This Is a Retirement Plan (For a Single Woman in Her 50s)
Cynthia is 56 years old, single, and lives in Winnipeg. She rents a two-bedroom apartment for $1,600 a month, likes her place, likes her landlord, and has never felt particularly drawn to homeownership just because it’s what people are supposed to do. She works in healthcare after switching careers later in life, earns about $118,000 a year, and contributes to the HEB Manitoba pension plan. She’s been diligent with her savings, avoided debt, and built a solid financial base on her own.
And yet, like many single people heading into their late 50s, she’s not looking for reassurance in the abstract. She wants real answers to very practical questions about whether the life she’s imagining is actually supported by the numbers.
Cynthia’s main goal is straightforward. She’d like the option to retire somewhere between age 60 and 62 and spend about $60,000 per year after tax without worrying about running out of money later in life.
Along the way, she’s also wondering whether renting is a mistake in retirement, whether her TFSA should still be sitting mostly in GICs, how much her pension really helps given that she won’t receive a full defined benefit, and how to be reasonably tax efficient without turning her finances into a full-time project.
Before answering any of those questions, it helps to understand where she’s starting from.
Where Cynthia is starting from
Today, Cynthia’s net worth is about $520,000. Roughly $335,000 sits in her RRSP, $130,000 in her TFSA, and another $55,000 in cash savings. She has no debt and no real estate.
It’s not an extreme situation in either direction, but it’s very representative of someone who’s done a lot right while navigating life on a single income.
Can she retire at 60?
The first thing we tested was Cynthia’s preferred outcome: retiring at 60 and immediately spending $60,000 per year after tax. On the surface, the projections looked fine for quite a while, which is often what gives people false confidence when they glance at a retirement spreadsheet.
The problem showed up later.
In her early 80s, the plan began to deteriorate, and by her mid-80s the margin of safety was gone. Nothing dramatic happened in any single year, but the cumulative effect was enough that Cynthia would be relying on increasingly optimistic assumptions just when she’d have the least ability to adapt.
What changes if she works a little longer?
Instead of forcing retirement at 60, we adjusted the plan so Cynthia works two additional years and retires at age 62, in April 2031. Those extra working years give the plan more breathing room and reduce the risk that retirement hinges on best-case assumptions holding up well into her 80s and 90s.
They also allow her to fully fund a $12,000 bucket-list trip to the UK in 2027, upgrade her vehicle with a $35,000 purchase in 2029, and continue saving meaningfully while she’s still in a higher tax bracket.
From 2026 through 2030, she contributes $7,200 per year to her RRSP and $7,000 per year to her TFSA, with contributions increasing slightly over time with inflation.
Cynthia spends about $54,000 per year after tax while working and increases that to $60,000 per year once retired. Spending rises with inflation until age 75 and then grows more slowly after that (inflation minus 1%) as she enters the “slow-go” years from age 76 to 95.
On the income side, Cynthia’s retirement isn’t dependent on a single source. Once she retires at 62, she begins receiving her HEB Manitoba pension, which pays about $16,000 per year initially and is indexed at roughly 70 percent of inflation. It’s not a full, gold-plated defined benefit pension, but it’s a meaningful lifetime income stream, and it’s easy to forget that she’s paying for it every year through contributions of about 8.5 percent of her paycheque.
In her 60s, Cynthia also draws from her RRSP to fund spending, while intentionally delaying CPP and OAS until age 70. This allows her to draw down registered assets during a lower-tax window and avoid stacking large government benefits on top of higher RRIF minimum withdrawals later in life.
Once CPP and OAS begin at age 70, RRSP and RRIF withdrawals are reduced accordingly, which keeps Cynthia’s taxable income in a relatively narrow band throughout retirement. Over her lifetime, her average tax rate sits around 15.5 percent.
Is renting a problem in retirement?
One of Cynthia’s biggest emotional concerns had nothing to do with markets or taxes. It was renting.
There’s a persistent idea that renting in retirement is inherently unstable, that you’re always one reno-viction or rent increase away from chaos. In practice, much of that fear is driven by worst-case anecdotes rather than how rental markets actually work for long-term, low-maintenance tenants.
Cynthia pays a fair rent, has a good relationship with her landlord, and provides exactly what most landlords want: predictability. In a tenant-friendly regulatory environment with rent controls and rising operating costs, steady tenants are valuable, and rents often rise more slowly in long-held units than in higher-turnover properties.
Buying a condo would require Cynthia to tie up a significant portion of her liquid assets in a single, illiquid investment. That capital can’t (easily) be partially accessed to fund retirement spending, and it introduces a future decision that often gets ignored in planning discussions: selling later.
Selling the condo late in life comes with transaction costs, timing risk, and the possibility that markets aren’t cooperating when you need them to. For Cynthia, renting provides flexibility, liquidity, and simplicity, which are often underappreciated assets for single retirees.
How the retirement plan actually works
Cynthia’s TFSA also needs to play a different role going forward.
Right now, most of her TFSA is invested in GICs, which made sense when safety and certainty were the priority. Going forward, that account needs to realize its full tax-free potential.
She’ll continue contributing for several more years, with the goal of growing the TFSA to roughly $250,000 before her first withdrawals around 2033. Because this money needs to last decades, it should be invested in a globally diversified, low-cost index fund rather than parked in guaranteed returns that slowly lose purchasing power.
The TFSA becomes her tax-free growth engine and her margin-of-safety account for one-off expenses or unexpected shocks, not something she taps casually.
From a tax perspective, the strategy is simple and repeatable. While working, Cynthia contributes $7,200 per year to her RRSP to bring taxable income down to the bottom of Manitoba’s 37.9 percent marginal tax bracket, ensuring each dollar contributed delivers a significant tax benefit.
She maxes out her TFSA each year and uses surplus cash flow to fund short-term goals like travel and vehicle replacement.
In retirement, RRSP withdrawals are sized to fill the 26.75 percent marginal bracket, CPP and OAS are delayed to 70, and TFSA withdrawals are used selectively rather than automatically.
Final thoughts
By the end of the projection, Cynthia’s net worth gradually declines, which is exactly what it’s meant to do for someone maximizing her life enjoyment.
She uses her savings to support her spending, her pension and government benefits provide a stable income floor, and she still carries a reasonable margin of safety well into her 90s, much of it in her TFSA where it remains flexible and tax free.
More importantly, the retirement plan gives Cynthia clarity. She knows when she can retire, how much she can spend, and which trade-offs actually move the needle. The uncertainty doesn’t disappear, but it’s contained. And for someone planning retirement on a single income, that’s the difference between hoping things work out and knowing they probably will.
What was perhaps missing is the makeup of her RRSP. Is it also in GICs or is there some equity portion? What would you advise her on what she should hold? I would guess some amount of equities as you show her still drawing down her RRSP/RRIF until 95. However she will be needing to draw the RRSP down from age 62 until her OAS and CPP kick in at 70, so you wouldn’t want the equity portion to be too high.
I also would be interested in your advise on how she should hold the $55,000 in savings. Does she have any contribution room in her TFSA?
The RRSP is in a bank managed balanced fund. If she was willing to move her TFSA to a self-directed platform and invest in an asset allocation ETF then she could do something similar with the RRSP – or consider a managed (robo) portfolio with the RRSP portion. If she went with the self-directed option we would pair a cash wedge alongside of the risk appropriate AA ETF a couple of years before her planned retirement. This can be done with new contributions, and by turning off the DRIP on the AA ETF.
TFSA is fully maxed, just was invested in cash and maturing GICs. The savings are for emergencies and short-term goals, so the most appropriate place to park it is in a high interest savings account.
Having TFSA in fixed income until 2015 was our most significant financial error.
It’s really common for me to see TFSAs in savings or GICs, or the opposite – speculating on risky stocks in hopes of a lottery-like tax-free gain. At least with the fixed income your balance was still intact.
As a single woman in my 50s looking at retirement in the next few years, I appreciate seeing this scenario! I’m also a renter, and while I would like the emotional stability of owning a condo, I hate the idea of tying up that much of my assets in such an illiquid investment, so it’s nice to see that addressed as well.
Thanks Sabrina! I’ve worked with clients in this situation who were quite insistent on buying and it really means living a smaller life than you could otherwise in a renting scenario. The other comment I get from renters is that it is “so freeing!” to not have to worry about the hassles of homeownership, especially in an aging home.
Cynthia should buy a house – I checked the Winnipeg real estate – the average price is $382,100.00.
From the Canada Mortgage website – a $382,100.00 mortgage would be $1948.27 per month using a variable 5 year mortgage of 3.70%.
At the age of 56 and making an above wage of $118,000.00/year- she has power to borrow – as she is a prime bank candidate. Once she retires the bank will not lend her money.
With a home – she calls the shoots- as a renter she is correct in her fear of being evicted- as the landlord gets older – he may sell the property. It will be difficult as she gets into her 70’s to pack up her bags and knock on doors to get a new apartment. It is difficult for a landlord to take in an old person as they do not know how long she will live.
Cynthia should put the expensive travelling second and put buying a home immediately. (CYNTHIA – do not wait any longer- as time is against you.)
– I feel sorry for people at ages 65 years old and over that rent.
– Winnipeg has reasonable affordable homes- a single old women is venerable if she needs to hunt for a new apartment.
If anything, she should consider a nice retirement home with adjoining staged care that she can access when she needs it. She would benefit from the safety and security – but mostly the community.
Robb- this should be part of the financial plan, as most are not cheap.
Hi Rob, not to dismiss the possibility of care in her later years but this is a 56-year-old woman still in her prime earning years and looking forward to maximizing her life enjoyment in the go-go years of retirement. While spending on travel, hobbies, and entertainment will almost certainly wane as she ages, keeping her spending at $60k per year allows those categories to shift into health and convenience.
Retirement homes (RH) are less than affordable for most. You’re looking at around $60,000.00 / year for a nice RH, depending on where you live of course.
I disagree that she should buy a home. There are many other costs to home ownership that will be a drag on her finances, and actually cost her more than she is paying in rent today (maintenance, taxes, insurance, not to mention the closing costs of purchasing a home). There is a risk to renting for sure, but buying a home would cause a serious dent in her retirement savings, and her ability to retire at the age she wants to retire.
100% right, Adrianna. Buying a home at this age and stage of life would lead to unacceptable trade-offs in terms of retirement and lifestyle spending.
Rent is the maximum she will pay, while a mortgage is the minimum she will pay. Imagine taking out a $300k+ mortgage at age 56…
Bad advice. Property tax is this highest in MB than any province. Insurance and upkeep on top of that. She will have to buy lawnmowers and snowblowers-who wants to deal with that in their 60’s??
When a man who doesn’t know me or my priorities starts telling a woman what her priorities should be — as in buy a home now and travel sometime later or never — that’s when the woman should run for the hills. This man is trying to push his life-view onto yours.
Thank you. Great information.
Really appreciate seeing a plan based on a single income. Home ownership is not for everyone and it sounds like for Cynthia it’s not really a goal she actually wants, more feels pressured into. Always fantastic to math it out and take the emotional/speculative side to facts as you’ve shown here.
I agree with the above comments. Not everyone makes $108,000.00 per year- she definitely can afford a Winnipeg home- as this is not Toronto. She has a window of opportunity in front of her.
Her home is like an RRSP- but you get to live in it and is TAX FREE when sold.
The numbers work out to own- but if she wants a – freedom style life – then rent. She only has a few years left to make the home purchase. _ Age 56 is OK to get a mortgage – The home also provides exercise – like shovelling and cutting the grass- she will save not having a gym membership.
– It all comes down to preference – we just try to help given our views.
The word “definitely” suggests misunderstanding of risks. She can buy a home but it would increase the likelihood of her not being able to spend as much as she would like and/or run out of money.
thanks for this post. ‘singles’ make up a large demographic, and it’s a group that continues to grow especially as people age, yet this group is frequently neglected when it comes to financial case studies. Thanks for shifting away from the ‘status quo’ , it’s one of the reasons why I love your blog plus I really appreciate your insights share in your blog
A life lease building could be a possibility. It might be tight for her because you have to have the upfront purchase cost because mortgages are not possible but the monthly costs would be less than rent with a guaranteed payout when she is no long able to live there.
Life leases are not all without risk. Many years ago in Edmonton, my family was looking into purchasing a life lease for my father. The company offering it was Christenson Developments. We decided to not pursue the life lease and just rent a unit for my father. We dodged a bullet as 2-3 years later the company ran into financial trouble and a number of life lease holders were left waiting years before they received their money back. I believe some life lease holders actually may have passed away before their estate received the funds back.
A link to an article on the Edmonton story:
https://www.cbc.ca/news/canada/edmonton/more-than-200-albertans-owed-hundreds-of-thousands-of-dollars-for-life-lease-repayment-1.7456846
You definitely dodged a bullet. The Christenson Life Lease debacle is almost unimaginable. Local, previously well respected, individual endorsed by local celebrities is responsible for huge losses of life savings.
My wife and I are actually starting to consider the possibility of selling our home to start renting within a few years after retirement. We could afford to own a mortgage free home in retirement but we have started to think about the freedom renting could provide in terms of travel, including winters overseas (not setting foot in the U.S.).
Nothing is decided and our retirement won’t begin until next year but we are open to renting. Not something I would have said a few years ago.
Thanks greatly for providing a scenario of a single person. Being a single in a world geared to two-income households is an ongoing challenge. The majority of retirement savings/spending scenarios are for couples –which often means they have a higher total income, resulting in usually more savings, and they benefit from greater tax breaks than what us singles have, making those scenarios difficulty to apply.
Thanks again Robb for writing about living as a single person. It’s very different from couples who have so many more financial benefits afforded to them as indicated above. I always enjoy reading your articles.
A comment on “single people”- Single people have caused the housing affordability issue.
Back in the times – a couple got married and bought a home to raise a family. Back then there was really one income provider, Now times have dramatically changed. With women now making more money than men- they are now buying homes for themselves. That means before ‘ONE” home for two people- now it is “TWO” homes for each single person. Society cannot adjust fast enough to meet the increased demand for homes. Basically, being single and buying a home is socially bad – as it takes away the supply of homes for a couple who wants to start a family.
Also with both the man and women making good incomes- by just mere math – the price of a home will rise at least double.
Weirdest take Jerry. Women no longer need to have men co-sign for us. We will continue to buy and rent on our own.
It seems people are so conditioned on home ownership. As someone stated, a mortgage payment is just the beginning. Renting is absolute freedom. Especially as a single person. Times have changed, markets have changed. In this scenario buying a home even in Winnipeg would make her house poor. Every decision would have to be measured against, will I need that money for a house repair or taxes etc. She wouldn’t be able to travel so freely.
A better argument is that aging boomers continue to live in their larger family homes, long after their own children have left the nest. One or two people are living in 4-and-5-bedroom homes.
The lack of inventory for detached single family homes drives up prices, and policies such as the principal residence exemption and deferred property taxes further exacerbate the problem.
Andrea- Travelling all your life is not needed. People ages 55- 65 and acting like teenagers. We must grow up and face the reality of your age. I know of many people that are over 68 years old – many look lost- they have no home- they rent- when you are forced to move by some unforeseen circumstance – they become fearful.
Cynthia can forego a trip or two and buy a home. At age 56 you still feel invincible- until reality kicks in 20 years from now.
Will Cynthia have to search for a new apartment then?
Owing a home is Gold- you can sell it if you have to.
Renting is not absolute freedom- Cynthia basically is putting most of her equity towards travelling.
How much does she spend on travelling is a key question.
Cynthia makes a high salary – she can do both travel and buy a home. She is lucky and her salary puts her the driver’s seat.
I
You can pick your own lifestyle preferences but to suggest that you know better whether others should or shouldn’t travel seems a little weird.
To suggest that someone with $500k in late 50th and about to retire should put most of her net worth in a single asset, forgo diversification, increase cash outflows and borrow to the hilt = terrible advice.
Mordko- The ability to borrow is an asset- once retired the bank will not lend her money. Using banks money is called leverage. She pays rent anyway- so the difference is not that bad by owning a home. – Also, it looks like Cynthia has only $500K in assets- that seems low for a person with a wage of $108,000.00 per year. It looks like she has a spending problem and a priority problem.
I just say this as she is still young enough to make changes. A lot of single people fall into this- but her salary is quite high to make changes. Most singles cannot pivot when they reach 60 years old- as it is too late.
Reasons to buy a home in Winnipeg.
1:Buying a home in Winnipeg can be a good decision due to several factors:
Affordability: Winnipeg offers one of Canada’s most affordable housing markets, with home prices significantly lower than in cities like Toronto and Vancouver.
2
Stable Economy: The city has a stable economy with strong job growth, supported by sectors like healthcare and education, which helps maintain low vacancy rates.
2
Investment Potential: Winnipeg’s housing market is stable, with steady price appreciation and high rental demand, making it attractive for investors.
2
Community and Lifestyle: Winnipeg is known for its welcoming communities and vibrant culture, providing a balanced lifestyle for residents.
1
Cost of Living: The cost of living is relatively low compared to other major Canadian cities, making it easier for families to manage their finances.
1
Overall, if you are looking for a balance of affordability, stability, and community, Winnipeg presents a compelling option for homebuyers
You’re definitely committed to your point of view JerryT.
Hello Joanne- Thanks for this comment.
I am also single and am retired since 2016.
I own my own home and feel secure that I am in control of my destiny.
If I wanted to change my mind and rent- i would just sell my home and use the equity to pay a landlord. I purchased my home when I turned 30 years old in a beautiful part of Toronto.
I enjoy the big city life- I bike to the Distillery District by riding by Lake Ontario. If I am bored, I walk to the Eaton Centre and back – a round trip of 16 km.
I never had a great salary like Cynthia has- I made less than half of what she makes.
I was able to invest in USA mutual funds and gold – so it paid off.
I also have a home in Wasaga Beach – and go sking and biking and kayaking as I am 5 minutes to the Great Georgian Bay with its white sands and full of Beach Goers in the hot summer months.
– You can use your home a leverage and borrow the banks money because you have collateral.
Your choices fit your lifestyle and sounds like it has worked well for you. We are all individuals and have differing points of view and different circumstances. No two of us are exactly the same. When it comes to finances and stages in our life, isn’t it great that we have people like Robb that can guide us and help us achieve our dreams taking our desires into account?
Why she does not consider to rent a 1BR apt instead of a 2BR apt?
This change will produce a saving after the first year
Thanks for doing a case study about a single woman. As others have noted, it’s refreshing to read about single people and their retirement opportunities/challenges, which differ from the ones that are most often profiled in case studies involving the finances of couples. I hope to see more case studies of single people as this demographic continues to grow.
It is unfortunate she didn’t use her TFSA to at least make a larger percentage in equities. She could have grown it more.
At this stage, it would be questionable for her to buy a home. If she was in her 30’s, yes.