Ep 177 - The Real Struggle: Spending in Retirement

Many high-net-worth Canadians discover that spending money in retirement is harder than saving it. In this episode, Joe Curry explores the psychology behind underspending, the risks of overspending, and how a personalized retirement income plan can give you the confidence - and permission - to enjoy the life you worked so hard to afford.

Key Takeaways

1. Saving habits don’t disappear in retirement.
   After decades of discipline, many retirees struggle to flip the switch from accumulation to spending — even when the numbers clearly say they can.

2. Overspending and underspending are equally risky.
   Overspenders risk future financial stress, while underspenders risk missing out on experiences, relationships, and purpose in retirement.

3. A retirement income plan gives you permission to spend.
   Seeing your income mapped out — from RRSPs, TFSAs, CPP, OAS, and non-registered assets — builds confidence and reduces fear.

4. Paying yourself a “retirement paycheck” changes behaviour.
   Regular monthly withdrawals make spending feel intentional and sustainable instead of emotionally difficult.

5. Couples need to rebalance money roles in retirement.
   Shared clarity around spending helps reduce resentment and ensures retirement feels rewarding for both partners.

Insights Worth Sharing

“Saving your whole life and never enjoying it wasn’t the goal.”

“Spending in retirement is often harder than earning was.”

“A good retirement plan doesn’t just show you the math — it gives you permission.”

“You didn’t sacrifice for 30 years just to sacrifice for another 30.”

“Retirement should feel like freedom, not another version of restriction.”

Why Spending Your Retirement
Might Be Harder Than Saving It

For many Canadians approaching retirement, the assumption is simple: once you stop working, you finally get to enjoy your money. But in practice, that transition isn’t nearly as easy as it sounds.

After decades of disciplined saving, skipping luxuries, and prioritizing RRSP contributions over lifestyle upgrades, many retirees discover something unexpected: they’re afraid to spend. Even with seven-figure portfolios and solid income streams, ordering the nicer bottle of wine or booking the trip might feel uncomfortable.

This isn’t a math problem. It’s a mindset problem.

The Psychology of Underspending in Retirement

Saving becomes a deeply ingrained habit. When your brain has spent 30 years viewing every dollar spent as a threat to future security, it doesn’t magically turn that instinct off on the day you retire.

Add in market volatility, inflation, and the fear of running out of money, and it’s easy to understand why many retirees underspend - even when they don’t need to.

At the other end of the spectrum are overspenders. Often after receiving a large lump sum from a pension commutation, business sale, or RRSP rollover, spending feels limitless. Without a plan, early retirement spending can quietly erode long-term sustainability.

Neither extreme leads to a fulfilling retirement.

How a Retirement Income Plan Creates Confidence

A personalized retirement income plan does more than calculate numbers. It shows you, year by year, where your income will come from, how long it’s expected to last, and how taxes and inflation are managed along the way.

By coordinating RRSP and RRIF withdrawals, CPP and OAS timing, TFSA usage, and non-registered assets, a proper plan creates clarity. That clarity replaces fear with confidence.

One powerful strategy? Paying yourself a monthly retirement “paycheque.” When money shows up consistently in your bank account, it feels far more natural to spend — just like when you were working.

Spending With Purpose, Not Guilt

Spending doesn’t have to mean excess. For many retirees, the most meaningful use of money isn’t travel or luxury -  it’s helping children when they actually need it, supporting causes they care about, or seeing the impact of their generosity while they’re still here to enjoy it.

This is where retirement shifts from accumulation to intentional living.

Aligning as a Couple

Retirement also changes money dynamics between partners. The saver and the spender must meet in the middle. Shared understanding and a clear plan reduce tension and allow both people to enjoy retirement together - without guilt or resentment.

The Bottom Line

You didn’t spend decades building wealth just to stay stuck in scarcity. With the right retirement income plan, you can spend confidently, live fully, and enjoy the life you worked so hard to create.

Learn more about our retirement planning process at MatthewsAndAssociates.ca