5 Retirement Planning Myths Canadians Still Believe

Retirement planning in Canada is full of advice and a lot of assumptions.

On a recent More Than Money episode, Dave Popowich and Leanna Wachniak broke down five common retirement planning myths Canadians still believe, and how they can affect retirement costs, income planning, and long-term flexibility.

Here are the top myths to watch for.

Myth 1: You'll Spend Less Money in Retirement

It sounds logical: no commuting, no work wardrobe, fewer day-to-day costs. 

But as Dave put it, retirement “blows a hole” in your calendar and suddenly you have a huge block of free time to fill. 

And filling your time with travel, hobbies, and even a little retail shopping therapy can send your costs skyrocketing. 

Leanna also added an important note - how you spend your time becomes how you spend your money because lifestyle and spending are linked. 

Many Canadians underestimate retirement costs because they focus on eliminating work expenses instead of building a structured retirement income plan.

Effective retirement planning focuses on your lifestyle, not just a savings target. Retirement income planning should reflect how you actually want to live.

Myth 2: Downsizing Will Free Up a Lot of Cash.

Downsizing is one of the most common retirement strategies but one of the most misunderstood. 

First, as Leanna says: you still have to live somewhere. 

And in many cases, the cost difference between the home you sell and the one you buy isn’t as dramatic as people expect, especially after realtor costs, moving expenses, and renovations. 

Dave’s take is blunt: very few people truly downsize their lifestyle. 

They might reduce square footage, but often choose a comparable (or nicer) neighborhood and a newer property, which means less equity available than planned. 

Downsizing in retirement can work but only when it’s part of a broader retirement strategy, not a last-minute liquidity plan.

Myth 3: You Can Always Work Part-Time in Retirement

Part-time work can be a great choice if it fits into your vision of retirement life. 

But Leanna raised three reality checks: 

1. Do you want to work, or do you feel you have to? 

2. What kind of job is realistic, and what will it pay?

3. Does it match the lifestyle you’re planning, especially if travel is a priority? 

Myth 4: Estate Planning Is Only for the Wealthy

Estate planning in Canada isn’t just for high-net-worth families, it’s essential for anyone who wants clarity around incapacity, beneficiaries, and tax efficiency.

Leanna believes everyone needs some form of estate planning.

And it’s not only about what happens when you’re gone because Dave pointed out that

planning for moments of incapacity can be even more important. 

At minimum, consider documents like power of attorney for financial decisions and a personal care directive or health care directive for complex medical decisions. 

Myth 5: You Can Wait to Start Retirement Planning

This one is sneaky because it feels harmless until it isn’t. 

Dave believes the earlier you start planning once retirement is on the horizon, the more options you have because you’ll have more flexibility with better outcomes. 

In the end, retirement is a multi-phase transition with many moving parts: 

If this blog sparked a few “wait… I’ve been assuming that” moments, share it with someone who’s approaching retirement. Chances are, they’ve heard these myths too.

Need help changing your vision of retirement?

Many of these retirement planning myths are explored in more depth during our retirement planning seminar, where we walk through how income, taxes, housing, and estate decisions interact.

Register here: Retirement Planning Seminar

David Popowich and Faisal Karmali are Investment Advisors with CIBC Wood Gundy in Calgary.

The views of David Popowich, Faisal Karmali, and the guest author and referenced material do not necessarily reflect those of CIBC World Markets Inc.

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change.

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc.