With grocery prices climbing, rents escalating, and energy bills at all-time highs, retirees in Canada are feeling the weight of the country's cost of living crisis. For many older adults living on fixed incomes, retirement is becoming less about leisure and more about survival.
Fixed Incomes vs. Rising Costs
According to Statistics Canada, inflation remains elevated at 3.8% in 2025, driven largely by food, transportation, and housing. For retirees relying on Old Age Security (OAS), the Canada Pension Plan (CPP), or limited savings, this surge has eroded purchasing power significantly.
“My pension hasn’t changed much in the last few years,” says 72-year-old Geraldine Clarke from Ottawa. “But my rent has gone up by $300, and groceries are almost double what they were a decade ago.”
Housing: A Growing Burden
Affordable housing remains one of the most pressing issues for Canadian seniors. In cities like Vancouver and Toronto, average rents for one-bedroom apartments now exceed $2,000 per month. Seniors who once owned their homes but sold to downsize are finding it difficult to re-enter the market without draining their retirement savings.
The Canadian Association of Retired Persons (CARP) is calling for stronger protections and subsidies for older renters and homeowners alike.
Healthcare and Out-of-Pocket Expenses
While Canada boasts a publicly funded healthcare system, many critical services — such as dental care, vision, physiotherapy, and prescription drugs — often require out-of-pocket payments or supplemental insurance. For retirees without employer-sponsored health benefits, these costs can be devastating.
“It’s ironic,” says Bernard Lau, a retired teacher in Calgary. “I have more health needs now than ever, but less income to pay for them.”
Government Responses and Gaps
In response to these challenges, the federal government increased the OAS by 10% for seniors aged 75 and over in 2022, but critics argue that the measure doesn’t go far enough. Provinces like Quebec and British Columbia have also introduced targeted relief programs, including rental subsidies and food vouchers.
However, experts say these measures often exclude seniors aged 65 to 74 — a demographic growing rapidly as baby boomers retire.
Community Support and Adaptation
Many retirees are turning to community food banks, senior centres, and mutual aid groups to bridge the gap. In Winnipeg, the non-profit organization Silver Support has seen a 40% increase in service demand since 2023.
“It’s heartbreaking,” says executive director Lisa Muir. “We have people who worked all their lives, now asking for food parcels to get through the week.”
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Looking Ahead
Economists warn that unless systemic reforms are implemented, Canada’s aging population will face increasing economic insecurity. Advocates are urging federal and provincial leaders to consider measures such as a universal dental program, increased guaranteed income supplements, and better rent controls.
“Retirement should not be a punishment for growing old,” says CARP president Moses Znaimer. “It should be a period of dignity, rest, and respect.”