Living Longer, Planning Smarter: How Longevity in Canada Impacts Your Retirement

Canadians are living longer than ever before. With average life expectancy now exceeding 82 years, and many individuals living well into their 90s, longevity is becoming one of the most significant factors shaping modern retirement planning. While longer lifespans are a testament to better healthcare and improved lifestyles, they also present a critical financial challenge: the risk of outliving your savings.

At Cox Financial Group, we believe that a longer life should be a rewarding one—not a stressful one. That’s why understanding and planning for longevity risk is a vital part of our retirement planning process.

What Is Longevity Risk?

Longevity risk is the possibility that you’ll outlive your financial resources. This means facing more years of expenses, increased exposure to inflation, rising healthcare costs, and a longer dependence on investment income. A retirement that was once planned around 20 years might now need to support you for 30 or 40 years.

Without the right strategy, that’s a recipe for financial uncertainty.

As you can see in the chart below from JP Morgan, there’s a 90% chance that one member of a healthy couple will live to at least age 85, and a 73% chance one will live to age 90:

Why It Matters More Today

Several trends make longevity risk especially important in the Canadian context:

• Lower Interest Rates & Market Volatility: Conservative investments may not deliver sufficient returns over time.
• Healthcare Gaps: While public healthcare covers many basics, retirees often pay out-of-pocket for prescriptions, dental care, and long-term support services.
• Eroding Purchasing Power: Inflation, even at modest levels, can significantly reduce the real value of savings over a few decades.
• Decline of Workplace Pensions: Many Canadians no longer have access to defined benefit pensions, increasing reliance on personal savings and government benefits.

How Cox Financial Group Helps You Plan for Longevity

Retirement planning at Cox Financial Group is never one-size-fits-all. Here’s how we help clients confidently prepare for a longer retirement:

• Longer Time Horizons: We build retirement projections that plan well into your 90s, so your money lasts as long as you do.
• Diversified Income Strategies: Our approach includes blending RRSPs, TFSAs, CPP/OAS, corporate assets (if applicable), and tax-efficient income sources.
• Smart Government Benefit Timing: We often recommend deferring CPP and OAS where appropriate, to increase guaranteed income in later years.
• Dynamic Withdrawal Planning: Your drawdown strategy should evolve with your lifestyle and market conditions—not stay fixed for 30 years.
• Healthcare & Long-Term Care Considerations: We include contingencies for future healthcare needs, so you’re not caught off guard by unexpected expenses.

Your Future Deserves a Plan That’s Built to Last

Longevity is a gift—but it requires financial planning that’s just as resilient and forward-looking. At Cox Financial Group, we help you turn longer life expectancy into a secure and fulfilling retirement, backed by a plan tailored to your values, lifestyle, and long-term goals.

Let’s make sure your money goes the distance.

Contact us today to schedule a complimentary consultation and review your retirement readiness.