Many Canadians are living longer than previous generations, yet their retirement income is not stretching the same way it used to. According to Statistics Canada, the average life expectancy is now about 82 years, and nearly one in four Canadians will be 65 or older by 2030. More people are heading into retirement with mortgages, higher daily expenses, and smaller workplace pensions.

It is no surprise that more Canadians are wondering if CPP, OAS, and their savings will actually be enough. At Rewind Mortgage, Peter Fabry and our team spend a lot of time helping people prepare for a retirement that feels stable, even with the rising cost of living. Here is a clear look at how CPP, OAS, and GIS really work today, and how your home equity can support your long term plans.

CPP, OAS, and GIS at a Glance

These programs form the foundation of retirement income for millions of Canadians, but they were never designed to cover all costs. That gap between expectation and reality has grown wider in the last decade.

Why CPP Often Feels Smaller Than Expected

Many Canadians expect CPP to replace a large portion of their income, but CPP was designed to cover about 25 percent of the average worker’s earnings. Even with enhancements now being phased in, most retirees will not see a dramatic increase.

A few things reduce CPP for many Canadians:

• years out of the workforce
• lower earning years
• part time work close to retirement
• starting CPP early at 60 (a 36 percent reduction compared to waiting until 65)

It is common for people to feel surprised once they see their actual numbers.

How OAS Works and Why the Clawback Matters

OAS is not based on contributions, which is why residency matters so much. If you have lived in Canada for at least 40 years after age 18, you qualify for the full payment. Anything less gives you a partial amount.

The OAS Recovery Tax, often called the Clawback, starts when your net income passes the yearly threshold. In 2024, the threshold is around 90,997 dollars. Many retirees with investment income, rental income, or part time work feel the clawback for the first time only after filing their taxes.

It catches more people than you might think.

GIS: The Most Helpful Benefit That Many Canadians Lose Easily

GIS supports low income seniors, but it is one of the strictest benefits. If your income changes or your spouse returns to work, payments can drop quickly. GIS also cannot be combined with moderate or high income streams, which is why many seniors see it disappear unexpectedly.

GIS can offer important support, but it is not guaranteed year to year.

The Rising Cost of Retirement in Canada

Over the last ten years, average rent has increased more than 60 percent in many Canadian cities. Grocery costs have risen more than 20 percent since 2020. Even basic utilities have climbed. This is why many Canadians who feel “prepared” still feel financial pressure once they step into retirement.

A 2023 national survey found that 66 percent of Canadians worry they will outlive their savings. That statistic has only been rising.

Retirement planning is no longer just about how much you have saved. It is about how steady your income will be and how long it needs to last.

Where Home Equity Fits Into Today’s Retirement

For many Canadians, their home is their largest asset. Yet most of that value sits locked away, even as day to day expenses increase. This is why more retirees are looking at ways to use their home equity to support their income, reduce monthly stress, or help family.

Options include:

• updating your mortgage to improve cash flow
• using a HELOC to access funds as needed
• or, for homeowners 55 and older, using a Reverse Mortgage to turn equity into tax free cash

With a Reverse Mortgage, you keep ownership of your home, you make no required monthly payments, and you can use the funds for living expenses, health needs, travel, or helping your family now instead of later.

It is not about replacing CPP or OAS. It is about filling the gap that these programs were never designed to cover.

Common Scenarios We See at Rewind Mortgage

Retirees with Solid CPP and OAS but Limited Savings

Cash flow becomes tight, even though they technically have “enough income on paper.” Home equity becomes the bridge.

Homeowners Still Carrying a Mortgage Into Their Seventies

This is becoming much more common. A refinance or a Reverse Mortgage can remove the strain of monthly payments.

Retirees Helping Adult Children

Many parents want to support their kids during housing challenges. Reverse Mortgage funds can make this possible without affecting their own budget.

Couples Worried About Outliving Savings

Using home equity gradually can stretch retirement income over more years.

Key Takeaways

• Most Canadians receive far less CPP than expected.
• OAS depends on how long you lived in Canada. The clawback applies to higher incomes.
• GIS helps low income seniors but can drop quickly.
• Rising living costs are reshaping retirement planning across Canada.
• Home equity plays a bigger role than ever, especially for Canadians 55 and older.
• A Reverse Mortgage can stabilize long term cash flow while keeping full home ownership.

Talk With Peter at Rewind Mortgage

Retirement does not have to feel unpredictable. With the right plan, your income, savings, and home equity can work together to support the lifestyle you want.

📞 (289) 312-6333
📧 [email protected]
🌐 rewindmortgage.ca

Rewind Mortgage is here to help you make informed, confident choices…because financial peace of mind should be part of every retirement plan.

Rewind Mortgage is dedicated to seniors’ financial independence. Under Peter Fabry’s leadership, we blend empathetic service with creative mortgage solutions to help you enjoy life on your terms.