Dec 16, 2025
Canadian seniors are feeling the financial strain more this year, as rising living costs make it harder to stretch fixed retirement incomes and support family at the same time.
A new national survey from Bloom Finance shows that intergenerational financial support remains widespread, with one in three seniors still helping adult children or grandchildren — but that support is taking a heavier toll. This year, 76% say helping their families is affecting their retirement savings, up from 65% last year.
“Inflation continues to outpace income growth, especially for those on fixed retirement incomes,” Ben McCabe, founder and CEO of Bloom Finance, told Money.ca. “Over time, that pressure risks eroding retirement savings and leaving seniors vulnerable to unexpected expenses or healthcare costs.”
Rising costs reshape seniors’ financial outlook
The 2025 Aging & Affordability Insights Benchmark Report from Bloom Finance shows that seniors are navigating a financial landscape that looks markedly different from even a few years ago. Essentials such as groceries, utilities and transportation have risen roughly 20% in cost, McCabe notes — increases that retirees feel more acutely because their incomes tend to rise slowly, if at all.
McCabe describes this dynamic as a “broad macroeconomic pressure” that is reshaping what financial comfort looks like in later life. Higher living costs are redefining the day-to-day financial reality for many Canadians, including seniors, prompting more frequent adjustments to budgets, spending priorities and long-term planning.
Those shifts are also placing new constraints on how far fixed incomes can stretch, as well as creating a financial environment that looks very different from what many retirees expected or planned for.
Sponsored
Smart investing starts here
Build your own investment portfolio with CIBC Investor’s Edge online and mobile trading platform. Enjoy low commissions on trades and special pricing for active traders, students and young investors.
Get started todaySupporting family adds to financial pressure
Despite rising costs, seniors remain deeply committed to supporting the next generation.
Among those offering financial help to family members, 67% now contribute to everyday household expenses — a significant rise from 55% last year. Twenty-eight percent help with rent or mortgage payments, while 27% assist with childcare or extracurricular costs. What was once occasional support is increasingly becoming part of a senior’s monthly budget.
Advertisement
“This level of support is increasingly difficult to sustain amid rising living costs,” McCabe said. “Inflation is depleting fixed retirement incomes, and seniors are spending more just to maintain basic living standards. This pressure could compromise their financial security, limit their ability to preserve lifestyle, and force them to revisit retirement plans they once felt confident in.”
The balance between family support and retirement security is one that many seniors are acutely aware of. According to the survey, more than half (55%) worry their retirement savings won’t last, and 61% say they plan to adjust lifestyle or spending habits to compensate.
Another 36% are considering part-time work to manage higher costs. And only 21% are looking at downsizing or accessing home equity earlier than planned, suggesting that many retirees view such moves as a last resort.
McCabe notes that three-quarters of Canadian seniors own their homes, with a collective holding of around $2 trillion in home equity. And more retirees are exploring ways to use that equity strategically.
Interest in tools such as reverse mortgages is growing, as seniors look for ways to stabilize their finances without compromising long-term security.
Advertisement
“We believe that tapping sustainably and responsibly into home equity can and should form part of a well-rounded retirement plan,” he said. “To enable homeowners to use their home equity with even more confidence, we designed SafeRate (Canada’s first Lifetime Fixed-Rate reverse mortgage) with family-first protections that remove uncertainty and protect against life’s unexpected events.”
Retirees look for ways to protect future stability
As more seniors grapple with rising prices and the continued pull to support families, many are seeking ways to strengthen their financial footing and reduce the risk of outliving savings. McCabe says that the most important first step — whether someone is nearing retirement or already in it — is understanding cash flow clearly.
“Beyond simply putting money aside, one of the most important steps at any age is understanding what’s coming in and what’s going out,” he said. He notes that many retirees underestimate how quickly rising prices can shift a retirement plan, particularly when day-to-day costs have risen so sharply. “We see many Canadians who thought they had a strong retirement plan struggling now that the cost of a basket of groceries is up 20%.”
With there being so many challenges to securing a comfortable retirement, McCabe suggests that understanding the whole picture and planning accordingly is vital.
“Develop a strong understanding of your sustainable income sources and recurring expenses, and ensure those are balanced month-in, month-out,” McCabe said. “Bake in rising living costs where possible, and finally, know your options; understanding the tools and resources available is essential to maintaining financial security and comfort throughout retirement.”
The findings from Bloom’s 2025 Aging & Affordability Insights Benchmark Report show clearly that retirement security is becoming more complicated for many older Canadians, shaped by the harsh reality of fixed incomes in an era of ever-rising costs.
Seniors are trying to balance their desire to support loved ones with the need to protect their own financial stability — which requires more planning, adaptable budgeting and a comprehensive understanding of the financial tools available to them.
How Dave Ramsey’s plan helps people ditch debt for good
Tired of living paycheck to paycheck? Dave Ramsey’s popular 7-step method shows you exactly how to wipe out debt and finally build real savings. No gimmicks — just a clear plan that works.
Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and US brands, while also working as a ghostwriter for financial influencers.
