'I've been losing sleep over it': Canadians share how retirement fears are impacting their health and wellbeing

Sandi Allen wants to retire. After almost 27 years of working long shifts with increasing demands, the 57-year-old healthcare worker living in Shoal Lake, Man. says spending more time with her grandchildren and travelling with her partner would come as a much-needed respite. But thanks to the increased costs of living, Allen said she feels more anxiety about the thought of retirement than excitement.

“With hydro rates going up, the cost of fuel, taxes and groceries…I don’t know if we can afford to retire,” said Allen. “I’ve been losing sleep over it.”

The stress Allen feels is not unique, as many Canadians face anxieties about retirement. A 2021 Canadian Retirement Survey by the Healthcare of Ontario Pension Plan found that respondents were more concerned about the affordability of retirement than their own health.

Allen said she feels lucky to have a government pension plan. Still, considering the decades of life that come after retirement, she wonders if her pension and Canada’s Old Age Security (OAS) will be enough. “Those [OAS] rates aren’t sustainable for anyone to actually live off of. I wonder if my husband and I will actually be able to retire and live comfortably without worrying. Are we going to be able to enjoy our time?”

Yahoo Canada recently spoke to more Canadians about their retirement anxieties and how it affects their physical and mental health. Here's what you need to know.

'It's really overwhelming'

When it comes to the mental health toll of financial stress, 64-year-old Jannett Ioannides from Toronto knows the feeling all too well. Ioannides said she is unable to retire due to financial restraints and finds it "very depressing."

"If I do retire, we would lose our house and have no place to live," she told Yahoo Canada. Ioannides has had different professions throughout her life, trying to keep up with payments and "make ends meet." Her husband, who is 67, is retired but has since picked up two part-time jobs to help make payments.

"We're not lavish livers by any means. We worked very hard all our lives," Ioannides said. She added that she has two kids about to get married, as well as two elderly parents she and her husband take care of. Though she hopes to travel to places like Germany or Greece, Ioannides said the cost of living is what occupies her mind every day.

"It's really overwhelming," Ioannides said. "It's overwhelming not to know when I can retire and what kind of life I will have. When do I retire? What happens if I have to sell my home? This has been my home for 40 years. Where do I go? What do I do?"

Celine Williams-Tracey, a social worker and psychotherapist, has continued conversations about retirement with clients and with family members. She said some people on the cusp of retirement can be experiencing significant anxiety.

“Consider someone who is working class who may not have all the education someone else might have, and might not have a well-paying job and worked from job to job,” said Williams-Tracey. “There’s so many different variables that are happening that can impact people in a negative way.” She adds that financial stress can potentially even affect our physical health, not just our mental state.

According to the Financial Consumer Agency of Canada, if someone is dealing with financial stress, they are four times as likely to suffer from sleep problems, headaches and other illnesses such as high blood pressure and heart disease. Additionally, they are more likely to experience strain in their personal relationships.

“There’s a stigma,” said Williams-Tracey. “We think that by a certain age, you’re supposed to be independent and able to save your money…and not depend on your children,” Williams-Tracey said. Financial stress at an older age can be isolating because some might not choose to share their situation with others, so they’re not seen as a burden.

Income level linked to health outcomes

According to a 2023 'Aging in Canada Survey' conducted by the National Institute on Aging (NIA), only about one-third of working Canadians aged 50 and above who intend to retire said they can afford to do so at the desired time. Almost 40 per cent of respondents said they are not in the financial position to do so and 26 per cent said they are unsure of whether they can afford to retire at the time they want.

Madison Brydges, a health policy researcher at the NIA who focuses on the intersection of aging, sociology and healthcare, said income level and health are closely connected.

"When we look at household income, particularly among older adults...lower incomes are associated with more chronic conditions, worse mental health, higher rates of food insecurity and loneliness," Brydges said. She added that older Canadians have to consider unique expenses like medications.

When it comes to finding satisfaction in later life, Brydges said a lot of it boils down to the ability of older adults to choose where they want to age—whether that be in their own home, a retirement home, or elsewhere. "A a big piece of well-being and satisfaction later in life is if you can afford to access supports and services while aging where you want to," she said. Brydges added that having a stable and secure income is a big factor in this.

More research still needs to be done regarding the impact of income on the health of older Canadians, but Brydges said when we consider the data we have now—from the baby boomer generation—the issues can only be exacerbated considering the financial debt many millennials find themselves in. Retirement readiness may be even worse in years to come. "This story around income and health might shift as we see different generations entering their retirement years," said Brydges.

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