Plans are unravelling for many Canadians entering retirement. Here’s how to protect what you’ve already saved, say financial experts

For Nick Maggiulli, founder of the Of Dollars and Data blog and author of The Wealth Ladder, those approaching retirement should zero in on what they can actually control rather than anxiously spiralling down an echo chamber of what ifs.

“There’s always something you can do,” he told Moneywise (3).

A more uncertain backdrop for new retirees

Record numbers of Canadians are hitting retirement age at a time when the economic picture may appear particularly grim.

While specific numbers vary, the trend is apparent: The final wave of baby boomers are approaching 65 amid ongoing concerns about affordability, housing costs and economic volatility (4). According to HOOPP’s 2025 Canadian Retirement Survey, almost 60% of unretired Canadians don’t think they’ll ever be able to retire due to their financial circumstances, while half haven’t set anything aside for retirement in the past year (5).

For retirees, these broader concerns are colliding with changes to everyday cash flow. In 2026, the Canada Pension Plan (CPP) benefits went up by 2%, translating to a modest monthly increase (6). But that bump won’t stretch as far as many hoped, especially with other costs climbing at the same time.

That kind of squeeze is forcing many near-retirees to run the numbers again and realize that even a slight bump in expenses can have an outsized impact once regular workplace paycheques come to an end.

What’s actually in your control

Despite how it might feel, Maggiulli says nearing retirement doesn’t mean you’re stuck sitting on the sidelines, watching your savings rise and fall with every market swing. Shifting toward a more conservative, diversified approach can help protect what you’ve already built without trying to time the market.

One place to start: bonds — and more specifically, which bonds you own. While most people know bonds are supposed to add stability, Maggiulli says those close to retirement may want to lean toward shorter-term options, like Treasury bills or notes that mature within a few years. These tend to be less sensitive to interest-rate changes than long-term bonds, which means they’re less likely to take a hit if rates climb.

He also suggests looking at municipal bonds, particularly those issued by your home province or territory. The income from these are often exempt from federal taxes and, in some cases, provincial taxes as well — which can help make retirement income stretch further. That said, they do carry some risk, which varies by region, so it’s worth doing your homework or consulting a tax professional.

But perhaps more than anything, Maggiulli says retirees should focus on what’s in their control and stop stressing over the things they can’t change.

“We can control how we invest our portfolios, how we spend our money, how we spend our time, and much more,” he said. “Figure out an approach that allows you to sleep soundly at night and then stop worrying about what else might come.”

Canadian-specific strategies worth considering

Financial advisors across Canada echo Magguilli’s advice — and offer some additional strategies tailored to the retirement landscape.

According to Bellwether Investment Management, people nearing retirement should consider shifting to more conservative investments like bonds, Guaranteed Investment Certificates (GICs) or dividend-paying stocks. It recommends following a “glide path” strategy, which gradually reduces equity exposure as retirement approaches and prioritizing capital preservation through regular rebalancing (7).

And diversification remains critical. BlackRock Canada notes that the transition from growth to income should be gradual, with a focus on augmenting diversification to help reduce large swings in portfolio value. That means shifting a portion of investments from growth-oriented stocks to more mature assets, such as investments with low correlation to high-growth equities (8).