The Hidden Cost of Scattered Savings

Jordan Defazio
Aug 28
3 min read

Imagine discovering a forgotten retirement account you set up decades ago.

That happened to Judy Shapiro¹, who had invested a few thousand dollars in her 20s and forgot about it.

When she looked in her 70s, she discovered it had turned into $100,000, which now provided her $650 per month.

But what if you saved, diversified, built a meaningful nest egg and there’s no forgotten pot of gold waiting out there?

The real risk is having your savings work against you because it's spread across too many accounts that don’t talk to one another.

Even well-prepared retirees, those who’ve accumulated $500K-$1M, can fall into the trap of being too fragmented.

Multiple pensions, RRSPs, TFSAs, non-registered accounts, and employer plans can create:

Tax inefficiencies, where withdrawals push income into higher brackets or trigger clawbacks on benefits.
Unclear income strategies that lead to either overspending out of fear or underspending out of confusion.

What’s Your Story Behind the Numbers?

While Judy’s story is rare, it's part of a much bigger issue.

Ontario alone has nearly 200,000 “missing” pension members, totaling about $3.6 billion in unclaimed funds. ²

Why?

Fragmentation
Job changes
Outdated contact info

All contribute to financial assets slipping through the cracks.

But multiple accounts can do the same thing - Scatter your money in ways that cost you more than you know.

The Case for Consolidation

Just as Judy reclaimed hers, you can "rediscover" parts of your retirement that may not even be lost, but are underperforming.

Consolidation and coordinated planning can help you:

See your entire portfolio clearly in one place.
Strategically withdraw funds to minimize taxes and protect income sources like OAS or GIS.
Adjust allocations for growth, income, and safety without overlap or confusion.
Gain emotional relief, peace of mind, and confidence that your money is aligned with your lifestyle goals.

Your Next Smart Moves

If your retirement assets are scattered across multiple accounts, it’s time to bring them home:

Create an inventory of your holdings like RRSPs, RRIFs, pensions, TFSAs, non-registered, employer packages.
Evaluate whether consolidation makes sense and in some cases, keeping certain accounts separate may still be optimal.
Aim for clarity and efficiency, not just simplicity.

At our seminars, we help walk you through the process together from evaluating account mixups to crafting the smart withdrawal strategy that fits your life and legacy goals.

So, maybe you haven’t forgotten a pension but scattered savings can quietly cost you more than you realize.

Judy found $100,000 she didn’t know she had. For most retirees, the real opportunity isn’t in rediscovery - it’s in making sure every dollar you do know about is working as hard as possible.

Join us at our next in-person seminar to explore how to turn scattered accounts into a cohesive vision of your future.

Sources: 1 & 2 CBC

David Popowich and Faisal Karmali are Investment Advisors with CIBC Wood Gundy in Calgary. The views of David Popowich, Faisal Karmali, and guest author 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.