RiverGlades Family Offices

How Inflation Affects Your Retirement Income (And What You Can Do To Fight It)

Inflation is a silent threat to Canadian retirees, with a long‑term average of about 2 % but an 8 % spike in 2022 that can quickly erode purchasing power. A typical CAD 4,000 monthly pension—roughly USD 2,960—could lose half its value in 35 years if income only tracks inflation. While CPP and OAS are CPI‑indexed, they rarely cover the full cost of living, forcing retirees to rely on private savings and investments. Growth‑focused assets and proactive tax planning are essential to preserve real income throughout retirement.