Expenses During Retirement

This article offers a comprehensive list of expenses to consider when planning for retirement.

Retirement expenses in Canada include essential costs like housing, food, healthcare, and gaps in provincial health coverage that require supplemental insurance or out-of-pocket spending.
Lifestyle expenses such as travel, hobbies, and fitness can enrich retirement, while costs for transportation, subscriptions, and social activities should also be considered.
Preparing for additional costs like legal fees, emergencies, and moving to a senior living community ensures retirees can enjoy security and freedom in their golden years.

Retirement brings the promise of freedom, relaxation, and the chance to pursue lifelong dreams—but it also comes with its own set of financial challenges. Planning ahead for the variety of expenses you’ll encounter is essential to ensuring stability and peace of mind. From the obvious essentials like housing and healthcare to the unexpected costs or emergencies, this article provides a comprehensive list of all the expenses, one-time and recurring, that you should consider accounting for when planning for your retirement.

Housing

Rent
Mortgage payments
Condo fees
Property taxes
Maintenance
Utilities (e.g., hydro, heat, and water)
Internet
Hot water tank rental
Furnace rental
Emergency repairs
Liability & home insurance
Property insurance
Home security systems
Gardening, landscaping, and yard care
snow removal services
Accessibility modifications (e.g., ramps, stair lifts, and handrails)
Furniture and decor purchases

Moving

Downsizing costs
Moving into a more accessible home
Moving to a senior living community
Land transfer taxes
Realtor fees
Movers
Transportation
Cleaning services

Food

Groceries
Dining out
Snacks at work
Restaurants and takeout
Bars and cafes
Alcohol

Healthcare

Insurance premiums
Out-of-pocket medical expenses
Doctor visits
Dentist visits
Prescriptions
Pharmacy items (e.g., meds, snacks, misc.)
Hearing aids
Vision care
Long-term care
Alternative therapies (e.g., massage or acupuncture)
Spa treatments
Physiotherapy
Mental health support
Private health insurance for services not covered under provincial

Fitness

Gym memberships
Athletic club memberships
Personal training
Classes
Fitness apps
Exercise equipment (e.g., weights, machines, bands, yoga mats, water bottles, etc.)
Activewear (e.g., gym clothes and yoga outfits)
Supplements (e.g., protein, creatine, etc.)

Vehicles

Vehicle purchases (new or used)
Vehicle payment (e.g., loan or lease)
Insurance (e.g., mandatory and optional coverage)
Fuel and electricity costs
Maintenance (e.g., oil changes, tire rotations, brake checks)
Repairs (e.g., engine, transmission, or bodywork)
Tires (summer, winter, or all-season)
Tire change service
Vehicle registration and licensing fees
Parking fees (public or private)
Car washes and detailing
Roadside assistance services
Accessible vehicle modifications (e.g., wheelchair ramps)
Toll fees (if applicable)
Vehicle emissions testing (only applicable in some regions)
Plowing and snow removal services.
Driver refresher courses
Boats, all-terrain vehicles, aircraft, and other vehicles.

Public Transit

Local transit (trains, buses, ferries, etc.)
Car-sharing services
Bike-sharing services
Rideshare or taxi services

Taxes

Income taxes
Property taxes
Tax on withdrawals from RRSPs and RRIFs
Provincial sales taxes
Income tax filing services

Debt Costs

Mortgage interest
Vehicle interest
Credit card interest
Loan interest (e.g., line or credit, HELOC, etc.)
Reverse mortgage interest

Banking and Investment

Checking account fees
Credit card fees
Service to file income taxes
Fund transfer fees
Fund fees (e.g., broker fees, asset management fees, Management Expense Ratio fees)
Retirement planning services

Travel

Vacations
Visiting family
RVing and camping
Seasonal homes for snowbirding
Provincial parks passes and associated fees

Family

Financial support for adult children
Financial support for aging parents
Gifts and activities with grandchildren

Entertainment

Movies
Concerts
Membership and club fees
Hobbies (e.g., photography, crafts)
Sports
Books
Gambling and sports betting
License fees (firearms, hunting, fishing, piloting, etc.)

Electronics and Technology

Computer
mobile phone-related expenses
TVs
Audio equipment
Gaming devices
Virtual reality (VR) devices
Tech support services (e.g., installation, repair, and troubleshooting)
Smart home technology
Devices for accessibility

Digital Subscriptions

Streaming entertainment (e.g., Netflix, Spotify)
Virtual Private Networks (VPNs)
Cloud file storage
Artificial Intelligence (AI) assistants
Software licenses
Newspapers and blogs

Charity, Religion, Culture, and Learning

Travel to charity and/or religious events
Charitable donations
Religious donations
Visits to museums and galleries
Courses
Workshops for hobbies and interests

Pet Care

Veterinary bills (check-ups and emergency visits)
Medication
Grooming
Pet insurance
Food, treats, toys, and clothing

Legacy and Family Support

Birthday gifts and parties
Christmas gifts and gatherings
Weddings
Estate planning (legal fees for wills, trusts, or inheritance planning)
Life insurance premiums

Beauty

Haircuts
Makeup
Nails
Skin and hair products

Clothing and Footwear

Everyday clothing
Seasonal clothing (e.g., winter coats, summer attire)
Formal wear
Undergarments and socks
Footwear for daily use
Seasonal and specialty footwear
Accessories
Repairs or alterations (e.g., tailoring, shoe repairs)
Drycleaning and laundry services

Post-Retirement Work or Business

Commuting
Management of rental properties
Cost of preparing your home for a short term-rental
Overhead and operating costs from running a side-gig
Professional liability insurance if operating as a consultant

Summary

Retirement marks a new chapter filled with opportunities for growth, adventure, and connection, but thoughtful financial planning is the foundation for making it all possible. This list provides a thorough overview of expenses that you could reasonably expect to incur in Canada during retirement, capturing both general and region-specific costs. By accounting for a comprehensive range of expenses, retirees can ensure they’re well-prepared for both stability and spontaneity.