Good morning. The choices Canadians make about retirement income, inflation and savings in the next few years could shape the next few decades. Today's stories get straight to the numbers.
On The Money Today:
CPP or RRSP first? The answer could make or break this couple's retirement plan
Inflation is holding at 2% — but the Bank of Canada says the calm won't last
Retiring at 65 with only $500K saved? Four ways to generate an extra $2,000 a month on top of OAS and CPP
Let's get into it.
James and Jenny have done everything right — paid off debt, helped their kids and built a solid nest egg. Now they want to retire in two years and travel. But with pensions that won't fully cover their lifestyle, they face a critical decision: tap into CPP early or draw from their RRSPs? The wrong choice could permanently reduce their retirement income by as much as 36%.
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The Bank of Canada held rates steady for a third consecutive time — but don't mistake that for good news. Senior Deputy Governor Carolyn Rogers just warned Canadians who survived five years of economic upheaval to prepare for more volatility ahead. Oil prices, U.S. tariffs, slowing population growth and AI are all reshaping how the central bank thinks about inflation. For anyone with a mortgage, variable-rate debt or a budget to manage, the next five years could look very different from the last.
Nearly 60% of Canadians worry about outliving their retirement savings — and with the average retirement target now sitting at $1.7 million, that fear is well-founded. But having $500K doesn't mean retirement is out of reach. There are four strategies that could bridge the gap between what you have and what you need. Here's how one Canadian is making it work.
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That’s it for today. See you soon with another quick roundup of the financial news that matters.