It’s an unfortunate thing that many older North Americans end up experiencing — feelings of loneliness and isolation. Reports from Statistics Canada reveal that approximately 30% of Canadian seniors are at risk of becoming socially isolated, while approximately 19% to 24% of Canadians over the age of 65 feel isolated from others and wish they could participate in more social activities.
But what about those that choose to isolate? What about those seniors who actively try to self-isolate during retirement?
Believe it or not, it’s not unusual, especially in the early stages of retirement when you’re leaving a career that had you constantly interacting with people.
As a result, if you end up passing your 62nd birthday and find yourself newly retired, a little alone time isn’t necessarily a problem, as long as it’s in moderation.
But too much alone time could have consequences. Here are some of the financial and emotional costs of leaning into all that “me time.”
The retirement nest egg a Canadian retiree can expect
For retirees aged 65 and up, the median amount held in a Registered Retirement Savings Plan (RRSP) is $283,000 (this includes Registered Retirement Income Funds (RRIFS) and RRSPs). When factoring in all savings, including cash account and Tax-Free Savings Accounts (TFSAs), the average Canadian household’s nest egg is close to $514,800.
Using the 4% rule, this nest egg would provide approximately $20,592 in annual income, or about $1,716 per month. When you add in the average Canada Pension Plan (CPP) benefit — about $808.14 per month — and the average Canadian retiree can anticipate a retirement income of a little under $2,525 per month. That means a couple could anticipate a combined monthly income of approximately $5050 per month — a modest monthly income that allows you to pay the bills and still have a bit of fun.
Higher living costs
Unfortunately, this retirement income is typically not indexed to inflation, so this means that over time your budget gets more and more pinched as everyday costs continue to climb. Now, if you don’t have someone to share expenses like housing and utilities you could end up struggling faster and more just to cover your day-to-day living costs.
And even if you have more savings than the typical senior, the more costs you have to bear alone, the less money you’ll have left over to pay for things like hobbies and entertainment.
Having to navigate big decisions without input
A WealthRocket poll from 2023 found that 50% of Canadians say family and friends (including spouses or partners) are their number one source for financial advice.
If you don’t spend enough time with other people, you might miss out on the opportunity to pick their brains and get much-needed guidance — particularly on harder, more stressful financial decisions.
Retirement can be a financially tricky period of life, so it may be helpful to hear how your peers are managing their money. Those conversations are harder to have when you’re off doing your own thing all the time.
The loneliness factor
It’s natural to want alone time during retirement. But if you aren’t careful, too much time on your own could suddenly leave you feeling out of the loop.
A 2024 report from the National Institute on Ageing found that 43% of Canadians over the age of 50 are at risk of social isolation, while 59% experience some degree of loneliness. Additionally, 36% of Canadians over the age of 50 have very (13%) or somewhat (23%) weak social networks.
What was most alarmingly was the correlation between those who struggled with finances and their access to social networks.
Turns out 72% of those who are struggling financially have weak social networks. So you may want to make a point to spend time with friends, neighbours and family members at least a few hours a week early on in retirement, even if you crave alone time. If you get into the habit of spending too much time along, then the people you’d normally hang out with may no longer be free or available, leaving you feel even more isolated, alone and cut-off.
Not having a support system
While spending time alone can be fulfilling and liberating, you may reach a point where you risk losing your support system. And that could have a number of negative consequences.
The people in your network are the ones you might turn to when you’re struggling with home maintenance or need a ride to the doctor’s office. They’re also the folks who might provide care when you’re recovering from an illness or procedure. Having a network to support you not only gives you peace of mind, it can save you the expense of having to check into expensive rehabilitation or nursing home facilities.
This isn’t to say that the people who care about you will abandon you because you opt to spend a chunk of your time alone. But make sure to strike a balance so the people you count on the most continue to feel important.
Meet your retirement goals successfully
To successfully set retirement goals, start by identifying your goals and then calculate your expected retirement costs. Many experts recommend the 70% rule when planning for retirement — where your retirementt income should replace 70% of your earned income per year. That means if you pre-retiremnt annual income was $75,000, then you need to plan for a retirement income of $56,250, or approximately $4,687.50 per month.
To help you get there be sure to use all available tools — from automated savings plans, such as rounding-up loose change options offered by Moka, to reducing or even eliminating investment fees. For instance, you can build a retirement portfolio with blue-chip stocks and balanced exchange-traded funds (ETFs) using Questrade’s $0 commission platform.
Sources
1. Government of Canada: Social isolation of seniors – Volume 1: Understanding the issue and finding solutions
2. CHIP Reverse Mortgage: How much money do you need to retire in Canada? (Dec 11, 2024)
3. WealthRocket: 50% of Canadians get their financial advice from family and friends; banks follow close behind: survey (Jul 27, 2023)
4. National Institute on Ageing: Perspectives ongrowing older in Canada: The 2024 NIA Ageing in Canada Survey survey, by Natalie Iciaszczyk; Gabrielle Gallant; Talia Bronstein; Alyssa Brierley; Dr. Samir Sinha (Jan 28, 2025)
This article I’m 62, retired, and I want to avoid people more and more — is this normal? Yes, but here are 5 emotional and financial costs you need to knoworiginally appeared on Money.ca
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
