Retirement is getting more expensive — these 5 boomer money habits could be the difference between comfort and crisis

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Legendary actress Bette Davis famously said, “Getting old ain’t for sissies.”

And neither is saving enough money for a fulfilling retirement. It takes determination, willpower and a well-considered plan.

But it can be done, and there’s a pattern of behaviour among the ones who do it successfully.

The generation currently in the process of doing it — the baby boomers, whose youngest members are in their early 60s — have some wisdom to impart.

Here are five savvy moves that made many boomers wealthy by retirement age.

1. Avoid lifestyle creep

An improvement in your finances, such as a raise at work or an inheritance, shouldn’t be an excuse to go out and spend.

The strategizing boomer knows that any boost to income should go to savings and investments. In other words, they live below their means.

However, it’s all too common for a lot of people to spend what they earn — a losing proposition when it comes to saving for retirement. Instead of indiscriminate spending, follow the advice that finance writer Elizabeth Aldrich’s father gave her: Create a retirement budget and stick to it.

You can track your spending and create a budget — all in one place — with Monarch Money. Once you link your bank accounts and investment portfolios, you can see all your transactions in one list, helping you stay on top of your spending.

You can also create custom goals for your retirement, personalized categories, and track your progress at all times on the all-in-one money management platform.

Monarch also offers a seven-day free trial to see if it’s right for you. If you like the platform, you can then get 50% off for your first year with the code WISE50.

Creating a retirement-focused budget and reviewing it regularly helps ensure new income flows into savings or investments, not impulse purchases.

2. Invest aggressively

Experts, like Dave Ramsey, suggest investing 10% to 15% of your income annually. Given that the median after-tax income of Canadian households was $73,800 in 2023, according to data from Statistics Canada (1), then investing 15% of earnings woul mena contributing $11,000 annually to your investment savings.

Put another way, if you were to invest $900 every month, for 30 years, and earned a long-term average return close to historical equity market trends, you could potentially accumulate well over $1 million, depending on fees, asset allocation and market performance.

Boomers who built wealth typically diversified early — spreading investments across stocks, bonds, exchange-traded funds (ETFs) and alternative assets to reduce volatility during downturns.

Opening a discount brokerage account with CIBC Investor’s Edge can help you diversify your portfolio without having to pay exorbitant commissions on trades.

Active traders making over 150 trades a quarter can enjoy a discounted commission rate of $4.95 per trade.

CIBC doesn’t charge any account or maintenance fees if the combined market balance of all accounts is greater than $10,000. Plus, you can receive real-time news and stock alerts, helping you keep track of market shifts.

3. Auto-save, always

Wealthy boomers often credit their success to automating their saving and investing. Setting up automatic transfers — whether to a TFSA, RRSP or non-registered account — helps ensure money grows before it’s spent.

High-interest savings accounts can help Canadians store short-term funds. EQ Bank’s Savings Plus Account, for example, offered around 2.50% interest as of late 2025, with no monthly fees or minimum balance requirements.

But you can still enjoy the benefits of a chequing account, as EQ Bank charges no account fees or minimum balance requirement, free ATM withdrawals, and no foreign exchange fees on overseas transactions.

Plus, your deposits of up to $100,000 can be insured by the CDIC.

Remember, automated contributions remove the guesswork and build discipline — a consistent habit seen among financially secure boomers.

4. Don’t live on credit

Canadians are struggling to stay on top of their credit card bills, as total consumer debt amounted to $2.62 trillion as of Q3 2025 (2). About 1.5 million Canadians missed a credit card payment in the third quarter of 2025, according to Equifax (3).

Boomers who built wealth learned early to avoid carrying credit card balances. For Canadians juggling multiple cards or high-interest debt, consolidating through a lower-rate personal loan or line of credit can reduce interest costs and simplify payments. If this is your situation, you may want to consider rolling your high-interest debt into one lower-interest personal loan with Loans Canada.

Personal loans typically have a lower interest rate than credit cards, allowing you to potentially save on interest payments. Plus, with a personal loan, you’ll have only one manageable payment to keep track of.

The best part? You don’t need to have a minimum credit score or annual income to shop around for competitive personal and debt consolidation loans and receive personalized offers.

You can also set up a free consultation with a Loans Canada debt relief expert to receive guidance on whether a personal loan is right for you.

But if you have good spending habits and pay your bills on time, using a credit card can still be beneficial.

If you’re looking for the best rewards card, check out this credit card comparison tool that looks at more than 140 credit cards in just 5 seconds.

Using credit responsibly still has benefits — especially for rewards and fraud protection — but only when balances are paid in full each month.

5. Ensure your spouse can live comfortably after you’re gone

Wealthy boomers understand that retirement planning includes preparing for the financial security of a spouse or partner. Life insurance can help replace income, pay off debts, cover funeral costs and support ongoing living expenses.

Buying coverage earlier typically results in lower premiums, since age and health are major factors.

You can get a term life insurance policy with PolicyMe and get life insurance coverage of up to $5 million.

With premiums starting at just $21/day, you can secure your family’s financial future within minutes.

Just answer four questions, and PolicyMe will provide you with an instant, no-obligation quote which is valid for up to 90 days. Most policies are approved without any medical tests, and you can opt for term lengths ranging from 10 to 30 years.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Statistics Canada (1); Equifax (2, 3)