Can’t afford to retire alone? Why senior Canadians are turning to roommates and alternative housing options to survive rising rents

As Statistics Canada reported in 2023, data from the 2021 census showed that roughly 1 in 3 Canadian renters aged 65 and over spends more than 30% of their income on housing — the commonly used threshold for being considered “shelter-cost burdened.” That figure is higher still among those on fixed incomes, including seniors relying primarily on government pensions.

Canada’s rental market has seen some stabilization. While asking rents hit record highs in 2024 and early 2025, many metropolitan areas saw significant decreases in asking rents later in 2025 and early 2026.

However, according to data from RBC, rent still ranks as one of the fastest growing components of Canada’s Consumer Price Index (CPI). This is mainly due to landlords continuing to raise rents for existing tenants as well as on rental units that have turned over between old and new tenants.

Homeowners aren’t faring much better, as rising property taxes, strata fees and home-maintenance costs are squeezing budgets and leaving little room for financial error. For seniors who do own, wealth is often tied up in the home itself, which is difficult to access without selling the property or taking on debt.

These economic pinch points are leading many seniors to believe that seeking out a roommate may be the most financially responsible thing to do when living on a fixed income in retirement.

Home-sharing options in Canada

Shared living isn’t a new concept, but it’s growing as a practical solution for older Canadians on tight budgets. Intergenerational home-sharing programs now operate across the country to connect seniors who have housing with those who need it — sometimes in exchange for companionship, household help or a reduced-rent arrangement.

Canada HomeShare is a national non-profit organization that operates as an intergenerational housing program matching older adults with students. Other regional programs include Home Share BC, a program offering eligible adults flexible residential options. Additionally, the City of Ottawa’s Homeshare Program offers housing support for people with intellectual disabilities, and LOFT Community Services offers supportive housing for youth, adults, and seniors in Ontario alongside mental health services and addictions support. If you’re interested in finding a program near you, call 211 Canada, the national social services helpline, or visit your local municipality’s housing office.

And, as many participants in these programs have found, the benefits extend beyond the purely financial. Shared living can reduce isolation — a significant concern for seniors living alone — and provide a measure of mutual support that’s hard to put a price on.

There’s also the increasingly popular living arrangement known as the Golden Girls model, named after the popular 80s sitcom starring four senior roommates sharing a home in Miami. According to its advocates, the Golden Girls model has many benefits: there’s the potential for cost savings, it creates a network of easily accessible support and care, it can also reduce the number of individual seniors living in single-family homes — opening up housing opportunities for others who need it.

The right living arrangement depends on your financial picture, as well as your need to address any feelings of loneliness in retirement.

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Are you going to need a roommate in retirement?

The traditional retirement framework for Canadians has been built on three pillars: the Canada Pension Plan (CPP), Old Age Security (OAS) and personal savings — most commonly held in a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA).

But workplace pensions, once a reliable part of that plan, have become less common. According to Statistics Canada, roughly 37% of Canadian employees have access to a registered pension plan (RPP) — meaning the majority of workers are left to fund their own retirements through personal savings and government programs alone.

That can leave a significant gap — particularly for those who didn’t consistently save throughout their careers. According to the Healthcare of Ontario Pension Plan (HOOPP), a major institutional pension fund that conducts annual retirement security research, 58% of Canadians between the ages of 40 and 60 worry they won’t have enough savings to retire comfortably.

If you’re nearing your golden years and fear you’re behind on savings, you may want to consider delaying retirement or transitioning to part-time work before fully stepping away — a sobering reality for some.

What you need to know about CPP and OAS

Both CPP and OAS offer meaningful incentives for delaying retirement — and significant penalties for taking benefits early.

The earliest age you can start collecting CPP is 60, but doing so lowers your monthly payment by 0.6% for each month before age 65 — a reduction of up to 36%. On the other hand, if you delay CPP past 65, your benefit increases by 0.7% a month, adding up to a 42% increase if you wait until 70.

You may also defer collecting OAS, which is available to most Canadians starting at age 65. Delaying OAS by up to five years (to age 70) increases the benefit by 0.6% a month, or up to 36%.

The decision to take CPP and OAS earlier versus later depends on your health, other sources of income and how long you expect to live — it’s worth discussing with a qualified financial adviser before making a decision you can’t reverse.

Maximizing your RRSP and TFSA before and after retirement

If you’re still working, the years before retirement are a critical window for boosting your personal savings. Your 2026 RRSP contribution room is equal to 18% of your prior year’s earned income up to a maximum of $33,810 — whichever is less. One of the most valuable — and underused — features of the RRSP is that unused contribution room carries forward indefinitely. If you didn’t maximize your RRSP in earlier years, you may have significant room available now.

The 2026 TFSA annual contribution limit is $7,000, and like the RRSP, unused contribution room accumulates. If you’ve never contributed to a TFSA since the program launched in 2009, your total available room could be as high as $109,000 — check your limit via your My CRA Account at canada.ca.