earlier will — would generally have legal standing to file a formal objection. He can also ask the court to throw out the new will on the grounds of undue influence or lack of testamentary capacity. But he’d need to move quickly: the time limits to challenge a will vary by province, and in most cases run about two years from the point someone knew, or reasonably should have known, they had a claim.

Estate litigation lawyers also warn that challenging a will is expensive. Canadian courts can order the losing party to pay a portion of the other side’s legal costs on top of their own — a real risk that can eat through whatever is left of an estate before anyone sees a dollar of it. That’s one more reason getting Grandma in front of her own independent lawyer now, while she’s able to speak for herself, is often the most prudent investment.

What Canadians can learn from Tom’s situation

Family disputes over an inheritance are rarely only about money. They’re about fairness, love and who gets the final say over a lifetime of work. Here are a few Canadian-specific steps that can help mitigate this tough scenario:

• Remember testamentary freedom is strong in Canada. A relative is generally allowed to change a will in a way you disagree with, even late in life, as long as they’re mentally capable and acting on their own. Disagreeing with the outcome isn’t, by itself, grounds to challenge it.
• If you suspect pressure or manipulation, encourage a relative to seek advice — don’t demand it. Suggest they meet alone with an independent lawyer, ideally one they didn’t find through the person you suspect of influencing them.
• Watch for the real warning signs. Isolation from family, sudden dependency on one relative, fear, confusion and an inability to explain a change in their own words are what lawyers look for, not just an outcome you don’t like.
• Know the deadline. Because wills and estates fall under provincial and territorial law, the timeline to challenge a will — and the process for doing so — differs across Canada. Talk to an estate lawyer licensed in your area as soon as concerns come up.
• Keep inherited assets separate. In most provinces, money or property inherited during a marriage is excluded from the assets divided if that union later ends — but typically only if you keep it separate from joint accounts or shared property.
• Get a lawyer before emotions take over. An estate litigation consultation usually costs far less than a drawn-out will challenge — and it will tell you honestly whether you have a case worth pursuing.

A new CIBC poll found that nearly two-thirds of Canadians (65%) are prioritizing saving over spending, while almost eight in 10 (79%) say rising everyday costs have changed the way they plan their summer. Even so, most Canadians still expect to enjoy the season — just with a little more planning and a little less impulse spending.

“Summer doesn’t have to mean overspending,” said Carissa Lucreziano, vice-president of financial planning and advice at CIBC, in a statement. “Canadians are proving that with thoughtful planning, it’s possible to balance fun and financial responsibility.”

Canadians are making room for fun without blowing the budget

The survey suggests many households aren’t cancelling their summer plans — they’re adjusting them.

Nearly seven in 10 Canadians (69%) said they feel financially prepared for the months ahead, while 62% said they won’t let economic uncertainty stop them from enjoying summer altogether.

Instead, many are looking for ways to make their money stretch further. Almost half (46%) said they’ll cut back on day-to-day spending to offset higher living costs, while 65% said saving money is taking priority over additional spending.

Travel is still on the agenda, but closer to home

Travel remains part of many Canadians’ summer plans, although affordability is playing a much bigger role in where people go.

Four in 10 Canadians (39%) said they expect to travel this summer. Of those, nearly seven in 10 (69%) plan to stay within Canada or close to home rather than take more expensive international trips.

At the same time, about one-third (32%) said rising costs have made them less likely to travel at all.

The results echo a broader trend seen in recent travel surveys, with many people choosing shorter trips, road trips or domestic destinations as a way to keep vacation costs under control.

Experiences over ‘stuff’

Even as Canadians tighten their budgets, many aren’t giving up the experiences that make summer memorable.

Two-thirds of respondents (66%) said they’d rather spend money on experiences than physical items, suggesting that dinners with friends, concerts, camping trips or weekends away remain priorities despite ongoing cost pressures.

“What stands out in this year’s findings is the combination of caution and resilience”, noted CIBC’s Lucreziano. “Canadians are adapting, prioritizing what matters most to them, and looking for ways to enjoy the season without losing sight of their longer-term financial goals.”

Rather than abandoning discretionary spending altogether, many households appear to be making trade-offs and cutting back in some areas so they can still afford the activities that matter most.

The survey suggests that Canadians are adapting, as higher prices continue to influence everyday decisions. It seems that for many households, the goal is to spend more deliberately, making room for both enjoyment today and those longer-term financial goals.

According to Reuters, employees at Samsung Electronics and SK Hynix — South Korea’s two dominant semiconductor companies — are now being ranked with the country’s most elite professionals for the first time. The reason: AI-driven bonuses are redefining what financial success looks like in one of the world’s most credential-conscious societies.

“If SK Hynix and Samsung Electronics employees used to be classified as B+ or A-grade candidates, today they are closer to A+,” Son Dong-gyu, CEO of matchmaking agency Bien Aller, told Reuters. “Traditionally, A+ candidates would include doctors, lawyers, other highly paid professionals or people from exceptionally wealthy families.”

The math behind the ranking

The numbers explain why. Samsung recently reached a pay deal with its semiconductor union that includes a 50% annual cash bonus on top of base salary, plus additional bonuses in company stock tied to how profitable the company is.

In a strong year, total bonus eligibility under the new structure could reach US$416,000 (~C$589,400) — a staggering figure in a country where average annual wages sit around US$29,758 (~C$42,180), according to South Korean government data cited by Reuters.

SK Hynix has gone even further. Its bonuses can be paid in either shares or cash, with no conditions tied to company profits — making its pay structure arguably more attractive than Samsung’s.

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The marriage market context

To understand why this matters beyond the paycheque, it helps to understand how South Korea’s marriage market works. Professional matchmaking there turns social credentials — education, job title, income, housing prospects and family background — into ranked tiers of desirability. In effect, it operates like a structured ranking system for social status.

“When we introduce someone working at SK Hynix, the reaction is often ‘Wow, people like that are here too?’” matchmaking consultant Lee Sung-mi from agency SUNOO told Reuters.

Against that backdrop, the sudden wave of semiconductor wealth is directly reshuffling who ranks where — overturning a hierarchy that, for decades, put medicine and law at the top.

What Canada’s own AI boom could mean for your paycheque

South Korea’s story is extreme in how visible it is. But the underlying economics — artificial intelligence (AI) skills commanding a real, measurable pay boost — is playing out in Canadian workplaces too.

According to PwC’s 2026 Global AI Jobs Barometer, which looked at more than 1 billion job ads across six continents, workers with AI skills now earn 62% more than peers in the same roles without those skills — up from 57% only two years ago. That gap varies widely by industry, ranging from 16% in government work to as high as 118% in consumer markets.

Canada doesn't yet have an equivalent skills-premium figure, but a related trend is showing up in the data. According to TD Economics, wages for young Canadian workers aged 15 to 24 in AI-complementing industries have grown faster, on average, than wages in industries with less AI exposure. However, that same wage gap hasn’t yet shown up for workers aged 25 to 54. Overall economic conditions, not AI alone, are still expected to be the main driver of Canadian wage growth going forward.

For context, the average Canadian salary sits at roughly C$77,140 a year, based on Statistics Canada’s annual employee wages by industry table. A pay boost anywhere near the range PwC describes would put workers with real AI skills well ahead of that national average.

How long can it last?

The bigger question is whether the momentum holds. Deloitte's 2026 semiconductor industry outlook notes that memory chips in particular go through well-known boom-and-bust cycles, and manufacturers are keeping capital spending relatively modest rather than aggressively expanding capacity. The report's larger concern isn't overcapacity — it's whether AI demand begins to stall, whether through data centres being cancelled, power availability constraining buildouts, efficiency gains reducing how many chips are actually needed, or new competition driving prices down.

For now, the matchmakers are optimistic. “Many people expect the semiconductor industry to remain in a boom cycle for at least the next two to three years,” Lee Sung-mi told Reuters. Whether that’s long enough to permanently knock doctors and lawyers off the top of the country’s most-eligible list — or whether this is simply a well-paid detour — remains to be seen.

What Canadians can take from this

South Korea's matchmakers may be the most visible sign of this shift, but the underlying lesson travels well beyond the marriage market. The takeaway for Canadians isn't to chase a semiconductor-sized bonus or a higher matchmaking grade to feel financially secure. Rather, it’s that skills tied to fast-moving technology are commanding a real pay boost. However, that surge won’t wait for anyone to catch up on their own schedule. Here are a few next steps worth considering:

• Take stock of where your job sits in the AI landscape. Ask whether your role allows AI to help you do your work better, or whether it could start replacing routine parts of your job. Knowing which camp you’re in is the first step to doing something about it.
• Look into funded upskilling options before paying out of pocket. The federal government’s Future Ready Talent initiative and the Sectoral Workforce Solutions Program both fund AI upskilling for workers in eligible industries. Upskill Canada connects workers with additional funded programs.
• If a raise or bonus does come through, don’t spend all of it. Topping up a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) first can turn a one-time pay bump into a lasting head start — especially since 22% of Canadians aged 50 and older report having saved $5,000 or less for retirement, according to a National Institute on Ageing survey.
• Remember that booms are cyclical. South Korea’s chip-fuelled matchmaking surge won’t last forever — and neither will any other AI-driven pay spike. Building a habit of saving through the good years is what makes the leaner years manageable.

Many homeowners assume a standard policy will handle a burst pipe or a flooded basement. And often, it does. However, insurers are responding to the surge in claims by tightening deductibles on water-related losses. The result is that the gap between what people expect and what they end up paying out of pocket is growing.

Here’s what changed, why it’s happening now, and how to check your own policy before the next thaw or storm puts it to the test.

Why water became a major threat to Canadian homes

For years, fire and theft dominated the home insurance conversation. But water damage from burst pipes and leaking appliances to sewer back-up and overland flooding is now the single biggest driver of claims industry-wide.

The shift has been driven by several factors. Canada’s aging infrastructure means more water mains and residential plumbing systems are reaching the end of their expected lifespan, according to RBC Insurance. At the same time, roughly 1.5 million Canadian households, about 10% of the total, are located in areas with a high risk of flooding. Add in more frequent heavy rainfall and rapid spring thaws, and insurers are paying out water damage claims at a pace that’s changing how they price and structure coverage.

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Why ‘my policy covers water damage’ isn’t enough

A standard home insurance policy generally covers sudden and accidental water damage that originates inside your home, such as a burst pipe or an overflowing washing machine.

But when water enters from outside, it usually isn’t covered. Sewer back-up and overland water — the overflow of a nearby lake or river, or surface water from heavy rain — are optional endorsements that need to be added separately, and not every home qualifies to buy them.

The deductible catch insurers are adding

Even with coverage in place, the amount a homeowner pays before insurance kicks in is rising. Insurance brokers report that Aviva Canada introduced a mandatory minimum deductible of $2,500 for water-related losses in 2024, applying to claims where water is the primary cause. I should point out that this figure comes from brokerage reporting rather than from Aviva’s own public policy pages, so you should confirm current deductible minimums directly with your broker or in your policy document.

Using a $2,500 deductible as an example, a homeowner facing a $6,000 basement flood claim under a policy with a $2,500 minimum water deductible would recover $3,500, a much bigger hit than the $500 or $1,000 deductible many Canadians assume applies to every claim on their policy.

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Who’s most exposed, and what it costs to close the gap

Homeowners in older houses, in basements without a backwater valve, and in properties in flood-prone postal codes carry the highest risk. For smaller repairs, a higher deductible may mean it isn’t worth filing a claim at all, since the payout could be reduced to a few hundred dollars after the deductible is applied.

The annual cost of adding sewer backup and overland water endorsements is typically modest, although premiums can vary by province and flood risk, so you’ll want to do your research before you buy. In some cases, installing a sump pump with battery backup or a backwater valve may also qualify you for insurance discounts and reduce the likelihood of water damage in the first place.

What to do now

Before the next storm hits, take time to ensure that your policy reflects the water risks your home actually faces. Take a few minutes to review your full policy wording, then ask your broker these questions:

• What deductible applies specifically to water damage claims?
• Are sewer backup and overland water included, or do they require separate endorsements?
• What is the maximum coverage limit for a water damage claim?
• Would installing a sump pump with battery backup or a backwater valve qualify me for premium discounts?

With water damage now driving more claims than ever, and insurers responding with higher deductibles and more specialized coverage, it’s worth confirming before you need to file a claim. Finding out today could save you thousands.

On an earnings call on July 10, Delta Air Lines CEO Ed Bastian told investors that today’s higher fares aren’t a temporary reaction to fuel costs, and won’t fall just because oil prices calm down. Instead, he said, they reflect a structural reset in how airlines price their tickets.

That’s a notable admission from the head of one of the world’s largest airlines. But for Canadian travellers, the more useful question isn’t what’s happening at a U.S. carrier — it’s whether the same disconnect between fuel costs and fares is playing out here. The short answer is yes, and the numbers back it up.

What Bastian told investors

Delta booked a record revenue of US$17.7 billion for the quarter, up 14%, and a pre-tax profit of US$1.4 billion (~C$2 billion) — even while absorbing a US$4.4 billion (~C$6.2 billion) fuel bill. That figure is the company’s highest quarterly fuel expense on record and 77% above the same quarter a year earlier.

Bastian’s case to investors was that the industry has learned to pass fuel costs through to fares quickly, and that pattern doesn’t reverse because fuel prices drop. The goal now, he said, is finding ways to secure higher revenues, not higher market share.

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Why the same disconnect shows up in Canada

Canadian travellers don’t need to look south of the border for proof that fuel costs and fares don’t move in tandem. Statistics Canada’s most recent airfare data recorded a 7.4% year-over-year rebound in May, after falling 1.7% in April, as airlines experience higher operational costs.

The trigger was the war in Iran, which caused jet fuel prices to spike more than double year-over-year, even after a fragile ceasefire took hold, according to the International Air Transport Association (IATA).

Air Canada raised fares, tacked on fuel surcharges of C$25 to C$60 a ticket on some routes, and suspended a half-dozen others that had become unprofitable at current fuel prices. On the airline’s first-quarter earnings call, chief commercial officer Mark Galardo said Air Canada was one of the first airlines to implement fare increases as the crisis unfolded.

In the midst of all this economic shock, Air Canada posted record first-quarter operating revenue of C$5.8 billion, up 11% year-over-year, and net income of C$48 million, reversing a loss from one year earlier. Even so, the airline’s own guidance assumes it will offset only 50% to 60% of its added fuel costs through fare and fee increases.

What this means for your money

If you’re waiting for a cheaper barrel of oil to show up as a lower-cost seat, both the U.S. and Canadian evidence says don’t hold your breath. Fares may still fall, but typically when travel demand drops, not because fuel costs ease.

A TD Bank survey found that about 35% of respondents plan to spend less this summer while 44% say spikes in fuel costs are forcing them to cut back on summer travel. That’s almost half of Canadians changing their plans over this fuel cost dynamic.

Lessons for Canadian travellers

• Don’t wait for fuel headlines. A cheaper barrel of oil doesn’t reliably translate into a cheaper fare, so watch airfare data itself, not oil prices.
• Book flexible fares when you can. A changeable main-cabin fare can save you more over the life of a booking than chasing a fuel-price dip that may never reach your ticket.
• Fly off-peak. Shoulder-season routes and early-morning or late-night departures are still where to find the real discounts.
• Track Statistics Canada’s monthly airfare CPI figures if you want a genuine signal on where fares are headed, rather than guessing from oil-price headlines.

Bastian’s comments were aimed at Delta’s investors, not its passengers. But the takeaway holds on both sides of the border: This round of higher fares looks like it’s here to stay.

It’s a scenario that many Canadians know too well. A sudden car repair or an urgent home maintenance issue pops up, resulting in a bill that cannot be cleared by the next statement due date. For someone who has spent years carefully building a perfect credit profile, seeing a balance linger can feel like watching a major milestone slip away. Fortunately for this Reddit user, carrying debt is completely different from missing payments altogether.

The difference between carrying a balance and missing a payment

Carrying a balance on a credit card means you’re paying less than the total statement amount, but you are still making at least the minimum required payment by the due date. Missing a payment means failing to pay that minimum required amount.

Your payment history is the single most important factor in calculating your credit score, making up roughly 35% of the total equation. If you make the minimum payment every month, your account remains in good standing. Your lender will continue to report your status as current, and your history of on-time payments stays intact.

The consequences of failing to meet that minimum are severe. According to Equifax Canada, "negative information such as late or missed payments, accounts that have been sent to collection agencies, or a bankruptcy stays on credit reports for approximately six years." A single missed payment can drop an excellent score significantly, potentially impacting your ability to get loans, mortgages, or a lease.

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What happens when you carry debt

While making the minimum payment protects your history from a severe delinquency penalty, carrying a balance under $1,000 for four months will still affect your score through another major factor called credit utilization.

Credit utilization is the percentage of your available credit that you are currently using. If your total credit limit across your cards is high, carrying a balance of less than $1,000 will keep your utilization ratio relatively low, meaning any dip in your score will likely be minor.

The best news for this short-term dilemma is that utilization has no memory. Unlike missed payments that linger for years, utilization changes month by month. The moment the balance is paid in full, your utilization resets to zero, and your score will begin to recover almost immediately.

Looking ahead to a June 2027 landlord check

Landlords request credit reports to see if a prospective tenant is a reliable borrower who pays bills on time. They look for patterns of financial stability rather than minor, temporary fluctuations.

By June 2027, the short-term balance from the previous summer will be long gone. Because the debt will be fully paid off by October, the credit report pulled ahead of the summer move will show a clean history. Your credit score will have had more than seven months to bounce back from any minor utilization dips.

So, to answer the Reddit user's question directly: No, being in debt for those four months will not have a big impact on your credit report come June 2027, provided you make your minimum payments on time. You’ll pay some interest on that $1,000 balance until October, but your pristine payment record will remain completely unblemished when it comes time to hand your credit report to a new landlord.

It all started in February of last year, when the agency received a tip from Lambton College. Following the tip, the CBSA interviewed victims and began an investigation revealing a detailed fraud operation. Two individuals were alleged to have taken money from international students, promising that the funds would be used to pay tuition fees, which allegedly never happened. The students who used the service received fraudulent enrolment documents — and were never actually admitted into their preferred post-secondary education programs.

Following the investigation, the CBSA carried out two search warrants at the accused residences and collected various forms of evidence of the ploy from electronic devices.

As a result of the search warrants and investigation, Hardik Dave of Cambridge and Jainishkumar Patel of London were charged under the Criminal Code with multiple offences on June 2, 2026.

Hardik Dave is scheduled to appear before the court on July 10, 2026. However, Jainishkumar Patel is believed to have left the country. A warrant is out for his arrest as of the time of writing.

“Canada Border Services Agency investigators are uncovering immigration fraud schemes and gathering evidence to bring offenders to justice. In doing so, our officers are upholding the law and protecting vulnerable people from exploitation,” Michael Prosia, regional director general of CBSA Southern Ontario Region, noted in the release.

How and why international students are targeted

International students planning to study in Canada can be targets for scammers who exploit their unfamiliarity with the Canadian immigration system. This cohort often faces significant financial pressure while adapting to life in Canada, making promises of discounted tuition or high-paying jobs particularly appealing.

For example, in 2025, Regina police issued a warning regarding a tuition scam making the rounds. Police investigations found that bad actors were falsely promising a discount on tuition fees by pretending to be intermediaries between students and universities. After taking an upfront payment, fraudsters allegedly “pay” the tuition fees and disappear.

At the time the warning was issued, 23 individuals were affected and over $125,000 was stolen.

Fraudsters are not simply offering a deal as their scheme — some are using convincing websites and ads, while also tampering with legitimate university documentation to fool students.

In 2023, Immigration, Refugees and Citizenship Canada (IRCC) uncovered 1,550 permit applications that were based on fake student acceptance letters. According to University Affairs, some of the letters were real but tampered with, while others were from completely fictional institutions.

Additionally, according to The Globe and Mail, the RCMP has seen criminals coerce international students to open bank accounts in Canada, and then use the new accounts to move illegally obtained funds.

“Students are often targets for money mule recruitment,” RCMP spokesperson Robin Percival told the outlet.

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A note about representatives

According to the IRCC, international students can apply for a study permit by themselves or with a representative who may be paid for their services. While a representative can be an asset for newcomers to Canada, it’s important to understand the rules surrounding the profession. Some student fraud attacks have come from individuals or organizations posing as legitimate representatives.

In Canada, there are two types of representatives: paid and unpaid. Paid representatives are highly regulated and must be authorized to assist with study permit applications under the relevant governing body. Paid representatives include lawyers, Ontario paralegals, Quebec notaries and consultants registered with the College of Immigration and Citizenship Consultants. To check if a consultant or other professional is authorized to assist with a study permit, review the IRCC’s website.

Furthermore, the representatives must be declared on the application form regardless of whether they are paid for their services.

Remember that it is illegal for someone to charge fees and submit study permit applications for someone else if they are not authorized by a relevant governing body in Canada.

How international students can protect themselves

Studying abroad can be an exciting time, but it can also be an extremely vulnerable experience. Moving to a new country, learning a new language and trying to understand often complex university application rules can be overwhelming. Scammers know this and may try to take advantage of it. Here are some tips to help you spot warning signs of student scams before it’s too late.

• Watch for promises and guarantees. Applying for scholarships in Canada is often free and it is not guaranteed that an applicant will receive one. Any individuals promising otherwise should be marked as suspicious.
• Never sign blank documents or forms. Signing a blank student application form makes it easy for scammers to forge documentation — don’t do it.
• Pay attention to where your tuition fees go. Be extremely wary of any practitioners who offer discounted tuition fees if you pay them as an intermediary. According to the IRCC, tuition fees should always be paid directly to the institution applied for.
• Make sure a contract is in place. Before going ahead with an application, ensure a written contract is in place that outlines the application service fees and the services paid for. Get a receipt for every payment made to the representative.

When the gavel fell on HBC's eighth and final online art auction, hosted by Heffel Fine Art Auction House, it marked the absolute end of a 4,400-piece repository of Canadian heritage.

The intersection of a corporate death and a multi-million dollar heist

The deepest sting of this liquidation lies in the fate of six works tied to the legendary Anishinaabe artist Norval Morrisseau. Morrisseau fundamentally revolutionized how the world understood Indigenous art, yet his legacy has long been haunted by a dark reality: since his passing in 2007, an estimated 6,000 forged works have flooded the market in what police call the biggest art fraud in world history.

The bitter irony is impossible to ignore. While the art world was reeling from a historic heist of fakes, authentic and verified Morrisseau masterpieces — including the deeply moving “Childlike simplicity in tune with nature because we are one” — were sitting in a corporate vault.

But instead of being preserved in a public gallery to help heal Morrisseau’s fractured legacy, these genuine pieces were caught in the crossfire of a retail collapse. Because a corporation failed under billions in debt, his irreplaceable masterpieces were tossed into a liquidation blender alongside old department store signs and signed sports memorabilia. They were auctioned off to private buyers just to generate cash for court-ordered payouts.

The cost of the ledger? Across a live auction and eight subsequent online sales, this systematic stripping of history brought in over $9.5 million. But while the executors successfully scrounged for cash, the public sphere suffered an incalculable loss.

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Fragile cultural memories sold off to the highest bidder

The tragedy of the HBC liquidation is the total erasure of the boundary between corporate assets, high art and national history. Items that rightfully belonged in national galleries, preserved for future generations, have been permanently scattered into private living rooms.

The auction blocks effectively cleared out pieces of the Canadian soul:

• The art: Authentic Indigenous masterpieces and historic portraits, treated as mere line items to balance a ledger.
• The nostalgia: Vintage corporate signage and relics that once anchored the downtown cores of Canadian cities.
• The modern culture: Modern symbols of local pride, like a basketball and jersey signed by former Toronto Raptor Pascal Siakam.

What remains when our past is liquidated

The sale of these pieces of art, these pieces of our history, liquidated because of a business failure, is an indictment of how easily centuries of history can be erased when left in the hands of corporate receivership.

As the final gavel falls, Canadians are left to reflect on a painful reality: when economic realities take over, nothing is sacred. The corporate entity of the Hudson’s Bay Company is officially gone, but the true devastation is the permanent fragmentation of the art and identity that once bound us together.

Effective July, OAS payments rose 1.2% for the July to September quarter, according to the Government of Canada’s quarterly benefit report. The maximum Canada Pension Plan (CPP) retirement pension also increased at the start of 2026. The catch: Most retirees don’t get anywhere close to the maximum of either benefit. Here’s what the current numbers actually mean, and where to look if they don’t add up to enough.

What OAS and CPP actually pay this quarter

OAS is reviewed every January, April, July and October based on the Consumer Price Index (CPI), so the amount can rise but never falls. Based on the latest review, the maximum monthly OAS pension for ages 65 to 74 is now $751.97, up from $743.05 last quarter, according to the Government of Canada. For seniors 75 and older, the maximum climbs to $827.17.

CPP works differently — it adjusts once a year, every January, not quarterly. The maximum CPP retirement pension for someone starting at age 65 in 2026 is $1,507.65 a month. But that figure requires close to 39 years of near-maximum contributions.

According to the Government of Canada’s published CPP payment amounts, the average new CPP retiree in January 2026 collected closer to $925.35 a month — a difference that matters enormously to retirement budgeting.

Why the average retiree still comes up short

If you combine an average CPP payment with a full OAS pension, then a 65-to-74-year-old retiree ends up with about $1,677 a month before tax — not the $2,259 the maximum earning figures would suggest.

Meanwhile, Statistics Canada reported annual inflation at 3.2% in May 2026, driven largely by gas and grocery prices. Suddenly, the missing maximum OAS and CPP and the quarterly OAS bumps and an annual CPP adjustment just don’t seem to keep pace with cost spikes — particularly in specific categories like food or housing.

This gap hits hardest for retirees without a workplace pension, and for those who assumed CPP and OAS alone would cover their basic costs. For this group, the shortfall isn’t a rounding error — it can run into the hundreds of dollars a month.

Where a TFSA-held HISA or GIC fits into closing the gap

Retirees who need to bridge that gap have an advantage many overlook: Withdrawals from a Tax-Free Savings Account (TFSA) do not count as income, so they don’t affect the OAS recovery tax (commonly called the clawback) or reduce Guaranteed Income Supplement (GIS) eligibility. That makes a TFSA-held high-interest savings account (HISA) or guaranteed investment certificate (GIC) a low-risk way to top up monthly income without triggering a bigger tax bill or benefit reduction.

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How can you protect your retirement budget?

• Add up your expected CPP and OAS income and compare it against actual monthly expenses, not assumptions
• If there’s a shortfall, use a TFSA-held HISA or GIC to bridge it without affecting OAS or GIS

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Bottom line

A benefit increase is not the same as a raise that keeps up with your actual bills. Before assuming this quarter’s OAS bump — or next January’s CPP adjustment — closes any gap, retirees need their own numbers: expected government income, real monthly costs and how much of a shortfall, if any, needs to come from savings.

His advice is simple. Unfortunately, many Canadians think they have followed it, even though they haven’t.

Just look at the math. Canada’s household savings rate fell to 3.5% in the first quarter of 2026, its lowest level in two years, according to Statistics Canada. Meanwhile, households now carry $1.80 in debt per $1 of disposable income, marking the sixth straight quarterly increase. Perhaps it’s no surprise that as household debt rises, the amount Canadians can set aside for savings tends to fall.

A good income isn’t always a safety net

We often assume that a higher income equates to greater financial security and, thus, more savings. However, security often depends on how much of that income is fixed, insured, or guaranteed, rather than on the total.

For example, many self-employed Canadians lack a safety net if their business slows down due to client losses or forced closure. Employment Insurance (EI) typically does not cover job loss for the self-employed. You may be able to opt into special EI benefits, which cover maternity, parental, sickness, compassionate care, and family caregiver leave. But coverage does not start until 12 months after you register, and premiums of up to $1,123.07 per year (as of 2026) continue for as long as there is self-employment income, whether or not a claim is ever made.

Traditional employees aren’t necessarily fully protected either. Group long-term disability plans typically replace only a percentage of base salary, while bonuses, commissions and dividend income are often excluded. That can leave a significant coverage gap for anyone who relies heavily on variable income.

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What happens if your income stops

For someone dealing with a serious illness or injury, the main public backstop is the Canada Pension Plan (CPP) disability benefit. The maximum monthly CPP disability benefit is $1,741.20 in 2026, but the average new recipient receives $1,234.68 (as of October 2025). The benefit also does not cover medications or medical devices.

And you don’t automatically qualify. You must be under age 65 and have a severe and prolonged disability that regularly prevents you from working at any job, not only your current occupation. You must also have contributed to the CPP in four of the previous six years.

Let’s say that a consultant earning $180,000 annually through a combination of salary, bonuses, and self-employment income develops a health condition that prevents them from working for a year or more.

If they never opted into EI special benefits and their group long-term disability plan, assuming they have one, replaces only their base salary, the average CPP disability payment of $1,210.86 might be their only guaranteed monthly income left. Yet their mortgage, property taxes, car payment, and other fixed costs may have been based on an annual income of $180,000. Without ample savings, they could be facing a precarious situation.

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Calculating a financial security number

Dalio’s advice to save enough to cover a set number of months without income becomes critical once you account for the gaps in Canada’s public and workplace benefit programs.

You may not need to save enough to cover 12 months of total spending. Start by calculating 12 months of your fixed costs: mortgage or rent, property taxes, insurance premiums, minimum debt payments, and essential utilities. These are the expenses you still need to cover when your income stops.

Someone with steady salaried employment, EI eligibility, and adequate employer-provided long-term disability coverage may only need three to six months of fixed costs.

For someone who is self-employed, relies heavily on commissions, or hasn’t enrolled in EI special benefits, 12 months of fixed costs may be a more realistic minimum. That’s because the public benefits available to them may pay less, take longer to begin, or not apply at all.

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What to do now

Building your financial security number doesn’t require overhauling your investment portfolio. Start by figuring out your fixed costs, what EI and CPP would pay if your income stopped tomorrow, and whether your group or private long-term disability policy covers all your income or only your base salary.

From there, take the following steps:

• Add up 12 months of fixed costs, including your mortgage, property taxes, insurance, minimum debt payments, and essential utilities, rather than your total spending.
• If you’re self-employed, consider registering for EI special benefits now. The 12-month waiting period only begins once you register, and the program will not cover job loss.
• Ask your group benefits provider whether long-term disability coverage includes bonuses, commissions, or dividend income, or only your base salary.
• Keep your emergency savings in a high-interest savings account rather than market investments, so you can access it without penalties or being forced to sell during a market downturn.
• If you still have a gap after factoring in EI and CPP, consider purchasing personal disability or critical illness insurance to help close it.

Once you know your numbers, you’ll know how long your current safety net would last, where its weak spots are, and how much you still need to save. You don’t have to close that gap overnight. But with each dollar you save, you’re gaining more control over what happens if your income suddenly disappears.

When a vendor came by selling 50/50 raffle tickets, Stevenson and George bought several, including one for Leo. They were specific about one condition: If the ticket won, the money was for his education. It won — paying out just over $700.

Leo’s parents tried to hand the winnings back, but Stevenson and George refused. “It’s only money,” George recalled telling them.

More than 20 years later, Leo still calls it “one of [his] favourite family stories.” His parents invested the money and left it alone. By the time Leo finished high school, that investment had grown enough to cover part of his tuition. Leo’s now studying kinesiology at the University of British Columbia (UBC), with hopes of becoming a chiropractor — and he credits it as much for the connection it created as for the money itself.

A small head start can go a long way

While Leo is American, his story is a pertinent case study in the power of starting education savings early — the same principle behind Canada’s Registered Education Savings Plan (RESP), a tax-sheltered account designed to help families save for a child’s post-secondary education.

Contributions to an RESP aren’t tax-deductible, but the investment growth inside the account is sheltered from tax until it’s withdrawn. On top of that, the federal government tops up contributions through the Canada Education Savings Grant (CESG). The government matches 20% of the first $2,500 contributed to an RESP each year, to a maximum of $500 annually and $7,200 over a beneficiary’s lifetime.

If the full $2,500 contribution room isn’t used in a previous year, there is an opportunity to catch up. In a year with any unused grant room, an account holder can get up to $1,000 in CESG (not just $500) by contributing more that year — though the $7,200 lifetime cap still applies.

Lower- and middle-income families can qualify for a bit more through the additional CESG, and the lowest-income families may also qualify for the Canada Learning Bond (CLB), worth up to $2,000 per child, with no contributions required. British Columbia and Québec residents can also access further provincial top-ups.

In other words, Ottawa will help build the very kind of fund for Canadians that Leo’s family had to construct on their own after a lucky night at the ballpark — a fund that Leo, as a U.S. citizen, wasn’t eligible for.

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Why the head start matters

Post-secondary education in Canada remains far less expensive than in the U.S., but it isn’t cheap, and the bill is steeper for international students like Leo. For the 2025/2026 academic year, domestic undergraduate tuition averages $7,734 a year, up 1.4% from the previous year. International undergraduate students, meanwhile, pay an average of $41,746 per annum — roughly five times the domestic rate, a gap that has widened sharply over the past decade.

Those costs vary widely by province, from about $3,746 for domestic undergraduates in Newfoundland and Labrador to nearly $10,000 in Nova Scotia, New Brunswick and Saskatchewan. Tuition is only one part of a student’s costs, as rent, food and books add thousands more each year.

Those numbers help explain why so many Canadian students graduate with significant debt. Post-secondary students who hold bachelor’s degrees and borrowed for school graduated with a median debt of about $20,000, according to Statistics Canada’s National Graduates Survey — a figure that climbs significantly higher for professional programs such as law or medicine.

That’s a gap that a modest, early contribution — whether from birthday money, a grandparent’s gift or, in Leo’s case, strangers’ generosity — can help close over time, once compound growth and government grants are added to the mix.

The takeaway for Canadian families

Leo’s story worked out because his parents did two things: They accepted an unusual gift and they left it alone to grow for years instead of spending it. However, any Canadian parent, grandparent or family friend can intentionally create the same outcome, without waiting on a raffle ticket.

• Open an RESP early. The CESG is available on contributions made until the end of the year a child turns 17, but the lifetime grant maxes out at $7,200. The earlier contributions start, the more time there is for compounding to work its magic.
• Contribute what you can, consistently. Capturing the full annual CESG match takes a $2,500 contribution a year, but smaller, regular deposits add up, and unused grant room carries forward if a year gets missed.
• Redirect gifts into the plan. A cheque from a grandparent or a gift like the one Leo received can go straight into an RESP and start compounding immediately instead of sitting in a savings account.
• Check for provincial and income-based top-ups. Families in British Columbia and Québec can access additional provincial grants, and lower-income families may also qualify for the Canada Learning Bond, on top of the CESG.
• Leave it alone. The real lesson from Leo’s story isn’t the raffle ticket, it’s the two decades of not touching the money to let it grow. Time in the market, not the size of the initial windfall, did most of the work.

For Leo, it was never only about the money. Twenty years later, he says the win is less memorable than the relationship it created between his family and two strangers who wanted to help.

Here are five high-impact, painless moves you can execute this week that you won’t even notice, but your bank account definitely will.

1. The “scorched-earth” subscription audit

Most of us are bleeding cash every month on forgotten streaming platforms, app renewals or gym memberships we haven’t touched in quarters.

• The move: Don’t just scan your statement and promise to do better. Spend 15 minutes canceling every single non-essential subscription you have right now.
• Why you won’t notice: If you actually miss a service, you can re-sign up the next time you go to use it. You’ll be shocked by how many you completely forget existed, instantly saving you $50 to $100+ a month.

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2. Automate a micro-draft

Trying to save whatever money is “leftover” at the end of the month rarely works because our spending naturally expands to fit our available chequing balance.

• The move: Set up an automatic transfer of just $25 a week (or $5 a day) from your main bank account to a separate savings account, timed perfectly with your payday.
• Why you won’t notice: Because the cash leaves your account immediately, your brain adapts to the new balance instantly. You won’t miss the $25, but you’ll have an extra $1,300 stashed away by next year.

3. Relocate your cash to an HISA

Leaving your emergency fund or savings in a traditional brick-and-mortar bank means you are actively losing money. Traditional savings accounts pay pennies — often a measly 0.01% interest.

• The move: Open a High-Interest Savings Account (HISA) with an online bank and move your baseline cash there. Many reliably offer around 4% to 5% interest.
• Why you won’t notice: Your daily routine stays exactly the same. But instead of earning $1 a year on a $10,000 balance, you’re bringing in $400 to $500 entirely on autopilot.

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4. Wipe your saved card details

Digital friction is the ultimate enemy of impulse spending. Auto-fill features, Apple Pay and “One-Click” buttons are meticulously engineered to make you spend money before your logic kicks in.

• The move: Unsave your credit card info from Amazon, food delivery apps and your browser autofill settings.
• Why you won’t notice: You aren’t banning yourself from buying things. But having to physically get up, find your wallet and type in a 16-digit card number introduces just enough friction to kill casual, late-night impulse buys.

5. Initiate the annual provider shake-down

Corporate loyalty is a tax. When introductory rates expire, cable, internet and insurance providers quietly creep your bills up, hoping you won’t check.

• The move: Dedicate one hour to calling your current providers. Tell them you’re looking at cheaper competitors and want to know if they can match those rates or apply a new promo.
• Why you won’t notice: You keep the exact same internet speeds, phone coverage and insurance policy — but your fixed expenses plummet, keeping hundreds of dollars in your pocket annually.

The bottom line

If you stack these five moves, you can effortlessly swing your net worth by $2,000 to $4,000 a year. No daily sacrifices, no skipping your morning coffee and absolutely zero lifestyle changes required.

Canada set a target of 395,000 new permanent residents for 2025 — a planned target under the Immigration, Refugees and Citizenship Canada (IRCC) 2025-2027 Immigration Levels Plan — and hundreds of thousands more hold temporary resident status as students and workers. For many of those households, life insurance is either an afterthought or a blank spot on the financial plan. That gap carries real consequences: newcomers often carry cross-border family obligations, remittance commitments and no domestic safety net to fall back on.

Here is what you can actually access — and how to get it.

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What life insurance options actually exist on a work permit in Canada

The short answer is more than most people think. iA Financial Group explicitly states that immigration documents are generally not required to apply for life insurance with the company — a significant departure from the assumption that newcomers face a locked door.

For PGWP holders with a confirmed job offer, coverage of up to $1 million is available. For permanent residents, the insurer goes further: iA recognizes assets held in another country when determining the insurance amount, which can make a meaningful difference for newcomers who have accumulated savings or property abroad.

Across product types, iA Financial offers term life, permanent life, participating life, universal life and specialized life insurance to newcomers. Whether a policy requires a medical exam depends on the coverage amount and individual circumstances — but the insurer notes that some newcomers can be approved without one.

No SIN? No Canadian credit history? Here’s what you still qualify for

There is a misconception that a Social Insurance Number (SIN), the federal number required to legally work in Canada, is a prerequisite for life insurance in Canada. It’s a widespread misconception that stops many newcomers from even asking the question: Can I protect my loved ones? But iA Financial states clearly that immigration documents, including a SIN, are generally not required to purchase life insurance with the company.

What applicants do need, in most cases, is a valid work or study permit and a government-issued ID. Virtual application options are available — no in-person visit is required — and advisors can meet in multiple languages to help navigate product selection.

For context on cost: iA Financial illustrates approximate term life premiums on its newcomers page — roughly $9/month for $100,000 of coverage on a 10-year term for a 26-year-old female non-smoker, or $47/month for $750,000 over 20 years for a 35-year-old male non-smoker. These are illustrative examples and individual premiums will vary based on age, health, coverage amount and term length.

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The $500,000 policy that international students can access immediately

International students represent a particularly underserved segment. Many arrive in Canada in their 20s with no dependants and low income — and conclude that life insurance isn’t relevant yet. But coverage at this life stage is cheapest and, for those with family financial obligations abroad, can be important.

iA Financial confirms that international students can purchase up to $500,000 in life insurance — and that a medical exam is not always required. That is meaningful for a demographic that often has limited Canadian health records and no domestic insurance history.

For a student supporting family members in their home country, even a $100,000 to $200,000 term policy can cover repatriation costs, outstanding student debt and lost remittance income — at a monthly premium that is often lower than a streaming service subscription.

Cross-border estate planning: naming beneficiaries in another country

One practical question newcomers face is whether they can name a beneficiary who lives outside Canada. The short answer is yes — but it comes with estate planning considerations worth understanding before you apply.

A beneficiary named in a Canadian life insurance policy generally receives the death benefit directly, outside of the estate and without Canadian probate. However, the tax treatment of that benefit in the recipient’s home country will depend on that country’s laws. In Canada, life insurance death benefits are tax-free to the beneficiary.

iA Financial notes that life insurance can cover death-related expenses — including the cost of repatriating remains to a country of origin — which is a consideration that is particularly relevant for newcomers. For those with more complex cross-border assets or multiple beneficiaries across different countries, working with a licensed financial security adviser could be worth the time.

One more estate-planning note: for permanent residents specifically, iA Financial recognizes foreign assets when determining insurance coverage amounts — which means the financial picture newcomers bring with them counts, not just what they have accumulated in Canada.

How to get a quote without a medical exam — and when to get one anyway

Not every newcomer will be approved without a medical exam — the requirement depends on the coverage amount, the applicant’s age and the insurer’s underwriting guidelines. Simplified issue products (those without full underwriting), which typically require answering a short set of health questions rather than a full exam, are often available at lower coverage amounts.

For coverage in the $500,000 to $1 million range, full underwriting is more likely to apply. That does not mean the process is prohibitively complex — it means there will be health questions and possibly a medical review, before a policy is issued. The advantage of going through full underwriting at a younger age is that it locks in a rate based on current health status, which can save significant money over a 20- or 30-year policy.

The practical starting point: contact an iA Financial adviser (available virtually), bring your valid work or study permit and a government-issued ID and ask specifically about the newcomer program. Most applications can be initiated without any Canadian immigration documents beyond the permit itself.

Remember: A term life policy can help replace income, cover major debts, and provide stability for your family if the unexpected happens. Term life insurance is usually less expensive and more flexible than whole life insurance — and the payout is tax-free. Disability insurance is just as critical, especially since your ability to earn an income is often your biggest financial asset. With PolicyMe, you can get an instant, no-obligation life insurance quote. Just answer a few simple questions, and you’ll get quotes based on the coverage amount and term length you select. Most policies are approved without any medical tests, and you can opt for term lengths ranging from 10 to 30 years.

What to do now to protect yourself

• Work permit holders: Contact iA Financial or Empire Life, as these firms typically accept applications after you’ve been living in Canada for three months or more.
• International students: You may qualify for up to $500,000 in coverage immediately
• Permanent residents: Ask about recognition of foreign assets when determining your coverage amount

Remember, you do not need a SIN to get a life insurance quote as your work or study permit is usually sufficient. You will, however, need to produce a valid work or study permit and a government-issued ID to start the process — so get this documentation in order before applying.

The billionaire investor and founder of Bridgewater Associates has a simple way of looking at borrowing: Does the debt produce more income than it costs? If not, Dalio considers it bad debt.

Dalio first made the point in 2018, but it’s one Canadians should be mindful of in 2026, given that the household credit market debt-to-income has climbed to 179.6%. It’s the sixth consecutive quarterly increase, and much of that borrowing isn’t being used to buy income-generating assets or to pay for themselves.

What Ray Dalio means by good and bad debt

In an interview with CNBC Make It, Dalio divides borrowing into two categories.

1. Good debt either creates forced savings, such as a mortgage, or is expected to earn more than it costs.
2. Bad debt is borrowing for something that doesn’t generate enough value or income to outweigh the cost of carrying it.

As a result, the type of debt becomes more important than other factors, such as the interest rate paid. In fact, on its own, the size of the loan or the interest rate is actually less relevant. For instance, a low-rate HELOC used to fund a rental property down payment can be good debt. A zero-interest promotional credit card balance used to cover groceries because the paycheque ran out can still be bad debt, even at 0%, because it is not building anything.

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Canadians are carrying record credit balances

As of the first quarter of 2026, Canadians now owe a combined $3.25 billion in household credit market debt, according to Statistics Canada. Meanwhile, our household debt service ratio, or the share of disposable income allocated to debt payments, rose to 14.75%. While dated, research from the Financial Consumer Agency of Canada (FCAC) helps to explain where that borrowing is going. Among homeowners using HELOCs:

• 40% use the money for consumption or home renovations
• 34% use it for financial or non-financial investments
• 26% use it to consolidate existing debt

Home renovations sit in a grey area. A renovation that adds resale value may behave more like an investment. A reno that’s primarily cosmetic leans more toward consumption, no matter how much you enjoy it.

Regardless of current household debt levels, the Bank of Canada’s latest Financial Stability Report notes that households have generally remained resilient, but debt levels remain elevated, and many borrowers continue to face higher mortgage payments as their mortgages renew at today’s interest rates.

How to tell if your own debt is working for you

Apply Dalio’s test to the debt you are carrying. A HELOC used to buy an income property or invest is productive, provided the return covers the interest cost. A mortgage on the home you live in counts as good debt under Dalio’s forced-savings logic, since it builds equity you would otherwise be less likely to save. A student loan that leads to a substantial wage increase can be productive. On the flip side, a personal loan, credit card balance, or HELOC draw to cover a vacation, wedding, or depreciating vehicle is consumer debt, regardless of the interest rate.

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Where to direct your cash flow once bad debt is cleared

Paying off high-interest consumption debt reduces your interest costs and creates extra monthly cash flow. The next step is to make sure that money doesn’t disappear back into everyday spending.

One option is to redirect your former debt payments into registered accounts. The Tax Free Savings Account (TFSA) contribution limit for 2026 is $7,000. Someone who has been eligible since 2009 and has never contributed would now have $109,000 of cumulative contribution room. Meanwhile, the Registered Retirement Savings Plan (RRSP) contribution limit for 2026 is 18% of earned income, up to a maximum of $33,810.

Whether you prioritize a TFSA or RRSP depends on your income and tax situation. The important thing is to preserve the monthly payment you just freed up, rather than allowing it to become part of your regular spending, as that would defeat the purpose of paying off the debt.

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The decision that matters more than the balance

Dalio’s framework doesn’t mean that you should never borrow money. A mortgage, business loan, or investment HELOC can all play an important role in building long-term wealth. But his framework offers a filter for evaluating the debt you already have and any new debt you’re considering taking on.

Remember, before carrying a balance forward or borrowing again, ask one simple question: Will this debt produce more than it costs? If the answer is no, it probably belongs at the top of your payoff list.

What to do now

The good news is that you don’t need to overhaul your finances overnight. Start by taking an honest look at the debt you already have and asking whether it’s helping you build wealth or simply financing today’s lifestyle.

A quick debt review can help you prioritize what to pay off first:

• List every debt you carry, along with its interest rate and what it originally paid for.
• Ask yourself whether each debt is likely to produce more value or income than it costs
• Prioritize paying off the highest-interest consumption debt first, rather than focusing on the biggest balance.
• Once that debt is gone, redirect the monthly payment into a TFSA or RRSP instead of letting it disappear into everyday spending.
• Before using a HELOC or credit card for lifestyle purchases, decide whether you’re making a smart financial decision or simply falling into a borrowing habit.

The goal isn’t to eliminate every dollar of debt. It’s to make sure the debt you carry is working for you, not against you.

Billy Banks testified in a U.S. federal courtroom that in 2018 he moved roughly US$110,000 (~C$156,000) out of mutual funds and into CV Sciences, a company selling CBD products for pain and stress relief. Banks had grown more aggressive with his investing strategy and believed the company had real promise.

At first, the bet appeared to pay off. Banks testified that while on vacation with his wife, he watched the value of his position climb to around US$190,000 (~C$270,000). “It was like I had been watering this plant for weeks, and here it is,” he told the courtroom.

But the gains didn’t last. Banks said CV Sciences shares fell sharply after Andrew Left (pictured above), founder of Citron Research and one of the best-known short-sellers on Wall Street, publicly criticized the company. Even as the stock fell, Banks said he kept believing in the company and held on: “It was like trying to catch a tiger tail. You couldn’t catch up with the thing.”

By the time he sold, Banks was left with about US$30,000 (~C$43,000). He put what remained into another cannabis stock, Namaste Technologies — now known as Lifeist Wellness — hoping to recoup some of his losses. According to court documents, Left’s firm later urged investors to sell Namaste shares, and during a televised interview, Left said he “would keep shorting [the stock] until it goes to 0.” Banks testified he lost about 80% of that second bet, calling the experience “devastating.”

Left eventually faced federal securities fraud charges of his own in a Los Angeles courtroom. Prosecutors alleged he made public statements about more than 20 stocks before taking positions that paid off once markets reacted. Left’s defence argued he never told anyone to buy or sell a specific stock, that his commentary reflected genuine opinions rather than an attempt to manipulate the market and that Banks might have avoided steeper losses had he sold sooner.

Left was eventually convicted on June 1, 2026 for running a market manipulation scheme that brought in more than US$21 million in profits. He could face up to 25 years in prison at his sentencing hearing on August 31, 2026.

While this case unfolded south of the border, it is a warning for Canadians as well.

Why this matters for RRSP and TFSA investors

Canadians who manage their own RRSP can hold individual stocks the same way Banks did through his U.S. retirement account. A self-directed RRSP allows the same kind of concentrated bet — for better or worse.

Short-seller campaigns aren’t strictly a U.S. phenomenon, either. The Canadian Securities Administrators (CSA) has flagged concerns about “abusive” short selling and continues to examine how to police it. Canadian securities law already prohibits market manipulation and misleading statements — but taking action against activist short sellers has historically been hard to prove and rarely done, much as in the U.S.

Banks’s story — losing much of a retirement account to a single concentrated bet — will hit close to home for many Canadian savers who already worry they won’t have enough to retire on. According to BMO’s 2026 Annual Retirement Survey, more than one in three (36%) Canadians say they’re unlikely to reach their retirement savings goal, up from 29% a year earlier.

Concentrated bets like the one Banks took carry more risk because a large share of savings depends on one company’s performance. The Canadian Investment Regulatory Organization (CIRO) notes that a properly diversified portfolio spreads money across different types of investments, industries and regions — so that a loss in one holding can be offset by steadier or better-performing assets elsewhere. Diversification doesn’t eliminate risk, but it can soften the blow when one stock takes an unexpected hit.

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Lessons for Canadian retirement savers

Banks’s experience offers a few concrete takeaways for anyone managing their own RRSP or TFSA:

• Understand what “self-directed” really means: A self-directed RRSP lets you hold individual stocks, ETFs and bonds — but nobody is checking whether that mix makes sense for your situation. That responsibility sits with you, or with an advisor you choose to work with.
• Concentration is a risk of its own: Putting most of a retirement account into one or two stocks means your retirement date can hinge on a single company’s news — or on a stranger’s opinion of that company.
• Get a second opinion before making a big move: CIRO’s Office of the Investor and a licensed financial advisor can help you pressure-test a strategy before a large chunk of your savings moves into one position.
• Losses inside an RRSP don’t reset: The RRSP contribution limit for 2026 is $33,810. But that’s contribution room, not protection — money lost inside the plan is simply gone, along with the tax-sheltered growth it would have earned.
• Don’t count on CPP and OAS to cover a shortfall: The maximum Canada Pension Plan (CPP) retirement pension for someone starting at age 65 in 2026 is $1,507.65 a month, though the average new recipient gets closer to $877.01. For most Canadians, CPP and Old Age Security (OAS) cover only part of retirement income, which makes the RRSP and TFSA piece of the plan matter even more.

Bottom line

Left’s sentencing is still to come, and a judge will have the final say on the time he’ll serve. But for Canadian savers, Banks’s story isn’t really about short-sellers or securities fraud — it’s about what happens when a retirement account isn’t built to survive on a single bet.

Banks started with a solid nest egg, believed in a story, concentrated his savings into it and held on too long. That sequence of decisions — none of which required a scammer to set in motion — is one that plays out in RRSPs and TFSAs across the country every year.

The best protection isn’t trying to spot the next Andrew Left. It’s building a portfolio that’s diversified enough that no single stock, sector or opinion can derail your retirement on its own.

For Newfoundland, the ferry service isn’t just a convenient way to travel. It serves as a constitutional marine highway. Because there’s no fixed link spanning the wide Cabot Strait, the island faces a unique set of logistical, financial and psychological challenges that few other places in North America ever experience.

When the threat of a shutdown looms during the peak of summer, it serves as an immediate reminder of how deeply a ferry stoppage threatens the daily survival of the island.

The vulnerability of island supply chains

When a region relies on a ferry system for the vast majority of its commercial goods, the supply chain is constantly exposed to outside disruptions. Residents are well aware that if the vessels stop running, whether due to labour issues, mechanical failure or the unpredictable North Atlantic weather, a countdown begins.

Grocery store shelves can start to empty of fresh produce, milk and meat within days. Crucial medical supplies, manufacturing materials, industrial parts and fuel are all bound to the exact same maritime schedule. Living without a bridge means accepting that access to basic daily necessities is always subject to a single bottleneck.

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The high economic stakes of tourism

The threat of a labour disruption always sends shockwaves through the local hospitality sector. Tourism is a vital economic engine for the province, but the island is already a logistically challenging and financially demanding destination to reach for travellers coming from the mainland.

When visitors plan to drive across Canada or take their recreational vehicles to the island, they often must book Marine Atlantic crossings many months in advance. The mere whisper of a strike or a service halt can cause traveller panic, leading to immediate cancellations. For local businesses like bed and breakfasts, tour guides, restaurants and rental agencies whose entire annual income relies on a short summer window, a single week of disrupted ferry service can ruin a whole season.

Compounding this isolation is the fact that once visitors arrive, getting around is its own challenge. The island faces a severe rental car shortage that often forces travellers to completely cancel their flights and hotel bookings due to a lack of available wheels. Unlike mainland provinces that can easily drive extra vehicles over borders to meet summer demand, Newfoundland is physically trapped. Importing rental fleets requires space on those exact same capacity-limited ferries, meaning a crisis on the water directly worsens the vehicle bottleneck on land.

Financial costs and the hidden island tax

Living on an island without a bridge means paying a premium on almost everything. Every vehicle, transport truck and piece of freight has to pay a fee to cross the water. These ferry tariffs are passed directly down to the consumer, manifesting as an invisible island tax on groceries, vehicles, furniture and building materials.

Furthermore, personal travel becomes a massive financial hurdle for local families. If a family wants to drive to the mainland for a vacation, a sports tournament or to visit relatives, they must factor in hundreds of dollars for ferry fares, cabins and meals. The only alternative is facing the equally steep costs of flying out of a region that historically experiences expensive airfares.

Healthcare and emergency isolation

The lack of a fixed link introduces high stakes during emergencies. While the province has robust medical facilities, specialized care or advanced treatments often require travel to major health centres on the Canadian mainland.

When the ferries are delayed by weather or disputes, or when flights are grounded by the notorious island fog, patients face anxious delays. The physical separation creates an underlying sense of vulnerability, forcing residents to rely heavily on local resilience and hope that the weather or the transportation system cooperates when time is of the essence.

A unique cultural resilience

While the lack of a bridge presents immense logistical challenges, it is also precisely what has preserved the distinct culture, language and way of life in the province. The geographical barrier that keeps the outside world at bay has long fostered a profound self-reliance among the population. People here are accustomed to adapting, making do and rallying together when the ferry stops or the storms roll in.

The collective sigh of relief when marine operations remain steady is a reminder of the delicate balance of island life. It shows that while the Atlantic Ocean provides the region with its breathtaking beauty and identity, it remains a powerful barrier that requires constant, uninterrupted stewardship to cross

The caller and his wife, who were married for nearly 13 years and raising a 6-year-old daughter, had built up roughly US$75,000 (~C$105,750) in debt from car payments, an HVAC loan and multiple credit card balances. Their combined take-home pay was about US$7,700 (~C$10,857) a month — enough to work their way out, Ramsey argued. What worried the hosts more was how the debt had piled up in the first place: largely in secret, including holiday spending charged to credit cards without his wife’s knowledge.

“I’m trying to figure out if I should file for bankruptcy,” the caller said, but Ramsey and Cruze steered the conversation toward what they saw as the real crisis: a breakdown in trust.

The details of this particular call are from the U.S., but the pattern — debt, secrecy and a marriage under strain — is one Canadian couples know all too well.

Why money problems become marriage problems

Financial stress and relationship stress tend to move in tandem, and Canadian data backs that up. In a survey conducted for Money Mentors, an Alberta-based non-profit credit counselling agency, 1 in 5 Canadians in a relationship (17%) said their financial situation had led them to consider breaking up, separating or divorcing a partner at some point, up from 11% in 2025.

More than half (52%) said they’d experienced anxiety, poor sleep or other personal effects after arguing about money with a partner. Furthermore, 11% admitted to lying to a partner about their financial situation to avoid conflict — a dynamic that echoes what the caller described to Ramsey: His wife didn’t know the full scope of the debt until it had already piled up.

A separate Ipsos poll on behalf of BMO found that nearly one third of respondents (32%) said spending causes conflict in their relationships. Additionally, 36% believe their significant other spends too much.

Financial therapists often note that money arguments are rarely about the dollar figure alone. They’re frequently about trust, mismatched goals or feeling shut out of decisions — which is exactly what Ramsey zeroed in on with the caller.

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The math might not be as bad as it feels

Despite the emotional toll, Ramsey’s read on the numbers was optimistic. With a combined income of US$7,700 (~C$10,857) a month, he argued the debt — while significant — wasn’t impossible to pay off if the couple stayed together and worked as a team. He used a version of his familiar debt snowball strategy: cutting up credit cards, building a shared budget, increasing income where possible and paying off balances one at a time.

In Canada, the math runs through a slightly different system before anyone gets near the word “bankruptcy.” If you’re carrying a similar load of unsecured debt, you would typically start by speaking with a Licensed Insolvency Trustee (LIT) rather than going straight to court. A trustee can guide you through options that include budgeting help, a consumer proposal or — if nothing else works — personal bankruptcy under the federal Bankruptcy and Insolvency Act.

A consumer proposal is where a person negotiates to repay a portion of what’s owed on a fixed schedule, without losing assets. They made up about 78% of consumer insolvencies in Canada in the 12-month period ending January 2026, compared with roughly 22% for straight bankruptcies. Canadians filed for insolvency at the fastest pace since 2009 in the first quarter of 2026, with 37,121 consumer insolvency filings, according to the OSB (5) — a reminder that a couple in this situation is far from alone.

Divorce could make the debt harder to solve, not easier

Ramsey and Cruze also pointed out something couples facing debt often overlook: Splitting up doesn’t make debt disappear. If anything, it usually complicates it.

The rules that would apply to divorce in Canada are contingent upon provincial or territorial jurisdiction, which governs property and debt allocation. The federal Divorce Act mainly governs the divorce itself, along with child or spousal support, as well as parenting arrangements. In British Columbia, for example, “family debt” — debt taken on by either spouse during the relationship — is presumed to be split equally under the province’s Family Law Act, regardless of whose name is on the account, unless a court finds an equal split would be significantly unfair.

In practice, that means a joint car loan or credit card debt built up during the marriage likely wouldn’t become “his” or “hers” after a separation in most provinces. Both spouses could be held responsible, and a creditor could still pursue either one for the full balance until it’s paid off, regardless of what a separation agreement says about who’s supposed to cover it. On top of that, separating comes with its own costs — legal fees, the possibility of selling a shared home and the added expense of running two households instead of one.

It’s best to speak with a family law professional in order to understand the nuances of allocation if you’re seeking a divorce.

Ramsey and Cruze noted that everything about untangling finances gets harder once two people split into two separate households. That is why they supported trying to repair the marriage first through counselling, before assuming a separation would simplify anything.

What Canadian couples can do differently

Before focusing on the debt balances themselves, financial counsellors generally recommend couples get a full, shared picture of where they stand — then build habits that keep both partners in the loop going forward.

• Talk about debt before it piles up. One undiscussed purchase can turn into years of hidden balances
• Build a shared list. This includes every debt, monthly expense, income source and savings balance, then revisit it together on a regular schedule
• Get ahead of a debt crisis instead of waiting for one. A free consultation with an LIT or a non-profit credit counselling agency can clarify options like a consumer proposal long before bankruptcy becomes the only path
• Understand that separating doesn’t erase joint debt. In most provinces, debt built up during a relationship is shared, so it’s worth knowing what your province’s family law rules are before assuming a split will simplify your finances
• Consider a financial counsellor or couples therapist early on. Money disagreements are rarely only about the dollar amount, and outside support can help rebuild the transparency eaten away by financial secrecy

For the father who called into Ramsey’s show, the debt turned out to be the more solvable problem. The harder work — as it often is for Canadian couples navigating the same mix of debt and mistrust — was rebuilding honesty before the numbers could catch up.

Equifax Canada identified Canadians aged 46 to 55 as the group carrying the most non-mortgage debt of any age group — an average of $34,775 as of May 2026. Meanwhile, the average Canadian household carried $22,278 according to that same report. For anyone counting down to retirement, that kind of balance can turn a simple plan into a complicated one.

Let’s consider this hypothetical situation. Stan is 50, has $42,600 in credit card debt and hopes to retire in only one more year. He has one key decision to make: Does he max out his RRSP contributions to prepare for the future, or focus on paying off the debt first?

What is Stan’s best path forward

Maxing out retirement contributions might feel like the responsible move — but for Stan, or any other Canadian in his position, it’s probably not the smartest first step. Here’s why.

Credit card debt is expensive. The average interest rate Stan sees on his monthly statement runs around 21%. The average interest rate on a standard credit card in Canada sits between 19.99% and 25.99% for regular purchases. At 20% interest, Stan’s $42,600 balance would generate roughly $700 in interest every 30 days.

Paying off a credit card with a 20% annual interest rate delivers a guaranteed 20% “return” — because every dollar you pay off saves you 20 cents in interest charges that you would otherwise owe. No RRSP investment is likely to consistently match that. The stock market’s long-run average return is closer to 7% to 10% a year, and unlike paying off debt, investing always carries the risk of losing money.

There’s one exception worth considering first: an employer match. In Canada, many employers offer a group RRSP or a pension plan with matching contributions — commonly 50% to 100% of what you put in, up to a set percentage of your salary. If Stan’s employer offers one, contributing enough to get the full match is close to a guaranteed 100% return on that money. Beyond that, every extra dollar should go toward the debt.

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The bigger obstacle standing in the way

The debt itself probably isn’t the only thing standing between Stan and retiring next year.

Paying off debt should come before maxing out RRSP contributions — but the next step is to fix whatever created the debt in the first place, such as not having enough liquid savings.

Without an emergency fund, an unexpected expense often ends up on a credit card, starting the debt cycle all over again. So beyond paying off what’s owed, cutting spending and building an accessible savings cushion — ideally in a high-interest saving account (HISA) — are key to staying out of debt for good.

Reviewing income sources

There’s another wrinkle for anyone hoping to retire at 51 with debt still on the books: Where’s the income going to come from?

In Canada, government retirement income isn’t available right away — and tapping into it too early comes at a permanent cost. Canada Pension Plan (CPP) payments can start as early as age 60, but taking CPP before 65 permanently reduces your monthly payment by 0.6% for every month you collect early — up to a maximum reduction of 36% at age 60.

Old Age Security (OAS) can’t start before age 65, though delaying it past 65 and up to age 70 permanently increases the monthly amount. For someone retiring at 51, that means at least nine years with no government retirement income at all — and claiming CPP the moment it becomes available at 60 locks in a smaller payment for life.

Early RRSP withdrawals don’t come with the same kind of permanent penalty as claiming your CPP early — but they aren’t free money, either. When you withdraw funds from an RRSP before retirement, your financial institution will immediately withhold tax, on behalf of the Canada Revenue Agency (CRA) as follows:

• 10% on withdrawals up to $5,000.
• 20% on withdrawals between $5,001 and $15,000.
• 30% on anything above that.

Withheld amounts are just a down payment on what you actually owe. The full withdrawal gets added to your income for the year and taxed at your full marginal rate when you file your income tax. And there’s another catch: Unlike a TFSA, the contribution room used for that withdrawal is gone for good — the CRA doesn’t let you add it back the following year.

Even with all that in mind, a Canadian in Stan’s position — carrying $42,600 of debt at age 50 — is almost certainly not ready to retire in a year. A more realistic plan starts with paying off the debt, building an emergency fund and then catching up on RRSP or TFSA contributions to build a retirement nest egg that can actually support decades of retirement income.

What Canadians can learn from Stan’s situation

• Pay off high-interest debt before maxing out RRSP. The guaranteed savings from eliminating a 20% interest rate beat almost any investment you’re likely to get.
• Always grab a full employer RRSP or pension match if one is offered. But don’t contribute beyond it until your high-interest debt is gone.
• Build an emergency fund in a HISA — ideally at the same time as paying down debt. Without one, an unexpected expense will likely end up back on a credit card and the debt cycle starts all over again.
• Know your CPP and OAS timing before you choose a retirement date. Starting CPP at 60 instead of 65 permanently cuts your monthly payment by up to 36% — a reduction that lasts the rest of your life.
• Understand what an early RRSP withholding actually costs. Your financial institution will withhold tax immediately, the full amount gets added to your taxable income for the year and the contribution room you used is gone for good.
• Talk to a fee-only Certified Financial Planner (CFP). They can help stress test a retirement date against your real debt load, expected income and government benefit timelines before you hand in your notice.

The warning comes from Mark Hulbert, a veteran market analyst who published a column on the topic in MarketWatch on June 22, drawing on research by Harvard University economist Xavier Gabaix.

“SpaceX’s massively successful IPO, along with the expected IPOs of artificial-intelligence giants OpenAI and Anthropic, make a severe bear market much more likely,” Hulbert noted. “And by severe, I mean a drop of almost 40%.”

The stakes are real for Canadian investors. The Ontario Teachers’ Pension Plan (OTPP) invested around US$220M (~C$300M) in SpaceX in 2019 — a position now estimated to be worth as much as US$11.6B (~C$16.3B). Meanwhile, Canada Pension Plan (CPP) Investments — which manages C$793.3B on behalf of 22 million Canadians — has also been examining how mega-IPOs affect its broader portfolio.

How huge IPOs can drain the stock market

The theory behind Hulbert’s warning is as follows: when a massive company goes public, large investors have to sell their existing holdings to raise the cash needed to buy the new shares — effectively pulling money out of the broader stock market and redirecting it into newly public companies.

“When a multi-billion-dollar company hits the public market, it doesn’t magically create new investing cash out of thin air,” said stock market expert Dan Ye, who teaches an “Investing in the Age of AI” course at Johns Hopkins University. “The money to buy those fresh shares has to come from somewhere.”

In practice, that means pension funds, hedge funds and everyday investors fund their IPO purchases by selling off their existing holdings. This includes blue-chip stocks, broad market ETFs and index funds, as well as those that track major Canadian benchmarks like the S&P/TSX Composite Index.

“If we see a rapid-fire succession of these massive offerings, we are easily looking at an aggregate capital raise north of US$200B,” Ye said. “That is a massive, structural drain on everyday market liquidity.”

A 2021 NBER working paper by Gabaix (Harvard) and Ralph Koijen (University of Chicago) — known as the "inelastic markets hypothesis" — estimated that every US$1 net flow into or out of the U.S. stock market moves total market value by roughly US$5. Financial commentators such as Hulbert have applied that multiplier to the combined fundraising of SpaceX, OpenAI and Anthropic — together estimated at around US$200B (~C$282B) — to suggest that a US$1T (~C$1.41T) decline in total market value is possible. However, this specific application is commentary extrapolating from the research, not a conclusion the paper itself makes.

The SpaceX IPO alone was already historic: the company raised US$75B (~C$106B) on the Nasdaq (SPCX) on June 12, 2026 — the largest IPO in history — at a price of US$135 a share, valuing the company at approximately US$1.77T (~C$2.5T).

OpenAI and Anthropic have since confidentially filed draft IPO registration statements with the SEC in 2026 — a preparatory step in advance of an actual public offering. Anthropic's latest private funding round valued the company at US$965B (~C$1.36T), while OpenAI's last private valuation stands at US$852B (~C$1.20T). Both are said to be targeting a public listing valuation near US$1T.

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What this means for Canadian investors specifically

While the Hulbert/Gabaix thesis focuses on U.S. market dynamics, Canadian investors aren’t watching from a safe distance.

For context, the Toronto Stock Exchange (TSX) had a total listed market capitalization of approximately C$6.95 trillion in June 2026. While the TSX's total size still exceeds the combined valuations of SpaceX, OpenAI and Anthropic, Canada's market is nonetheless closely linked to U.S. equities. In fact, many TSX-listed companies are cross-listed or correlated with U.S. sector performance, so a significant U.S. market move, like the one these mega-IPOs could trigger, tends to ripple into Canadian markets too.

Canadian institutional investors are already wrestling with this dynamic. According to Benefits Canada, the SpaceX IPO is prompting Canadian pension fund managers to reconsider whether active management might serve them better than passive index-based investing — a question that strikes at the heart of how billions in retirement savings are managed.

Stack Capital Group Inc., a TSX-listed investment company, purchased US$8M (~C$11.28M) in SpaceX shares in 2021 and 2025. At the IPO valuation, that position was worth more than US$100M (~C$136M) — yet the company said it had no plans to sell. Stack also holds a position in OpenAI.

The situation is more nuanced for individual Canadians. Online brokerage Wealthsimple opened access to select US and Canadian IPOs for retail clients around the time of the SpaceX listing, allowing eligible clients to request shares at offering price with no minimum order. However, US-only IPOs like SpaceX's remained restricted to accredited investors.

SpaceX itself had initially targeted up to 30% of its IPO shares for retail investors — roughly triple the typical 5-10% allocation — though the final allocation came in at around 20% due to strong institutional demand.

That being said, SpaceX shares aren't listed on the TSX. Canadians who want to hold the stock directly need to access the Nasdaq through a Canadian brokerage with U.S. market access, such as Questrade, Wealthsimple, or CIBC Investor's Edge. If held inside a registered account like a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA), SpaceX shares may qualify as eligible foreign investments — though currency conversion costs and U.S. withholding taxes may apply.

SpaceX, OpenAI and Anthropic may not be big enough to crash the market

Not every market expert agrees with the bear-market scenario.

“While SpaceX’s IPO was the largest in history — raising a total of US$85.7B (C$120.8B) — some people overstate its impact, citing that the IPO price valued the firm at US$1.77T,” said Robert R. Johnson, founder and CEO at New York City-based Economic Index Associates. He noted the actual cash raised is “a small fraction of the total market capitalization of SpaceX.”

Johnson pointed out that U.S. stock market capitalization stood at about US$79.4T at the start of 2026. The SpaceX IPO, while enormous, represents roughly 0.1% of total American market capitalization.

Globalization also provides some cushion. If a significant share of IPO funding comes from international sovereign wealth funds or bond investors — rather than equity holders selling existing stocks — the domestic market is spared a direct hit.

“Today’s stock market has a few modern counter-forces that didn’t exist in past decades,” Ye said.

Venture capital and private equity funds are also sitting on record levels of undeployed cash. If early SpaceX insiders sell their shares following the IPO, that money may be quickly recycled back into other stocks, softening any liquidity shock to the broader market.

Research firm Morningstar has also raised serious questions about SpaceX’s valuation, estimating the company’s fair value at US$63 (~C$89) a share, which is a 53% discount to its US$135 (~C$190) IPO price. In its own prospectus, SpaceX acknowledged it has “a history of net losses and may not achieve profitability in the future.”

On the TSX, Canadian asset managers have quickly moved to give investors exposure to SpaceX. Harvest ETFs launched the Harvest SpaceX Enhanced High Income Shares ETF (SPXE), with a 0.4% management fee, while Ninepoint Partners launched the Ninepoint SpaceX HighShares ETF (SXHI) with a 0.29% management fee — both were approved by the TSX in mid-June 2026.

Why investors need to be careful about massive IPOs

Even with those global market buffers in place, history offers a warning about IPO booms. Hulbert points to the dot-com bubble in 2000 and the market crash of 1929 — both of which were preceded by surges in major new stock listings.

“If you look back at 1929 or the peak of the dot-com bubble in 2000, massive waves of IPOs have consistently served as the ultimate canary in the coal mine, signaling the absolute top of a speculative cycle,” Ye said.

That observation carries extra weight for Canadians who own exchange-traded funds (ETFs) that track major U.S. indexes like the Nasdaq 100 or the S&P 500. Because Nasdaq changed its rules in 2026 to allow large new public companies to join the Nasdaq 100 after just 15 trading days — far faster than before — Canadians who hold QQQ or equivalent Nasdaq 100 ETFs automatically gain exposure to SpaceX, whether they chose to or not.

“This state of IPO activity will likely last at least for the next couple of months, but in the broader perspective, it’s best not to read too much into it,” said Eugenia Mykuliak, founder and executive director of B2PRIME Group, a global financial services provider.

“Whether SpaceX can successfully execute its growth strategy and justify the valuations in the long run is the more important question,” Mykuliak added.

What Canadian investors can do now

Whether or not a 40% market drop materializes, the current IPO environment gives Canadian investors a useful checklist for reviewing their portfolios.

Review your exposure to U.S. index ETFs

Many Canadians hold broad U.S. market ETFs inside their RRSP or TFSA. With SpaceX now part of the Nasdaq 100 after only 15 trading days — and OpenAI and Anthropic potentially following — the mix of companies inside your index fund may shift without you making any active decision to add these high-priced companies that aren’t yet profitable.

Understand the foreign content rules in your registered accounts

There are no foreign content limits in RRSPs or TFSAs — you can hold U.S.-listed stocks like SpaceX in those accounts. However, U.S. dividends and income may be subject to a 15% U.S. withholding tax if held in a TFSA, but not an RRSP, thanks to the Canada-U.S. Tax Convention.

Don’t let IPO hype override your plan

The OTPP’s US$11.6B (~C$16.3B) windfall from SpaceX is extraordinary — but it was built through early, patient investing long before the IPO. OTPP’s track record also shows that even skilled institutional investors make costly mistakes: The fund wrote off its entire US$95M (~C$134.3M) position in the collapsed cryptocurrency exchange FTX. Diversification, not concentrated bets on individual companies, is what makes long-term portfolios resilient over time.

Consider Canadian-listed alternatives

For investors who want exposure to the space sector without direct U.S. stock risk, Canadian options are growing. Brampton-based MDA Space (TSX: MDA) — the company behind Canadarm 2 — and Mississauga-based Magellan Aerospace (TSX: MAL) both offer domestic space-economy exposure. There’s also the aforementioned Harvest and Ninepoint ETFs.

Talk to a qualified financial adviser

Market predictions — including Hulbert’s 40% scenario — aren’t certainties. Before making changes to your portfolio in response to IPO news, speak with a licensed financial adviser who can assess your personal situation, including how much risk you’re comfortable with taking, how long you have to invest and what your retirement goals are.

-With files from Melanie Huddart

But recently, this small town became the backdrop for a massive display of community grit, proving exactly what local identity is worth to the people who build their lives there.

A small town faces a historic crossroads

The residents of Gibbons found themselves standing at an historical crossroads, casting ballots in a special vote to decide the future of their municipality. The question before them was heavy: should they remain an independent town, or should they dissolve their status and become a hamlet managed by the surrounding Sturgeon County?

When the final ballots were counted, the answer was definitive. A resounding 68.5% of voters chose to stand their ground, rejecting dissolution and voting to remain a town.

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Unexpected debt puts independence at risk

The victory was sweet, but the road leading to the ballot box was paved with anxieties that would test any community. Following a municipal election, the town’s newly elected councillors pulled back the curtain on the local ledger only to discover a staggering, unexpected debt of $15.3 million. By the time winter arrived, the financial strain was so severe that council officially warned residents the town was at risk of insolvency.

The province stepped in to conduct a financial review, and the initial outlook was grim. To dig the municipality out of its multi-million dollar hole while maintaining independence, the data suggested residents could face an overnight property tax hike of between 30% and 42%. Some local leaders pushed back, arguing the numbers relied on outdated information and caused unnecessary panic, but the financial threat was undeniably real.

Choosing local heritage over a financial escape hatch

For many communities, a financial gut-punch of that magnitude may have signalled the end, a cue to hand over the keys to the county and let local independence fade into a footnote. Becoming a hamlet may have offered a bureaucratic escape hatch, but the people of Gibbons chose to look the price tag in the eye and protect their home.

In the emotional aftermath of the vote, Coun. Ashley Morrison shared with Global News how deeply the community’s choice resonated within the local chambers, describing the outcome as “heartwarming for all of us on council” and “a commitment by the community to place their confidence in us.”

The province prepares to honour the citizen vote

While the vote itself is technically non-binding and the provincial government holds the ultimate authority to alter municipal boundaries, the local determination has sent a clear message. Alberta’s minister of municipal affairs, Dani Williams, indicated prior to the vote that he would respect the decision of the citizens and stand behind the community’s choice.

At a time when it feels easy to get disconnected, the story of Gibbons reminds us of the quiet patriotism that exists in the spaces between our major cities. It is a reminder that a town is not just a collection of grid roads, ledger balances and real estate assessments. It is a shared promise, a piece of living heritage and an identity that the people of Gibbons decided was worth fighting for.

The Bank of Canada (BoC) held its target rate at 2.25% this July, and its corresponding Monetary Policy Report confirms what many households have already felt at the pump and the checkout counter — inflation continues to threaten economic stability.

A weaker dollar, pricier gas

According to the report, the Canadian dollar has depreciated to around 71 cents US, driven largely by a widening gap between Canadian and U.S. government bond yields. At the same time, consumer price index inflation jumped to 3.2% in May, its highest reading in more than a year and a half. The rise is almost entirely because of a spike in gasoline prices tied to the war in the Middle East. The closure and reopening of the Strait of Hormuz has repeatedly rattled oil markets this year, and the Bank warns that renewed hostilities could push prices — and inflation — higher again.

What this means for your wallet

For everyday Canadians, this isn’t an abstract economic story. A weaker dollar means U.S. travel, cross-border shopping and U.S.-dollar-denominated goods all cost more. Higher gas prices mean higher costs for groceries, deliveries and anything that moves by truck. And for investors, currency and inflation shifts change the real, after-inflation return on every dollar sitting in cash, GICs or fixed income.

The risks worth watching

The good news is that the underlying Canadian economy is not in crisis. Growth stalled to nearly zero in the first quarter of 2026 but is estimated to have rebounded to 2.5% in the second quarter, helped by a recovery in exports, oil and gas investment, and residential activity. The Bank expects overall growth of just 0.7% for 2026 as a whole, picking up to 1.8% in both 2027 and 2028 as exports strengthen and businesses adjust to the new trade environment with the United States. Inflation, meanwhile, is projected to ease to about 2.5% in the second half of 2026 and return to the Bank’s 2% target by early 2027, assuming oil prices continue to soften as currently projected.

Still, the July BoC monetary report flags real risks that Canadian investors should not ignore. The evolution of Canada’s trade relationship with the United States — now under an annual review structure for the Canada-United States-Mexico Agreement (CUSMA), with a 5% U.S. tariff still in place on Canadian goods — remains a source of uncertainty for trade-exposed sectors, like autos and manufacturing.

Then there’s Canadian real estate. Housing activity also remains soft in most areas of the nation, weighed down by affordability challenges combined with a glut of unsold small condominiums, primarily in Toronto and Vancouver.

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Where the opportunity lies

On the flip side, the BoC alludes to a genuine opportunity: Rising U.S. investment in artificial intelligence is expected to boost demand for Canadian raw materials, metals and electrical equipment — a tailwind for resource and industrial exporters. And the weaker Canadian dollar, while painful for travellers and importers, is a net positive for anyone holding unhedged U.S. equities or Canadian exporters whose revenues are priced in U.S. dollars.

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What should Canadian investors do?

So what should Canadian investors actually do with this information?

Rethink your cash and fixed income

Start with the inflation squeeze. With CPI running above target and gasoline the main driver, near-term cash and short-term GICs will likely see their real returns eroded further before the Bank’s expected easing takes hold later this year. Rather than locking into long fixed-income terms at today’s rates, consider keeping some flexibility and looking at inflation-resistant holdings like real-return bonds or dividend-growth equities that have historically kept pace with rising costs.

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Check your currency exposure

Next, reassess your currency exposure. If your portfolio holds a meaningful allocation to U.S. equities, check whether that exposure is currency-hedged. Right now, an unhedged position in U.S. assets is actually benefiting from the weaker loonie — every U.S. dollar of return converts into more Canadian dollars. That’s not a reason to chase currency bets, but it is a reason to understand what your existing holdings are doing on your behalf.

Watch for sector concentration

For anyone with meaningful exposure to trade-sensitive sectors — autos, manufacturing, or companies heavily reliant on cross-border supply chains — this is a good moment to check for concentration risk. The CUSMA annual-review structure means trade policy uncertainty isn’t going away soon, and diversifying into broader, less trade-exposed funds can reduce that specific risk without requiring a bet on how negotiations unfold.

Consider the AI tailwind

Growth-oriented investors, particularly those in their mid-career years with a longer time horizon, may find opportunity in the AI-adjacent story: Canadian materials, metals and industrial exporters are positioned to benefit as U.S. and Chinese AI infrastructure spending continues to ramp up. This is a sector tilt, not a wholesale strategy shift, and should be sized to fit your existing risk tolerance.

Patience pays for retirees

Finally, for those close to or in retirement, the message from this report is one of patience rather than panic. The Bank of Canada expects inflation to ease and growth to firm up over the next two years. Volatility tied to the war in the Middle East may continue to generate headlines, but it does not change the fundamental trajectory the Bank is projecting. Maintaining a diversified, inflation-aware portfolio — and resisting the urge to make large moves based on any single month’s gas price — remains the most reliable strategy through this period of adjustment.

Bottom line

The loonie’s slide and this summer’s inflation spike are real, and they are being felt in real household budgets. But the Bank of Canada’s own projections suggest this is a period to navigate strategically, not one to fear. For Canadian investors willing to make a few targeted adjustments — on currency exposure, sector concentration and inflation protection — this report offers less a warning than a checklist.

At the same time, Canadian employers are contending with an 8.3% rise in medical plan costs projected for 2026, according to Aon’s 2026 Global Medical Trend Rates Report. That’s up from 7.4% in 2025. At that pace, the cost of covering a single employee through a comprehensive group plan could double within a decade.

Together, these developments signal a regulatory environment that is shifting — and for Canadians who rely on employer-sponsored health, disability or life coverage, the implications are worth understanding now, not at renewal time.

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What OSFI’s Annual Risk Outlook says about life and health insurers

As reported in the Insurance Business Magazine, OSFI’s 2026–2027 annual report describes Canada’s federally regulated insurers as resilient, but operating under mounting pressure on multiple fronts. Geopolitical uncertainty, rapid technology change, catastrophe-related losses and competitive pressure are all named as complicating factors.

For life insurers specifically, OSFI flags increased volatility in policyholder behaviour — particularly lapses and surrenders. While these remain modest relative to total available capital, the regulator notes that shifts in how policyholders behave can carry real consequences for earnings, capital adequacy and in some cases, operational integrity. OSFI has signalled it will assess policyholder behaviour risk, asset and liability management and liquidity practices at selected life insurers this year.

For property and casualty (P&C) insurers, claims inflation — especially in auto insurance — is pushing costs higher, while a softening commercial lines market is testing financial soundness. OSFI also plans thematic monitoring of cyber insurance underwriting and the use of artificial intelligence (AI) in underwriting at selected P&C companies.

The regulator has also put investment portfolios in the spotlight. Insurers are holding an increasing share of private market assets — which OSFI describes as bringing opacity, complexity and potential illiquidity constraints. Private credit holdings will receive close scrutiny.

Why Canadian employer health premiums are rising 8.3% in 2026 — and who pays

The 8.3% projected increase in Canadian group health plan costs for 2026 isn’t driven by a single cause. Aon’s report identifies several converging pressures: specialty drug costs, including treatments for cancer and rare diseases that can each exceed six figures annually; demand for GLP-1 medications for weight loss (such as Ozempic and Wegovy); a global supply chain affected by trade tensions and tariffs; and an aging workforce generating higher claims volumes.

For context, group health benefits plans for Canadian employees typically cost between $80 and $350 per employee per month, depending on coverage level, workforce demographics and plan design. Comprehensive plans covering extended health, dental and disability can run substantially higher. A plan at $400 per employee per month, growing at 8.3% annually, would reach approximately $800 per month within nine years — in this illustrative example.

A survey published by Benefits Canada in June 2026 found that 65% of Canadian employers are prioritizing benefits costs this year, with health-care costs accelerating from roughly 5% annually in 2023 to 10% in 2025. The pressure is pushing many employers to rework coverage — raising deductibles, shifting more costs to employees or trimming covered services altogether.

The HSA alternative: How some employers are managing premium increases

One response to rising insured premiums is the health spending account (HSA) — a tax-efficient, employer-funded benefit that reimburses employees for eligible health expenses without the risk-based premium structure of traditional group insurance. Under an HSA, the employer allocates a fixed annual amount per employee; employees spend from that amount on qualifying expenses and claim reimbursement. Because there is no pooled risk and no insurer managing claims, there are no premium renewal increases.

For smaller employers especially, a hybrid model — combining a leaner insured group plan with an HSA top-up — can limit exposure to annual premium escalation while preserving core coverage. Some employers are also exploring administrative services only (ASO) arrangements, where claims are funded directly rather than insured.

The right structure depends on workforce size, claims history and risk tolerance. For employers with a younger, healthier workforce, self-funded or hybrid models may offer meaningful savings. For those with older workforces or high claims history, full insured coverage may still carry the most predictability despite the higher premium trajectory.

What increased regulatory pressure means for your group benefits at renewal

It is important to be clear about what OSFI’s heightened supervision does — and does not — mean. The regulator’s Annual Risk Outlook is a supervisory planning document, not an emergency warning. OSFI is not signalling that any specific insurer is in distress. Its role is to identify elevated risk areas and direct its oversight resources accordingly.

That said, when OSFI signals closer scrutiny of policyholder behaviour, private credit holdings and claims management, it creates downstream effects that matter to policyholders. Insurers facing regulatory pressure on capital reserves may become more conservative in underwriting, more deliberate in claims adjudication or more aggressive on premium pricing at renewal time. None of these outcomes is guaranteed — but they are plausible in an environment where the regulator has explicitly identified the insurance sector as a supervisory priority.

For employees covered through group benefits, the most immediate risk is passive: assuming the plan you have today will look the same next year without reviewing what your employer is planning. Renewal decisions — whether to maintain, trim or restructure coverage — are typically made well before employees are notified.

How to protect yourself if your employer reduces coverage

If your employer is already signalling benefits changes, or if you are uncertain about what your current coverage includes, a few steps can meaningfully improve your position.

First, get the specifics. Review your current benefits booklet and ask HR for your plan’s renewal date and whether any changes are planned. Many Canadians are covered under plans they have never read in full.

Second, check your disability coverage limits. OSFI has flagged disability claims pressure as part of the environment it is monitoring. Short-term and long-term disability coverage limits, elimination periods and definition of disability provisions vary significantly between plans — details that matter if you ever need to use the benefit.

Third, if your group coverage is being reduced, individual top-up coverage is available from most Canadian carriers at relatively low cost for younger, healthier applicants. The time to apply is before a coverage gap exists, not after — insurers underwrite individual policies based on current health status.

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What you can do

There are a few steps to take to make sure your property and health are protected. First, ask your human resources (HR) department when your group benefits renewal date occurs and whether any premium or coverage changes are planned. If premiums are rising, ask your employer where a HSA or a hybrid plan is being considered — as these can reduce your out of pocket costs without cutting core coverage.

Next steps are to review your employer offered and privately paid disability coverage limits, including the elimination period, benefit duration and definition of total disability used in your plan.

If your group coverage is being cut back, compare individual top-up coverage options while you are still healthy and insurable at standard rates.

Finally, for Canadians without employer coverage, or in contract or freelance roles, consider comparing health and disability individual plans or professional association group plans.

CBC News reported that Lo, a former employee of Service Canada, worked for the Edmonton branch as a payment services officer for nearly a decade and resigned in 2017 for personal reasons.

The fraud came to light when a complaint was brought forward by a CPP/OAS client in 2018, who was unable to cash their CPP cheques from 2012 to 2013. The same client found that many of their cheques had already been redeemed.

In response to the complaint, Service Canada’s Integrity Services Branch began an investigation into Lo, and found that hundreds of CPP and OAS payments had been reissued and redirected to her personal bank account. Specifically, the investigation uncovered that 176 payments were put into Lo’s personal account between October 29, 2012 and December 20, 2016.

While Lo’s judge, Justice Kathryn Oviatt, noted there were “mitigating factors” in her case — such as a troubled childhood and mental health diagnoses — Oviatt also found that Lo engaged in repeated, sophisticated planning to cause severe financial losses.

“The fraud involved abuse of a position of trust. Ms. Lo held a position of trust as an employee of the Government of Canada to distribute public funds to elderly Canadians,” Oviatt stated.

“She was entrusted with secure access to government databases, and she repeatedly abused that trust by stealing public funds intended for vulnerable people,” she added.

A look at government employee misconduct

Unfortunately, Lo’s activity is not an isolated case of a government employee engaging in unlawful or inappropriate behaviour.

Last year alone, the federal government reported over 2,600 cases of employee misconduct and wrongdoing, with 145 employees fired as a result. Moreover, the Canada Revenue Agency (CRA) terminated over 100 employees due to misconduct or unlawful behaviour — 78 of those terminated were “fraudulently applying for and receiving Canada Emergency Response Benefits (CERB) during the COVID-19 pandemic,” CTV News reported.

According to the CRA’s Annual Report on employee misconduct and wrongdoing for the 2024-2025 fiscal year, employees were also found to have received CRA funds in their own personal accounts.

While Lo’s behavior is an entirely different level of egregiousness, the use of privileged positions for personal gain in any amount is a concerning issue for all Canadian taxpayers. But Lo’s fraud also contained another important detail: it was targeted at the elderly.

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The most prevalent crime against older Canadians

Employment and Social Development Canada (ESDC) — the government arm that works to improve Canadians’ standards of living — states that fraud is the most common crime committed against older Canadians.

The Canadian Anti-Fraud Centre’s (CAFC) 2024 Annual Statistical Report notes that Canadians who were aged 60 and up in 2024 had the largest dollar loss for their age group: nearly $180 million. In fact, compared to all other age ranges — not including unspecified fraud reports — senior citizens submitted the highest number of fraud reports at 12,801.

Why exactly are seniors so targeted by scammers?

There are a number of factors at play. ESDC suggests that seniors are more targeted than other age groups because of their availability to answer a scammer at home or online. The agency also notes that this demographic can be more trusting and may not have family or peer groups to get a second opinion.

The Toronto Police Service (TPS) suggests that seniors are often in the crosshairs of bad actors due to their “perceived accessibility, vulnerability and reluctance to report this crime.”

And, as AI-powered scams are on the rise, fraudsters can prey on seniors who are generally less open to emerging technologies than their younger counterparts.

How to spot signs of elder fraud schemes at play

With many seniors relying on government benefits to fund their retirement, even losing a few monthly benefit cheques can quickly erode a financial bedrock. Here are some practical steps you can take to spot the warning signs of fraud.

• Be suspicious of urgency. Scammers often claim you must act immediately to avoid losing money, benefits or access to an account.
• Watch for requests to keep things secret. Fraudsters may warn victims not to tell family members, caregivers or their bank about the transaction.
• Verify before you trust. If a caller claims to represent Service Canada, your financial institution or a family member in distress, hang up and contact the organization or person using a phone number you know is legitimate.
• Be wary of uncommon payment methods. Bad actors always operate in the shadows. Be especially vigilant if an alleged friend or financial institution asks you to pay with hard-to-trace payment types such as wire transfers, gift cards or cryptocurrency.
• Review bank statements regularly. Look for unfamiliar withdrawals, e-transfers or changes to your direct deposit information.

Who to contact if you’re a victim of CPP/OAS fraud

While fraud can feel easy to spot while you’re researching the topic, becoming enmeshed in a scam is a whole other matter entirely. If you’ve noticed your CPP or OAS payments missing and are concerned, act immediately. Call Service Canada at 1-800-277-9914, report the issue to your local police, and report the scam to both your financial institution and the CAFC.

Remember, there’s no shame in reporting fraud, since failing to do so only enables scammers to continue to operate in the dark.

A 2025 study commissioned by H&R Block Canada found that while 59% of Canadians expect to receive an inheritance, only 33% have a solid understanding of the tax and legal implications that can come with it. And according to Statistics Canada’s 2023 Survey of Financial Security, the median inheritance received by Canadian homeowners was $85,100 — a significant sum, but one that can disappear quickly if it’s tied up in an insolvent estate.

The situation: Named as heir to a broke relative

Let’s consider Todd, who’s in his 30s. His aunt, in her 70s, is dying of cancer. Todd has always been close to his aunt, and she’s already told him he will be her only heir and the executor of her estate. Unfortunately, her estate consists of a run-down house with a mortgage and tens of thousands of dollars in credit card debt.

Todd’s aunt is trying to add his name to the deed of the home, and she has drawn up estate planning documents. But Todd is worried he could be personally responsible for her debt, and isn’t sure about what to do with a house that’s in poor condition.

Will Todd’s finances be at risk from this inheritance?

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Can you inherit debt from a broke relative?

The good news for Todd — and for any Canadian in a similar situation — is that in most circumstances, you can’t inherit debt from a relative.

Under Canadian law, when someone dies, their estate becomes responsible for paying off outstanding debts — not their heirs. The executor must use the deceased’s assets to settle debts before any assets can be passed on to beneficiaries. In Québec, the executor is called a “liquidator.”

As Ontario estate law firm Miltons Estate Law notes on its website: “The next-of-kin do not inherit the debts of their relative. If your father died with more debts than assets, you are not immediately liable for any of his debts (unless you co-signed or guaranteed).”

If the estate has more debt than assets — known as an insolvent estate — the Canada Revenue Agency (CRA) and secured creditors, such as mortgage lenders, are paid first. After that, unsecured creditors such as credit card companies are paid, and whatever is left goes to the heirs. If nothing remains, those unsecured debts generally go unpaid.

When can you be held responsible?

Under Canadian law, there are two main situations where debt can follow you personally:

• You cosigned the debt or held a joint account with the deceased. If Todd and his aunt shared a joint credit card or he co-signed a loan for her, he would be responsible for that balance.
• You distribute estate assets before paying creditors. This is the most common trap for executors.

There’s also good news about registered accounts. Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs) and life insurance policies with a named beneficiary are generally protected from creditor claims. These assets pass directly to the named beneficiary and don’t flow through the estate.

The message for executors is clear: take your time, don’t pay anyone — including yourself — until you know the full scope of what the estate owes.

Should his aunt add him to the deed?

The next question Todd must address is whether his aunt should add his name to the property deed before she dies. While this might seem like a thoughtful gesture — or a practical way to transfer the house without going through probate — in Canada, it can create a series of serious legal and financial problems.

Under Canadian tax law, adding someone to a property title is treated as a partial sale of the property, not a simple name change. The CRA may consider it a “deemed disposition” — meaning the owner is treated as if they sold a portion of the property at its current market value on the date of the transfer. If the property has gone up in value, it can immediately trigger capital gains tax.

In Canada, 50% of a capital gain is added to the transferring owner’s taxable income for that year. Also, the person receiving the partial ownership doesn’t automatically get a reset on the property’s original purchase price.

There are additional complications specific to a home that already has mortgage debt:

• The mortgage lender may have a “due-on-sale” or “due-on-transfer” clause that lets it demand full repayment of the mortgage if the property is transferred to someone else during the owner’s lifetime.
• If the person added to the title doesn’t live in the home and can’t claim it as their principal residence, their share of any future capital gain may be fully taxable.
• The transfer may trigger land transfer tax, depending on the province.
• If the mortgage on the property is worth more than the home itself — sometimes called being “underwater” — the person being added to the deed could be taking on a liability rather than receiving an asset.

As a result, Todd’s aunt should hold off on adding him to the deed. If the home passes through the estate after her death instead, Todd would inherit the property at its fair market value at the date of death, which becomes his starting point for any future capital gains calculation.

A note about long-term care in Canada

Long-term care in Canada is run by provincial governments and is publicly funded. Eligibility is primarily based on assessed care needs, not a review of past asset transfers. However, in most provinces, the fees a resident pays are based on their annual net income, so higher income means higher costs.

The practical takeaway for Canadians: While giving a house to a family member generally won’t trigger a formal long-term care penalty in Canada, it can still create problems, especially if the person making the gift later needs subsidized care, or if the estate has outstanding tax obligations to the CRA that must be settled first. Getting professional legal and financial advice before any lifetime property transfer is strongly recommended.

What Canadians can do right now

If you, like Todd, were named as an executor or beneficiary to an estate, or are simply thinking about your own estate planning, here are the key steps to take:

• Don’t assume you owe anything. If a debt collector contacts you after the death of a relative, know your rights. Unless you co-signed the debt or held a joint account, you aren’t personally responsible. You don’t have to pay from your own funds.
• Get a full picture of the estate before distributing anything. As executor, your first job is to identify all assets and all debts. Don’t pay any beneficiary — including yourself — until you know exactly what is owed to creditors.
• Consult a licensed estate lawyer in your province or territory. Estate law varies by geography, and Québec has its own civil law rules that differ significantly from the rest of Canada. A lawyer can help you understand probate, creditor priority and your duties as executor.
• Consider a Licensed Insolvency Trustee (LIT) for an insolvent estate. If the estate’s debts are more than its assets, a LIT can help arrange a consumer proposal or bankruptcy for the estate — which may allow you to recover some assets that would otherwise go entirely to creditors.
• Check named-beneficiary accounts. RRSPs, TFSAs and life insurance policies with named beneficiaries pass directly to those individuals and are generally protected from estate creditors. These assets don’t need to go through probate.
• Think twice before accepting a property transfer during a relative’s lifetime. In Canada, being added to a property deed before someone dies can trigger capital gains tax, land transfer tax, mortgage complications and loss of the principal residence exemption. In most cases, waiting to inherit the property through the estate is simpler and more tax-efficient.
• Have the conversation while you still can. More than half of Canadians haven’t talked to their family about inheritance. Starting that conversation now — about debts, assets, wishes and estate planning — can prevent financial and emotional surprises down the road.

-With files from Melanie Huddart

BMO’s 2026 Retirement Survey highlighted some striking statistics: of the Boomers surveyed who are not retired, 27% say they do not plan to stop working. Meanwhile, 20% of Gen X, 18% of millennials and 15% of Gen Z respondents also believe they will not be able to stop working in some capacity during retirement.

Additionally, according to Statistics Canada, one in ten people aged 55 and up who were previously retired had entered back into the workforce in 2023, up from 7% in 2019.

It's not just intention — the data show many people actually do end up back at work.

Canadians are unprepared for retirement financially

According to the Healthcare of Ontario Pension Plan (HOOPP)’s 2026 Canadian Retirement Survey, many Canadians are financially unprepared for life after leaving the workforce — and a growing number are rethinking what retirement even looks like. More than half of respondents (57%) said they’d choose a guaranteed lifetime pension over owning a home, and 65% said they’d consider switching jobs for a better pension. These numbers show a shift in preferences: For many Canadians near retirement, financial security has become the top priority over travel and hobbies.

In fact, Canadians now believe they need $1.7 million to retire comfortably, up from $1.54 million only one year earlier, and more than one-third say they’re unlikely to reach that goal, according to the BMO study.

For many, working longer looks like the obvious fix.

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The retirement age keeps climbing — but not always by choice

According to StatCan, as of 2025, the average retirement age has risen to about 65.4 — roughly three and a half years later than in 2003. Self-employed Canadians retire the latest, at an average age of 68, while public sector workers retire earliest, around age 63. But averages hide the harder truth: Not everyone gets to choose when they leave. Health problems, caregiving responsibilities and layoffs push a significant number of workers out of the workforce well before they planned to go.

And once someone loses a job later in life, getting back in isn’t easy. StatCan’s Labour Force Survey from June 2026 found that the overall average time spent unemployed before finding a new position was 23.2 weeks, or just over five months. Meanwhile, the unemployment rate for Canadians aged 55 and older sits at 5.2%.

CPP and OAS alone won’t replace a paycheque

Part of the reason so many people count on working longer is that Canadian government benefits rarely cover the full cost of retirement. As of 2026, the maximum Canada Pension Plan (CPP) payment for someone starting benefits at 65 is $1,507.65 a month — but the average new recipient collects closer to $877.01. Old Age Security (OAS) adds a maximum of roughly $752 a month for those aged 65 to 74. Combined, that’s roughly $1,629 a month for someone receiving the average CPP amount plus full OAS — an income most Canadians would find hard to live on, especially in cities like Toronto and Vancouver where the cost of living is high.

That gap is exactly why so many Canadians add “keep working” into their retirement math. The trouble is, as Canadian data show, that the plan tends to look better on paper than it does in reality.

Plan for real life, not hope

None of this means paid work in retirement is a bad idea — plenty of Canadians who keep working part-time do so happily, for social reasons as much as financial ones. The problem is treating a future job as the backstop plan for a retirement that doesn’t otherwise add up.

A report from the National Institute on Ageing’s Pension Centre of Excellence, cited by The Globe and Mail, makes a similar point about workplace pensions: Guaranteed lifetime income does more than replace a paycheque — it reduces stress and steadies household finances in a way that casual work later in life often can’t. The same lesson applies to anyone without a pension who’s counting on a future job to fill the gap.

What Canadians can do now

Don’t build your retirement plan around income you hope to earn, but rather income you can count on. Here’s where to start:

• Build your retirement budget around CPP, OAS and your own savings — not a job you might or might not be able to do
• If you have a workplace pension, get a clear estimate of what it will actually pay before you factor it into your plan
• Test your plan against an earlier-than-expected exit — ask what happens to your finances if health problems or a layoff ends your career five or 10 years sooner than planned
• If part-time work in retirement matters to you, start building the skills and contacts for it now, while you’re still employed — don’t assume a new job will be easy to find later
• Talk to a certified financial planner or use the Financial Consumer Agency of Canada’s retirement planning tools to check whether your plan holds up without income from work

The sooner Canadians plan around the numbers as they are — not as they hope they’ll be — the better prepared they’ll be for whatever retirement actually brings.

— with files from Melanie Huddart

Statistics Canada estimates that as many as 60% of Canadians work in occupations at high or moderate risk of significant AI-driven disruption. Meanwhile, the Future Skills Centre (FSC), a federally funded research organization, found that 44% of Canadian workers were worried their jobs would become automated through AI.

This is enough to make young people — and their parents — wonder: What should children and young adults actually be learning right now?

Jensen Huang’s message to new grads: It’s an exciting time

In May, NVIDIA founder and CEO Jensen Huang spoke to graduates at Carnegie Mellon University in Pittsburgh, offering a measured dose of optimism. AI won’t ruin career dreams, he argued — instead, “a new industry is being born.”

He continued by telling the 5,800 graduates: “A new era of science and discovery is beginning... I cannot imagine a more exciting time to begin your life’s work. No generation has entered the world with more powerful tools — or greater opportunities — than you.”

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But don’t rely too heavily on AI tools

Huang’s encouragement was welcome. But this optimistic perspective seems to gloss over a more complicated picture when it comes to future employment and the impact of AI. In a recent Financial Times interview, an anonymous financier said that “AI native” new hires are producing surprisingly shallow work — so much so that his firm is now actively recruiting humanities graduates over those who lean heavily on AI tools.

Scott Galloway weighs in on the importance of human skills

It was in this context that tech entrepreneur, NYU Stern professor and author Scott Galloway sat down with Steven Bartlett on The Diary of a CEO podcast in early May to discuss what parents can actually do to AI-proof their children’s futures.

Galloway’s answer was deliberately counterintuitive — and worth paying attention to whether you’re a recent grad, a parent or a grandparent looking to your family’s future.

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Storytelling and building relationships

When Bartlett asked Galloway which skills would matter most, Galloway pointed not to coding bootcamps or data science degrees, but to two fundamentally human abilities: Storytelling and the capacity to build real relationships.

He noted that a decade ago, elite private schools were steering students toward Mandarin and computer science as the twin currencies of future success.

“How’s that worked out?” he said dryly, before answering: “‘Thank god my kid knows Mandarin,’ said nobody right now.”

Storytelling, Galloway argues, is ‘the most enduring skill’ — defined not as spinning yarns but as “your ability to look at data, create a narrative arc, and then communicate that story in a compelling way.”

As an example, he pointed to Amazon founder Jeff Bezos’s 1997 letter to shareholders — a document so compelling in its vision that Galloway says it made him want to invest on the spot.

The same principle applies in Canada. Whether you’re pitching a startup to a Bay Street investor, presenting a business case to a Crown corporation or applying for a federal grant, the ability to frame data into a narrative is what separates forgettable presentations from funding decisions.

Galloway’s second essential skill is “the ability to establish strong relationships with other sentient beings.” He argues that a strong real-world network — built through genuine human connection, not LinkedIn endorsements — is one of the most durable career assets a young person can develop. It opens doors to jobs, clients, mentors and business partners that no algorithm can replicate.

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One last skill future Canadian workers need to learn

Galloway added a third, less-discussed skill that he believes young people — particularly young men — are dangerously underpracticed in: Handling rejection.

“It’s hugely underrated… the ability to endure rejection,” he said. He recommends giving young people as many low-stakes opportunities as possible to hear “no” — so that when it matters, they already know how to absorb it and move on.

Drawing from his own experience, Galloway described rejection as “the secret to his success.”

The future, as Galloway and Huang both acknowledge, is genuinely unpredictable. The best preparation, Galloway suggests, isn’t a specific technical skill set — it’s building young people into adaptable, curious, relationship-oriented humans.

What Canadian parents and young people can do

Based on Galloway’s observations, here are some practical Canadian-specific steps to develop these three essential skills.

Storytelling: Enrol in a communications, rhetoric or creative writing elective at a Canadian college or university. Many provincial governments — including Ontario, British Columbia and Alberta — offer continuing education subsidies through programs such as the Canada Training Credit, which provides eligible workers up to $250 a year toward approved courses up to a lifetime maximum of $5,000.

Relationships: Prioritize in-person networking. Join a student professional association, attend local chamber of commerce events, or apply to programs such as the Ted Rogers School of Management (TRSM) mentorship network or comparable programs at universities across the country. The Future Skills Centre (FSC) also funds community-based career development programs in most provinces.

Rejection tolerance: Seek out competitive environments with fast feedback loops — debate teams, sales internships, open-mic nights, pitch competitions. Many Canadian universities run student entrepreneurship pitch competitions specifically designed to build this muscle.

Bottom line

The three skills Galloway champions — telling a compelling story, building genuine relationships and bouncing back from setbacks — can’t be found on any standardized test. But in an economy increasingly shaped by AI, they may be the most valuable investments a Canadian family can make.

— with files from Joanna Sinclair

On a beautiful morning in Ottawa, that picture-perfect scene was playing out exactly as it has for generations. Cyclists were pulling over, coins were jingling into a jar and two little girls were beaming behind their counter. Then, a uniformed official walked up, pointed to the table and ordered the entire operation shut down because they lacked a commercial business permit.

It reads like a heavy-handed movie trope about government red tape, but it was a very real standoff that took place right here in Canada.

Ten years ago, sisters Eliza and Adela Andrews became the faces of a national conversation regarding over-regulation. On July 3, 2016, a junior conservation officer with the National Capital Commission (NCC) ordered the girls — who were just five and seven years old at the time — to dismantle their roadside stand. They were selling drinks for $1 a glass along Colonel By Drive during a popular summer event known as Sunday Bikedays.

The public reaction was swift, fierce and entirely predictable.

The fallout of being heavy handed

The story quickly went viral, prompting a massive wave of public criticism for the federal agency tasked with managing capital region lands. It was a classic public relations nightmare. According to internal agency emails obtained later by journalists, even the highest levels of the organization panicked. Former NCC chief executive officer Mark Kristmanson expressed immediate concern in an email to his chief of staff and obtained by the CBC that “the NCC officers appear heavy-handed,” though he also fretted about potential liability if something happened to children on federal property.

A board member at the time, Kay Stanley, tried to make light of the sudden national media storm, writing in an email also obtained by the CBC that “it really must have been a slow news day in many media offices!”

The organization quickly realized that hiding behind strict bylaws was a losing strategy. The agency issued a formal public apology, admitting that while the officer acted in good faith to enforce federal land-use rules, the situation could have been handled differently. In an official statement, the NCC noted that “children’s lemonade stands are a time-honoured summer tradition that contributes to a lively Capital and the NCC wants to encourage these activities whenever possible.”

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Turning sour lemons into a sweet policy pivot

To make amends, the NCC quickly granted the sisters a special permit to return to their grassy median along Colonel By Drive the following weekend. The permission came with a few very specific, uniquely bureaucratic conditions. The girls were required to carry the paperwork with them at all times, donate their immediate proceeds to charity and ensure their hand-drawn signage was displayed “in both official languages, English and French of equal prominence.”

The sisters used the opportunity to raise money for Camp Quality, a non-profit organization that supports children with cancer and their families.

More importantly, the high-profile blunder forced a permanent shift in how government bodies view micro-businesses run by youth. The very next year, the NCC established a formal young entrepreneurs program. The initiative allows Canadians between the ages of five and 17 to apply for free, streamlined permits to operate kiosks and stands along the capital’s parkways during active transportation days.

Keeping summer’s sweetest tradition alive

A decade later, the Andrews sisters are now teenagers who look back on the incident as a strange badge of honour. Eliza, now 17, and Adela, 15, have even used the experience on their resumes. Speaking with CBC a decade later, Eliza recalled: “It was pretty crazy how we were able to have such an impact on our community. We were only five and seven at the time.”

Current NCC chief executive officer Tobi Nussbaum, who was a city councillor when the incident occurred, reflects on the event as a necessary learning experience for a large public institution. He explained that the story resonated because it had all the right ingredients: “Lemonade, children, summertime and a public organization… that is big and at times is imperfect,” he told CBC. He added that the resulting youth permit system strikes “the right balance between being totally ‘open door’ ... but also making sure that we’re being fair to existing leaseholders.”

Today, kids can still set up their little lemonade stands without any worry. Thanks to a bit of community support and two determined little girls, a sweet summer tradition got to keep its place in the sun.

On any warm weekend, those familiar sounds carry on just as they always have. The ice still clinks, pocket change still jingles, and kids still proudly shout “lemonade!” as they wave their hand-drawn signs at passing neighbours. It’s a timeless piece of childhood that never really disappeared from Ottawa — and now, it has a safe place to stay.

But between persistent inflation, rising interest rates and an economy still finding its footing after the pandemic, it’s not surprising so many Canadians just feel financially unstable, even when the numbers tell a different story.

The people who are on firm financial footing are often the last to recognize it. If you’re not sure how well you’re doing compared to the typical Canadian, it’s worth taking a closer look at where you actually stand.

If any of the five markers below describe you, there’s a good chance you’re doing better than the average Canadian, by a wider margin than you think.

1. You live with low or no debt

Canada now carries the highest household debt load among G7 nations. According to Statistics Canada, household credit market debt reached $1.80 for every dollar of disposable income in Q1 2026 — a ratio that has risen for six consecutive quarters. Total Canadian household debt has now surpassed $3.2 trillion.

About 75% of that debt is mortgage debt, which most financial professionals consider “good debt” because it builds equity over time. Still, if you’ve avoided consumer debt entirely — and especially if you’ve paid off your mortgage — you’re in a rare financial position.

Without the drag of interest payments, you’re likely building wealth faster than most of your neighbours. And with mortgage arrears rising and hundreds of thousands of Canadians facing a jump in payments as fixed-rate mortgages renew at higher rates, the gap between low-debt and high-debt households is growing quickly.

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2. You have meaningful savings in your RRSP or TFSA

If you have any retirement savings at all, you’re already ahead of a significant portion of Canadians. According to Statistics Canada’s 2023 data on RRSP and Tax-Free Savings Account (TFSA) contributions, fewer than one in five Canadians are on track for a comfortable retirement from registered savings alone.

The numbers behind that gap are striking. According to the Canada Revenue Agency (CRA), the average Canadian aged 35 to 44 holds around $88,600 in their Registered Retirement Savings Plan (RRSP). Meanwhile, those aged 45 to 54 average about $150,000 — but the median balance for a typical 45-year-old is closer to $70,000. Many Canadians have significant unused RRSP contribution room, with the 2026 annual limit set at $33,810, or 18% of prior-year earned income.

The Tax-Free Savings Account (TFSA) tells a similar story. Canadians eligible since 2009 can contribute up to $109,000 as of 2026 — but most Canadians hold considerably less than that in actual balances.

If you’re under 40 with six figures in your RRSP, TFSA or combined registered accounts, you’re well ahead of your peers. And if you’re approaching retirement with balances significantly above those generational averages, your finances are in better shape than most.

3. You consistently save and have an emergency fund

With rising living costs and wages that haven’t kept up, saving has become harder for many Canadians. The national household savings rate stood at just 3.5% in Q1 2026, according to StatCan, well below the pre-pandemic norm of around 6% to 7%.

The emergency fund picture is equally concerning. According to the Canadian Social Survey on Quality of Life and Cost of Living, one in four Canadians can’t cover an unexpected expense of $500. That means roughly a quarter of the country is one car repair or medical bill away from real financial trouble, with nothing to fall back on.

If you’re consistently saving, setting aside a percentage of your income and sitting on three to six months’ worth of expenses in an emergency fund, you’re well ahead of most Canadians. A strong savings habit sets you apart, and speeds up your path to long-term financial goals.

4. You’ve hired a financial professional

A striking pattern shows up in FP Canada’s 2026 Financial Stress Index: Canadians who work with a Certified Financial Planner (CFP) or Qualified Associate Financial Planner (QAFP) are more likely to feel hopeful about their financial futures (48%) than those who aren’t (34%).

It’s worth being clear about what that gap tells us: people with more assets are more likely to seek professional help, so the relationship runs in both directions. But working with an adviser — regardless of where you start — can sharpen how you manage your money, help you avoid costly mistakes and keep you on track toward meeting your long-term goals.

Despite these benefits, most Canadians haven’t made financial guidance a regular habit. The Financial Consumer Agency of Canada (FCAC)’s annual report found that while 72.5% of Canadians showed some strong financial knowledge by early 2025, only 56.7% showed good financial well-being — falling short of the FCAC's own 60% target. That gap between knowing and doing is exactly where professional guidance tends to matter most.

5. Your net worth beats your age group’s median

Net worth, which is everything you own minus everything you owe, is the single most complete measure of financial health. It includes your home equity, retirement accounts, savings and investments, minus your mortgage, debt and other money you owe. And most Canadians have never looked up where they stand.

According to StatCan’s most recent wealth data, the Survey of Financial Security (SFS) 2023, the median net worth by age group is as follows:

• Under age 35, about $159,100
• Ages 35 to 44, about $409,300
• Ages 45 to 54, about $675,800
• Ages 55 to 64, about $873,400
• Ages 65 and older, about $738,900

The overall Canadian median household net worth is $519,700; if your net worth is meaningfully above the median for your age group, you're not just doing fine, you're doing better than most Canadians at your stage of life.

Why financial stress can mask financial success

These five benchmarks aren’t goals to aim for — they’re signs of what financially healthy households are already doing differently from most. If you check more than two or three of these boxes, you’re probably in better financial shape than you realize.

The problem isn’t usually the numbers themselves. It’s the gap between what Canadians know about their finances and how that knowledge shows up in their day-to-day financial choices. That gap is where most people need the most help, and where the biggest opportunities lie.

What Canadians can do right now

Whatever your current situation, these steps will move you closer to the aforementioned five markers of financial success.

• Check your registered account room. Log into your CRA My Account to see your available RRSP deduction limit and TFSA contribution room. Most Canadians have more unused room than they realize, and every year that it sits empty is a missed opportunity.
• Build a starter emergency fund first. Before aggressively putting money into investments, set aside at least $1,000 to $2,000 in a high-interest savings account (HISA) or a TFSA to cover minor setbacks. The goal is three to six months of essential expenses.
• Know your net worth number. Add up what you own — home equity, investments, savings, pension values — and subtract what you owe.
• Take your CPP and OAS projections seriously. Log into your My Service Canada account to view your estimated Canada Pension Plan (CPP) retirement benefit. Most Canadians underestimate how much they'll receive, and many leave money on the table by claiming early.
• Consider working with a CFP professional. A Certified Financial Planner (CFP) professional can be found through FP Canada’s public registry. Advice doesn't have to be ongoing. A one-time financial plan can clarify your goals and highlight gaps you didn’t know were there.
• Pay down high-interest consumer debt. Paying off a credit card balance at 20.99% is a guaranteed 20.99% return — better than most investments. Make this a priority before putting extra money into investments outside registered accounts.

-With files from Melanie Huddart

For some healthcare professions, this burnout is leading to a bit of napkin math and pre-retirement calculation in an effort to answer one question: can I retire earlier than planned?

In a 2025 Medscape Canada survey of more than 1,000 Canadian physicians, more than half (57%) of doctors under the age of 45 expected to retire in their 40s or 50s — with burnout and the desire for more personal time as the most commonly cited reasons.

The decision to retire early — and leave the pool of qualified medical professionals — has real financial consequences. For instance, most incorporated physicians build their retirement strategy around a full career ending at age 65. This means maximizing your salary and dividend mix inside a Canadian-Controlled Private Corporation (CCPC), while accumulating Registered Retirement Savings Plan (RRSP) room and timing Canada Pension Plan (CPP) contributions for a standard-age payout. The idea of exiting 10 years early means recalculating all those assumptions — to determine if the plan is possible.

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What changes when you retire at 55 instead of 65

To be clear, like many professionals with the opportunity to incorporate, such as physicians, accountants or Realtors, will develop a financial infrastructure that is time-sensitive. Each stage and decision impacts the next stage and decision. For instance, using a CCPC an incorporated professional can accumulate passive investment income during years of high earnings. At the same time, their RRSP contribution room grows in step with their earned income — usually salary drawn from the corporation. CPP entitlement grows with contributions, with fewer contributing years resulting in a smaller benefit upon retirement. As a result, any early exit compresses all three and results in less retirement income.

To illustrate, let’s assume a physician stops drawing a salary at age 55. At this point, the doctor will immediately stop accumulating RRSP contribution room, and the passive income held inside the corporation will face a higher effective tax rate once the small business deduction phases out — a threshold that arrives faster when investment income builds without active income to offset it.

Then there is the CPP gap, which is particularly easy to underestimate. CPP benefits are calculated based on contributions over a working lifetime, with low-income years (including zero-income retirement years) pulling down the average. A physician who retires at 55 and waits until 65 to claim CPP will still receive a smaller benefit than one who contributed through 65, because the early retirement years count as zeros in the calculation. Taking CPP at 60 instead of waiting only deepens the loss since benefits are permanently reduced by 0.6% per month before age 65, a total cut of 36% at the earliest possible start date.

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The OAS eligibility gap you can’t bridge

Then there is Old Age Security (OAS), which is not available to collect until you are aged 65. That means a physician who retires at 55 faces a 10-year window with no OAS income and a CPP benefit that either hasn’t started or is being drawn down at a permanent discount.

For many physicians, the plan has been to use CCPC assets to bridge income in those years. That can work — but it requires deliberate drawdown sequencing. Because corporation investments are taxed less favourably in retirement than RRSP or Tax-Free Savings Account (TFSA) assets, drawing from the corporation first while letting registered accounts compound is often the more tax-efficient path. The TFSA, where withdrawals are tax-free, is typically the last account touched — preserving flexibility late in retirement.

The risk is running the corporate account lower than anticipated. If a physician retires at 55 and expects 10 years of corporate-funded income before CPP and OAS kick in at 65, the assets held inside the CCPC need to be large enough to cover the gap — and continue to support retirement starting at age 65 when government benefits kick in.

Disability insurance: The coverage most physicians haven’t re-examined

One practical and often overlooked question for physicians experiencing burnout is whether their disability insurance policy covers reduced clinical hours — not just total incapacity. Many standard policies are structured around an inability to work at all. A physician who reduces their hours to part-time as a response to burnout may fall outside the definition of total disability while still losing significant income.

Physicians who have had the same policy since early in their careers should confirm that the own-occupation definition in their contract covers reduced-hour scenarios, and that the benefit period extends to age 65 — or to their revised retirement target, if earlier.

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How to restructure your plan before the timeline shifts

For a physician — or any other incorporated professional — in their 40s who is considering an earlier exit, the most useful first step is to model a retirement scenario based on age 55 — not 65. That means running the numbers on what your CPP benefit would actually be with contributions stopping in 10 years, when your OAS eligibility begins relative to your projected exit, how many years your current CCPC assets would support your target income and whether your registered accounts are sized for the revised timeline.

The salary-versus-dividend mix inside a CCPC is another lever that may need adjustment. Salary drawn from the corporation generates RRSP contribution room and CPP contributions; dividends do not. An incorporated professional who has been taking primarily dividends for tax efficiency may need to rebalance toward salary in the years before an early exit, specifically to build CPP entitlement and create RRSP room while there is still time.

Individual Pension Plans (IPPs) and Retirement Compensation Arrangements (RCAs) are structures that some incorporated physicians use to formalize a pension-style retirement income funded through the corporation — both allow larger contributions than a standard RRSP for higher-income earners and can be particularly useful where an earlier drawdown timeline is expected. These tools require advanced setup and are best evaluated with a financial advisor who works specifically with incorporated professionals.

What to do now

• Model a retirement scenario at age 55 — not 65 — to understand the real income gap before CPP and OAS begin
• Ask your adviser whether your current salary/dividend mix will build sufficient CPP contributions by an earlier exit date
• Review your disability insurance policy: confirm it covers reduced clinical hours, not just total disability and that the benefit period aligns with your revised retirement target
• Confirm whether your CCPC holds enough passive assets to bridge 10 or more years of income before government benefits begin
• Ask about an Individual Pension Plan (IPP) or Retirement Compensation Arrangement (RCA) if a pension-style drawdown better suits an earlier exit

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Bottom line

Burnout does not always mean a permanent exit. Some physicians reduce clinical hours or take sabbaticals before returning to practice in a different capacity. Any financial restructuring should account for that possibility — a plan built only for a hard stop at 55 may create unnecessary tax consequences if circumstances change. What matters now is having the actual numbers in front of you, modelled against the timeline you are genuinely considering — not the one you assumed when you incorporated.

Together, the couple has a net worth of nearly US$497,000 (C$706,000). But André’s share of that nest egg is just US$16,000 (C$22,700) — a gap that's taking an emotional toll no spreadsheet can capture.

“I feel shame,” André told financial expert Ramit Sethi on his podcast, I Will Teach You to Be Rich. “I know that most of the money that is there, it comes from her. I don’t feel that I’m contributing enough.”

Maria earns US$126,000 (C$179,000) a year, while André earns US$61,000 (C$86,600) working as an HVAC technician, studying for his licence on the side. Maria plans to retire in eight years, at 61. If nothing changes, one question has stuck with her — the same one she asked Sethi: “Am I going to spend all of that time alone?”

While this story takes place south of the border, it is equally relevant here in Canada.

‘Work harder’ isn’t the answer — it’s about teamwork

It would be easy to frame this as a simple income problem, but Sethi pushed back on that. When Maria described wanting André to make more money and have a plan, Sethi identified a point of tension: If André has to earn more, he probably has to work more. But he’s already working six days a week, coming home physically exhausted from crawling under houses replacing ductwork.

“He can’t work any more than he is,” Maria acknowledged.

The deeper issue, Sethi argued, was that this couple — who have combined their finances and are legally married — are still operating financially as individuals rather than a team. Before combining accounts, Maria’s fixed costs made up 48% of her income; André’s made up 85%. She was covering trips to Brazil, insurance, car expenses and savings, while the two maintained a confusing hybrid of joint and separate accounts.

That kind of financial secrecy is common on this side of the border, too. In an April 2026 survey of Canadian households, a Wealthsimple study found 14% of couples admitted to financial infidelity: hiding a purchase, account or debt from a partner — and another 1 in 5 admitted to downplaying a purchase to avoid an awkward conversation.

“When you get married,” Sethi explained, “you can’t just do it your own way. You have to talk to each other. You have to compromise.”

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André’s immigrant experience shapes the math

André’s situation leaves little room for personal choices. Building financial stability as a recent immigrant is systemically harder than it looks from the outside, and Sethi acknowledged that. Without permanent status, André spent years working as a subcontractor, covering his own gas, insurance and supplies while being underpaid on reimbursements, which left him with little room to push back. He received his green card in September 2025.

“This is one of the many ways that companies screw over people who don’t have a lot of power in the labour force,” Sethi said.

Canadian data shows a similar pattern. A 2026 Statistics Canada analysis found recent immigrant families held C$27,000 less in RRSP assets than Canadian-born families in 2023 — a gap that’s barely narrowed since 2016. Among longer-established immigrant families, the shortfall in Registered Pension Plan (RPP) savings was C$65,400 in 2023, down from C$109,700 in 2016.

The real math is better than they feared

One of the episode’s most powerful moments came when Sethi ran the actual numbers. Maria’s pension is projected to cover roughly 50% of her current US$10,500 (~C$14,900) monthly gross salary in retirement. If André increases his retirement contributions by US$2,000 (~C$2,800) a month after getting his HVAC licence and a better-paying job, the couple would have approximately US$1.53 million (~C$2.17 million) by the time Maria turns 61. Combined with her pension and government benefits, that works out to around US$135,000 (~C$191,700) a year in retirement income.

“None of these have to involve André working till he’s 80,” Maria noted.

What changed

In a follow-up, Maria reported the two had worked out the logistics of moving funds into shared accounts, allowing André to start directing 10% of each paycheque into retirement. He also took the initiative on something small but symbolic — booking their tickets to Brazil, his first trip back in 12 years.

Instead of a bigger paycheque or a perfectly balanced budget, the turning point for Maria and André was reframing the whole question. As Sethi put it: “It’s not a competition. It’s a team going the same direction.”

What this means for Canadian couples

Maria and André’s story shows up in Canadian households too. A few Canadian-specific numbers are worth knowing before assuming a government pension, or a single partner’s savings, will be enough to cover all expenses in retirement.

The average Canada Pension Plan (CPP) payment for new beneficiaries starting at 65 is C$877.01 a month, well below the maximum of C$1,508. Spouses can also share their CPP retirement pensions with each other, which can lower a household’s overall tax bill.

Old Age Security (OAS), the other main government retirement benefit, tops out at C$751.90 a month for those aged 65 to 74.

A common rule of thumb is that retirees need about 70% of their pre-retirement income to maintain their standard of living, meaning CPP and OAS alone typically aren’t enough for most households.

That’s where a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA) comes in. For 2026, the RRSP dollar limit is C$33,810, or 18% of the previous year’s earned income, whichever is lower; the TFSA limit is C$7,000. Couples with a large income disparity, like Maria and André, can also use a spousal RRSP, where the higher-earning partner contributes using their own room but the lower-earning partner owns the account — a strategy that can help split retirement income more evenly later on.

None of that changes the emotional side of what Sethi described. But for Canadian couples where one partner is contributing less toward retirement, it helps to know that the right tools — CPP sharing, spousal RRSPs, regular money check-ins — can close the gap before it becomes a source of shame.

— with files from Melanie Huddart

A new Leger survey found that while 60% of Canadians rate their household finances as good or very good, nearly twice as many (61%) believe the Canadian economy is currently performing poorly. The findings suggest many households are staying afloat despite ongoing concerns about inflation, housing affordability and rising fuel costs.

“Perceptions of both national and personal finances remain largely unchanged this June, indicating Canadians continue to feel pessimistic about current economic conditions and the financial outlook,” the report said. “While there is no evidence of further decline, a few modest improvements in future expectations suggest that confidence may be beginning to stabilize.”

Canadians see a difference between their own finances and the economy

One of the survey’s clearest findings is the disconnect between how Canadians view their own financial situation and how they view the economy as a whole.

While six in 10 respondents said their household finances are in good shape, only one-third (33%) described the national economy as good or very good.

Looking ahead, Canadians were also more pessimistic than optimistic about their own finances, although not nearly to the same extent as their views of the broader economy. One-quarter (25%) expect their household finances to worsen over the next six months, while 16% believe they’ll improve.

The gap suggests many Canadians feel they’re managing their own finances reasonably well, even if they remain uneasy about where the broader economy is headed.

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Spending plans are showing cautious signs of improvement

The Leger survey also hints that consumers may be feeling slightly less pressure to pull back on spending than they did earlier this year.

Nearly one-quarter of Canadians (24%) expect to spend more over the next six months, up four percentage points from Leger’s previous survey in January. Meanwhile, the share expecting to reduce spending fell six points to 30%.

Those numbers don’t point to a surge in consumer confidence, but they do suggest some households are beginning to feel more comfortable making purchases they may have postponed in recent months.

Nevertheless, expectations for the broader economy remain subdued. Just 15% of Canadians believe economic conditions will improve over the next six months, while 43% expect them to deteriorate.

Rising fuel costs and housing pressures continue to weigh on households

Persistent cost pressures remain one of the biggest reasons Canadians are feeling cautious.

Nearly three-quarters of respondents (72%) said higher gas and diesel prices have negatively affected their personal finances.

In Ontario, the impact appears particularly noticeable. Almost three-quarters (74%) of Ontarians said rising fuel costs are affecting their household budget, while 40% said they’re going out less often and spending more time at home as a way to save money.

Housing continues to tell a different story depending on where Canadians live. British Columbians were evenly split on whether home prices had increased or decreased in their area, while nearly three-quarters of Manitobans (72%) believed prices had continued to rise.

While the Leger survey doesn’t point to a sharp improvement in Canadians’ economic outlook, neither does it suggest confidence is deteriorating. Instead, the picture is one of households that are adapting to higher costs while remaining cautious about what lies ahead.

With inflation, housing affordability and fuel prices still weighing heavily on budgets, many Canadians appear to be waiting for stronger signs that the economy has genuinely turned a corner.

Bill C-15 received Royal Assent on March 26, 2026. Buried within the omnibus legislation is Canada’s Stablecoin Act, the country’s first comprehensive federal framework for stablecoin issuers. For the first time, companies issuing stablecoins will come under the supervision of the Bank of Canada (BoC).

That doesn’t mean that the stablecoins you already own are suddenly insured or that every platform offering them is automatically compliant. But Canada has now established clear legal rules governing stablecoin issuers, along with consequences for companies that fail to meet them.

What is a stablecoin?

A stablecoin is a type of digital asset designed to hold a steady value. It’s usually tied 1:1 to a fiat currency, such as the Canadian or U.S. dollar. Unlike bitcoin or ether, whose prices swing dramatically, stablecoins are built to behave like digital cash.

Canadians can interact with stablecoin through crypto exchanges offering digital dollar-denominated savings accounts, apps that allow stablecoin-based remittances, and decentralized finance (DeFi) platforms where users can earn returns. The global stablecoin market grew to nearly $300 billion USD in 2025, with daily transaction volumes surpassing $30 billion. The numbers show just how deeply embedded these instruments have become in the global payments infrastructure.

What the new law requires stablecoin issuers to do

The Stablecoin Act applies to any entity that creates stablecoins and makes them available, directly or indirectly, to Canadians. The new framework introduces several key requirements:

Registration with the Bank of Canada: Issuers must be listed in a public registry maintained by the BoC. Once the framework is fully in force, operating without registration will be prohibited.

A 1:1 reserve requirement: Issuers must fully back every stablecoin with highly liquid assets denominated in the referenced fiat currency and held with a qualified custodian. In practical terms, every dollar-backed stablecoin must have an equivalent dollar held in reserve.

At-par redemption: Issuers must clearly explain how holders can redeem their stablecoins at face value. If you own one dollar’s worth of a stablecoin, you should be able to redeem it for one dollar.

No yield paid directly to holders: The Act prohibits issuers from paying interest or yield directly to stablecoin holders. This could reshape platforms currently marketing stablecoin savings accounts.

Ongoing supervision and reporting: The Bank of Canada has broad authority to request information, issue directives, and, where necessary, recommend that the Minister of Finance prohibit a non-compliant issuer from operating in Canada.

Which platforms are affected and which may need to change?

The Stablecoin Act targets private-sector issuers. This includes the entities that create and distribute stablecoins, not individual holders. However, consumers will feel the impact.

Canadian crypto exchanges and fintech apps that offer stablecoin-denominated products will need to determine whether the stablecoins on their platforms are issued by registered entities. Platforms offering yield on stablecoin holdings, a common feature in apps popular with younger Canadians, may need to restructure their products because the no-yield provision applies to the issuer.

If an exchange is itself acting as the issuer of a stablecoin product, that exchange will be subject to registration requirements.

It’s important to note that none of these changes is immediate. As Fasken’s legal analysis noted, although the Bank of Canada’s supervisory mandate took effect on March 26, 2026, it will take several years for the full regulations to be finalized.

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What consumer protections are included in the new law?

The biggest consumer protections come from the reserve and redemption requirements. If a stablecoin issuer is operating under the new framework, holders should be able to redeem their stablecoins at face value without incurring a loss or waiting through a liquidity crisis.

The Act also gives the Bank of Canada authority to step in when it identifies what it calls “unsafe or unsound practices” through directives and other enforcement tools. Before this legislation, Canadians whose stablecoin provider failed or refused redemptions had little federal protection tailored specifically to stablecoins.

It’s also important to understand what the law does not cover. Stablecoins are not bank deposits and are not protected by the Canada Deposit Insurance Corporation (CDIC). The new framework will create oversight and reserve requirements, but it falls short of a government-backed deposit guarantee.

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What to do now

The rules governing stablecoins aren’t fully in force yet, so platforms and consumers have time to prepare. If you already use stablecoins for investing, cross-border payments, or digital dollar savings, now is a good time to understand how the changes might affect you. Here are some steps to consider:

• Check whether your stablecoin platform plans to register with the Bank of Canada once the public registry becomes available.
• Avoid using unregistered stablecoin issuers after the framework comes into force, as they’ll be operating outside the new rules.
• Watch for updates from the Bank of Canada and the Department of Finance as supporting regulations are released through late 2026 and into 2027.
• If you use stablecoins for international payments or savings, ask your provider whether it intends to comply with the new regime.

Canada’s new tablecoin framework won’t transform the market overnight. But it does mark the beginning of a more regulated digital payments system, where issuers and consumers have clearer rules and stronger protections.

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After the years-long saga of the massive infrastructure project, the post raised immediate questions about what exactly happened behind closed doors and what’s actually in the deal. Following a tense, month-long standoff that abruptly halted the bridge’s planned June ribbon-cutting, both sides have finally reached an agreement.

The $6.4-billion engineering marvel spanning Windsor, Ontario, and Detroit, Michigan, is officially scheduled to open its lanes on July 27. But did the deal actually change, and what does it mean for the country?

Here’s the context behind the drama and what the new agreement looks like.

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The drama: Why was the opening blocked?

The six-lane, cable-stayed bridge has been ready for traffic since last month. However, the Trump administration unexpectedly pulled the plug on the opening, demanding a renegotiation of the original 2012 agreement.

The abrupt delay sparked significant political friction and scrutiny. Public reports highlighted that the billionaire Moroun family — owners of the aging, rival Ambassador Bridge, which stands to lose a massive chunk of its lucrative cargo traffic to the new crossing — donated $1 million to a pro-Trump Super PAC earlier this year. While the White House denied any link between the donation and the delay, U.S. officials insisted that the original cross-border contract was simply unfair to the United States.

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The original 2012 deal vs. the new compromise

To understand what Trump “negotiated,” you have to look at the unique way the bridge was financed in the first place.

Under the original 2012 Canada-Michigan Crossing Agreement signed during the Harper era, Canada agreed to front 100% of the $6.4-billion construction costs. Because Michigan didn’t pay a cent for construction, Canada was granted 100% of the toll revenues to recoup its massive multi-billion-dollar investment. Once Canada was completely paid back — a timeline estimated to take roughly 50 years — the toll profits were slated to be split 50/50 between Canada and Michigan.

The late-night compromise announced by Infrastructure Minister Gregor Robertson and celebrated by Trump introduces two key structural shifts:

• The 15-year profit split: Instead of Canada keeping all the profits until the construction debt is zeroed out, a portion of the net profits from day one will now be directed into a joint 15-year regional economic development fund for the Windsor-Detroit area.
• Toll governance rules: The Windsor-Detroit Bridge Authority (the Canadian Crown corporation managing the bridge) must now consult with the U.S. government on toll adjustments. Canada cannot lower tolls below regional market averages or hike them by more than 10% without American concurrence.

The reality: Did Canada give up the farm?

While critics are calling the renegotiation another tough concession to Washington, Prime Minister Mark Carney defended the compromise at the Calgary Stampede, arguing that Canada protected its primary financial stake.

The key, according to Carney, is that the 50/50 split applies strictly to net profits, not raw revenue.

“The word ‘net’ does a lot of work in this,” Carney told CTV News. “We get the revenues. Then the servicing of the costs of the bridge and paying the debt of the bridge, and then what’s left over, there’s a split of that for 15 years. In the initial years... there’s not going to be a lot of net to split.”

Because the staggering $6.4-billion debt shell and ongoing operational costs must be paid off first out of the toll bucket, the actual pool of “leftover profit” destined for the joint fund over the next decade and a half is expected to be quite small. Furthermore, Canadian officials point out that using that fund to upgrade infrastructure on the Detroit side will ultimately stimulate regional trade, driving more traffic — and more toll revenue — across the bridge anyway.

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The big picture

Ultimately, the overriding news for Canadians is one of relief. The Detroit-Windsor corridor handles roughly 25% of all Canada-U.S. surface trade, moving nearly $70 billion in goods annually. For decades, navigating the gridlock and traffic lights on the old route has been a logistical nightmare for businesses and travellers alike.

While Trump secured a minor concession and a major social media talking point to bring to his base, the structural core of the project remains unchanged. Canada successfully protected its right to recoup its billions upfront before any real profit-splitting happens, meaning the actual financial hit to the Canadian treasury is minimal.

At the end of the day, the political noise takes a backseat to the economic reality: Canada's most vital trade artery will finally open by the end of the month.

Canadians who have already crossed this financial threshold face a clear set of pitfalls governed by different accounts, Canada’s tax rules and government benefits. Here are five traps to watch for that could shrink your nest egg before you know it.

‘Knowing your number’ matters more than having one

According to BMO Financial Group’s 2026 Annual Retirement Survey, Canadians believe they need an average of $1.7 million to retire comfortably — up from $1.54 million only 1 year earlier. More than 1 in 3 respondents say they doubt they’ll ever reach that target.

If you follow the 4% rule, $2 million in savings would produce roughly $80,000 a year, adjusted for inflation. Add in Canada Pension Plan (CPP) and Old Age Security (OAS) payments, and that income grows even higher. But whether $80,000 a year feels comfortable or tight depends entirely on where you live and your spending habits — not on the size of the number itself.

Lifestyle inflation — where spending grows at the same pace as your portfolio — is a real risk once a saver hits a comfortable savings target. According to Fidelity Investments Canada’s 2025 Retirement Report, 90% of Canadians with a written financial plan feel prepared for retirement, compared with only 55% of those without one.

In other words, the number matters less than the plan behind it. A financial adviser — someone who holds a recognized professional designation such as a Certified Financial Planner (CFP) — can help build a realistic retirement budget instead of leaning on a single savings target as a finish line.

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Forgetting the tax time bomb in your RRSP or RRIF

If a large share of your $2 million sits inside a tax-sheltered account like a Registered Retirement Savings Plan (RRSP), the tax bill will eventually come due.

Once an RRSP converts into a Registered Retirement Income Fund (RRIF) — which must happen by December 31 of the year you turn 71 — the Canada Revenue Agency (CRA) requires a minimum annual withdrawal, and that withdrawal is fully taxable. The minimum withdrawal starts at 5.28% at age 71 and goes up every year after that.

Here’s an example: On a $2-million RRIF, the first-year minimum withdrawal would be more than $105,000 — all of it counted as taxable income. That alone would push a retiree well into the Old Age Security (OAS) clawback threshold without factoring in OAS and Canada Pension Plan (CPP) benefits. For the 2025 income year, that number was $93,454. Once your net income is higher than that, the government claws back 15 cents for every additional dollar you earn. That threshold rises with inflation every year.

Without a clear tax forecast, a $2-million nest egg can dwindle faster than expected once mandatory withdrawals begin. Strategies worth discussing with an adviser or accountant include drawing from your RRSP earlier and more gradually in your 60s, splitting pension income with a spouse and making strategic withdrawals from a Tax-Free Savings Account (TFSA) to keep your taxable income steady from year to year.

Focusing on the wrong asset allocation

With $2 million in savings, there’s more room to take on investment risk than the average saver has. However, that doesn’t necessarily mean you should.

The right mix of stocks, bonds and cash depends on age, how much risk you’re willing to take and how much income the portfolio needs to generate. Canada’s securities regulators require that every registered adviser match a client’s investments to their personal situation — a process known as a “Know Your Client” (KYC) review. A joint notice from the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) has flagged ongoing gaps in how well this review is actually being done across the industry. That matters because a portfolio built to grow wealth in your 40s can be a poor fit for drawing down income in your 60s and 70s.

Spreading your money across different types of investments, sectors and countries can help steady a large portfolio so a downturn in any one market doesn’t throw your entire retirement plan off track.

Getting distracted by exotic assets

As someone with $2 million in savings, you may eventually be pitched investments beyond the usual stocks and bonds — things like private equity funds, private loans or even products that invest in lawsuits, all typically marketed to wealthier clients.

These pitches usually focus on returns — but the real risk often comes down to having easy access to your money. The Ontario Securities Commission (OSC) has raised concerns that many of these products only let you take your money out on a fixed, limited schedule — this can be a serious problem for a retiree who depends on predictable annual withdrawals. If the money you need isn’t available when you need it, you may be forced to sell other investments instead, which can be especially costly if it happens during a market downturn.

You don’t need complicated strategies to retire well. A simple, low-cost, diversified portfolio of index or bond funds — something that can be sold quickly if needed — will usually serve a retiree better than a complex product that locks up your money.

Neglecting to think about your legacy

If a $2-million portfolio outlasts your own retirement needs, some of that money will eventually pass on to family or charity. However, many Canadians never get around to putting that wish into writing.

A 2026 poll from CIBC found that 94% of Canadians believe everyone should have a will — yet only 52% actually have one. Among those without a will, the most common reasons cited were procrastination and the mistaken belief that they don’t have enough assets to need one.

Dying without a will — known as dying intestate — means the law decides how your estate is divided, not you. Those rules differ among provinces and territories. A signed will, an up-to-date power of attorney and clear beneficiary designations on registered accounts are the minimum steps needed to keep that decision in your own hands.

What Canadians with a growing nest egg can do next

Reaching $2 million is a milestone worth celebrating — but protecting it takes a different set of habits than building it. Here’s where to start:

• Write down a retirement budget and revisit it every year — rather than relying on a single savings number as your finish line
• Ask a financial adviser or accountant to map out RRSP-to-RRIF withdrawals before age 71 to avoid a surprise tax bill
• Check projected income against the annual OAS clawback threshold before making large withdrawals or selling investments at a gain
• Review your asset mix against your actual retirement timeline, not just your risk appetite
• Treat any investment pitch that emphasizes returns over liquidity with skepticism
• Get a signed will, an up-to-date power of attorney and current account beneficiary designations in place this year

Think of this final five-year stretch not as a waiting room, but as a critical transition zone. The financial strategies that served you well during your 30s and 40s — like aggressively chasing growth or locking money away into long-term vehicles — need a friendly upgrade.

If you are planning to exit the Canadian workforce within the next 60 months or less, here are five practical things to map out with your morning coffee.

1. Dial in your retirement income mix

During your working years, you had one primary source of income: your paycheque. In retirement, you’ll likely rely on a patchwork quilt of different streams. With five years or less on the clock, this is the time to audit exactly what that quilt looks like.

For most Canadians, this income is a blend of the Canada Pension Plan (CPP), Old Age Security (OAS), workplace pensions and personal savings like Registered Retirement Savings Plans (RRSP) or Tax-Free Savings Accounts (TFSA).

Take an evening this week to log into your My Service Canada Account. There, you can pull your Statement of Contributions to see exactly what your estimated CPP payout will look like based on your actual work history. Knowing these baseline numbers changes your retirement plan from a guessing game into a math problem you can solve before your target date.

2. Decouple your retirement date from your pension choices

Many Canadians assume that the day they stop working must be the exact day they start collecting government pensions. In reality, decoupling these dates can be one of the smartest tax and income moves you make in these final years.

You can start taking a reduced CPP as early as age 60, or a standard amount at age 65. However, if you don’t need the cash immediately, you can defer your payments up until age 70. For every month you delay past age 65, your pension payment increases by 0.7%. That amounts to a permanent 42% increase if you wait until 70.

Conversely, taking it early means a permanent reduction of 0.6% per month before age 65, up to a maximum 36% cut. When you are five years or less away from retirement, it’s the perfect time to simulate these paths and see which timeline fits your health and lifestyle.

3. Stress-test your portfolio against sequence of returns risk

When you’re 20 years away from retirement, a market crash is just a blip. You have plenty of time for the market to recover before you need to withdraw a single dime. But when you are five years or less away, a sudden market drop can be dangerous. If the market drops the year before you retire, and you are forced to sell equities to pay your rent, you permanently damage your portfolio’s longevity. Financial planners call this “sequence of returns risk.”

To mitigate this risk right now, look into building a “cash wedge” or a short-term savings buffer. Over this final stretch, start accumulating one to three years’ worth of living expenses in ultra-safe, liquid investments like High-Interest Savings Accounts (HISA) or short-term Guaranteed Investment Certificates (GIC). If the stock market takes a dive during your first year of retirement, you can live off this cash buffer instead of selling your mutual funds or stocks at a loss.

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4. Map out your post-work tax brackets

It’s a common myth that your tax burdens drop to zero the moment you retire. If you have been a diligent saver in an RRSP, those funds are fully taxable when you pull them out. At age 71, your RRSP must convert into a Registered Retirement Income Fund (RRIF), which forces mandatory minimum annual withdrawals.

If you have a large RRSP balance, waiting until age 71 to withdraw can sometimes push you into a surprisingly high tax bracket, potentially triggering the dreaded OAS clawback. With five years or less until retirement, you have a prime window to talk to a professional about whether it makes sense to start melting down your RRSP early during your lower-income years, shifting those funds over to a tax-free TFSA.

5. Separate your mandatory expenses from your discretionary goals

To figure out if you truly have “enough” to retire within this five-year window, you need to split your projected retirement budget into two distinct buckets: needs and wants.

Your needs are your fixed baseline costs — housing, food, healthcare, utilities and insurance. Your wants are your variable lifestyle choices, such as travel, hobbies and dining out. A robust retirement strategy aims to cover your fixed, baseline needs using guaranteed income sources like CPP, OAS and defined-benefit workplace pensions.

If your guaranteed income covers your basic needs, your personal portfolio only has to fund your lifestyle wants. This gives you massive flexibility; if the markets have a bad year right after you retire, you can simply skip the European cruise without worrying about how to pay the property taxes.

The next few years will go by faster than you think. By taking control of the variables during this final five-year countdown, you can step into retirement with complete confidence.

But after a winding journey that saw the venue briefly go quiet, this North York landmark is experiencing a major cultural awakening. By stepping up to offer fresh entertainment opportunities precisely as the dwindling days of summer begin to limit outdoor options across Ontario, the stadium is fundamentally changing how people experience live music in Toronto.

Repurposing a sporting landmark

The transition of the stadium into a dual-purpose destination officially accelerated when entertainment company The Feldman Agency teamed up with Tennis Canada. The partnership reimagined the 9,000-seat athletic facility as an open-air amphitheatre called The Bowl at Sobeys Stadium.

The venue first opened its doors to music fans on June 27, 2024, with a launch event headlined by the Barenaked Ladies, Sam Roberts Band and KT Tunstall. This inaugural summer series proved that a space originally engineered for tennis could successfully double as a premium music hub outside of the core downtown grid.

Historically, Toronto’s largest outdoor musical gatherings have been concentrated around downtown waterfront spaces. This concentration often left the northern stretches of the Greater Toronto Area underserved when it came to major open-air summer tours. Setting up a mid-sized concert space in North York shifts that dynamic, utilizing thousands of existing parking spots and nearby transit links like the Pioneer Village subway station to draw crowds from across the region.

In a statement regarding the original launch of the concert space, Jeff Craib, CEO of The Feldman Agency, highlighted the strategic value of the location:

“The proximity is amazing. You’ve got a lot of people moving east and north of the city. So it’s nice to have a mid-sized venue that’s not in the downtown core.”

Michael Downey, who was the CEO of Tennis Canada during the development phase, also championed the venue’s evolution. He called the project “an exciting new initiative for Tennis Canada” and stated that it provided an opportunity to “showcase our world-class venue to a whole new audience,” reinforcing how major infrastructure can be utilized year-round.

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When the music briefly disappeared

Despite a promising debut year in 2024 that featured performances by Shaggy, Bachman-Turner Overdrive and comedian Kevin Hart, the ambitious concert series hit an unexpected roadblock. Industry watchers were surprised when the programming abruptly vanished from the calendar, leading to widespread questions about the future of the open-air initiative.

The stadium fell silent as management decided to hit pause on operations. Jeff Craib, president of The Feldman Agency, confirmed the sudden shift in momentum at the time, stating publicly:

“We can confirm that we are hitting pause for summer 2025. We will make further comment when there is any news to share.”

During the hiatus, Tennis Canada maintained optimism that the silence would only be temporary, expressing hope that the live performances would eventually return to the stadium grounds. The temporary closure highlighted the volatile nature of the local live entertainment market, leaving a temporary void in the city’s northern music scene.

Winding down the outdoor concert season

The unexpected reawakening of the venue arrives at a pivotal time for music fans in the province. As the outdoor concert season begins to wind down across Ontario, the options for open-air entertainment in the city usually shrink dramatically. Traditionally, those who prefer to see their favourite artists perform under the open sky rather than inside a closed arena see their options narrow to a select few spaces, primarily the newly introduced Rogers Stadium in Downsview, not far from the York University venue, or downtown hubs like the Budweiser Stage and RBC Echo Beach grounds.

By keeping its booking calendar active well into the cooler months after its temporary hiatus, the North York facility provides music lovers with one more valuable option to stretch out the open-air concert season. Having an extra venue active through September and into October ensures that the local live entertainment market remains diverse, even as the summer heat begins to fade.

Looking ahead to the upcoming lineup

Following the quiet stretch, the venue is stepping back into the spotlight with a newly revealed schedule that reflects a highly eclectic approach to programming. Instead of sticking to a single genre, the stadium will host everything from global pop to nostalgic alternative rock and live orchestral film scores.

• August 23: British electronic synth-pop artist Howard Jones kicks off the late-summer return.
• August 27: Global pop group BINI brings their highly anticipated world tour to the North York stage.
• August 30: The venue introduces specialized multimedia formats like “Undertale: The Determination Symphony,” which showcases live orchestral arrangements of video game soundtracks.
• September 11: Canadian alternative rock icons Mother Mother headline under the open sky, supported by Beach Bunny and Boy Golden.
• September 13: The space shifts to cinematic experiences, presenting Disney’s “The Lion King” in concert, where a live orchestra will perform Hans Zimmer’s Oscar-winning musical score synchronized directly with the film.
• October 2: The autumn programming officially wraps up for the season with a performance by New York indie rock mainstays Interpol.

Navigating the modern venue experience

Adapting a sports venue for large-scale concerts requires more than just setting up a stage on the court. Sobeys Stadium has been outfitted with expansive retail areas for concessions, an onsite bar, and executive lounges. The facility has also fully transitioned into a modern, cashless infrastructure where all food, beverage and merchandise transactions must be completed using major credit cards or debit.

By breathing new life into an established sports facility, the city has gained an alternative destination for cultural gatherings. The reawakening of the stadium shows how existing urban architecture can be creatively repurposed, ensuring that a space built for athletic excellence can continue to serve the community long after the final tennis match of the season has ended.

But a new study suggests that even the most advanced AI trading tools can’t consistently beat one of the simplest strategies in investing: buying a stock or fund, and simply holding on to it.

Researchers from the University of Edinburgh, the University of California, Los Angeles (UCLA) and South Korea’s Sungkyunkwan University put a range of AI trading strategies through a backtest, a method that runs a trading strategy through years of real historical market data to see how it would have performed. They tested more than 20 years of data across more than 100 stocks.

In a paper not yet peer-reviewed, they found that most of those AI strategies still couldn’t beat buy-and-hold investing. The team plans to present the findings at the 2026 ACM SIGKDD Conference on Knowledge Discovery and Data Mining in August.

Why a short test made the bots look brilliant

Most earlier AI trading studies were run on a small group of winning stocks over a short period — sometimes only three months on as few as three stocks. Test any strategy on a single standout stock during its best stretch, and almost anything can look brilliant.

That kind of setup creates three common traps:

• Survivorship bias: The analysis only counts stocks that performed well, leaving out the ones that failed or were delisted
• Look-ahead bias: The model uses information that wouldn’t have been available at the time the trade was made
• Data-snooping: Running enough tests on the same data can make a strategy look like it’s working purely by chance

Mihai Cucuringu, a mathematics professor at UCLA and the University of Oxford, and one of the paper’s authors, says his team ran a much broader test, according to Moneywise. They included the 2008 financial crisis, the COVID-19 crash and the bull markets in between, and added delisted stocks back into the data so failures still counted. Cucuringu says the edge AI tools appeared to have in earlier research largely disappears once you test them over a longer period and a wider range of stocks.

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What 20 years and 100-plus stocks showed

Plain buy-and-hold turned out to be one of the strongest strategies in the study. When tested on steadier, less volatile stocks, the method delivered the best results once risk was taken into account — an annual return of about 7.9%, beating every AI tool tested.

The AI tools weren’t completely hopeless. In one test, an AI tool posted the highest raw annual return in the group at nearly 14%. But it also came with wild swings in value along the way, exactly the kind of risk a big headline return can hide.

A 55-year-old statistical model called ARIMA also beat the AI tools once risk was factored in. The two AI trading agents at the centre of the study — both built on commercially available large language models — showed no reliable edge over the market when tested fairly, and bigger models didn’t reliably beat smaller ones. “It’s a big misconception that better models automatically translate into better trading performance,” Cucuringu says.

The bots got the timing backward

The AI tools also got their timing wrong. They made cautious trades when markets were rising, missing out on gains, and aggressive trades when markets were falling, taking bigger losses. On a standard measure of return versus risk, buy-and-hold scored 0.61 in strong years and -0.28 in down years.

One AI tool managed -0.19 in up years and -0.97 in down years — a weak result even when markets were doing well. That same tool also traded far more often, and every extra trade comes with a cost that eats away at returns.

What this means for a Canadian portfolio

The lesson isn’t that AI is useless; it’s that using AI to beat the market by picking individual stocks isn’t its best use. In this study, the simplest approach — buying and holding — outperformed the most advanced computer tools over a span of 20 years.

For Canadians, “buy-and-hold” doesn’t require picking exotic U.S. tech stocks like the ones AI tools tend to chase. As of June 30, BlackRock reported a broad, low-cost Canadian index fund tracking the S&P/TSX Capped Composite Index has delivered an average annual return of roughly 8.62% since its 2001 inception, though returns over shorter recent periods have been considerably higher. Held inside a tax-sheltered account such as a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA), that kind of steady, unglamorous exposure to the whole market has historically done more for a portfolio than chasing a hot tip — from a chatbot or anyone else.

Consider this hypothetical: An investor splits $10,000 between an AI stock-picking app and a broad TSX index fund and leaves both alone for 20 years. Based on this study’s findings, the index fund would be the more likely of the two to end up with the larger balance — with far less drama along the way.

Where AI can help — and where it can’t replace an adviser

AI still has a place in a Canadian investor’s toolkit. It can summarize a dense annual report or answer a straightforward question in seconds. What it can’t do is replace a registered financial adviser.

In Canada, only a select group of registered professionals, called discretionary portfolio managers, are legally required to always act in a client’s best interests. Most financial advisers operate under a looser “suitability” standard: a recommendation has to be appropriate for the client, but not necessarily the single best option available. A general-purpose AI chatbot sits completely outside that framework. It has no registration, no obligation to protect your interests and no regulator to answer to if its stock tip goes wrong.

The Canadian Investment Regulatory Organization (CIRO), which oversees investment dealers across the country, has issued a warning about fraudsters increasingly using the term “AI” as a selling point — building fake trading platforms and pretending to be registered firms to seem more credible. Before acting on any AI investment pitch, CIRO’s AdvisorReport tool and the Canadian Securities Administrators (CSA) National Registration Search help Canadians check if a person or platform is actually registered in Canada.

-With files from Melanie Huddart

New data from Trip.com Group suggests shorter getaways are becoming increasingly popular, with bookings for trips lasting four days or less rising by more than 40% year over year in parts of Europe and East Asia. Rather than taking one long vacation, more people appear to be making the most of long weekends and quick escapes.

The travel company says shorter trips, family holidays and cooler destinations are shaping many travellers’ plans this summer.

Long weekends are replacing longer vacations

According to the report, most summer trips now last between three and four days, with short-haul flights accounting for the majority of bookings.

In Europe, bookings for short-haul flights are up 73% from a year ago, while bookings for trips of four days or less have climbed more than 40% in both Europe and East Asia.

The trend reflects a growing preference for travel that’s easier to fit around work, school holidays and importantly, household budgets. Rather than setting aside two weeks for a vacation, many travellers are opting for shorter breaks throughout the year.

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Family travel is driving summer plans

Trip.com data suggests that hotel bookings by families with children have increased across every region it tracks, more than doubling in markets including Japan, South Korea and mainland China.

The company said families are placing greater importance on practical details when planning a trip, including child-friendly accommodations, convenient flight schedules and easy access to attractions.

Experiences such as theme parks, zoos and water parks remain among the most popular choices for family travellers.

Travellers are looking for cooler destinations

Another noticeable shift is where people are choosing to go.

As summer temperatures climb, more travellers are searching for destinations with milder weather instead of traditional beach holidays. Trip.com says searches related to cooler destinations have increased 74% since the start of the year.

Countries such as Iceland, Norway and Switzerland are seeing stronger interest, while destinations including Sapporo, Japan, are also attracting more visitors looking to escape the heat.

The report also points to growing use of artificial intelligence for trip planning, with more travellers relying on AI tools to compare options and build itineraries before booking.

Whether it’s a three-day city break, a family holiday or a cooler destination, the common thread is flexibility. Travellers still want to get away this summer—they’re simply finding ways to make those trips better fit their schedules, budgets and changing priorities.

That’s the financial gap critical illness (CI) insurance is designed to fill. Yet most Canadians have never purchased it, and very few understand how it works. According to a 2025 Ipsos poll conducted for RBC Insurance, 91% of Canadians don’t have critical illness coverage, and nearly one in three say their savings would be exhausted within six months if a serious diagnosis forced them to take time off work.

The Canadian Cancer Society, Statistics Canada, and the Public Health Agency of Canada estimate that 696 Canadians will be diagnosed with cancer every day in 2026. That’s roughly 254,100 new cases over the course of the year. Add heart attacks and strokes, which together with cancer account for the vast majority of CI insurance claims, and the financial risk facing working Canadians is downright sobering.

What critical illness insurance does and doesn’t pay for

Critical illness insurance pays a tax-free lump sum directly to the policyholder after a covered diagnosis. That’s it. There’s no list of approved expenses, no receipts to submit, no insurer second-guessing how you spend the money. You can use it for rent, a mortgage payment, private nursing care, experimental treatment abroad, or groceries.

That said, CI insurance is not disability insurance, which replaces a portion of your monthly income for as long as you can’t work. Nor is it health insurance, which covers prescriptions, dental, or paramedical services. And it is not life insurance, which pays your beneficiaries after you die. CI insurance pays you, while you’re alive, so you can make financial decisions without a diagnosis driving them.

The RBC Insurance poll found that only 26% of Canadians know that CI insurance is such a flexible benefit. In other words, roughly 3 in 4 don’t understand the product well enough to decide whether they need it. And, according to the poll, that’s one of the main reasons people don’t buy it.

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Cancer, heart attack, stroke: the conditions covering most CI claims

Most critical illness policies in Canada cover a core list of 25 or more conditions, with cancer (excluding certain early-stage cancers), heart attack, and stroke accounting for approximately 80% of all claims.

One detail many people overlook is the survival clause. Most Canadian policies require you to survive for 30 days after receiving a covered diagnosis before the benefit is paid. In other words, CI insurance is designed to help people who survive a serious illness and now face months of treatment, recovery, and financial disruption, rather than provide immediate emergency benefits.

Statistics Canada’s 2021 Canadian Community Health Survey found that 45% of Canadians were living with at least one major chronic condition, including heart disease, stroke, cancer, diabetes, or high blood pressure. Based on our current population, that’s roughly 18.5 million Canadians. While CI insurance won’t include many chronic illnesses, it certainly strengthens the case for coverage.

How much does critical illness (CI) insurance cost?

CI premiums depend on your age, health, smoking status, and the amount of coverage you choose. PolicyMe’s published 2026 pricing shows that a healthy 35-year-old non-smoker in Ontario can expect to pay about $37 per month for $100,000 of coverage on a 15-year term. Across the market, critical insurance rates in Canada typically range from $10 to $40 per month.

Putting this into perspective, $37 a month is less than many Canadians spend on streaming subscriptions, yet it protects against a financial setback that could easily reach six figures if you’re unable to work during treatment.

Not surprisingly, CI premiums increase significantly with age and smoking status. Someone who waits until age 50, particularly if they’re a smoker, could pay several hundred dollars each month for similar coverage. That’s why advisers often recommend buying CI insurance while you’re young and healthy, ideally before age 40 and certainly before a health issue affects your insurability.

I should note that employer-sponsored group coverage is often less expensive than buying an individual policy.

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CI insurance vs. disability insurance

A common source of confusion is the relationship between CI insurance and long-term disability (LTD) insurance. They are not the same.

LTD insurance replaces a portion of your income, usually 60% to 70%, for as long as you remain unable to work due to illness or injury, though it may be time-limited depending on the policy. CI insurance pays one lump sum immediately after diagnosis and survival, regardless of whether you return to work. A patient who gets diagnosed with breast cancer in March, takes four months off for chemotherapy, and returns to work in August would likely receive no LTD payout, as the absence may fall below the qualifying period. But they could receive $100,000 or more from a CI policy, depending on the coverage amount.

For Canadians without strong emergency savings, holding both forms of coverage offers the most complete financial protection. For those on a budget, a financial adviser can help model which gap, the immediate cash need or the longer income replacement, is larger given their specific situation.

Protect your income, whatever life throws at you. A serious diagnosis or unexpected injury shouldn't put your life on hold. To help, compare disability or critical illness coverage from insurance providers. Or use the free, no-obligation, online tool from PolicyAdvisor. Instantly compare critical illness and disability quotes from Canada’s top insurance providers and find the right safety net for your budget. Compare quotes online with PolicyAdvisor

What to look for in a CI policy before you buy

Provincial health care plans provide vital financial protection for Canadians, but they were never designed to replace your income, cover caregiving costs, or help you keep up with mortgage payments during months of treatment. That’s where critical illness insurance fits in.

If you’re considering a policy, there are a few features worth reviewing before you apply:

• Look for coverage that includes at least 25 medical conditions. Some policies may cover 30 or more, reducing the chance that a serious diagnosis falls outside the policy.
• Confirm the survival period. Most Canadian policies use a standard 30-day survival clause, but it’s worth checking before you buy.
• Consider whether a return-of-premium (ROP) rider makes sense. It increases the premium but may refund your premiums if you never make a claim.
• Be completely honest about any pre-existing medical conditions. Failing to disclose them could void a future claim.
• Compare your employer’s group coverage with individual policies. Group plans are often less expensive, but individual policies usually stay with you if you change jobs.

With nearly 700 Canadians receiving a cancer diagnosis every day and almost one in three households saying their savings wouldn’t last six months after a major illness, critical illness insurance is less about preparing for the worst and more about protecting your financial options if life takes an unexpected turn. Having coverage in place before you need it could make one of life’s most challenging moments less stressful.

Survey methodology

The Ipsos poll was conducted on behalf of RBC Insurance in October 2025, in English and French. Full methodology details, including sample size and margin of error, are available at rbcinsurance.com.

In April 2025, the Alberta Securities Commission (ASC) found that James Domenic Floreani, who operated the Jayconomics finance channel across YouTube, X, and Patreon, breached the Securities Act (Alberta) by promoting shares in four companies without clearly disclosing he was being paid to do so.

In September 2025, the ASC banned him from participating in Alberta’s capital markets for two years and ordered him to pay a $30,000 administrative penalty plus $10,185 in costs.

The case only involved one creator, but regulators say the problem is much bigger. In its 2025 Annual Report, the Ontario Securities Commission’s (OSC) Investor Advisory Panel (IAP) identified finfluencer risk as a growing investor-protection concern and urged regulators to consider measures beyond current guidance.

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What Jayconomics was found guilty of

Between November 2020 and March 2022, Floreani’s channel had more than 50,000 YouTube subscribers and over 2,000 paying Patreon members. During that period, he was paid by four Alberta issuers — Tenet Fintech Group Inc., Gold Mountain Mining Corp., Levitee Labs Inc., and Sekur Private Data Ltd. — to promote their shares. According to the ASC, Floreani invoiced over $100,000 in fees and received $84,000 in payment from Levitee alone.

Under Alberta’s Securities Act, anyone engaged in investor relations activities must clearly and conspicuously disclose when content is created on behalf of an issuer. Floreani’s disclosures, the ASC found, did not meet that standard.

The ASC panel noted that Floreani presented himself as knowledgeable and sophisticated in finance, but had no formal education in finance or investing beyond an introductory university course. Viewers were acting on his recommendations without clearly knowing he was being paid to make them.

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The difference between education and advice

Not every finance creator on social media is breaking the law. There’s an important distinction between explaining financial concepts and recommending specific investments, especially when compensation is involved.

In Canada, anyone providing advice on specific securities for compensation — including indirect compensation such as sponsored content — is generally required to be registered with a securities regulator. Registration comes with qualification requirements, ongoing regulatory oversight, and an obligation to disclose conflicts of interest.

Most finfluencers don’t meet that standard. They aren’t required to determine whether an investment is appropriate for your financial situation, they aren’t responsible if you lose money following their recommendations, and they may not have to tell you when they’re being paid to promote a particular stock.

To help clarify the rules, the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) issued finfluencer guidance in December 2025 explaining how existing securities laws apply. Regardless, the OSC’s Investor Advisory Panel believes additional regulatory measures may still be needed.

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What the OSC’s Investor Advisory Panel has warned about

The Investor Advisory Panel, which advises the OSC on investor protection policy, released its 2025 Annual Report in May 2026. It identified finfluencers as one of eight major trends reshaping how Canadians invest, and creating new risks. The report also highlighted two related concerns.

First, artificial intelligence is making investment scams more convincing through deepfake videos that appear to show trusted public figures endorsing fraudulent investment platforms. Second, many trading apps are using design features, including push notifications, trending stock lists, and gamified streaks, that encourage investors to trade more frequently and take greater risks.

The panel also raised concerns about advice received at bank branches. It cited a 2025 joint OSC-CIRO review that found 94% of bank branch respondents could only recommend their employer’s proprietary investment products, while nearly half agreed clients would benefit from having access to a broader range of investments.

Taken together, the report suggests Canadians should think carefully about where they’re getting investment advice. Whether it’s a social media creator, a trading app, or even a bank advisor, the incentives behind the recommendation may not always align with your own.

Red flags that the account you follow may be breaking the law

Not every finfluencer is acting illegally, and plenty of finance creators provide useful educational content. But regulators say several warning signs should prompt extra caution:

• The creator makes specific buy or sell recommendations rather than explaining general investing concepts.
• Sponsored content disclosures are missing, buried in fine print, or only appear in automatically generated platform tags after the post is published.
• The account repeatedly promotes little-known companies that receive little or no mainstream financial media coverage.
• People in the comments say they’re buying or selling based on the creator’s recommendations.
• The creator presents themselves as a financial expert but has no verifiable credentials, professional designation, or securities registration.

As the ASC noted in its Jayconomics decision, “Anyone can be a finfluencer, which increases the risk of harm to the public if it is not done appropriately.”

What to do now

Social media has made investing more accessible than ever, but it’s also made it harder to distinguish unbiased education from paid promotion. Before acting on anyone’s stock recommendation, take a few minutes to verify who’s behind the advice, whether they’re registered, and whether they’ve clearly disclosed any conflicts of interest.

A few simple checks can dramatically reduce your risk:

• Verify registration before acting on any investment advice using the CSA National Registration Search
• Check CIRO’s Advisor Report to review a registered advisor’s credentials and disciplinary history.
• Treat social media investment content as entertainment by default, not personalized financial advice.
• Look for clear, prominent disclosure whenever a creator discusses a specific company or stock. Hidden, vague, or buried disclosures should be treated as a major red flag.
• If you suspect an unregistered person is providing investment advice, report it to your provincial securities regulator.
• Report suspected investment fraud to the Canadian Anti-Fraud Centre (CAFC)

The Jayconomics case is a reminder that regulators are beginning to hold finfluencers accountable when they cross legal lines. But enforcement usually comes long after investors have acted on the advice. Your best defence is always to do your own homework before you buy.

In a recent episode of The Ramsey Show, Todd called in to tell Dave Ramsey and co-host Jade Warshaw about his “Pikachu problem.” He admitted he got “screwed over” after listening to a friend and racking up debt trying to flip Pokémon cards for a profit. When Ramsey pressed him for an exact number, Todd couldn’t say. He estimated his credit card debt at somewhere between US$10,000 and US$15,000 (C$14,200 to C$21,300) — a wide enough range that Ramsey immediately zeroed in on the real problem.

It turned out Todd had never actually sold a single card for a profit. “I kind of just winged it because I saw other success stories,” he admitted. When Warshaw asked what was driving him, Todd pointed to a vague sense of hustle, while also admitting he had been bouncing between jobs.

Ramsey’s response was blunt: get a full-time job, pick up a second one if needed, pay off the debt as fast as possible, and call in favours from the friends who talked him into selling the cards he’s stuck holding.

Todd’s story is extreme, but the instinct behind it isn’t rare. Whether it’s Pokémon cards, sneakers or trading cards of any kind, the pitch is the same: buy low, flip high and let a hobby fund your future. For most people who try it, the reality looks a lot more like Todd’s stack of unsold cards than a highlight-reel resale story.

Why Pokémon cards look like an investment

It’s not hard to see why Todd got swept up. Pokémon’s 30th anniversary in 2026 has fuelled a wave of nostalgia-driven demand, and some of the rarest cards have posted eye-catching returns. According to CNBC, citing data from Card Ladder — a trading card pricing platform — gains during the pandemic boom and a second surge in 2025 far outpaced the S&P 500’s long-term average annual return of 10% to 12%. At the extreme end, a rare Pikachu Illustrator card owned by influencer Logan Paul sold for more than US$16 million (C$22.7 million) in February 2026, setting a record for the most expensive trading card ever sold at auction.

Spending on non-sports trading cards, including Pokémon, jumped 350% between 2020 and 2025, according to market research firm Circana. But that boom has a flip side: prices are unpredictable and heavily driven by hype cycles. These cards lack the decades of steady track record that make something like the S&P 500 a fundamentally safer bet.

For rare, top-trading cards chased by serious collectors, the math can work. For someone acting on a friend’s tip with no experience buying or selling cards, it’s a gamble — funded, in Todd’s case, by credit card debt that keeps building whether or not the cards ever sell.

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The tax wrinkle Canadians should know about

Here’s something that matters for any Canadian thinking about flipping collectibles. If you sell a coin, stamp or other collectible at a profit, the Canada Revenue Agency (CRA) generally treats it as listed personal property (LPP), a category that covers personal items that can go up in value over time.

However, trading cards like Pokémon cards sit in a grayer zone — CRA hasn't issued specific guidance on them, and depending on the facts they may be treated as LPP, as ordinary personal-use property (which has weaker loss treatment), or, if the activity looks businesslike, as business income.

For items that do qualify as LPP, both the cost of an item and its sale price are treated as at least C$1,000, even if the actual numbers are lower — so small, casual sales are generally not taxable. If both amounts are $1,000 or less, you don't have a gain or loss and don't need to report the sale at all. But once a sale clears that threshold, any profit above it is a taxable capital gain that you must report.

Watch out for the "set" rule: if you sell pieces of a collection separately — say, splitting a card lot into several sales — CRA can treat the whole group as a single item, so you can't use the $1,000 floor multiple times to shrink your reported gain. This only applies when the pieces are sold to the same buyer or to related persons. If you sell individual pieces to unrelated buyers, each sale can still use its own $1,000 floor.

Losses on these items can only be used to offset profits from other collectibles, not gains from stocks or other investments. These LPP losses aren't just for the current year, though — they can be carried back 3 years or forward 7 years and applied against LPP gains in those years. And the rule only runs one direction: while ordinary capital losses (e.g., from stocks) can be used to reduce an LPP gain, an LPP loss can never be used to reduce a gain on stocks or other investments.

And if buying and reselling starts to look less like a hobby and more like a business — regular purchases and systematic reselling with the clear goal of making a profit — the CRA can treat that income as business income rather than a capital gain, which means it’s taxed at a higher rate. In other words, a “guaranteed flip” isn’t guaranteed, and the profit that is there isn’t automatically yours to keep in full.

Lessons for Canadians thinking about a collectible side hustle

Todd’s story is a reminder — not a reason to swear off collecting altogether. Here are a few practical takeaways, whether you’re eyeing Pokémon cards or anything else marketed as a can’t-miss flip:

Know your numbers before you start

Ramsey’s first instruction to Todd — figure out exactly what you owe — applies before taking on any debt for a side hustle, not just after it goes wrong. If you can’t say precisely what a purchase is costing you in interest, you’re not ready to make it.

Treat collectibles as a hobby first, an investment second

Buy what you’d be happy to keep even if it never sells. The rare, museum-grade cards that post huge returns are a different market than the common cards most casual flippers are buying.

Never use debt to fund a speculative purchase

Interest accrues whether or not the asset sells, and whether or not the market keeps climbing. A card, coin or collectible sitting unsold isn’t generating income to offset that cost.

Understand the tax rules before you sell

If a sale could clear the C$1,000 threshold, keep records of what you paid and when, since the CRA may ask for that documentation later.

Get help early if debt is already piling up

Non-profit credit counselling is free, confidential and accredited across Canada through Credit Counselling Canada, a national network of not-for-profit agencies that can help build a realistic budget and repayment plan — without the fees or pressure of some for-profit “debt relief” companies.

-With files from Melanie Huddart

In June, Dan Pomerantz and Melanie Lyman-Abramovitch booked a return flight from Montreal to Chicago. Fifteen hours later, however, they noticed a 25% seat sale come up. Because the couple was within the 24-hour no-fee cancellation window, they cancelled and rebooked using the sale, CBC News reported.

But after the couple rebooked, they noticed they paid slightly more than their original price — $5.71 more to be exact.

“I was pretty angry. I was very unimpressed,” Lyman-Abramovitch told CBC. “It felt very deceptive, like the sale wasn’t really a sale at all.”

In response, Air Canada states that the couple was offered a 20% discount on their first booking, which did not show up on their receipt. The difference in pricing was due to dynamic pricing, a common practice among airlines where base fares are adjusted in real-time based on fluctuating factors such as current and projected demand.

A spokesperson for the airline company, Peter Fitzpatrick, told the news outlet in an email that base fare for the couple’s first two tickets totalled $279.96, which then dropped to $223.97 with the 20% discount. Fitzpatrick added that by the time the couple rebooked their tickets 15 hours later, the base fare had increased by $26.28 because of higher demand, accounting for the higher overall price. As a result, the new fare with the larger 25% discount ended up totalling $229.68.

While the reasoning makes sense, the Montreal couple’s experience calls into question whether a deal is actually a deal when dynamic pricing is used — and with little transparency at the forefront.

“We have no way to see how dynamic pricing is actually affecting the prices of things, so we can’t truly be an informed consumer in that sense,” Pomerantz told the outlet.

The slippery slope of dynamic pricing

While pricing based on market factors is not a new development, the rise of algorithmic pricing — using automated technology like AI to dynamically adjust pricing — is becoming a point of discussion and concern.

A discussion paper from the Competition Bureau Canada from 2025 noted that algorithmic pricing is gaining traction across a number of industries, with ridesharing, hospitality and concert tickets mentioned explicitly. A point of concern is not necessarily the practice itself, but the complexity of it. For instance, the paper noted that algorithmic pricing that uses AI to generate prices has a “black box problem” — it is difficult to understand and lacks transparency due to the AI’s ability to learn independently.

This lack of clarity for consumers is causing worry for their wallets. A recent consultation completed by the Competition Bureau, with participation from both the public and various stakeholders, uncovered a number of apprehensions. For individuals surveyed, the major concerns were unfairness, discrimination, price fluctuation and deceptive market tactics.

The consultation report also noted that algorithmic pricing may enhance anti-competitive behaviours.

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Is dynamic pricing legal in Canada?

Although the practice has its critics, dynamic pricing is legal in Canada according to the Competition Bureau. Spokesperson Rosalie Leblanc told CBC News in an email that the practice is legally acceptable, though it can become an issue if “such practices lead to anti-competitive outcomes.”

Under Canada’s Competition Act, retailers are not permitted to advertise false sales, such as when a company inflates its regular prices before offering a discount. But with dynamic pricing now in force and more technologically advanced than before, experts argue that these laws might need some adjusting.

“It’s not clear, actually, how firms can be complying [with the law] in this environment of dynamic pricing,” Pascale Chapdelaine, an associate professor of law at the University of Windsor, told CBC News.

“Those laws were adopted at a time where dynamic pricing didn’t exist to the extent that it does today,” she added.

How Canadians can actually find discount flights

Dynamic pricing means there’s no guarantee that a sale price is the lowest price you’ll see. While consumers can’t control how airlines adjust fares behind the scenes, they can take steps to improve their odds of finding a genuine deal and avoid paying more than necessary.

• Use technology to your advantage. Google Flights, Hopper and Skyscanner allow users to track their preferred routes and enable notifications when costs for their destination drop.
• Book before demand spikes. Airfares tend to rise as planes fill up, particularly around holidays, long weekends and major events. If you know your travel dates, booking several weeks or even months in advance can help you avoid last-minute price increases caused by dynamic pricing.
• Be flexible with your travel dates. Flying a day earlier or later, choosing a mid-week departure, or travelling during the shoulder season can often result in significantly lower fares. Even small changes to your itinerary can produce meaningful savings.
• Dip into your rewards points when prices are up. Reward points such as Aeroplan or WestJet Rewards can become more efficient when ticket prices are high. If your travel credit card offers additional companion fares or other travel insurance perks, using rewards points can result in substantial bonuses and savings.

Bottom line

Dynamic pricing likely isn’t going away, and as airlines increasingly rely on algorithms to adjust fares in real time, consumers may find it harder to know whether they’re actually getting a bargain. Until pricing becomes more transparent — or regulations evolve to address the complexities of algorithmic pricing — doing a little extra homework before clicking “book” could save you money.

Author Morgan Housel put it simply in The Psychology of Money: “Controlling your time is the highest dividend money pays.” For high earners grinding through their 30s and 40s, that line lands less like a platitude and more like an audit.

The problem isn’t that Canadians aren’t saving. Despite attempts to save, nearly 6 in 10 unretired Canadians say they don’t believe they’ll ever be able to retire, given their financial situation, according to a 2025 survey from the Healthcare of Ontario Pension Plan (HOOPP), a major Ontario pension fund. Meanwhile, Canadians are retiring later than ever — an average age of 65.4 in 2025, according to Statistics Canada, up from the average age of 61.6, two decades earlier. Together, these numbers describe Canadians working longer while feeling further from freedom, not closer to it.

Why an account balance isn’t the same as independence

The usual retirement math — pick a number, hit it by 65 — treats every dollar the same. But a dollar sitting in savings with no plan for how it converts into time off is not the same as a dollar generating income you can actually live on. The more useful question isn’t “How much have I saved?” but “How much passive income can I generate, and starting when?”

That reframes planning around a personal independence threshold rather than a portfolio total sum. It reframes the goal from how much should I save, to how much investment income do I need?

To illustrate, let’s assume your lifestyle costs $4,500 a month (not including discretionary spending); this covers housing utilities and fixed expenses. As a result, you would need a portfolio that generates approximately $4,500 in monthly income, either in dividends, rental income or planned withdrawals. Then you work backwards: What holdings and how much invested do you require to consistently generate that monthly income.

Using this reframing, your retirement income stream becomes the goal, not the portfolio sum.

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How a TFSA-first approach accelerates the freedom timeline

For Canadians building towards that retirement income stream — retirees and those close to retirement — the Tax-Free Savings Account (TFSA) deserves first claim on new savings — even ahead of the RRSP. Keep in mind, that the TFSA doesn’t always take top spot when prioritizing where to save your retirement funds, but if your objective is to maximize tax-free retirement income and your current tax bracket isn’t high that an RRSP deduction would offer a larger benefit or you’re close to full RRSP contribution and need to think about low or no tax income before government benefits kick-in, then the TFSA is the best option.

The reason why the TFSA wins out when building (and close to relying on a retirement income stream) is because growth and income inside it stay untaxed permanently, including on withdrawal.

That distinction matters specifically for the time-freedom math: Dividend and rental income earned inside an RRSP is taxed on withdrawal, while the same income inside a TFSA is not. For someone relying on investment income to replace a paycheque, that gap compounds every year the plan runs.

For clarity, the annual TFSA contribution limit is $7,000 for 2026, and Canadians who have been eligible since the account launched in 2009 and have never contributed can have up to $109,000 in cumulative room, according to the Canada Revenue Agency (CRA). For those close to retirement and looking to build that tax-free income stream, maximing their TFSA should be their first priority.

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Focus on passive income to fund your retirement income stream

Two common building blocks for building passive income during retirement are dividend-paying exchange-traded funds (ETFs) and rental income from an investment property.

Dividend ETFs offer diversification and no landlord duties, but yields move with markets and payouts aren’t guaranteed.

Rental income can be steadier and inflation-linked, but it carries financing costs, vacancy risk and far less liquidity; however, a mortgage renewal at a higher rate can undo years of planning in a single cycle.

In some cases, a blend of both dividend-paying ETFs and rental income can smooth out the timing risk that either one carries, alone.

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Don’t plan to replace government retirement benefits

To be clear, none of these returns from your portfolio will replace government retirement benefits, which still anchor the your monthly income.

The maximum monthly Canada Pension Plan (CPP) retirement pension starting at 65 is just over $1,507 in 2026, though the average new beneficiary receives closer to $925.35. The maximum Old Age Security (OAS) payment for ages 65 to 74 is $751.97 a month, according to Employment and Social Development Canada.

Still, for most higher earning Canadians, CPP and OAS will only ever cover part the fixed income requirements in retirements; the remaining part of the time-freedom equation — the rest of the income required — has to come from what’s saved independently.

What should you do to build a retirement income stream?

• Calculate your base monthly expense, then work backward to the passive income needed to cover it
• Prioritize TFSA contribution room over RRSP room if tax-free flexibility matters more than an upfront deduction
• Build passive income from more than one source — dividend ETFs, rental income or both — so a single rate cycle doesn’t reset the timeline
• Revisit the number every year, since expenses, health and priorities shift

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A decision framework, not a finish line

Canadians who reach time freedom earliest aren’t necessarily the highest earners. They’re the ones who figured out early enough that the savings account they were building wasn’t about an arbitrary number or building a balance, but buying back time.

Prediction markets, which are exchange-traded markets where investors can wager on the outcomes of real-world events, have exploded in popularity in the U.S. through platforms like Kalshi and Polymarket, but they have been largely inaccessible to Canadians. However, after government regulators gave limited approval for them to operate in Canada, companies like Toronto-based Wealthsimple have been making big moves, announcing a partnership with Kalshi that will allow Canadians to access their prediction markets through a new app.

But just because they can, it doesn’t mean most Canadians should enter the game.

A recent paper put out by researchers from London Business School and Yale University found that while prediction markets offer “remarkably accurate forecasts” of real-world outcomes through pricing, their accuracy comes from a small minority of “persistently skilled traders” who are able to make correct predictions consistently across markets. According to the researchers, these traders use a combination of skills to trade against behavioural mistakes of the majority, whose losses “fund the minority’s profits.”

How small is that minority? It’s about 3% of accounts on Polymarket.

For nearly all the rest, their success or failure seems to rest on the same thing — luck. And a majority of those accounts have bad luck, incurring either some (61.7%) or significant (6.2%) losses. Only about 28.9% were considered to be “lucky,” earning insignificant profits, according to the paper.

“You need to be sophisticated,” one of the coauthors told CBC. “If you are just clicking there, you will be eaten alive.”

At this point, Canadians looking at prediction markets as a long-term investing strategy may want to ask themselves this question: Do you really want your financial success to depend on luck? Or are there better strategies out there to make the most of your investments?

Do prediction markets ‘blur the line?’

As prediction markets are set to open up shop in Canada, debate over whether Canadian investors should enter into them is intensifying, particularly among those who worry they “blur the line” between gambling and investing.

As an example, they only have to look to the U.S., where prediction markets are “almost like an offshoot of sports betting,” Li Zhang, director of social impact and financial literacy leader at CPA Canada, told the Globe and Mail.

The numbers back her up. Sports represents the biggest share of trades by far on Kalshi, making up a whopping 80% of total trading volume since July 2024, according to data analyzed by the Pew Research Center. It’s especially popular among males aged 18 to 34, with 11% of those polled by research firm SSRS saying they use prediction markets to bet on sports, compared to the national average of 5%.

That’s perhaps why Canadian regulators have not approved the use of prediction markets for sports or elections. Wealthsimple is only permitted to offer contracts on “economic indicators, financial markets and climate trends,” as reported by the Globe and Mail.

Even still, most Canadians are not convinced. Roughly three-quarters (74%) polled by CIBC Investor’s Edge say prediction markets are “more like gambling than investing,” while over half (57%) think they shouldn’t be on investment platforms.

Zhang simply calls them an “easy way to lose your money.”

Finding the safer bet

For many Canadians, their best bet is probably to stick to more passive investment strategies, which rely less on luck or skill while offering steady long-term returns.

Exchange-Traded Funds (ETFs) are becoming an increasingly common feature of investment portfolios in Canada, having just hit $1 trillion in gross assets under management in July 2026. There are also more product options to choose from than ever, with over 2,000 ETFs now available to Canadians.

And there are good reasons why ETFs have become so popular. Since they pool a group of securities, such as stocks or bonds, their success isn’t determined by returns from a single asset. They also give investors the chance to further spread their exposure to risk by diversifying their investments, whether they track an index, like the TSX, or industry, like mining, or other asset classes.

Another advantage is that ETFs can be bought and sold on a stock exchange, much like stocks, making them easily accessible to DIY investors. Plus, the costs are generally lower than similar assets like mutual funds. However, those lower costs can be offset by the commissions charged by brokers for buying and selling ETFs.

That’s why it’s always a good idea to shop around to find trusted brokerages that also offer minimal commissions on trades. For these investors, there are online platforms like CIBC Investor’s Edge, which gives them the security of one of Canada’s biggest banks without having to pay exorbitant commissions.

With their comprehensive online trading platform, it actually pays to trade more. Active traders making over 150 trades a quarter get a discounted commission rate of $4.95 per trade. Plus, CIBC doesn’t charge any account or maintenance fees if the combined market balance of all accounts is greater than $10,000.

Opening a discount brokerage account with CIBC Investor’s Edge can help you diversify your portfolio while not being dragged down by commissions and fees — keeping your cash where it belongs, with you.

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Take investing out of your hands

But not every Canadian wants to go down the investing path on their own. 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.

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Getting a professional edge

Beyond investing, some Canadians may also qualify for profession-specific banking perks that can help reduce everyday banking costs.

For example, National Bank offers specialized banking packages for professionals in fields like healthcare, engineering, IT, finance, law, teaching, public service, administration, architecture, agriculture and more. Depending on eligibility, the offer can include:

• Up to three bank accounts with no fixed monthly fees, with an eligible Mastercard rewards credit card (Certain fees apply)
• 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)

According to National Bank, eligible professionals can unlock up to approximately $1,313 in annual savings with higher savings available for select professions such as healthcare and IT.

The special offer covers more than 150 professions, including a wide range of professionals and specialists — and eligible individuals can enjoy even more savings when you combine specific banking products and services.

Find out if you work in an eligible profession and make an appointment to explore your options.

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Bottom line

It’s becoming increasingly clear that prediction markets are coming to Canada — but that doesn’t mean Canadians have to take part. In fact, apart from a small minority of “skilled traders,” a vast majority of Canadians would probably end up relying on luck if they wanted to see any profits. For this reason alone, it’s probably better for most investors to stick to tried-and-true strategies like trading ETFs or to leave it to the experts through products like managed portfolios.

In only two days, Abel announced deals worth a combined US$16.8 billion (C$23.4 billion) — a US$6.8 billion (C$9.5 billion) purchase of homebuilder Taylor Morrison Home Corp and a US$10 billion (C$13.9 billion) investment in Alphabet, Google’s parent company.

Warren Buffett spent six decades building Berkshire into one of the world’s most valuable companies before passing the reins to Abel at the start of 2026. His assessment was direct. “Greg did that faster than I could have done it, smoother than I could have done it, and I never talked to the CEO. He has launched,” Buffett told CNBC’s Becky Quick.

For Canadian investors who follow Berkshire — and there are many — this moment matters. Abel is one of their own: a kid from Edmonton who delivered flyers, collected bottles for cash and earned a commerce degree from the University of Alberta before rising to the top of the investing world.

The two deals that defined the Abel era

The first move was the Taylor Morrison acquisition — a classic value play. Berkshire agreed to pay US$72.50 a share in an all-cash deal, a 24% premium over the homebuilder’s previous closing price. Abel described Taylor Morrison as “a best-in-class national homebuilder” and hinted that he may combine it with Berkshire’s existing Clayton Homes subsidiary to create a unified homebuilding operation.

Some Berkshire investors reacted with enthusiasm. Check Capital Management President Steven Check told Reuters the move was “encouraging” and that investors had been “waiting for Greg to do his thing, beyond Warren Buffett’s shadow.”

The second deal was less expected: a US$10 billion private investment in Alphabet as part of the tech giant’s US$84.75 billion equity raise that would help fund artificial intelligence (AI) infrastructure — including data centres, chips and AI model development. Abel was able to negotiate a 6.5% discount through a private placement rather than buying shares on the open market.

This move by Abel course-corrects a well-documented mistake of Buffett’s. In 2019, he told investors he “blew it” by not acting earlier and investing in Google, pointing to the company’s reliable ad revenue as the missed opportunity. The Alphabet deal suggests Abel shares that view — but he moved faster.

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Are Buffett’s beliefs behind Abel’s purchases?

The speed and scale of Abel’s moves might seem a departure from Berkshire’s famously cautious, cash-hoarding culture. But a closer look shows both deals are consistent with Berkshire’s long-term approach: Find solid businesses with strong competitive positions, then act when the price is right.

The Taylor Morrison buy fits Berkshire’s preference for buying into cyclical industries when they’re at a low point. The homebuilding sector has been sluggish in recent years, weighed down by high mortgage rates and stubborn affordability problems — a phenomenon on both sides of the border. For investors who believe housing demand will eventually bounce back, buying a leading builder during a downturn is exactly the kind of contrarian bet Berkshire has made many times before.

The Alphabet investment is harder to call a classic value play, given how expensive AI stocks have become. But Alphabet has qualities Berkshire typically looks for: a dominant market position, a strong balance sheet and a core advertising business that generates steady, reliable revenue.

As of March 2026, Berkshire already held Alphabet as one of its top holdings. The new US$10 billion investment deepens that commitment significantly.

The cash problem — and what it means for investors

Despite the two headline-grabbing deals, Berkshire’s spending barely dented its reserves. The company held US$397.4 billion (C$554.4B) in cash as of March 31, 2026 — up 6.5% from December 31, 2025. At that scale, the US$16.8 billion invested in Alphabet and Taylor Morrison (C$23.4 billion) represents only 4.2% of the total cash pile.

Critics have long argued that Berkshire’s reluctance to put its cash to work has held back the stock’s performance compared to the broader market. Berkshire Class B shares were down roughly 1.56% for the year as of July 8, compared to a gain of about 9% to 10% for the S&P 500 over the same period. CFRA Research analyst Cathy Seifert put the challenge bluntly, asking: “If Berkshire isn’t buying back their stock, why should you?”

The real test of the Abel era will be whether Berkshire can deploy its enormous cash reserves — and whether the returns justify holding its shares over a low-cost index fund.

What this means for Canadian investors

Berkshire Hathaway (NYSE: BRK.B) is one of the most widely held U.S. stocks among Canadians, and Abel’s Edmonton roots have given the company an unusually strong following north of the border.

Canadian investors can hold Berkshire shares through any major discount brokerage. But where you hold them matters — especially when it comes to taxes.

Unlike many blue-chip U.S. stocks, Berkshire doesn’t pay a dividend. Thus, Canadian investors holding Berkshire inside a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP) won’t face U.S. dividend withholding tax on this stock — because there are no dividends to withhold.

For comparison: U.S. dividend-paying stocks held inside a TFSA are subject to a 15% withholding tax under U.S. rules — a tax that can’t be recovered through a foreign tax credit inside a TFSA. By contrast, U.S. dividends held inside an RRSP are exempt from U.S. withholding tax under the Canada-U.S. Tax Treaty. This means Canadian investors are generally better off holding U.S. dividend-paying stocks in their RRSP rather than their TFSA. However, for non-dividend payers like Berkshire, either account works from a tax perspective.

For investors holding Berkshire in a non-registered (taxable) account, capital gains on U.S. stocks are reported to the Canada Revenue Agency (CRA) in Canadian dollars, calculated using the exchange rate at the time of purchase and sale. In Canada, only 50% of capital gains are generally taxable.

Currency is also a factor. With the loonie hovering around US$0.72 (roughly US$1 = C$1.395) as of early June 2026, a strengthening dollar could reduce the returns on U.S. holdings when converted back to Canadian dollars — and a weakening dollar would push them higher.

What Canadian investors can learn from Abel’s first moves

Greg Abel’s opening weeks as Berkshire CEO offer a few broader lessons that apply well beyond the world of billion-dollar deals:

• Think in cycles, rather than headlines. Abel bought Taylor Morrison when the homebuilding sector was out of favour — not when it was popular. Canada’s own housing market is facing affordability challenges and uncertainty. Sectors under pressure can sometimes offer the best long-term entry points.
• Know where to hold U.S. stocks. Berkshire doesn’t pay dividends, so a TFSA or RRSP both work fine. But if you hold U.S. dividend-paying stocks alongside it, put those in your RRSP to take advantage of the Canada-U.S. Tax Treaty exemption on withholding tax.
• Cash is a strategy, not a failure. Berkshire’s US$397.4 billion (C$554.4B) cash reserve has frustrated some investors — but it gave Abel the ability to move quickly when the right deals came along. Keeping a cash buffer in your own portfolio works the same way.
• Patience doesn’t mean passivity. Buffett praised Abel for acting swiftly and smoothly. The lesson isn’t to wait forever — it’s to be prepared so you can move quickly when the right opportunity shows up.
• Diversification across sectors still matters. Abel’s two deals span two very different industries — housing and AI infrastructure. Spreading your investments across sectors remains a core principle of sound investing, whether you’re managing C$500 or C$500 billion.

Even though Canada has a reputation of having “free healthcare,” there are many medical expenses that are not covered by our universal healthcare system. Universal healthcare isn’t the same as free healthcare, and that it doesn’t cover anything that isn’t considered part of essential medical care.

So for Sarah, that meant buying private health insurance. Most Canadians who buy private health insurance pay between $50 and $300 per month for individual coverage. Of course, that premium depends on age, province, health status and the type of plan and coverage they have.

What does provincial health care actually cover?

For Canadians, the publicly funded health-care system covers things that are deemed medically necessary, such as physician services and hospital care. These are covered through provincial and territorial health insurance plans, and are free for residents of that province or territory.

What many Canadians don't realize is how much falls outside of that coverage. Here’s a breakdown of what is and isn’t covered by the provincial healthcare plans.

What's typically covered:

• Visits to family doctors and specialists
• Hospital treatment and inpatient care
• Medically necessary surgeries
• Many diagnostic tests and imaging services
• Emergency medical care

What's typically not covered:

• Prescription drugs outside a hospital setting
• Routine dental care
• Eye exams and prescription eyewear for most adults
• Physiotherapy, massage therapy and chiropractic care
• Psychological and counselling services
• Ambulance fees in some provinces
• Private or semi-private hospital rooms
• Many other paramedical services

It should be noted that coverage varies significantly across Canada, depending on the province or territory in which you reside. Some provinces offer drug coverage programs for seniors, children or low-income residents. Others offer broader assistance through provincial drug plans for prescription medications.

Before going ahead and purchasing private medical coverage, it’s worth reviewing exactly what your province or territory already covers.

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How much does private health insurance cost in Canada?

Like coverage, private health insurance costs vary widely by province or territory. Most Canadians can expect to pay within these ranges:

• Individual plans: approximately $50 to $300 per month
• Family plans: approximately $100 to $600+ per month
• Comprehensive plans with extensive dental and drug coverage: often at the higher end of those ranges

Just as with most other insurance, a variety of factors have a direct impact on the cost of the insurance plan. Here are some of those factors that most provinces and territories will take into account:

Age

Age is one of the biggest factors in determining the price of insurance. Premiums increase as you get older because of a higher risk of injury and disease, especially after the age of 50.

Province

As we’ve been saying, where you live matters because each province and territory offers different healthcare insurance coverage.

Smoking status and health history

One of the most important parts of your health history and current health status is whether you are a smoker or a non-smoker. Smokers face much higher premiums and coverage restrictions because of the higher risk of disease or death. This is also true for people who have certain pre-existing conditions.

Coverage level

Basic plans focused on emergency medical and prescription drug coverage typically cost less than comprehensive plans that include dental, vision and paramedical benefits.

Deductibles and co-insurance

Plans with higher deductibles often have lower monthly premiums. Similarly, agreeing to pay a larger share of claims through co-insurance can reduce your monthly costs.

Let’s take a look at an example of how these factors can impact what you pay for private healthcare insurance:

A 35-year-old non-smoker in Ontario is looking to purchase a mid-tier individual healthcare plan. This plan includes prescription drug coverage, dental coverage, and vision benefits. For this plan, they should reasonably expect to pay between $130 to $180 per month.

Employer-sponsored group plans are usually much more affordable. Insurers can afford to provide larger groups of people with a lower rate, and employers also typically subsidize part of the premium. Total group benefit costs frequently range from $100 to $400 per month per employee, with costs shared between employers and workers.

Rather than focusing on a single insurer's advertised price, Canadians should compare quotes from multiple providers. Major insurers offer online quote tools that can provide personalized estimates based on industry-standard parameters.

What does private health insurance typically cover?

Private health insurance is designed to fill the gaps left by provincial health plans. These aren’t necessarily all-inclusive plans, but rather are meant to work in tandem with the universal healthcare provided by your province or territory.

Most plans include some combination of the following coverage areas:

Prescription drugs

This is one of the most valuable parts of private health insurance plans for most Canadians. Coverage for medications prescribed outside of hospitals can save thousands of dollars each year for a single Canadian resident. These are the prescriptions usually written by doctors that are picked up at a pharmacy. Coverage levels can vary, and some plans will have annual maximums and drug formularies that often apply.

Dental care

Dental coverage in private healthcare plans commonly includes:

• Preventive care, such as cleanings and exams
• Basic restorative services like fillings
• Major dental work, such as crowns, bridges and root canals, depending on the plan, there could be a price limit per year

Some plans will include orthodontic care for things like braces, and dental paraphernalia like a retainer or mouth guard.

Vision care

Many Canadian private healthcare plans include:

• Basic eye exams
• Prescription glasses
• Contact lenses
• Vision correction allowances. Usually, these are not 100% covered.

Paramedical services

Coverage may extend to:

• Physiotherapy
• Registered massage therapy
• Chiropractic treatment
• Psychotherapy
• Registered counselling services

Travel health insurance

Many Canadians do not know that their private healthcare plans often include travel insurance as a perk. Emergency medical coverage while travelling outside of the country is common with extended health plans, and can save quite a bit of money for those who purchase travel insurance through a third-party insurer.

Optional life and disability insurance

Some insurers allow policyholders to add life insurance, critical illness insurance or disability coverage for an additional premium.

Basic vs. mid-tier vs. comprehensive plans

A basic private insurance plan may focus primarily on prescription drugs and emergency medical expenses, but not include any additional coverage for things like travel insurance or paramedical services.

A mid-tier private insurance plan often adds routine dental care, vision coverage and higher annual limits for paramedical services. These also cost more than a basic tier of coverage.

A comprehensive plan generally offers broader coverage, higher annual maximums and more generous reimbursement rates across multiple categories.

However, more coverage doesn't necessarily mean unlimited coverage.

Most plans include annual benefit maximums. For example, a plan may reimburse up to $500 annually for massage therapy, $300 every two years for eyewear or a set maximum for major dental procedures. Understanding these limits is critical when comparing plans and is necessary to know if you want to maximize your benefits.

Common exclusions may include cosmetic procedures, expenses already covered by provincial plans and certain pre-existing conditions, depending on the insurer and policy.

Group plan vs. individual plan — which is better for you?

The right choice often depends on your employment situation, as well as the coverage you already receive from your provincial plan. Here is a breakdown of group insurance plans vs an individual insurance plan.

Group plans

Group plans are typically offered through employers, unions or professional associations. The true benefit of these plans is in the size of the group of people covered under the same plan. With a larger group of people, insurers generally offer better coverage and lower prices.

Advantages include:

• Lower effective cost due to employer contributions
• Broader coverage at competitive rates
• Minimal or no medical underwriting
• Easier access to coverage for people with health conditions

Individual plans

Individual plans are purchased directly from an insurer or through a broker. While these can potentially cost more than a group plan, they can offer increased flexibility and allow for entrepreneurs and gig workers to get the appropriate healthcare coverage they need.

Advantages include:

• Greater flexibility
• Portable coverage that stays with you if you change jobs
• Customizable options
• Access for self-employed Canadians and gig workers

The downside is that individuals pay the full premium themselves and may not receive the benefits of a group plan's broad coverage.

Consider the following scenario to show both the advantages and disadvantages of an individual private insurance plan.

A 32-year-old freelance graphic designer is earning about $60,000 annually from contract work. They work independently and therefore have no employer benefits. What are their options? An individual health plan may cost about $150 per month, but that helps to offset the costs of prescriptions, dental procedures, and physiotherapy treatment. Without coverage, a single root canal or broken pair of glasses could easily exceed the annual premium they would pay for that plan.

Some self-employed Canadians can access association-sponsored benefit programs that function similarly to group plans. Professional associations and industry groups sometimes negotiate group rates for members, helping reduce costs while improving coverage.

How do you choose the right health insurance plan?

Choosing a plan begins with understanding what exactly you need, rather than purchasing the most comprehensive option. You should know exactly what your provincial plan covers and how an individual plan or group plan can supplement that. Here are some examples of things you should be asking before signing up for a health insurance plan.

Ask yourself:

• What does my provincial or territorial plan already cover?
• How much did I spend on health care out of pocket last year?
• Do I need prescription drug coverage?
• How important are dental and vision benefits?
• What monthly premium fits comfortably within my budget?

When comparing plans, pay close attention to:

• Annual premiums
• Deductibles for each category of claim
• Co-insurance percentages
• Annual benefit maximums and date restrictions
• Coverage for spouses and dependants
• Waiting periods
• Pre-existing condition exclusions

Getting multiple quotes is one of the simplest ways to save money. A great way to do this is to contact an independent insurance broker. These brokers can often compare plans from multiple insurers at no cost to consumers. This can be incredibly helpful in deciding which plan is right for you, not just for price, but also for coverage.

A simple checklist to complete this week

1. Review your out-of-pocket medical expenses from the past 12 months.
2. Check your province or territory’s drug and supplemental benefit programs.
3. Decide whether dental, vision or prescription coverage is your highest priority.
4. Request quotes from at least two or three insurers, using an insurance broker if necessary.
5. Compare annual benefit maximums, not just monthly premiums.
6. Read the policy wording carefully before purchasing.

FAQs

Is health insurance mandatory in Canada?

Provincial and territorial health insurance is mandatory and funded through taxes. Private health insurance is optional, but it can be valuable for Canadians without employer benefits because provincial coverage leaves significant gaps in areas such as dental care, vision care and prescription drugs.

How much does health insurance cost per month in Canada?

Individual private health insurance plans typically cost between $50 and $300 per month, depending on age, province, coverage level and smoking status. Family plans generally range from $100 to $600+ per month, and are usually dependent on similar factors.

Does provincial health care cover dental and vision in Canada?

Generally, no. Provincial health plans do not cover routine dental or vision care for most adults. Some provinces provide limited assistance for children, seniors or low-income residents. Eligible Canadians without private dental insurance and with adjusted family net income below $90,000 may qualify for the Canadian Dental Care Plan.

Can self-employed Canadians deduct health insurance premiums?

Self-employed Canadians may be able to deduct eligible health and dental insurance expenses through a Private Health Services Plan (PHSP) or other tax mechanisms. Because eligibility depends on individual circumstances, consult the Canada Revenue Agency or a qualified tax professional before claiming a deduction.

A new CIBC Investor’s Edge poll found that 74% of Canadians believe prediction markets are more like gambling than investing. More than half (57%) also said these products shouldn’t be offered on investment platforms.

“Prediction markets are drawing more attention from the investment community, but they are also raising important questions about how these products are positioned for everyday investors,” said Luka Marjanovic, managing director and head of CIBC Investor’s Edge, in a statement.

Canadians favour long-term investing

The survey suggests that most Canadians continue to distinguish between building wealth over time and taking short-term speculative bets.

While prediction markets have attracted headlines, only 4% of Canadians said they had participated in one over the past year. That’s similar to the share who reported trading options (5%) or cryptocurrencies (5%).

By comparison, around 88% of Canadians said they haven’t used prediction markets and don’t plan to.

When asked which approaches they believed offered the best potential for returns, respondents expressed greater confidence in more traditional investing. 57% pointed to diversified portfolio investing, while 54% chose individual stock investing. That compares with 29% for prediction markets and just 18% for sports betting.

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Many investors are becoming more cautious

The poll also found many Canadians have stayed the course despite recent market uncertainty.

Half of respondents said their investment strategy hasn’t changed over the past year. Among those who have made adjustments, three times as many said they had shifted toward lower-risk, long-term investments (24%) than higher-risk strategies (8%).

Risk tolerance also appears relatively conservative. More than one-third of Canadians (38%) said they don’t allocate any of their investments to higher-risk assets, while another 19% said those investments make up less than 10% of their portfolio.

The results suggest that while newer investment products continue to emerge, many Canadians remain focused on diversification and managing risk.

Trust remains a sticking point

Beyond concerns about risk, many Canadians also questioned whether prediction markets are fair.

Around 69% of respondents said they believe these markets primarily benefit people with insider information rather than everyday participants.

In addition, support for stronger safeguards was also widespread. 73% said prediction markets should include consumer protections and limits if they’re made available to retail investors.

For everyday investors, speculative products may offer the possibility of quick gains, but they also come with unique risks compared to long-term investing. As more platforms introduce new ways to trade and speculate, Canadians appear to be drawing their own line between investing for the future and betting on short-term outcomes.

That’s what happened to Marnie Wraith. After building a life with her partner in Meaford, Ontario — complete with a shared home and years of travel behind them — she felt something was missing. “I needed a recalibration of my life based just on my needs,” she told CBC’s The Current. Wraith is going through what family therapists call a “grey divorce” — a split that happens after age fifty.

And it’s more common than many realize. Grey divorces rose 26% between 1991 and 2006 but have remained quite stable since, according to Statistics Canada. Andrew Sofin, president of the Canadian Association for Couple and Family Therapy, told The Current that people tend to feel less sure of themselves as they age, which can bring old cracks in a marriage to the surface.

Not every marriage will end in divorce. But the data points to how tricky retirement can be for couples once they realize exactly how much unstructured time they’ll share.

“Retirement is likely to reshape your sense of identity, routines, financial stability, and relationship dynamics at the same time,” Dr. Robert Davies, a board-certified psychiatrist, told Moneywise. “Many couples plan financially for retirement; however, many fail to make provisions for emotional readiness.”

Research has identified five common problems couples face when they retire together, and here’s what therapists say you can do about them.

1. Loss of confidence and identity

After working 40-plus hours a week for decades — either for yourself or for an employer — work becomes part of who you are. It’s common for a chunk of someone’s self-worth to be tied to a job title.

“Retirement can take away much of what gives a person’s life structure, purpose and recognition,” Davies said. “As many people find out after retiring, we tend to identify with our careers far more than we realize.”

The fix, Davies said, is to build identity through activities that bring satisfaction before you retire — hobbies, volunteering, mentoring or close friendships — so you aren’t left feeling lost the day you no longer have to report to a job.

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2. Too much time together

As stressful as work can be, a job also creates a sense of individuality and gives couples time apart.

“There’s often a fantasy that couples who get to spend more time together will be happier — but this idea often misses the important role that work offers in terms of creating a much-needed sense of autonomy,” Dr. Navvab Tadjvar, a clinical psychologist, also told Moneywise.

Without that distance, couples can feel suffocated. Mary McLaughlin, a licensed clinical social worker and couples therapist, agrees that even healthy marriages can struggle to adjust to retirement, because people underestimate how different it feels to share the same space all day.

“You lose privacy, quiet time and the freedom to move through the day without considering another person’s schedule, needs, or habits,” she said.

3. Anxiety over finances

Living on a fixed income is a challenge unless both partners agree on budgeting and financial priorities — and for many Canadians, that agreement is hard to reach. Sixty-one percent of Canadians fear running out of money in retirement, and almost six in 10 say they feel financial stress every day, according to a CPP Investments survey.

Canadians now believe they need $1.7 million, on average, to retire comfortably — up from $1.54 million the year before — and more than one-third say they’re unlikely to reach that goal, according to the BMO 2026 Annual Retirement Survey.

In fact, 17% of couples say their financial situation has led them to consider separating from or divorcing a partner, according to a survey from Money Mentors. Additionally, 25% of surveyed couples admitted that financial matters have negatively impacted either their dating or married lives.

“The true emotional cause of these money disputes often lies in a sense of security; one person sees money as an opportunity for freedom, and the other person views it as a means to protect themselves from future risks,” said Stacey Sheller, a licensed marriage and family therapist, in comments to Moneywise.

If partners don’t explore what really drives their views on money, “all they will be doing is battling with numbers rather than resolving the real issues at hand,” she said.

One place to start: Figure out how your Canada Pension Plan (CPP) and Old Age Security (OAS) payments fit into your household income, and decide together when to start collecting each. Deferring CPP past age 65 adds 8.4% a year, up to a maximum of 42% more at age 70, according to the Government of Canada — a decision that affects both partners and should be made together rather than individually.

Similarly, deferring your OAS until age 70 offers a similar cushion: It permanently increases your payments by 0.6% for every month you delay — or 7.2% annually — up to 36%. These two payments combined can cover a significant life expense every month.

4. Relocation regrets

When Canadian couples retire, some consider selling the family home to travel more, downsize or lower their monthly bills. But what they give up in return — friendships, family and community — may cost more than they expect.

Nearly half of Canadians approaching retirement, 46%, plan to downsize their home within two years of leaving work, while 47% say they won’t, according to a 2025 Royal LePage survey conducted by Leger. Additionally, 41% of working homeowners are counting on their home’s sale to help fund retirement, according to a Healthcare of Ontario Pension Plan (HOOPP) survey.

There’s one upside for Canadian homeowners: Under the principal residence exemption, the entire capital gain on the sale of a home that served as your primary home for every year you owned it is exempt from tax, with no dollar cap, according to the Canada Revenue Agency (CRA). That’s a meaningful advantage over other investments, where only half of a capital gain is taxable.

Sheller said couples need to weigh the cost of living against how much support a new community offers for building relationships and staying socially connected, since that ultimately affects emotional well-being.

One tip: Try renting a new place for a few months before committing. If you like it, you can look into buying.

5. Mismatched travel desires

While couples can spend years planning the financial side of retirement, few discuss what day-to-day life will actually look like once they get there.

One partner may want to travel for months at a time, while the other imagines a quieter life at home with frequent visits from family. Both are valid, but they call for open communication and compromise. Health matters too — one partner’s condition may limit how much they can travel even if they want to.

“The goal isn’t to want the same things; it’s to create a lifestyle that honours both people’s visions of what retirement should look like,” Sheller said. “A successful retirement isn’t about finding two people with identical dreams. It’s about creating a life where both people’s dreams have room to thrive.”

Next steps for Canadian couples

A financially sound retirement plan isn’t the same as an emotionally sound one. Before your last day of work, consider these steps.

• Talk about your day-to-day routine — not just your finances — well before your last day of work
• Spend a few consecutive days together at home the way you would in retirement, with no outside obligations as a practice run
• Meet with a fee-for-service Certified Financial Planner (CFP) to map out CPP and OAS timing, Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) withdrawals and any tax-bracket surprises
• Before relocating, find a rental in the new community first to decide how a sale could affect your principal residence exemption
• If a split feels possible, remember that property division rules vary by province — in Alberta, British Columbia and Ontario, for example, net family property is generally equalized — so speak with a family lawyer and a financial advisor before dividing pensions, RRSPs or a home

But the rule was built for a very different era and market environment — and many retirees now face conditions that make it far less reliable as a one-size-fits-all guide.

The 2025 CPP Investments Retirement Survey shows Canadians’ anxiety around retirement is real: 59% of Canadians are afraid of running out of money in retirement — a fear that’s especially sharp among women (63%) and Canadians aged 18 to 24 (68%). Many people still don’t know if their money will last through retirement, and for good reason: the most popular withdrawal rule may not be holding up the same way it used to.

Where the 4% rule came from

Financial adviser William Bengen published the original 4% rule framework in the Journal of Financial Planning in October 1994. On a $1 million portfolio, a 4% first-year withdrawal works out to $40,000, with that amount adjusted for inflation each year after. Bengen built the model using U.S. market data from 1926 and a mix of stocks and bonds designed to survive any 30-year stretch in that record. It held up for the most part — but now, two of its main ideas are under strain.

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Why the original rule is showing cracks

Let’s start with bond yields. When Bengen ran his numbers, long-term government bonds paid close to 8%. Today, the 10-year Government of Canada bond yields approximately 3.4%. That matters because bonds used to provide a steady income cushion in the portfolio. Now that the yield is much lower, Canadians investing for their retirement face a harder choice: Take on more stocks — and volatility — or spend less every year.

The rate of inflation also factors in. According to Statistics Canada, the Consumer Price Index (CPI) rose 3.2% year-over-year in May 2026. The 4% rule assumes inflation stays relatively steady and manageable. But when inflation runs hotter, those annual adjustments pile up faster than Bengen’s model was built to handle.

“Let’s say we have two years of 7% inflation,” Dan Keady, a certified financial planner and senior director of financial planning at TIAA, told Kiplinger. Someone who started pulling $100,000 a year would be withdrawing $114,490 by year three. And because each increase becomes the new base for the next one, those higher withdrawals compound over time.

For Canadian retirees, there is a layer of protection: the Canada Pension Plan (CPP) and Old Age Security (OAS) government benefits supplement their savings, providing inflation-indexed income for life. If CPP and OAS together cover your essential spending, they lessen the pressure on your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF), which can actually let you withdraw at a lower rate, and make the money last longer.

For 2026, the maximum monthly CPP amount for someone starting benefits at age 65 is $1,507.65, though the average new beneficiary receives $877.01 a month. Monthly OAS payments as of Q3 2026 are $751.97 for those aged 65-74 and $827.17 for those 75 and older. That combined pension income, even at average rates, can cover significant basic needs for many Canadians.

What Bengen is telling retirees now

Bengen himself has updated his thinking. In his 2025 book A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More, Bengen says the new safe withdrawal rate for a well-diversified portfolio over a 30-year stretch is 4.7%. That’s the lowest withdrawal rate that survived in the worst market conditions his research covers.

But he also believes many retirees today may be able to withdraw more. “I believe a Safemax of 5.25% to 5.5% seems like a reasonable, conservative estimate for current retirees,” Bengen stated in his book.

The sequence-of-returns problem

The 4% rule has one big blind spot: it doesn’t account for what actually happens in the first few years of retirement.

That’s called sequence-of-returns risk. If the market drops early in retirement, you’re withdrawing money while your portfolio is already down, selling at low prices and locking in those losses. Those shares can’t recover for you when the market bounces back.

That’s why some advisers use the guardrail approach, developed by financial planner Jonathan Guyton and computer scientist William Klinger. Rather than taking the same amount every year, you check your portfolio against the rate of inflation once every year and adjust. If the market drops, you cut back. If it does well, you can spend a little more.

For Canadians, the RRIF minimum withdrawal rules add another layer. Once your Registered Retirement Savings Plan (RRSP) is converted to a Registered Retirement Income Fund (RRIF) — which must happen by December 31 of the year you turn 71 — the government sets minimum annual withdrawal percentages that increase with age. By age 85, you must withdraw 8.5% of your RRIF balance annually, regardless of market conditions. That forced income can work against a guardrail strategy in a downturn, which makes it even more important to hold a cash buffer and to plan your RRIF withdrawals in combination with your CPP, OAS and TFSA income strategically.

What this means for your money

The 4% rule isn’t wrong — but it doesn’t cover everything on its own. A few straightforward adjustments can make it work better for Canadians.

First, use a longer retirement timeline. If you’re 65 and in good health, plan for 90 or 95 rather than 85. Cutting this number short can leave you without enough later. Statistics Canada data shows a 65-year-old Canadian man can expect to live another 19.6 years, on average, and a woman nearly 22.2 years. This means that many people will need their money to stretch well into their late 80s and beyond.

Keep one to two years of living expenses in either a high-interest savings account, short-term bonds or guaranteed investment certificates (GICs) as a cushion. If the market drops early in retirement, you can draw from that buffer instead of selling equities at low prices.

Also check how much of your basic spending your guaranteed income already covers. If CPP and OAS together pay for your essentials, your RRSP or RRIF only needs to cover the rest. That gives you more room to cut discretionary spending in a downturn without touching the basics.

Finally, remember the advantages the Tax-Free Savings Account (TFSA) offers. Withdrawals from a TFSA are completely tax-free and don’t count as income for OAS clawback purposes, making it one of the most flexible tools a Canadian retiree has. Directing your RRIF minimums into a TFSA when you don’t need the cash immediately is one of the most efficient moves available.

William Bengen may have invented the 4% rule, but he has been revising it ever since 1994. Your retirement plan should keep up the same way.

Next steps for Canadians

Use these strategies to stress-test and strengthen your retirement income plan.

• Know your CPP and OAS baseline. Log in to your My Service Canada Account to estimate your CPP benefit at different start ages. Factor this inflation-indexed income into your withdrawal math before assuming you need to draw 4% from your portfolio.
• Check your RRIF minimums in advance. Use your bank or a financial planner to map out your mandatory RRIF withdrawals over the next 10 years. The minimum amounts you must withdraw can push your income into a higher tax bracket — or trigger an OAS clawback, which kicks in once your net income goes above $95,323 in 2026 — if you don’t plan ahead.
• Build a cash buffer. Keep one to two years of living expenses in a high-interest savings account (HISA) or short-term GIC outside your investment portfolio. This protects you from being forced to sell your investments at a bad time if the market drops.
• Plan the order in which you withdraw your money. In general, draw from non-registered accounts first, then RRSP or RRIF, and leave your TFSA for last. TFSA withdrawals are tax-free and don’t count toward the OAS clawback threshold.
• Revisit your withdrawal rate every year. Rather than locking in a fixed 4% and walking away, adjust as you go. If your portfolio drops significantly in a given year, pull back on your spending. If it’s grown well, you can afford to spend a little more.
• Work with a fee-only financial planner. An adviser who holds the Certified Financial Planner (CFP) designation can map out different retirement income scenarios for you — including when to start CPP, how to move money from your RRIF to your TFSA and how to avoid or reduce an OAS clawback — and show you what each option could mean for your finances.

-With files from Melanie Huddart

Statistics Canada’s most recent report on motor vehicle sales showed that EV sales jumped nearly 75% year-over-year in March, with 21,574 sold. EV sales have been incrementally climbing since the beginning of 2026 with 8,826 sold in January and 12,626 in February. While EV sales in April slipped to 17,795, the first four months of 2026 have seen an increase of about 21% compared to the same timeframe in 2025.

In January of 2025, the government cancelled its rebate incentive for consumers and businesses, which significantly slowed down sales for the rest of the year. Charles Bernard, chief economist for the Canadian Automobile Dealers Association, told CBC News that these incentives have made EVs more affordable, driving additional sales compared to previous years.

In February of 2026, the Liberal government announced its Electric Vehicle Affordability Program (EVAP), offering up to $5,000 off a fully electric vehicle and $2,500 off a hybrid model.

According to Bernard, this program has made EV prices more comparable to standard gas-powered options, prompting more widespread adoption.

Government benefits and gas prices boosting EV interest

With these incentives available to Canadian consumers, the EV market seems to have a new tailwind in place. According to the JD Power 2026 Canada Electric Vehicle Consideration (EVC) Study, 25% of consumers seeking a new vehicle have reported government incentives boosting their likelihood of buying an EV.

To qualify for the benefit, the EV leased or purchased must be made in Canada or in countries that have free-trade agreements with Canada. The incentives also only apply to vehicles with a purchase value of $50,000 or less — unless they are made in Canada, in which case no transaction value cap applies.

The EVAP is only in place until 2030, and the maximum rebates of $5,000 and $2,500 are only available for this year. With each passing year, the respective rebates will decrease.

However, another more existential market shift causing renewed interest in EVs appears to be stubbornly high gas prices. Since the war in Iran began in late February, causing major supply chain disruptions of crude oil with the Strait of Hormuz no longer a reliable passageway, gas prices have surged.

As of the week of June 29, the average price of fuel across Canada stood at
$161.1/L, up from $134.0/L a year ago, says the Canadian Automotive Association. And retailers on the ground are seeing the effects in real-time.

“People come in, you know, claiming … gas prices as the reason why they’re trying to get out of their big Dodge Ram diesel truck that costs them a thousand bucks a month on gas,” Max Maurice, an Ontario-based Shift Electric Vehicles sales manager, told CBC News.

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Practical barriers still persist for prospective EV buyers

While government rebates and higher fuel costs are drawing more Canadians toward EVs, practical concerns remain.

JD Power’s EVC survey found that of the respondents who reported they were “very unlikely” or “somewhat unlikely” to purchase an EV, 65% were concerned with the driving distance per charge. The second most pressing concern was lack of charging stations (56%), followed by inadequate performance in extreme temperatures (54%).

These considerations seem to be especially felt in more remote locations in the country. Both Yukon and the Northwest Territories saw a drop in EV registrations in the first quarter of this year — NWT registrations fell to 1.0% from 1.2%, while Yukon registrations fell from 7.5% to 6.5%. Meanwhile, Nunavut has not reported a single EV registration for the first three months of 2026.

How to purchase an EV the right way

Though EVs are becoming a more attractive and potentially prudent purchase thanks to government incentives and fuel prices, that does not mean they can be purchased with no strategy in mind. Before you buy an EV in 2026, remember these tips to help you make the best decision.

Compare your insurance options. Coverage for electric vehicles isn’t cheap according to a recent report from Sussex Insurance that reveals EVs cost 36.8% more to insure than internal combustion engine vehicles. It’s been documented that insurance for EVs can vary widely across similar models as well. To counter the gap in premiums across insurers and similar models, make sure to get at least three different quotes before you make a purchase. And look into bundling your EV insurance with other policies for a discount.

Make sure you are eligible for incentives. Per the federal government’s rules, consumers can receive incentives only if they purchase an EV with a final transaction value of $50,000 or less (which does not apply if the vehicle is Canadian made) from an authorized dealership/seller. Here is a list of eligible vehicles to help you parse out which makes/models qualify given their price. However, the federal government is clear that just because a vehicle is on or off their list does not mean it is eligible for a rebate. It’s also worth noting that EVAP rebates only apply to new EVs, not pre-owned models.

Remember how the application process works. While the incentive is for the person purchasing the EV, there isn’t a formal application process from the buyer. Instead, the buyer fills out additional paperwork provided by the dealership, who then sends it to Transport Canada to be verified. Once the buyer and vehicle are confirmed to be eligible, the authorized dealership or seller applies the rebate amount directly to the bill of sale or lease agreement, after taxes and fees are added.

For Canadians with large registered accounts, the Canada Revenue Agency (CRA) has set a 2026 income threshold of $95,323 above which Old Age Security (OAS) payments are progressively clawed back at 15 cents for every dollar earned above the limit. And reaching that threshold may not require lavish spending — for some retirees, mandatory Registered Retirement Income Fund (RRIF) withdrawals alone are enough to cross the line.

Here’s what you need to know to ensure your registered savings don’t start working against you.

How the OAS clawback actually works

The CRA calls it a recovery tax, but the way it works is straightforward: once your net income exceeds the annual threshold, the government reduces your OAS benefit at 15% of every dollar over the limit.

There is an important timing lag that many retirees miss. The recovery tax applied to your OAS payments from July 2026 to June 2027 is based on your 2025 net income, with a threshold of $93,454 for that period. For income earned in 2026 itself — the figure that matters if you’re planning ahead for the July 2027 to June 2028 recovery period — the threshold is currently estimated at $95,323. Either way, the clawback doesn’t appear in your monthly cheque until the following July. By then, income decisions are already behind you.

At maximum clawback — which for seniors aged 65 to 74 occurs at around $154,700 — the full annual OAS benefit of approximately $8,908 is eliminated.

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The income sources that trigger it — including ones that surprise people

RRIF withdrawals are fully taxable and count toward net world income. Consider a retiree with a $1.5 million RRIF balance at age 71. The CRA-prescribed minimum withdrawal rate of 5.28% would result in a mandatory first-year drawdown of $79,200. Add average Canada Pension Plan (CPP) income of approximately $11,000 and the basic OAS payment of $8,618, and total income reaches roughly $98,818. That is already above the $95,323 threshold before any discretionary spending or investment income is counted.

Other income sources compound the problem. Dividends from a Canadian-controlled private corporation (CCPC), capital gains from investment properties, rental income and even the OAS payment itself all flow into net world income. Incorporated professionals who deferred salary in favour of dividends during high-earning years may find that retirement income from multiple sources arrives simultaneously. That combined total may be difficult to reduce without careful pre-retirement planning.

One common source of surprise: eligible dividends are grossed up by 38% when calculating net income for tax purposes. A $30,000 eligible dividend from a CCPC is counted as $41,400 in net income — further closing the gap to the clawback threshold.

The TFSA shield: Your most powerful tool against clawback

A Tax-Free Savings Account (TFSA) is the most direct structural defence against the OAS recovery tax, because withdrawals from a TFSA do not count as income at all — and therefore have no effect on OAS entitlement.

As of January 1, 2026, Canadians who were 18 or older when the program launched in 2009 have accumulated up to $109,000 in cumulative TFSA contribution room. For a retiree who maximized that room and invested in a diversified portfolio, a TFSA could generate meaningful annual income — entirely invisible to CRA’s clawback calculation.

The strategic implication is significant: every dollar shifted from an RRIF (taxable) to a TFSA (tax-free on withdrawal) reduces future exposure to the recovery tax. This is one reason financial planners often recommend making voluntary RRSP withdrawals in the early 60s — before the mandatory RRIF conversion at 71 — to shrink the future RRIF balance and move assets into TFSA room while income is still relatively low.

How professionals and business owners can structure income to stay below the threshold

For incorporated professionals — doctors, lawyers, accountants — the CCPC adds a layer of planning flexibility that employees do not have. Unlike salaried workers, an incorporated retiree can sometimes choose when and how much income to extract from the corporation, choosing salary, dividends or a combination in amounts designed to stay below the $95,323 line.

Pension income splitting is another option for spouses with significantly different income levels. Under current rules, eligible pension income — including RRIF withdrawals after age 65 — can be split up to 50% with a spouse or common-law partner, reducing the higher earner’s net income and potentially keeping both partners below the clawback threshold.

The earlier you begin to research retirement withdrawal scenarios, the better. Voluntary RRSP drawdowns in the decade before the mandatory conversion at 71 can reduce your RRIF balance and the size of forced withdrawals that follow. A lower RRIF balance at 71 means lower mandatory income — and a longer runway before the clawback threshold becomes a problem.

What to do before 71

Avoiding the OAS clawback is not straightforward for high-income retirees, and in some cases it may not be entirely avoidable — particularly where RRIF balances are very large. But reducing the erosion is achievable with enough lead time.

The key is to run the numbers before the forced conversion arrives. A retirement income model that includes projected RRIF minimum withdrawals, CPP, OAS and any corporate distributions will show where income is likely to land relative to the $95,323 mark. That analysis — run at 60 or 65, not 71 — helps create the window needed to act.

Approximately 5% of OAS recipients have their benefit partially or fully clawed back each year — and that share is growing as accumulated RRSP and RRIF balances drive larger mandatory withdrawals at retirement. The retirees most at risk are those who planned well for accumulation and forgot to plan for the drawdown.

What to do now

• Model your retirement income now: add projected RRIF minimum withdrawals, CPP and OAS together and compare against $95,323 (the 2026 income-year threshold)
• If you are between 65 and 71, consider voluntary RRSP drawdowns to reduce the future RRIF balance — and the size of forced withdrawals that follow
• Maximize TFSA contribution room before retirement — up to $109,000 cumulative as of 2026 for eligible Canadians; TFSA withdrawals have no effect on OAS entitlement
• Ask your adviser about pension income splitting if your spouse has significantly lower retirement income — eligible pension income can be split up to 50% with a spouse
• If you are incorporated, model the optimal mix of salary, dividends and RRIF withdrawals early — structured carefully, corporate income can be staged to stay below the clawback threshold

According to the Grocery Gap Report published by financial technology firm KOHO, buy-now-pay-later adoption for everyday essentials more than doubled over a 12-month period. The use of deferred payment options for groceries surged 109% between May 2025 and May 2026.

The report, which analyzed the spending data of more than 173,000 users across Canada, indicates that grocery costs are continuing to outpace household budget adjustments. The average monthly grocery expenditure per user rose roughly 5% year-over-year, moving from $261 to $275.

“One of the most interesting findings is that affordability pressures are changing behaviour, but not always in predictable ways,” Faye Lucas, head of Consumer Trust at KOHO, said in a Business Wire press release. “The findings make it clear that grocery costs are rising faster than Canadians can adapt. People are changing where they shop, how often they go, and how often they pay and yet the spending keeps climbing.”

Shoppers migrate to discount aisles

The financial pressure has triggered a noticeable shift in where and how Canadians purchase food. Consumers are increasingly abandoning premium supermarkets in favour of discount brands.

Trips to discount grocery retailers, including No Frills and Giant Tiger, climbed 4.1% year-over-year. In contrast, visits to premium grocery stores remained virtually stagnant, increasing by only 0.3% over the same period. Discount baskets also grew in size by 1.6% cent, outpacing the 0.9% basket growth seen at premium chains.

Overall, Canadians are making more frequent visits to the grocery store, averaging 6.03 trips per month compared to 5.86 trips the year before. The average amount spent per transaction also climbed 2.4%, rising from $44.58 to $45.65.

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Gen Z experiences fastest cost increases

While older demographics still spend more overall at the grocery store, younger Canadians are experiencing the sharpest rate of inflation.

Shoppers aged 18 to 24 recorded an average grocery basket growth of 5.4% year-over-year. That rate is more than double the national average of 2.4%. Meanwhile, consumers between the ages of 35 and 44 maintained the highest overall average grocery basket cost, which the report attributes to family and household sizes.

Broader food budgets also expanding

The rise in food spending is not restricted to the supermarket. Despite the strain on grocery budgets, Canadian spending on major food delivery services like DoorDash, Uber Eats and SkipTheDishes increased 9% year-over-year, rising from an average of $215 to $235 per month.

Total spending at restaurants and bars also rose by 4%, while general retail spending saw a 6% increase.

Ultimately, the data highlights that food remains an unavoidable expense that consumers cannot easily delay or cut out entirely. As everyday costs outpace wage adjustments, Canadian households are left with fewer options, forcing many to choose between changing where they shop or altering how they manage their cash flow just to keep the pantry stocked.

AI has been the biggest driver of stock market gains in 2026. Some investment experts still back chip makers and the large companies building AI infrastructure. But a growing number of experienced voices are warning that a crash may be coming, and those warnings matter for Canadian investors.

A new concerned voice has joined the likes of JPMorgan Chase CEO Jamie Dimon, Mad Money host Jim Cramer and The Big Short inspiration Michael Burry in sounding the alarm on this worrying market trend. Jim Paulsen recently flagged a troubling trend in the S&P 500 that anyone with money in North American markets should know about.

‘Extreme’ division between new and old era stocks

Paulsen spent decades as chief investment strategist for the Leuthold Group and now shares his views through a Substack newsletter followed by thousands of readers. His recent posts focus on what he calls an “extreme” split of the market, one that he says isn’t good news for AI investors.

As Paulsen explains, what has historically kept stock market rallies on solid ground is the participation of “old era” stocks — banking, manufacturing, energy and consumer goods — which tend to trend in the same direction as the tech stocks driving the gains. When they go their separate ways, things tend to get ugly.

But what we’re seeing now is the opposite: AI shares that are “racing ahead almost in isolation,” which Paulsen suggests is an almost guaranteed sign of trouble.

“For the last 30 years, the correlation of daily price movements between new era and old era stocks during the last year has proved to be a good risk indicator for new era investors,” Paulsen wrote in his recent post.

“The most recent rally in new era stocks since March 30 has been explosive, causing a breakout of optimism among investors that AI excitement is leading the stock market on another significant leg higher. However, this latest rally has been associated with an alarming drop in the trailing 12-month new/old era stock price correlation, suggesting the contemporary rally may not be sustainable.”

As Paulsen’s research shows, when this pattern has appeared in the past, the stocks that had been driving market gains typically slowed or dropped — what he calls a “notable pause,” if not “meaningful underperformance.”

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The market split has reached a drastic level

Bifurcation (when a market splits into two groups moving in opposite directions) isn’t new. But the gap between AI-driven stocks and everything else has grown remarkably wide.

The divide began in 2022, when the current bull market took root. But it has become much more pronounced over time. In the most recent 28-session rally between late March and early May 2026, just 10 stocks drove 69% of the S&P 500’s total gains, according to data from Investing.com.

Even more striking: New era AI stocks have performed, on average, nearly seven times better than the rest of the S&P 500 index since year-end, up 36.2% versus 5.3% for old era stocks. In mid-May, 5% of S&P 500 components sank to 52-week lows while the overall index was at a record high — only the fourth time in recorded history this has ever happened.

Meanwhile, the 10 largest companies in the S&P 500 now account for roughly 40% of the entire index by market cap. This level has not only matched, but exceeded the peak concentration seen during the dot-com bubble of 2000, when the top 10 held around 27%.

As Paulsen himself puts it, even if the reasoning for why some AI companies are outperforming is valid, the question instead becomes “how sustainable a bull market is where most companies are essentially failing.”

Paulsen’s warning is echoed at the institutional level. A Deutsche Bank fund manager survey found that 57% of institutional investors now identify an AI valuation crash as the single greatest risk to markets.

What this means for Canadian investors

It would be easy to dismiss this as an American problem. After all, the Toronto Stock Exchange (TSX) is structured quite differently from the S&P 500, with heavier weightings in energy, financials and materials.

In fact, for only the third time in the past 15 years, Canada’s S&P/TSX Composite Index generated a higher annual return than the S&P 500 in 2025, posting a gain of over 28% compared to approximately 18% south of the border.

But Canadian investors are far from insulated.

Canadian-listed AI-related stocks have surged dramatically. Celestica Inc., a Toronto-based data centre infrastructure company, climbed from under $80 a share to nearly $390 a share during 2025, and is currently trading around $500 as of July 7, 2026.

More broadly, millions of Canadian investors hold S&P 500 index ETFs inside their TFSAs and RRSPs — but the old “just buy the index” advice is being questioned, and for good reason. When the index is dominated by only a handful of big tech companies, a drop in a few of those stocks can drag the whole index down with them, and investors who simply track the index have nowhere to hide.

For Canadians holding U.S. stocks in a TFSA or RRSP, the exchange rate adds another risk to consider. If U.S. markets drop sharply, any losses could look even worse when converted back to Canadian dollars, depending on where the exchange rate sits at the time.

Canadian-listed AI ETFs — such as the CI Global Artificial Intelligence Fund ETF, Canada’s largest dedicated AI equity fund with nearly $1 billion in assets, or the TD Global Technology Leaders Index ETF, with a $3.5 billion portfolio — offer exposure to the same AI mega-caps Paulsen and Burry are warning about.

Your own portfolio comes down to risk tolerance

Joining the AI party can indeed produce big wins. The TSX’s Celestica delivered triple-digit returns for three consecutive years through 2025.

But experts like Burry have warned that the sector is building far too much infrastructure, driven more by hype than by actual paying customers.

Goldman Sachs estimates that US$7.6 trillion will be spent on AI infrastructure between 2026 and 2031, with big tech companies alone on track to spend close to $527 billion to $765 billion on data centres and AI in 2026. But as Paulsen puts it, the real question is whether the stocks getting the most attention have already priced in a decade of that growth.

As Burry wrote on his earlier Substack in May, “stocks are not up or down because of jobs or consumer sentiment. They are going straight up because they have been going straight up [based] on a two-letter thesis (AI) that everyone thinks they understand.”

Whether you believe AI is the start of a new industrial revolution or simply a trend that will eventually calm down, its impact on markets has been massive and unlike anything we’ve seen before. But how much you believe in AI’s future — and how much of your money you want to bet on it — is ultimately a personal decision, shaped by how long you plan to invest, how much risk you’re comfortable with and your goals.

But don’t say Paulsen, Burry and a growing number of market veterans didn’t warn you.

What Canadian investors can do now

Given these market dynamics, here are some practical steps for Canadians managing their portfolios:

Check how concentrated your index fund really is. Many S&P 500 index ETFs held in Canadian TFSAs and RRSPs now act more like AI and tech funds than broadly diversified investments. Take a look at your top holdings so you know where your money is really going.

Consider equal-weight alternatives. Equal-weighted versions of the S&P 500 — like the Invesco S&P 500 Equal Weight ETF — give each of the 500 companies the same share of your investment — reducing the outsized influence of just a handful of stocks.

Make the most of the TSX’s natural mix. Canada’s index has a strong presence in energy, financials and materials, sectors that don’t get much weight in a U.S. market driven largely by AI and tech stocks. This natural variety can help balance out your portfolio.

Be smart about rebalancing and taxes. In a TFSA, you can rebalance your investments without owing any tax. In a non-registered account, selling investments that have gone up in value may trigger capital gains tax. In Canada, half of any net capital gain is added to your taxable income for that year, so it’s worth thinking about timing before you sell.

Match your AI investments to your timeline. The more money you have in AI stocks, the more your portfolio will swing up and down. If you’re within five years of retirement, a sharp drop in AI stocks could seriously affect your plans.

When in doubt, talk to a registered financial adviser. A professional can help you model out different scenarios and make sure your portfolio reflects how much risk you’re truly comfortable with — not just what’s generating excitement in the market right now.

-With files from Melanie Huddart

That question landed on The Ramsey Show, when a caller named Michael asked co-hosts George Kamel and Jade Warshaw what to do after his father died and left him everything: the house, the investments and the family business. His two sisters, who had been estranged from their father for years, were left nothing.

Between the two of them, Michael’s sisters owe US$300,000 (C$426,000) in student loans. Michael inherited more than US$10 million (C$14.2 million). Now his sisters want him to use some of that inheritance to pay off their debt, but Michael does not know what to do.

A family split by an affair, then split again by money

The rift didn’t start with the will. It started years earlier, when Michael’s parents divorced after his mother had an affair. Michael’s sisters, who were teenagers at the time, sided with their mother and her new partner, who Michael said “probably bought their love and affection” with gifts at a time when his father’s business was struggling. Michael sided with his father.

Years later, when the sisters went to college, they asked their father for help with tuition. He refused, which resulted in them borrowing so heavily. Warshaw questioned whether that refusal was “your father having an immature moment,” while Kamel framed the entire situation as “more relational-emotional than it is financial” — telling Michael he could simply write a cheque to cover the loans, but that doing so might not reflect what “your father’s heart” would have wanted.

Kamel’s advice was blunt: don’t give the money out of guilt or to end an argument. “I think you’re going to be resentful if you give this money,” he told Michael. “And I’d rather them be resentful towards you than you be resentful towards them.”

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Would Canadian law even let a father do this?

Michael’s story raises a question that comes up often in Canadian families, too: can a parent simply cut a child out of a will, even for very personal reasons?

The answer depends heavily on where in Canada the family lives. Each province and territory upholds testamentary freedom — the general right of a person to leave their estate to whomever they choose — but that freedom is not absolute everywhere.

In Ontario, adult children who are not financially dependent on a parent generally have no legal claim under the Succession Law Reform Act (SLRA) to challenge a will just because they were left out or treated unequally. Courts have confirmed that adult children have no claim “upon any moral ground whatsoever” unless they can show they were an actual dependant at the time of death or mount a separate legal argument, such as undue influence over the parent.

British Columbia is the outlier. Under the Wills, Estates and Succession Act (WESA), adult children — even financially independent ones — can apply to vary a will they consider unfair, and courts there have shown a real willingness to intervene when a distribution looks unjustified. So a version of Michael’s story playing out in Vancouver could have a very different legal outcome than the same story playing out in Toronto.

For anyone in this situation, the starting point isn’t a financial calculation — it’s a conversation with an estate lawyer licensed in the province where the parent lived, since the rules genuinely change at the border.

The student debt piece is a familiar Canadian problem

The size of Michael's sisters' loans, a combined US$300,000 (C$426,000), is well above what most graduates carry here in Canada, but that doesn’t mean it isn’t a point of anxiety for many. The average postsecondary graduate after completing a Bachelor’s program carries roughly C$30,000 in student debt, according to Statistics Canada’s National Graduates Survey.

One difference worth noting: since 2023, the federal portion of Canada Student Loans has been interest-free, and provinces such as New Brunswick have eliminated interest on their portion too. That doesn’t erase the debt, but it does mean the psychological and financial strain of walking away from a low-interest, government-backed loan is different than tackling higher-rate private loans, lines of credit and credit cards.

What it would cost Michael to help — in Canada

In this hypothetical scenario, if Michael’s situation happened in Canada and he decided to pay off his sisters’ loans, the good news is that the gift itself would not trigger tax for anyone. Canada has no gift tax, and cash gifts between family members are not reported to or taxed by the Canada Revenue Agency (CRA), regardless of the amount.

The bigger tax questions in a case like this usually show up earlier, at the point of inheritance. Canada doesn’t tax inheritances as income, but the CRA treats a person’s assets as sold at fair market value immediately before death — a rule known as deemed disposition — which can trigger capital gains tax on the estate before anything is distributed. Business interests, investments and property (outside a principal residence) can all be affected, along with provincial probate fees. Anyone inheriting a large, complex estate in Canada should expect the payout to arrive after those obligations are settled, not before.

Before giving away inherited money: Canadian steps to take

Kamel’s advice to Michael was to wait until he felt emotionally ready and not to give away any money simply to end the conflict. That advice holds up regardless of the postal code. For Canadians navigating a similar inheritance dispute, a few concrete steps can help:

• Talk to an estate lawyer in your province first — inheritance and disinheritance rules differ significantly between provinces, and assuming U.S. or even other-province rules apply can lead to costly surprises
• Get professional tax guidance before assuming an inheritance is “free money” — deemed disposition, capital gains and probate fees can all reduce what’s actually available to share
• Work with an FP Canada-certified professional, such as a Certified Financial Planner (CFP) or Qualified Associate Financial Planner (QAFP), before making a large gift or restructuring an inheritance — FP Canada’s public directory can help confirm a planner’s credentials
• Separate the emotional decision from the financial one — a family therapist or mediator can help address the relationship before any money changes hands
• Put agreements in writing — even gifts between family members benefit from a simple written record, particularly if the amount is large

Michael, for his part, still isn’t sure what he wants to do. But as Kamel put it, if he ever does help his sisters, the goal should be to do it “out of joy,” not obligation.

An Individual Pension Plan (IPP) is a one-person, defined benefit pension plan that a corporation sponsors for a high-earning employee — often the owner. Because IPP contribution limits are calculated by an actuary based on your age, salary and years of service, rather than set by a fixed annual cap, they grow substantially as you get older. At age 50, the annual IPP advantage over an RRSP is roughly $11,090. By age 60, that gap exceeds $20,000 every year.

For the incorporated professional who has spent decades paying themselves a T4 salary and contributing the RRSP maximum, this gap represents a significant amount of tax-sheltered wealth being left on the table.

What is an IPP and who qualifies in 2026?

An IPP is a registered defined benefit pension plan designed for one plan member, typically an incorporated business owner or professional drawing T4 employment income from their corporation. The Income Tax Act (ITA) permits IPPs to use the most generous benefit formula available in Canada — the 2% defined benefit accrual. An actuary calculates the precise contributions needed each year to fund the promised pension.

The ideal IPP candidate meets most of the following criteria:

• Incorporated professional or business owner earning T4 salary — not dividends
• Age 40 or older, where IPP contributions begin to exceed RRSP limits
• Consistent annual income of $100,000 or more
• History of T4 employment income stretching back toward 1991

Income earned as dividends does not count toward IPP contribution room. Professionals who have structured their pay entirely as dividends to minimize payroll taxes will need to reconsider their compensation model before setting one up.

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The RRSP vs IPP contribution gap: How it widens every year after 40

The RRSP is a defined contribution vehicle: you contribute up to 18% of the prior-year’s earned income, subject to the annual maximum of $33,810 in 2026. That ceiling is the same regardless of whether you are 41 or 61.

An IPP works the opposite way. Because contributions must fund a defined benefit at retirement, the cost of purchasing each additional year of pension income rises as you age. A 50-year-old has fewer years to accumulate the same retirement income than a 40-year-old, so annual contributions must be higher to close that gap. By age 65, a business owner at maximum T4 earnings can contribute approximately 67% more to an IPP than to an RRSP.

The compounding effect over a decade is substantial. For example, an incorporated physician aged 50 who switches to an IPP could shelter roughly $111,000 in additional retirement assets over 10 years compared to staying in an RRSP — before accounting for the past service contribution described below. (Actual figures require validation from a financial professional.)

How to fund past service back to 1991 — and why it matters now

One of the most powerful features of an IPP is the ability to fund past service. When a plan is established, the sponsoring corporation can make a lump-sum contribution covering eligible years of service going back to 1991. If a professional has been paying themselves a T4 salary for 15 or 20 years, this past service calculation — done by an actuary — can translate into a contribution worth hundreds of thousands of dollars.

The entire past service amount is a deductible corporate expense. The corporation can pay it in one year or amortize it for up to 15 years, depending on cash flow. The tax efficiency is significant: at a 26.5% combined federal-Ontario small business corporate rate, a $200,000 past service deduction could reduce the corporate tax bill by roughly $53,000, for example. (Actual savings depend on the corporation’s province and applicable tax rates.)

There is a technical step involved. The past service amount triggers a Past Service Pension Adjustment (PSPA) that Canada Revenue Agency (CRA) applies against the plan member’s existing RRSP room. A portion of the plan member’s RRSP assets is typically transferred directly to the IPP to help satisfy the PSPA, with the corporation contributing the remainder.

Why IPP assets have creditor protection your RRSP may not

For professionals in higher-liability fields — physicians, surgeons, engineers, lawyers — asset protection is a meaningful planning consideration. IPP assets are held in a separate trust and are generally creditor-proof, including against claims that arise outside of bankruptcy.

RRSP creditor protection, by contrast, varies by province. In some jurisdictions, RRSP assets receive limited protection outside of a formal bankruptcy proceeding. For a professional with malpractice exposure or business liability, the IPP structure can meaningfully reduce that risk.

There is a genuine trade-off, however. IPP funds are locked in. You cannot make ad hoc withdrawals the way you can with an RRSP. At retirement, the plan converts to a pension income stream or a locked-in retirement account (LIRA). Professionals who value the flexibility to access capital in retirement will need to weigh that constraint carefully.

What to do before making the switch

Setting up an IPP is not a weekend project. Expect to pay $3,000 to $6,000 in actuarial and legal fees at setup, plus $2,000 to $4,000 annually in ongoing administration costs. At lower income levels or shorter time horizons, those costs can erode the advantage. The strategy becomes compelling for most professionals earning $150,000 or more in T4 salary with 15 or more years of corporate employment history.

The IPP also imposes a mandatory funding obligation on the corporation. Unlike an RRSP — where you can simply skip a year — the sponsoring company is legally required to make annual contributions. For businesses with variable cash flow, that rigidity can be a constraint.

For the right candidate, though, the math is straightforward: the RRSP ceiling has a fixed $33,810 upper limit in 2026, while the IPP has no fixed cap. After age 40, every year you spend at the RRSP maximum instead of an IPP is a year of contribution room that cannot be recovered.

What to do now

• If you are over 40 with consistent T4 income of $100,000 or more from your corporation, get an IPP actuarial assessment — most actuarial firms offer a preliminary analysis at no cost.
• Ask your CPA or adviser whether past service funding back to 1991 could trigger a six-figure corporate tax deduction this year.
• Confirm your compensation structure: IPP requires pensionable T4 employment income — professionals paid entirely by dividends do not qualify until they restructure.
• Weigh the flexibility trade-off: IPP assets are locked in at retirement; RRSP-to-RRIF conversion offers more access to capital if you anticipate needing it.
• Budget $3,000 to $6,000 for setup costs and $2,000 to $4,000 annually for administration — ensure the contribution advantage at your income level justifies the cost.

For anyone who works in sales, runs a side hustle or simply dreads the moment a conversation turns into a pitch, that idea points to a bigger question we all face at some point: How do you ask for the sale without breaking the trust that got you in the room in the first place?

The psychology behind Herjavec’s approach

In the post, the Croatian-born, Toronto-based entrepreneur pushed back on the common advice that once you spot an opportunity, you should move straight to finalizing the deal. In his view, jumping to close the moment someone opens up sends the wrong signal — it tells the customer you care more about the transaction than about them.

He described the risk of putting the client in an uncomfortable spot — someone who shared something personal, only to feel that openness is now being used against them. To avoid that, Herjavec said the better approach is to listen first and offer something genuinely useful. “You always want to close from a position of helping, not selling.”

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Is ‘helping first’ just a feel-good sales pitch?

Herjavec’s advice sounds appealing, but it can also seem out of touch. The public image of a Shark or Dragon is someone who moves in for the kill, not someone who slows down to build trust.

So does this softer approach actually hold up in the real world of sales? Canadian data suggests it does — and that trust, more than any single tactic, is often what keeps a customer coming back.

A September 2025 trust survey by Toronto-based marketing and research firm dNovo Group found that 26% of respondents cited dishonesty or misleading information as the top reason they would cut ties with a business — ahead of poor product or service quality (21%) and privacy violations (12%). The same research found that word-of-mouth recommendations from friends and family remain far more trusted than online reviews, social media or AI-generated suggestions when Canadians decide where to spend their money.

Global research points in the same direction. According to HubSpot’s 2025 State of Sales Report — a survey of roughly 1,000 sales professionals worldwide — 42% of respondents said understanding a customer’s goals is a major driver of repeat business and upsells, while another 30% pointed to building trust as a key factor. When HubSpot looked at what separated top-performing salespeople from the rest, the answer wasn’t a closing technique — it was people skills: 40% of respondents identified building an authentic rapport as the most effective way to upsell or cross-sell.

Helping doesn’t look like a sales pitch, which is likely why it works so well. Salespeople who apply Herjavec’s approach tend to focus more on understanding the problem than on rushing toward a solution. When you care more about the other person’s outcome than your own commission, he suggested, the sale tends to take care of itself.

Soft skills may be the strongest advantage in an AI-driven economy

You don’t have to work in sales to take something from Herjavec’s approach. As automation and artificial intelligence (AI) make technical know-how easier to find, human skills — listening, empathy, patience — may be the biggest advantage left.

Fluency with AI tools might get someone in the door. But it’s curiosity and a genuine interest in solving another person’s problem that tends to keep that door open, whether you’re closing a business contract, negotiating a raise or building the kind of reputation that brings repeat clients.

At the end of his post, Herjavec returned to the same idea: A customer’s trust is the most valuable thing a salesperson builds, and it’s worth protecting over the long run rather than trading away for a single sale.

Lessons for Canadians managing money and building a business

Herjavec’s advice doesn’t require a TV deal or a storefront to apply. Here are a few practical takeaways for Canadians who sell, freelance or simply want to negotiate better:

• Ask before you pitch. Herjavec’s method starts with understanding what the other person actually needs before proposing a solution. Try opening your next negotiation — whether it’s a client contract or a salary conversation — with a genuine question instead of a pitch.
• Treat trust like a financial asset. Canadian survey data shows a single instance of dishonesty is the fastest way to lose a customer for good. Protecting your reputation is as important to your long-term income as protecting your credit score.
• Let word of mouth do some of the work. Since Canadians say they trust recommendations from friends and family more than any digital channel, investing time in relationships can deliver better results than paid marketing, especially for self-employed Canadians and small business owners.
• Watch the soft-skills gap. As routine sales and customer-service tasks get automated, the ability to listen is becoming a real edge for anyone earning income through sales, freelancing or client work in Canada.

Bottom line

Herjavec built a career closing million-dollar deals — and his biggest insight is surprisingly simple: People can tell when you care more about the sale than you do about them. And the data backs him up — Canadian and worldwide research all point to the same conclusion: Trust is what wins repeat business, and losing it takes only one dishonest move.

For Canadians who sell, freelance or negotiate for a living, that sentiment is a practical takeaway, not only a feel-good idea. Ask before you pitch, listen before you close. And as AI takes over more of the routine parts of sales and customer service, the ability to truly connect with people may be the most valuable skill you can build.

The Financial Consumer Agency of Canada (FCAC) has fined RBC $4.25 million after finding the bank issued inaccurate credit card statements to nearly 228,000 customer accounts. The issue arose when some customers received replacement credit cards after reporting fraud, but certain credits weren’t transferred correctly to the new accounts.

RBC said it self-reported the issue to the regulator and fully cooperated with the investigation. The bank has since refunded more than $22.4 million to affected customers, while another $299,000 was donated to charity on behalf of customers who could not be located.

What happened?

According to the FCAC, the errors occurred between 2021 and 2024 when some customers had their credit cards deactivated following suspected fraud.

When replacement cards were issued, certain credits from the old accounts weren’t properly carried over to the new ones. As a result, some customers received inaccurate monthly statements and, in some cases, incurred additional charges.

A total of 227,947 accounts were affected.

The regulator said the problem stemmed from inadequate operational controls and oversight within the bank.

“Accurate disclosure is a foundational element of the consumer protection provisions of the Bank Act,” the FCAC said in its decision. “For consumers to make informed financial decisions, they must be provided information that is accurate.”

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5 things to check on your next credit card statement

While RBC has already refunded affected customers, the case offers a useful reminder to review your statements carefully — particularly after any changes to your account.

1. Check that refunds and credits have been applied

If you’ve recently returned an item, disputed a charge or received a statement credit, make sure it appears on your account. Missing credits can affect both your balance and the interest you’re charged.

2. Review your statement after receiving a replacement card

If your credit card has been replaced because it was lost, stolen or compromised by fraud, compare your first statement with the last one from your previous card. Outstanding credits, payments and balances should transfer correctly.

3. Look for unfamiliar fees or interest charges

An incorrect balance can sometimes trigger extra interest or fees. Even small errors are worth questioning if something doesn’t look right.

4. Pay extra attention after switching products or accounts

Any time your bank moves you to a new credit card or account, it’s worth checking that previous transactions, automatic payments and credits have all carried over properly.

5. Report problems as soon as you notice them

If you think your statement contains an error, contact your bank promptly. Keep copies of your statements and any correspondence until the issue has been resolved.

A reminder that mistakes can happen

The RBC penalty is one of the largest announced by the FCAC this year and follows another enforcement action against BMO over incorrect fees charged on some personal bank accounts.

The two cases involved different issues, but they illustrate the importance of routinely checking over your credit statements and credit report, too.

Most errors are minor, and many are resolved quickly once they’re identified. Still, taking a few minutes each month to review your credit card statement can help catch missing credits, incorrect charges or other problems before they become more expensive to fix.

Bill Ackman, the billionaire founder of Pershing Square Capital Management, recently shared his advice for young people just starting out in an interview with James Dumoulin from The School of Hard Knocks. His message was blunt, and for young Canadians trying to get a foothold in a shifting economy, it couldn’t be more relevant.

“The biggest challenge when you’re young is you want to make money really fast,” Ackman said in the interview. “That’s almost investing in a guaranteed bad outcome.”

What you know beats who you know

When asked whether success in business comes down to what you know or who you know, Ackman didn’t hesitate.

“What you know is more important,” he said. “The ideas are more valuable than the relationships. If you have a great, creative, brilliant idea, the capital will find you.”

It’s a statement he backs up with his own actions and experience. Ackman founded Pershing Square more than 20 years ago as an entirely employee-owned firm, and built it into one of the world’s most recognized activist investment funds. In April 2026, Pershing Square completed its initial public offering (IPO) on the New York Stock Exchange (NYSE) under the ticker PSUS, raising US$5 billion (C$6.9 billion) — the largest closed-end fund listing in history. Bloomberg reports Ackman’s net worth is estimated at approximately US$9 billion (C$12.4 billion).

He got there, he says, not through connections, but through persistence and conviction in his ideas. These are qualities he insists are the foundation of any entrepreneurial success, regardless of where you’re starting from.

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The one skill Ackman says young people can’t afford to skip

Pressed on where the real opportunity lies right now, Ackman was direct.

“Learn everything there is to know about AI,” he told Dumoulin. “Start learning how to code using Claude Code. Build a company. It’s the greatest period of time in history for entrepreneurship.”

For Canadians, the numbers back him up. According to PwC’s 2025 Global AI Jobs Barometer — which analyzed close to a billion job ads across six continents — workers with AI skills earn an average 56% wage premium over peers in the same roles who lack those skills. That’s more than double the 25% premium recorded just a year earlier, making AI expertise one of the fastest-growing in-demand skills in modern labour market history.

In Canada specifically, the companies with the most AI exposure see faster headcount growth than the least AI-exposed (52% vs 36%), as well as higher wage growth (24% vs 17%).

The Future Skills Centre (FSC), a federally supported organization focused on skills and workforce development, found that 57.4% of Canadian jobs in 2024 were classified as having high AI exposure. Statistics Canada research supports that data: Roughly 60% of Canadian jobs are potentially highly exposed to AI-related transformation.

The catch? Nearly half (44%) of Canadians already using AI tools at work have received no formal training on those tools. That’s a gap that Ackman may describe as an opportunity hiding in plain sight.

Persistence pays off

Ackman, who graduated magna cum laude from Harvard and received his MBA from Harvard Business School, built his career the hard way: cold calls, rejection and bouncing back from high-profile setbacks. He says he still encounters doubters.

“I remembered smiling and dialling, getting rejected,” he told Dumoulin. “And I said, look, someday when I’m successful, I’m always going to take that call. Every successful person was not a straight line up. Never give up.”

That grit-first philosophy has particular resonance in a Canadian labour market where young workers are absorbing a disproportionate share of economic uncertainty. In early 2026, CBC News reported Statistics Canada data that shows young workers aged 15 to 24 accounted for roughly 53% of job losses in the first quarter, despite representing only 14% of the labour force. As of 2025, youth unemployment has surged 57% since 2022, a level not seen outside a recession in Canada’s modern labour market history, according to a Fraser Institute analysis.

In that environment, Ackman’s advice to build real, specialized knowledge — especially in AI — is practical, not just inspirational.

What this means for young Canadians: five steps to take now

You don’t need to be a coder or a computer science graduate to benefit from AI literacy. The research is clear: Across industries from healthcare to finance to the trades, workers who understand how to use AI tools are earning more and getting hired faster. Here’s how to start.

• Learn the tools, not just the theory. Platforms like Coursera, edX and LinkedIn Learning offer free and low-cost AI courses, many taught by Canadian institutions.
• Use government-funded programs. The Government of Canada’s Future Ready Talent initiative and the Sectoral Workforce Solutions Program both fund AI upskilling for workers in eligible industries. Check Canada.ca for current eligibility. The Upskill Canada program also connects workers with funded training opportunities.
• Start a project from a course. Ackman specifically recommends building something — a tool, an app, a workflow. Even a small personal project demonstrates initiative to potential employers and helps skills stick faster.
• Don’t wait to be trained. The FSC found that 44% of Canadians using AI at work received no employer-provided training. If your workplace isn’t offering it, seek it out independently. Professionals who self-invest in skills consistently earn higher wages over time.
• Think long-term. Ackman’s core caution to young people is not to give in to the urge to get rich fast. The same applies to skill-building. AI knowledge compounds: the earlier you start, the more valuable your expertise becomes as the technology matures.

— with files from Melanie Huddard

While this scenario is hypothetical, it is eminently relatable to anyone who believes they have saved diligently and are looking to start their golden years as early as possible.

Will Bob reach his number?

At a 7% average annual return, Bob’s $9,000 yearly contribution grows his $500,000 balance to about $1,287,096 by age 62. That’s a healthy nest egg on paper — but whether it’s enough depends on what Bob needs to replace from his working income.

Applying the commonly used 4% withdrawal rule — spend 4% of the portfolio balance in year one, then adjust for inflation each year thereafter — Bob’s account would generate about $51,483 in year one of retirement, or $4,290 per month. On its own, that income falls within the acceptable $3,500 to $5,000 monthly income for a single retiree. However, there are other sources of income that Bob can expect in his 60s, mainly the Canada Pension Plan (CPP) and Old Age Security (OAS).

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Where the Canadian math changes

A Canadian in Bob’s position would not be able to qualify for OAS at 62, as it cannot be claimed before the age of 65.

The Canada Pension Plan (CPP), on the other hand, can start as early as 60. Taking it early comes at a cost: CPP payments shrink by 0.6% for every month claimed before 65, up to a maximum reduction of 36% at age 60. For someone who retires at 62, that works out to a permanent reduction of about 21.6%.

Applying that reduction to the 2026 maximum monthly CPP payment of $1,507.65, a 62-year-old with a strong contribution history would collect roughly $1,182 a month, or about $14,184 a year — and that’s the high end. Thus Bob, retiring at 62, would be relying on RRSP withdrawals and a reduced CPP payment alone for three years, with no OAS top-up until 65. Only once he turns 65 would the maximum OAS payment of $742.31 a month, about $8,908 a year, become available, on top of his now permanently reduced CPP.

Combining a 4% RRSP withdrawal with reduced CPP gets a Canadian retiree like Bob to somewhere in the neighbourhood of 41% to 46% of pre-retirement income at 62 — below even the more conservative 60% to 70% income-replacement benchmark Canadian planners tend to use.

Upping RRSP contributions could help close the gap

Bob’s original fix to further cushion his retirement is contributing more to his RRSP. The contribution limit for 2026 is 18% of the previous year’s earned income, up to a maximum of $33,810. Furthermore, any unused contribution room carries forward indefinitely, so someone who under-contributed in their 30s and 40s may already have significant banked room to use in a higher-income year.

A Canadian saver could also split contributions with a spouse through a spousal RRSP, or lean on a Tax-Free Savings Account (TFSA) to build a pool of withdrawals that don’t count as taxable income — which matters, since OAS is clawed back once net income passes $95,323 in 2026.

“Let’s just retire a little bit — let’s retire Fridays if you can,” said Bill McBay, a certified financial planner at T.E.A.M. Financial Solutions with Sun Life Financial, describing the phased approach he now recommends to clients who are financially squeezed but eager to step back from full-time work. Rather than treating 62 as a hard finish line, a partial retirement — dropping to four days a week, or shifting to contract work — can stretch RRSP savings, delay CPP and OAS, and soften the three-year income gap that can trip up Bob and other early Canadian retirees.

Key takeaways for Canadians planning an early retirement

• Run your own numbers before picking a retirement age — a 4% RRSP withdrawal plus early CPP rarely replaces 60% of a pre-retirement salary on its own
• Remember OAS doesn’t start until 65 — budget for the CPP-only years if retiring before then
• Check your CPP break-even age — delaying from 60 to 65 typically pays off if you expect to live past your mid-70s
• Use carry-forward RRSP room in high-income years
• Consider a phased or partial retirement to bridge the gap between quitting full-time work and collecting full government benefits
• Review your plan with a financial advisor annually, since small changes in return assumptions or spending can shift your realistic retirement date by years

Jamie Dimon, CEO of JPMorgan Chase (JPM), made waves in June 2026 when he described the current bull run as a force nearly impossible to contain. “We’re in a bull market. It’s like a little tsunami,” he said at a Council on Foreign Relations event on June 15. “When that kind of thing happens, it’s very hard to stop. But it will stop.”

His warning came at a time when North American stock markets have been climbing to record highs despite a long list of serious concerns — a war in the Middle East, spiking oil prices and rising tensions between Russia and China. And it hits close to home for Canadian investors: The S&P/TSX Composite Index hit a record intraday high of 35,629.89 on June 17, 2026, up more than 31% year-over-year. If Dimon is right, what happens to your RRSP and TFSA when the tension breaks?

What caught Dimon off-guard about the economy

Dimon acknowledged that several powerful forces have kept markets climbing. He pointed to roughly US$700 billion (C$972 billion) in AI-related spending from the largest technology companies, a U.S. unemployment rate near 4.3%, and economic growth running around 2% in early 2026.

But Dimon said he’s been caught off-guard by how relaxed investors have been, given how unstable the world is right now. He pointed to ongoing tensions with Iran, Russia and China as forces that matter enormously for the free world — even if they aren’t hurting the economy today. “I am surprised... that stuff is really important for the free world, but it’s not necessarily the economy today,” he said.

The U.S.-Iran conflict, in particular, led to the closure of the Strait of Hormuz — a critical shipping route that handles about 20% of the world’s oil supply — blocking the movement of oil, fertilizers and other energy products and pushing commodity prices significantly higher. For nearly four months, financial markets mostly ignored it.

Since the start of the conflict, both the technology-heavy Nasdaq and the S&P 500 indexes are up about 15% and 9%, respectively.

“I do think the probability of something bad happening is higher than I think it’s probably embedded in the market,” Dimon said, adding that he believes investors are underestimating the odds of inflation sticking around longer than they expect.

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What this means for the Canadian economy

Canada isn’t only watching these forces from the sidelines. The economy slipped into a technical recession in early 2026, with GDP shrinking for two consecutive quarters before showing signs of recovery in April. The Bank of Canada (BoC) has held its overnight rate at 2.25% — after one of the fastest rate-cutting cycles in its history, dropping from 5.0% to 2.25% in October 2025 — and mixed signals have left it on hold for now.

Canada’s unemployment rate stood at 6.6% in May 2026 — well above the U.S. rate — as the job market has been weakening under the pressure of slower immigration and trade uncertainty. Major Canadian banks forecast economic growth of around 1.3% for 2026 — well below the pace needed to get the economy fully back on track.

Meanwhile, Canadian gasoline prices rose roughly 33% compared to a year earlier by May 2026, pushing overall inflation to a surprise 3.2% — the highest it had been since September 2023. That jump in energy costs is squeezing household budgets at the same time investment portfolios are hitting record highs.

That gap — between what portfolios look like on paper and what households feel at the gas pump — is exactly the kind of tension Dimon is talking about.

Dimon’s recent economic anxiety

Dimon has been raising alarms for months. Earlier in 2026, he pointed to past financial crashes — including the market collapse of 1987 and the global financial crisis of 2008 — warning that the current wave of investor excitement is pushing stock prices to levels that can only end in a sharp drop. Much of that excitement is influenced by more than US$700 billion (C$972 billion) in AI-related spending from the largest tech companies, with little sign of it slowing down.

“There will be a cycle one day,” Dimon said in February 2026. “I don’t know what confluence of events will cause that cycle. My anxiety is high over it. I’m not assuaged by the fact that asset prices are high. In fact, I think that adds to the risk.”

His bigger concern runs deeper: specifically slow-moving forces shifting beneath the economy — the kind of slow pressure that doesn’t show up in a company’s quarterly earnings report but reshapes the landscape over years.

Cycles don’t end with a warning. They end when no one expects them to. And for Canadians with RRSPs and TFSAs invested in index funds and stock portfolios that closely track global markets, that matters.

What Canadians can do now

Dimon’s warning isn’t a call to sell everything or abandon your investment strategy. Markets have proved doubters wrong before, and long-term investors have historically been rewarded for staying invested through volatility. But it’s a good reason to take a closer look at whether your registered accounts are ready for the kind of instability he is describing.

Review your asset allocation

The S&P/TSX Composite Index is already heavily concentrated in financials (~33%), energy (~17%) and materials (~18%) — together making up roughly two-thirds of the index. If your RRSP or TFSA holds a Canadian index fund or exchange-traded fund (ETF) without broader global diversification, you may be more vulnerable to a drop in any one of those sectors than you realize. A well-diversified portfolio that includes Canadian stocks, international stocks and bonds tends to soften the blow when markets fall.

Use registered accounts strategically

The 2026 RRSP contribution limit is $33,810, or 18% of prior-year earned income, whichever is lower. The 2026 TFSA annual limit is $7,000. These registered accounts are more than just a way to avoid paying tax — they’re the most powerful tools most Canadians have to grow wealth over time. That said, how you prioritize putting money into these accounts is as important as how much.

Don’t try to time the market

One way to use that room without stress is dollar-cost averaging (DCA). Putting in a fixed amount at regular intervals means you naturally buy more units when prices are low and fewer when prices are high. Over time, this tends to lower the average price you pay per unit. For most Canadian investors, the TFSA is the best place to do this because tax-free growth means every dollar you earn in the account stays there — and taking money out doesn’t affect how much tax you pay on your other income.

Keep an emergency fund outside your investments

One of the most common mistakes investors make during a market downturn is being forced to sell at a loss because they need cash. Keeping three to six months of living expenses in a high-interest savings account (HISA) means a market drop doesn’t have to turn into a personal financial crisis.

Consider speaking with a financial adviser

If Dimon’s warning is keeping you up at night, that’s a signal worth acting on — not by panic-selling, but by having an honest conversation with a qualified financial adviser about how much risk you’re comfortable taking, and how long you plan to invest. FP Canada offers a planner directory to find a registered financial adviser whose certification is in good standing.

A new RBC Home Ownership Poll found that 64% of Canadians believe there’s no such thing as the “perfect” time to buy a home. Even so, many prospective buyers aren’t waiting on the sidelines. Among those planning to buy within the next two years, 45% believe now is the right time to make a move.

“Rising costs and shifting economic conditions have made every step of the homebuying journey feel higher-stakes, and the pressure of whether to act is weighing on Canadians,” said Janet Boyle, senior vice-president of Home Equity Finance at RBC, in a statement.

Some buyers seeing opportunities — others feeling cautious

The survey suggests many Canadians are caught between seeing an opening in the market and worrying about what comes next.

Among prospective buyers, 58% believe lower home prices will help them purchase their first or next home, while 54% say lower interest rates are improving affordability.

At the same time, many worry that the window may not stay open for long. More than half (53%) believe home prices could begin rising again before long, while nearly half (49%) expect interest rates to increase later this year.

As expected, current economic uncertainty adds another layer of complexity to the market. Three-quarters (75%) of people planning to buy within the next two years said it’s making them more cautious about purchasing a home, while 72% described it as their biggest obstacle to buying.

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Homebuyers are making bigger financial sacrifices

The survey from RBC also found many prospective buyers are making significant changes to their finances as they work toward homeownership.

Around 69% said they have delayed major purchases, such as buying a vehicle or renovating their home, to save for a down payment. 62% have postponed or scaled back vacations, while 60% said they have overhauled their spending and saving habits.

And some buyers are making even bigger trade-offs. More than half (57%) said they expect to take on a side hustle or second job to help afford a home, while 53% said they plan to use at least some of their retirement savings toward a purchase.

Across all respondents, 78% believe buying a home requires greater financial sacrifices than it did for previous generations.

Those findings come as many households continue to face higher costs for housing, groceries and other essentials, leaving much less room to save.

Confidence remains a challenge

While some buyers see today’s market as an opportunity, overall confidence seems to remain relatively low.

Fewer than half (49%) of prospective buyers said they feel confident making homebuying decisions in the current market, and only 56% believe they have the information they need to make smart decisions.

And that uncertainty isn’t just limited to first-time buyers. Among homeowners expecting to renew their mortgage within the next two years, only 44% said they feel confident making mortgage decisions, even though most expect they’ll be able to absorb higher payments if rates increase.

The poll also found that four in five prospective buyers and homeowners approaching renewal believe expert advice is important when making major housing decisions.

For anyone considering a home purchase in today’s market, the latest survey highlights the reality that the perfect moment may never arrive. Instead, many Canadians are weighing a mix of lower prices, borrowing costs, personal finances and economic uncertainty to decide when the timing feels right for them.

This sounds like great news, so you contribute $50,000, confident you have plenty of room. But months later, you receive a letter from the Canada Revenue Agency (CRA). It turns out your available contribution room was much lower, and it has assessed a 1% monthly penalty, which has been accumulating on the excess contribution.

It’s one of the most common TFSA mistakes newcomers make, and it’s an understandable one, because the rules can be confusing. But the penalties can add up quickly if you make a mistake and don’t catch it early.

Here’s how TFSA contribution room actually works for Canadian newcomers, why the lifetime contribution limits you often see in headlines don’t apply to everyone, and what to do if you’ve accidentally contributed too much.

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How does TFSA contribution room work for newcomers?

The TFSA was introduced in 2009, and unused contribution room carries forward indefinitely for anyone who was a Canadian resident and at least 18 years old during those years.

This means that in 2026, any Canadian who has been a resident every year since 2009 and never contributed has $109,000 of cumulative room available, based on the federal government’s 2026 annual dollar limit of $7,000. However, newcomers don’t receive credit for the years they weren’t Canadian residents.

According to the CRA, you only start accumulating TFSA contribution room in the year you become a resident of Canada for tax purposes. Any years that you spend living outside of Canada before that don’t count, regardless of your age.

For example, a newcomer who became a resident in 2022 would have accumulated only the annual limits available since then: $6,000 (2022), $6,500 (2023), $7,000 (2024), $7,000 (2025), and $7,000 (2026). It works out to $33,500 in available room.'

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A common TFSA mistake new arrivals make

Some newcomers make the mistake of contributing to their TFSA as if they had the full cumulative room available to long-term residents.

Recalling our hypothetical case, if a newcomer who arrived in 2022 contributed $50,000 to a TFSA in 2026, they would exceed the limit. With the actual room at $33,500, they would have an excess of roughly $16,500. The CRA charges a penalty of 1% per month on the highest excess amount in the account for each month it remains. In this case, it works out to about $165 a month, or almost $2,000 a year, until the overcontribution amount is withdrawn.

Compounding the problem, the CRA doesn’t always send a notice immediately, so your bill can grow significantly before you realize anything is wrong.

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How do I check my actual TFSA room on CRA My Account?

The most reliable way to confirm your real TFSA contribution room is to log in to CRA My Account, the federal government’s online portal for individual tax information. Your TFSA contribution room and most recent contribution history appear under the RRSP and TFSA tab.

But before you rely on that figure, here are a few important things to keep in mind:

• CRA My Account updates after financial institutions report contributions. This typically happens annually, which means the number you see may not reflect the most recent deposits.
• If you’ve already made TFSA contributions earlier in the current calendar year, subtract those amounts from the displayed figure to estimate your remaining room.
• Your bank or investment platform can only track the total contributions you made through that institution. It cannot calculate your totals across different banks.

If something looks off, you can contact the CRA by telephone at 1-800-959-8281 for help with your TFSA and any other registered accounts.

What should I do if I’ve already over-contributed?

If you’ve contributed too much to your TFSA, there are two steps you should take right away.

First, withdraw the excess amount as soon as possible. The 1% monthly tax is based on the highest excess amount during each month, so removing the excess prevents the penalty from continuing to grow.

After you’ve withdrawn that amount, you must submit a TFSA return (Form RC243). This has to be done by June 30th in the year after the tax takes effect, or you could incur additional penalty charges.

If your failure to meet your tax obligations was due to circumstances beyond your control, you may also be able to request relief from the CRA. Simply being a newcomer isn’t enough on its own, but an honest mistake that you quickly fix might be viewed more favourably than one that remains unresolved.

Why is this mistake so easy to make — and what should you do now?

Unfortunately, much of the public information about TFSAs focuses on the cumulative contribution limit since 2009. Also, banks and investment platforms generally don’t block contributions that exceed your available room because they don’t know what you’ve contributed elsewhere.

Thankfully, overcontributions are usually easy to fix if you’ve caught them early. Depending on the amount, an over-contribution that is corrected within the first month or two may cost less than $100. However, left unchecked, the penalties can quickly grow into hundreds or even thousands of dollars.

Before you make your next TFSA contribution, take the following precautions:

• Log in to CRA My Account and confirm your available TFSA contribution room.
• Remember that TFSA room starts accumulating in the year you became a Canadian resident for tax purposes, not in 2009.
• If you’ve over-contributed, withdraw the excess amount as soon as possible to stop additional penalties from accruing.
• File Form RC243 by June 30 of the following year if you’re required to report an over-contribution.
• If the mistake was an honest error that you corrected quickly, consider asking the CRA to waive the tax under its taxpayer-relief provisions.
• If you have TFSAs at multiple institutions, remember that it’s your responsibility to know how much you’ve contributed in total.

Ultimately, the same rule that confuses many newcomers is also the one that protects them from future penalties. Start counting TFSA room from the year you arrived in Canada, verify your numbers with the CRA and disregard the six-figure “since inception” limits when you see them mentioned.

According to a 2024 survey by Advocis, The Financial Advisors Association of Canada, 43% of financial advisers said most of their clients have less than three months of essential expenses set aside.

As the cost of living continues to climb — from groceries and rent to gas and utility bills — the old benchmark of having three months’ worth of expenses in the bank is looking thinner every day. Financial experts now suggest that $20,000 is a reasonable minimum for most Canadians, while others may need considerably more.

Why 3 months may not cut it anymore

The standard rule of thumb has always been to save three to six months of living expenses. The problem is, those expenses have grown. Canada’s inflation rate climbed to 3.2% year over year in May 2026 — driven by rising energy costs linked to global supply disruptions — up from 2.8% in April.

At the same time, Canadians are saving less. Statistics Canada data shows the household saving rate fell to 3.5% in the first quarter of 2026, the lowest rate since Q1 2024. Many households are spending more than they used to on necessities rather than luxuries.

Data from StatCan’s Survey of Household Spending estimates the average Canadian household spends approximately $76,750 annually ($6,395 a month), with a single person spending between $3,300 and $3,800 monthly on essentials like housing, transportation, groceries and utilities. A family of four can expect to spend between $5,900 and $6,400 a month.

That means a $20,000 emergency fund might cover only three to four months of basic expenses for a single person — and could run out even faster for a family.

While every household is different, “$20,000 is probably a good place to start for most people,” FAR Financial founder Igor Aronov told MarketWatch.

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Why you need to top up your emergency fund

If you’re already contributing to an RRSP or investing in stocks and bonds, parking an additional $20,000 in a savings account might feel like a missed opportunity. After all, that money could be compounding. But financial experts are consistent on this point: Having a dedicated emergency fund is non-negotiable.

“It’s very important to have cash that you can access, with no taxes, no penalties, nothing,” Kevin Arquette, a financial planner with WealthPoint Financial Planning, told MarketWatch.

Accessibility matters even more in a Canadian context. For example, if you’re forced to raid your Registered Retirement Savings Plan (RRSP) in an emergency, you’ll face significant tax consequences. The Canada Revenue Agency (CRA) requires your financial institution to withhold tax at the source — 10% on withdrawal amounts up to $5,000, 20% on amounts between $5,001 and $15,000 and 30% on anything above $15,000 (outside Quebec). The full amount is also added to your taxable income for the year, potentially pushing you into a higher bracket. And unlike a bank account, money taken out of an RRSP permanently loses that contribution room — you can’t put it back.

Rather than racking up debt on a credit card or draining retirement savings, a well-funded emergency account lets you draw on your own reserves and replenish them once you’re back on your feet.

How much is enough for you?

There’s no single answer, but context matters. A single person without dependents may be comfortable with $20,000 — enough to cover roughly five to six months of their basic expenses. A couple with children, facing higher monthly costs, might need $35,000 or more to cover three to six months of their household bills.

Your job security matters too. Canada’s unemployment rate sat at 6.6% in May 2026 — still above its pre-pandemic average of 6.0% — and the job market remains uneven across sectors. If your income is variable, your role is contract-based or your industry is in flux, it’s wise to have more money in savings. Some financial planners recommend targeting six months of expenses, especially if you support dependents or work in a sector prone to layoffs.

The Advocis survey also found that 60% of advisers said their clients either had no formal budget or struggled to cover unexpected expenses — suggesting many Canadians are less prepared for financial shocks than they think.

How to build a bigger emergency fund

Saving $20,000 or more can feel daunting, especially when rising costs are squeezing household budgets. But you don’t have to reach that goal overnight.

One common strategy is to contribute to your group RRSP or workplace savings plan up to the full employer match — if your employer offers one — before redirecting additional savings to your emergency fund. Once the fund is topped up, you can increase your RRSP contributions again.

If you’re self-employed, work freelance, or don’t have a workplace plan, set aside a fixed percentage of each paycheque and automate the transfer so the money moves before you have a chance to spend it. A CRA tax refund or a year-end bonus can also give your fund a meaningful boost.

Where you keep your money matters, too. Ideally, park your emergency fund at a different financial institution than your everyday bank — this creates a small but effective barrier against impulse spending. A high-interest savings account (HISA) is the right vehicle: Some Canadian HISAs currently offer introductory rates up to 4.6%.

Even better, consider holding your HISA inside a Tax-Free Savings Account (TFSA) — that way, the interest you earn is completely tax-free, and you can withdraw at any time with no penalties and no impact on your contribution room. The 2026 annual TFSA contribution limit is $7,000, with cumulative room of up to $109,000 for those eligible since the account was introduced in 2009.

Funds at Canada Deposit Insurance Corporation (CDIC) member institutions are insured up to $100,000 per eligible account category per institution — so your savings are protected in the unlikely event of a bank failure.

If you don’t end up needing the money, that’s the best possible outcome. The value of an emergency fund isn’t only financial — it’s the peace of mind of knowing you’re covered if the unexpected happens.

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What Canadians can do right now

Here are practical next steps for putting your emergency fund on solid footing:

Calculate your true monthly baseline. Add up housing, transportation, groceries, utilities, insurance and any child- or elder-care costs. Multiply by three for a minimum target, or six if your income is variable or you have dependents.

Open a TFSA HISA at a different institution: Separating your emergency savings from your day-to-day account reduces the temptation to dip in. A HISA inside a TFSA earns interest tax-free and stays fully liquid.

Automate your contributions: Set up a recurring transfer — even $100 or $200 per paycheque — so saving happens before you spend.

Put windfalls to work: A tax refund, bonus or inheritance can dramatically accelerate your progress. Resist the urge to spend these amounts and direct them to your emergency fund first.

Avoid raiding your RRSP: RRSP withdrawals trigger withholding tax of 10% to 30% at the source; the full amount is added to your taxable income; and you permanently lose that contribution room. An RRSP should be your last resort in a financial emergency, not your first.

Review and rebalance annually. Your life circumstances change. Revisit your emergency fund target once a year — after a raise, a new dependent, a job change or a significant shift in your fixed expenses.

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.