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David Saric
Updated Sep 2, 2026
Living on CPP alone at 65 is possible, but it takes real sacrifice: delaying your claim, tightening your budget, and cutting housing costs.
Cutting fixed costs like car insurance is one of the easiest ways to stretch a fixed income. Compare 20+ quotes from top-rated auto insurance providers in as little as 3 minutes, for free.
Put idle savings to work with CIBC Investor's Edge — build your own low-commission portfolio and reduce reliance on CPP alone.
So, you’re 65 years old, have no savings, and plan on relying primarily on the Canada Pension Plan (CPP) in retirement, but you’ve heard this will leave you perpetually cash-strapped. Does that mean you should stay at your job? Learn to survive on noodles? Work more to build up savings?
As of January 2026, the average monthly CPP payment to anyone aged 65 and just starting their retirement payments was $925.35.
Living on less than $1,000 is no easy feat, especially when inflation continues to drive living costs upward.
And yet so many Canadians rely on CPP as their primary income source in retirement. According to an Ontario Securities Commission survey, 85% of Canadians rely on the federal Canada Pension Plan (CPP) as the vital foundation for their retirement income.
For those young enough, this should be a wake-up call: To start saving for the non-earning years.
For others, it's a reminder: It's possible to live on CPP alone. But to make it work, you’ll need to make some sacrifices. To help, here are three suggestions.
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Delay your CPP claim for a larger monthly benefit
You can sign up for CPP once you reach age 60, but delaying it for a few years allows you to collect your full-CPP monthly benefit.
You also get credits for delaying your CPP claim — a credit for each year past age 60 that you delay. This translates into an 8.4% increase in your monthly benefit, per year, up to a maximum of 42% if you wait to collect CPP at age 70.
By delaying CPP payments, continuing to work and finding smart cost-saving strategies, you could end up in a position where the CPP benefit you collect starting at age 70 is sufficient to live on, without additional savings.
Scale back your living costs and stick to a tight budget
If your retirement plan is to live on CPP alone, you must be prepared to budget carefully and limit your spending on non-essential items.
Budgeting and tracking can help you understand where your money is going, so you can make every dollar work for you.
Once you have a budget in place, you may want to consider auditing your monthly fixed costs to free up more cash.
Car insurance is a classic example. Many drivers don't comparison shop regularly — and insurers count on that loyalty.
By using a comparison platform like Rates.ca, you could potentially save $500+ by comparing 20+ quotes from top-rated auto insurance providers to ensure you aren't paying a hidden ‘loyalty tax’ to your current insurer.
Just answer a few basic questions, and Rates.ca will show you the most affordable deals in your area in as little as 3 minutes.
Not only is the process 100% free, but you could also potentially save 20% by bundling your auto and home insurance together.
Most banks charge between $5 and $35 per month in account fees – for a total annual expense of $400 or more.
One way to dramatically cut this cost is to get an account with an online bank. With no brick-and-mortar locations driving up expenses, online banks can drop monthly account rates — typically charging $0 in account fees and offering higher interest rates.
For example, open a personal account with EQ Bank in just a few minutes and you get access to the best features of a chequing account combined with a high interest savings rate.
When you fund your account, you’ll start earning 1.00% interest on every dollar right away. Set up a direct deposit, you can earn 2.75% on every dollar.
The account has $0 monthly fees and no minimum balances. Plus, you can withdraw from any ATM in Canada — for free.
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 3 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.
National Bank also offers a banking package for newcomers that includes a bank account with no fixed monthly fees for up to three years, along with additional services designed to help simplify the transition to life in Canada.
Depending on eligibility, the offer can include:
- A bank account with no fixed monthly fees for up to 3 years
- Unlimited online transactions and Interac e-Transfer usage within Canada
- Online international money transfers to select countries
- Free legal assistance for 12 months through a partner
- Free National Bank ABM and in-branch withdrawals, transfers and bill payments for the first year
For a limited time, eligible newcomers may also qualify for up to $600 cashback when opening and using eligible banking products and services. See the offer page for more details.
The offer is available to permanent residents, temporary workers and international students who have been in Canada for 5 years or less.
Find out if you qualify and review the required documents to open an account today.
If you just need the basics, some chequing accounts offer simple, affordable banking.
For example, National Bank offers The Minimalist® chequing account. Depending on your age and eligibility, the package can include:
- 18 digital transactions per month (including Interac e-Transfers®)
- Access to THE EXCHANGE® network of ABMs at no additional cost
- Mobile cheque deposit available
According to National Bank's pricing, The Minimalist has $3.95 fixed monthly fees.
There are $0 monthly fees for ages 0-24 (including students), seniors 65+ on Guaranteed Income Supplement, RDSP beneficiaries, and Indigenous peoples.
Learn more about The Minimalist and compare with other National Bank chequing options.
Reduce your housing costs by downsizing
Housing costs account for about 30% of expenses among Canadians across all provinces, according to Advanis.
If you’re forced to rely solely on CPP during retirement, you may need to take steps to reduce your housing costs, and downsizing could be a great solution.
Downsizing could do more than just save you money (as it should allow you the option to pay less rent or reduce those mortgage payments). If you’re a homeowner, downsizing could mean cheaper property taxes and lower maintenance expenses.
If downsizing is not for you, consider refinancing your mortgage to lower your monthly payments. If you have equity built up in your home, you may want to consider refinancing in order to cash out on your home equity. You can use this money to supplement your retirement income or pay high-interest debt.
Loans Canada is an online lending platform that makes this process simple by putting you in touch with lenders offering mortgage refinancing suited to your unique situation.
The application process takes about five minutes, and all you need to do is provide some basic information about yourself like your name, address and proof of employment and Loans Canada will provide you with a list of mortgage refinancers to choose from so you can pick the option that works best for you.
Start investing now so CPP isn't your only option
If retirement is still years away, you have something the scenario above doesn't: time. And time is the biggest lever you have for building savings that supplement — or eventually replace — reliance on CPP alone.
The earlier you start investing, even in small amounts, the more you can benefit from compound growth. Someone who invests consistently in their 30s and 40s can end up with meaningfully more retirement income than someone who waits until their late 50s, even if the later saver contributes more per month.
A self-directed investing platform like CIBC Investor's Edge can be a practical starting point.
With a Regular Investment Plan, you can schedule automatic purchases of stocks, exchange traded funds (ETFs), or mutual funds at intervals that suit your budget. It’s a simple way to stay disciplined — investing a little at a time, without having to watch the market or stress over timing.
Because it’s a self-directed account, you stay in control of every decision, from what you invest in to how often you contribute.
Enjoy low commission fees of $6.95 per trade and no annual fees for the first year. Investors who make over 150 trades in a quarter fall in the active trader category — and can enjoy a discounted commission rate of $4.95 per trade for stocks and ETFs.
You can open an account online in minutes and begin contributing toward an RRSP or TFSA, both of which offer tax advantages that can help your investments grow faster over the long term. Get 200 free trades when you open a CIBC Investor’s Edge account using promo code EDGE2026.
The goal isn't necessarily to avoid CPP altogether — it's a valuable part of most Canadians' retirement income. But building your own investment portfolio alongside it means you're not solely dependent on a fixed monthly government payment when you eventually retire.
David Saric
Associate editor
Writer and editor based in Toronto with experience in personal finance, insurance, arts and culture and branded content.
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