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Financial Insights — Wednesday, February 25, 2026

News that affects your money, your health, and your future — explained by Grace AI.

Retirement Planning

BMO Survey Reveals Canadians' Ambitious Retirement Savings Goals Amid Rising Costs

A BMO survey shows Canadians aiming high for retirement but facing uncertainty from inflation and costs, with only 21% saving over 10% of income. Experts recommend early planning, disciplined saving, and professional advice to maximize RRSP contributions.

Source: BMO Newsroom ·

Grace AI Grace's Take

A recent survey shows that while many Canadians have high hopes for their retirement savings, rising costs are making it harder to save enough. If you're nearing retirement in the next few years, now is a great time to review your savings and consider strategies like timing your Social Security benefits and reducing risk in your investments. With careful planning and possibly consulting a financial advisor, you can confidently work towards a comfortable retirement, even in these uncertain times.

  • •Only 21% save >10% of income; start with 10% RRSP contributions early
  • •Use compound growth by increasing savings with earnings
  • •Seek advisors for tailored risk and goal strategies
Retirement Impact

Near-retirees should review savings rates now to avoid shortfalls; professional advice helps de-risk portfolios without cutting lifestyle.

Retirement Planning · Investments

Budget for 30+ Years of Retirement Using 4% Rule and Inflation Protection

Retirement can last 30+ years, so use the 4% withdrawal rule adjusted for inflation. Reducing debt and building growing income streams like dividends is essential.

Source: Motley Fool Canada ·

Grace AI Grace's Take

As you plan for retirement, remember that many people enjoy over 30 years of it, so it's smart to think about how much you withdraw from your savings each year—about 4% is a good starting point, adjusted for inflation. Reducing debt and investing in dividend stocks can help create stable income during those years. Regularly reviewing your spending and investments will keep your retirement plans on track and give you peace of mind.

  • •4% rule supports 30-year retirements historically
  • •Dividend stocks offer consistent yield and growth
  • •Annual reviews essential for spending and portfolio adjustments
Retirement Impact

Prevents running out of money by buffering market volatility; ideal for 1-5 year horizon to shift to de-risked, income-focused portfolios.

Retirement Planning

Couples with Age Gaps Face Retirement Shortfalls Without Adjustments

For couples 10 years apart, standard projections indicate funds running out early unless adjustments are made. Working extra years and maxing RRSP/TFSA can build lasting security.

Source: MoneySense ·

Grace AI Grace's Take

If you're in a couple with a significant age difference, it's essential to rethink your retirement plans to ensure your savings last. Consider working a few extra years or contributing more to your retirement accounts—these adjustments can help bridge any gaps. Remember, making mindful choices now, like downsizing your home or delaying your retirement date, can secure your financial future and give you peace of mind.

  • •5-6% returns or $5k spending cut extends funds to age 71
  • •Downsizing home or delaying retirement secures nest egg
  • •Use conservative return assumptions to avoid shortfalls
Retirement Impact

Highlights need for flexible plans; near-retirees should stress-test portfolios for longevity and healthcare costs.

Investments · Retirement Planning

BlackRock Updates Retirement Models for Slower De-Risking in Late Career

New data from BlackRock shows earnings decline gradually after peak, allowing more risk between ages 45-60 for higher retirement wealth a majority of the time.

Source: BlackRock ·

Grace AI Grace's Take

BlackRock's recent update suggests that it's okay to take a bit more risk with your investments in your late 40s and early 50s, as this can lead to a bigger nest egg when you retire. For those of you nearing retirement, this means you can focus on building up your savings rather than rushing to play it safe too soon. Just remember, the right timing for claiming Social Security, managing your healthcare costs before Medicare kicks in, and staying aware of market ups and downs will also be key to a comfortable retirement!

  • •Slower risk reduction ages 45-60 boosts wealth outcomes
  • •Better reflects individual income stability with CPS data
  • •Aligns plans with longer lifespans and steady late-career earnings
Retirement Impact

Near-retirees can maintain modest equity exposure to combat inflation without excessive volatility risk.

Retirement Planning

Bridging Canada's Financial Advice Gap Critical for Retirement Confidence

Many Canadians lack accessible financial advice, leading to challenges in navigating complex finances. Targeted advice can build confidence in savings and investments.

Source: Investment Executive ·

Grace AI Grace's Take

Many Canadians struggle to find financial advice that fits their unique needs, making it harder to plan for retirement. This highlights the importance of getting personalized guidance to help you make smart decisions about things like when to take Social Security, how to reduce risks in your investment portfolio, and preparing for healthcare costs before you turn 65. Don't hesitate to seek out the right resources—having a solid plan can boost your confidence as you approach this exciting new chapter!

  • •Advice gap leaves many without tailored strategies
  • •Accessible planning key for near-retirees
  • •Boosts confidence amid uncertainty
Retirement Impact

Seek advisors now for Social Security timing, de-risking, and healthcare bridges to avoid costly mistakes.

Retirement Planning · 401k

Five Financial Crossroads to Secure Near-Retirement Future

Key moments such as job changes necessitate 401k rollovers and benefit reviews. Acting promptly is crucial to protect savings and optimize tax strategies.

Source: PWM Inc. ·

Grace AI Grace's Take

If you're nearing retirement, be sure to review your retirement accounts and benefits, especially if you've recently changed jobs. It's a good time to think about rolling over your old 401(k) to keep your savings growing and to adjust your plans based on any changes in your income. Remember, taking quick action can help ensure your retirement plans remain on track and that you're prepared for healthcare expenses before Medicare kicks in at age 65.

  • •Rollover old 401k immediately after job change
  • •Review benefits and adjust retirement goals
  • •Salary shifts demand savings recalibration
Retirement Impact

Protects retirement accounts from fees/taxes; vital for maintaining momentum 1-5 years from retirement.

Retirement Planning

BMO Reiterates Tips for Maximizing RRSP Savings in Uncertain Times

BMO emphasizes early planning, budget discipline, in-kind RRSP contributions, and advisor expertise for enhancing retirement security.

Source: Newswire ·

Grace AI Grace's Take

BMO is sharing important tips for making the most of your retirement savings, especially during unpredictable financial times. For those nearing retirement, it's a good reminder to prioritize saving and consider reaching out to a financial advisor for personalized advice. By planning ahead and treating your savings as a must, you can feel more secure as you approach this exciting new chapter in life!

  • •Encourages early contributions to RRSP
  • •Highlights the importance of seeking financial advice
  • •Recommends treating savings as non-negotiable
Retirement Impact

Helps Canadians navigate rising costs and market volatility in retirement planning.

Market Overview

Key Trends

  • Rising costs pushing Canadians to adjust retirement savings strategies.
  • Importance of professional advice in navigating retirement planning.
  • Focus on de-risking portfolios as retirement approaches.
  • Need for strategies to bridge healthcare coverage before 65.

What This Means for You

  • Utilize the 4% withdrawal rule adjusted for inflation to budget accurately for 30+ years of retirement.
  • Maintain 1-2 years of cash reserves to manage market volatility and unexpected healthcare costs.
  • Consider delaying CPP/OAS for increased long-term income security.
  • Diversify into income-generating assets, such as dividend stocks and bonds, to ensure steady cash flow.

Risk Factors to Watch

  • Market volatility could significantly impact retirement portfolio values close to retirement age.
  • Healthcare costs can rise dramatically before qualifying for Medicare, creating budget shortfalls.
  • Failure to de-risk portfolios in time may lead to significant financial stress in retirement.
  • Inadequate savings rates now may hinder ability to retire comfortably, exacerbated by inflation.

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