The Reality of Retirement Spending

Enter the Go-Go, Slow-Go, No-Go model, a smarter, more realistic way to plan your retirement around how you actually expect to live.

Go-Go Years (65–75)

You’re active, healthy, and finally have the time to enjoy life. Think travel, golf, bucket-list adventures, and spoiling the grandkids.

• Spending tends to peak during this stage, especially on discretionary items like leisure, entertainment, and travel.
• According to Statistics Canada data, Canadians in early retirement tend to spend 5–20% more than expected in their first 5 years of retirement.

Slow-Go Years (75–85)

You’re still enjoying life, but things start to slow down. Fewer big trips, more time at home, and perhaps more focus on family or local activities.

• Discretionary spending declines, but basic costs like groceries, transportation, and home maintenance remain stable.
• Medical costs may begin to rise slowly, not necessarily in large chunks, but more frequent.

No-Go Years (85+)

Mobility is more limited, and lifestyle becomes simplified. Major purchases and travel decline, but healthcare and support costs become more significant.

• Long-term care and medical expenses often become the primary financial focus.
• The Canadian Life and Health Insurance Association (CLHIA) estimates that out-of-pocket healthcare costs in late retirement can exceed $5,000/year per person, and that’s before factoring in long-term care.

The Canadian Data: Retirement Spending Really Does Decline

While every retiree is different, research shows a clear trend in Canada: retirement spending decreases over time.

A 2022 report from Statistics Canada found that the average household headed by someone 65 or older sees a drop in total spending of about 2% per year after retirement, with discretionary expenses accounting for most of the decline.

Meanwhile, a 2023 survey by Sun Life showed that 70% of Canadians underestimate how much they’ll need for healthcare, and over 40% mistakenly believe provincial plans will cover everything.

When you add inflation into the mix, a flat retirement plan simply doesn’t reflect reality.

Why This Matters for Financial Planning

The shape and timing of your spending curve can dramatically affect:

• How much tax you’ll pay (especially around RRSP withdrawals and OAS clawbacks)
• When to draw from RRSPs, TFSAs, CPP, and non-registered accounts
• How to plan for healthcare or long-term care expenses
• Whether your estate leaves a legacy or ends with a tax bill

In other words, your withdrawal strategy should match your lifestyle, not a straight line.

It's Time to Rethink the “Flat-Line” Retirement Plan

Too many Canadians still plan retirement with a fixed budget that stretches from age 65 to 95. But life doesn’t follow a straight line, and neither should your plan.

The Go-Go, Slow-Go, No-Go model is built for real life. It helps reduce tax, avoid nasty surprises, and make sure your money is aligned with what matters most.

Try Optiml Free, And Build the Retirement Plan That Actually Fits Your Life

Already retired? Planning ahead? Somewhere in between? Optiml is built for Canadians who want to understand their full financial picture and spend confidently, now and in the future.

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