Rising costs push retirees to juggle cash flow, work and home equity to stay afloat
Canadian seniors are propping up their families even as inflation eats into their own retirement security.
A new national survey from Bloom Finance finds that one in three seniors still help adult children or grandchildren financially, and 76 percent now say that support affects their retirement savings, up from 65 percent last year.
The 2025 Aging & Affordability Insights Benchmark Report also shows that more than half (55 percent) worry their retirement savings won’t last, while 61 percent plan to adjust lifestyle or spending habits to cope.
Bloom founder and CEO Ben McCabe told Money.ca that “inflation continues to outpace income growth, especially for those on fixed retirement incomes.”
He warned that “over time, that pressure risks eroding retirement savings and leaving seniors vulnerable to unexpected expenses or healthcare costs.”
Essentials such as groceries, utilities and transportation have risen roughly 20 percent in cost, McCabe notes, a shift that “reshaping what financial comfort looks like in later life.”
What was once a relatively stable retirement landscape now forces more frequent changes to budgets, spending priorities and long-term planning, and creates a financial environment that looks very different from what many retirees expected.
Supporting family has become more embedded in that budget.
Among seniors who help relatives, 67 percent now contribute to everyday household expenses, up from 55 percent last year.
Twenty-eight percent help with rent or mortgage payments, and 27 percent assist with childcare or extracurricular costs.
“This level of support is increasingly difficult to sustain amid rising living costs,” McCabe said to Money.ca. “Inflation is depleting fixed retirement incomes, and seniors are spending more just to maintain basic living standards.”
He warned that this pressure could compromise seniors’ financial security, limit their ability to preserve their lifestyle, and force them to revisit retirement plans they once felt confident in.
In response, 36 percent of seniors are considering part-time work to manage higher costs.
Only 21 percent are looking at downsizing or accessing home equity earlier than planned, which suggests many see those moves as a last resort, even as interest in tools such as reverse mortgages grows.
McCabe notes that three-quarters of Canadian seniors own their homes and collectively hold around $2tn in home equity, and more retirees are exploring ways to use that equity strategically.
“We believe that tapping sustainably and responsibly into home equity can and should form part of a well-rounded retirement plan,” he said.
To that end, Bloom designed SafeRate, which it describes as Canada’s first lifetime fixed-rate reverse mortgage, with family-first protections aimed at removing uncertainty and protecting against life’s unexpected events.
As more seniors grapple with rising prices and ongoing family demands, McCabe argues that the most important first step is understanding cash flow clearly.
“Beyond simply putting money aside, one of the most important steps at any age is understanding what’s coming in and what’s going out,” he said.
Many retirees, he added, underestimate how quickly rising prices can shift a retirement plan, “now that the cost of a basket of groceries is up 20 percent.”
He advises retirees to “develop a strong understanding of your sustainable income sources and recurring expenses, and ensure those are balanced month-in, month-out.”
He also stresses the importance of “bake in rising living costs where possible” and “know your options; understanding the tools and resources available is essential to maintaining financial security and comfort throughout retirement.”
