@mghibradzeee: DK

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Monday 20 July 2026 21:07:07 GMT
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Two thirds of Canadians over 72 take nothing but the minimum There's a quote that circulates attributing to a well-known Canadian planner the line that he meets far more people who took too little out than too much. I went looking for it. He never wrote it. What he did write is a Financial Post piece from May 2019 called
Two thirds of Canadians over 72 take nothing but the minimum There's a quote that circulates attributing to a well-known Canadian planner the line that he meets far more people who took too little out than too much. I went looking for it. He never wrote it. What he did write is a Financial Post piece from May 2019 called "Why saving too much for retirement is just as risky as saving too little," and it's a grief piece about his mother dying days after turning 66, with savings meant to last thirty years that turned out to be more than she ever needed. That's a much harder read and a much better argument. I'm not going to flatten it into a soundbite. The number I'll use instead is the C.D. Howe Institute's, from an Intelligence Memo last October: two thirds of people 72 and over withdraw only the required amount and no more. Fair warning on that one too, it's a policy memo and the figure carries no footnote. Cite the institute, not "the data." The finding that actually reframed this for me is Blanchett and Finke. They measured what retirees spend rather than what they say. Money arriving as guaranteed income gets consumed at roughly 80 cents on the dollar. Money sitting in an investment account gets spent at about half that rate. Same person, same wealth, same health. The observed withdrawal rate from savings for a 65 year old couple is 2.1 percent. Everyone argues about whether 4 percent is safe while real people draw half of it. US data, so read it as a shape. Which means the fix isn't motivational. It's structural. A bigger floor, CPP deferred, maybe an annuity for part of it, and the spending follows without anybody having to talk themselves into it. And the honest other side, which the old version of this didn't have. Lockwood and Ameriks both found people hold money late in life deliberately, because they'd rather fund their own care than accept whatever room opens up. In one study 83 percent chose privately funded care over public care even at a cost of $50,000 in reduced bequests. That's a preference, not a failure. So the question isn't whether you're underspending. It's whether the money you're holding is doing a job you actually chose. Educational only, not advice.

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