Retirement Planning for Single Canadians Without a Pension

Being single in retirement presents distinct financial challenges. Some people enter retirement unmarried, while others become single after divorce or the death of a partner, either before or after retirement. If you’re planning retirement on your own—especially without a defined benefit (DB) pension—there are important factors to consider to help protect your income and maintain your standard of living.

Cost of living as a single person in Canada

Many Canadians struggle to save for retirement. A Sun Life survey found that one third of Canadians have difficulty planning for retirement and 75% say rising living costs are hurting their ability to save. Those pressures affect single households differently than couples.

Living alone doesn’t cost exactly twice as much as sharing a household. There are fixed household expenses that don’t double with a second person. According to Statistics Canada’s Survey of Household Spending, a one-person household reported total expenditures of $49,661 in 2021, while couples without children reported $91,121. That difference implies roughly a 17% cost saving for the second person on average, but it still leaves singles facing higher per-person expenses.

Shelter costs are a particularly large burden. In 2021, shelter made up about 37% of spending for single households versus roughly 30% for couples without children. Because of this, single retirees generally need to save more on a per-person basis to sustain the same lifestyle in retirement.

Couples have more tax advantages than singles

Couples can access several tax strategies that are harder or impossible for single taxpayers to use. Examples include:

Concentrating contributions in the higher-income spouse’s registered retirement savings plan (RRSP) to maximize the household tax refund.
The higher earner contributing to a spousal RRSP, allowing tax relief now while shifting taxable income to the lower-income partner later.
Pooling or allocating tax credits—such as for donations or medical costs—to achieve a larger combined tax reduction.
Splitting eligible pension income in retirement, including RRIF withdrawals for those over 65, which can lower overall tax paid by the household.

These tactics, along with more advanced strategies, make it easier for couples to legally reduce their tax burden compared with a single taxpayer.

Options for single retirees without a pension

Defined benefit pensions have declined across many workplaces, and defined contribution plans have increasingly shifted investment and longevity risk onto retirees. If you retire without a workplace pension, you still have several options to help create reliable income and reduce longevity risk.

Canada Pension Plan (CPP) deferral: Deferring CPP can be a sound strategy for healthy seniors in their 60s. CPP can be postponed up to age 70, and benefits increase by 8.4% per year after age 65, plus annual inflation adjustments. For single retirees—particularly women, who statistically live longer—deferring CPP can provide stronger protection against outliving your savings.
Old Age Security (OAS) deferral: OAS may also be deferred up to age 70, increasing by 7.2% per year after 65, plus inflation adjustments. Low-income seniors who might qualify for the Guaranteed Income Supplement (GIS) between ages 65 and 70 should weigh that eligibility before deferring OAS.
Annuities: Buying an annuity from an insurance company converts savings into guaranteed lifetime income. You can purchase an immediate or deferred annuity using registered (for example, RRSP) or non-registered funds. Payments are based on factors such as your age and life expectancy; higher interest rates at the time of purchase can increase the payout. For singles who value income security and are conservative investors, annuities can act as a personal pension substitute.

Survivor benefits in Canada

Many defined benefit pensions include survivor provisions that pay a portion of pension benefits to a spouse after death. Some plans also offer survivor benefits for children or guarantee payments to an estate for a set period.

The CPP survivor pension may be payable to a surviving spouse or common-law partner of a deceased contributor. Single retirees without a spouse are at a disadvantage here: if they die, their adult children usually do not qualify for survivor benefits unless they are under 18 or are full-time post-secondary students between 18 and 25.

Advice, accountability and cognitive decline

Aging affects financial decision-making. While knowledge and experience can grow with age, the ability to process complex choices often begins to decline before retirement. Having a partner provides an immediate sounding board and everyday accountability—someone to discuss budgets, large purchases, and long-term plans.

Single retirees may feel more isolated making these decisions. Not everyone is comfortable involving children or friends, and not everyone has a financial adviser. Seeking professional advice, establishing oversight or trusted contacts for major decisions, and creating clear written plans can help reduce mistakes and protect assets as cognitive abilities change.

Single retirees can achieve financial security, but their planning needs are different from couples. Practical steps include taking a conservative approach to spending, evaluating pension deferral, considering annuities to guarantee income, and working with a qualified financial advisor to build a plan that addresses longevity risk, taxes, and survivor needs. Proactive planning, regular reviews, and accountability can make a meaningful difference for one-person households—particularly when no workplace pension exists.