Hi friends, and thanks for stopping by to read A Financial Plan for Retirees. Yes, this is for retirees who are living it day to day, not saving for someday.
Most financial plans are tailored toward people planning for retirement, not living in it with limited resources. And yet, that’s the reality for millions of retirees – especially women – who aren’t sitting on a million-dollar nest egg. It’s the the reality of post-retirement life, especially for someone living on a tight or fixed income.
I’ve mentioned trying to put together a financial plan for someone who’s already retired, mostly in the financial check in I do towards the end of each year. And because I recently did my 2025 Financial Check In, I wanted to expand more on the basic financial plan I came up with for myself.
It’s a realistic, flexible, and empowering financial plan for women who are in a similar position as me: already retired, managing carefully, no spare income to invest, but committed to staying out of debt and making smart choices.
1. Preserve what you have
You’re not trying to grow wealth right now – you’re trying to stretch and protect what you already have.
- No debt is an excellent foundation. Stay there at all costs.
- Keep emergency cash reserves, even if it’s small (e.g., a few hundred dollars hidden in a sock or in a no-fee savings account).
- Know your core monthly costs (housing, utilities, food, meds) like the back of your hand. Re-check them quarterly.
- Track your expenses with a budgeting method that suits your personality. It could be a notebook, spreadsheet, or a simple app like EveryDollar (free basic version).
2. Maximize income streams you already have
You may not be able to earn more, but you can make sure you’re squeezing everything out of what you do get.
- Government benefits check-up: Are you getting all you’re entitled to (GIS, OAS, CPP, Social Security, Canadian Dental Care Plan, housing subsidy, seniors discounts, prescription programs)?
- Consider low-effort, flexible earning options: pet-sitting, online tutoring, housesitting, survey sites, or volunteer roles that come with perks (like meals or accommodation).
- If you’re living frugally already, think of “earning” as anything that extends your resources like staying somewhere rent-free, growing food, or bartering. (Ask me about being a full time housesitter and volunteering to eliminate accommodation costs.)
3. Prioritize known big expenses
For me I have to sock away at least $6,000/year for horse board and I like to keep extra money in that account for vet bills, farrier, and other unexpected costs. I know it’s coming due so I make sure I have the money ready to go. I’m sure you probably have similar big expenses you need to plan for. And it’s smart to get a jump on them.
Think of these as non-negotiables and sinking funds – expenses you can predict, so you can plan ahead, even with small monthly contributions.
If monthly contributions aren’t possible, can you align timing of this expense with any periodic income boosts (tax refunds, GST/HST credits, climate action incentives, etc.)?
4. Cut costs without cutting joy
I know you’re already living frugally and researching more ways to save, but here’s a quick checklist of unconventional options:
- Swap out paid services (Netflix, phone plans) for free or cheaper ones.
- Join Buy Nothing groups or senior swap circles.
- Use food banks or community fridges – not as desperation, but as community support.
- Do price-matching, use cashback apps like Rakuten or Checkout 51.
- If you’re a traveler: housesitting, slow travel, and volunteering can make a huge difference.
5. Protect against unexpected costs
This is often overlooked when people say “don’t worry, your expenses go down in retirement”. But seniors often face health costs, housing changes, or dental/vision surprises.
- Know where to get low-cost or free help in your area (community legal aid, senior dental care, mental health support).
- Consider joining a health co-op or senior advocacy group if they offer any kind of group coverage or member support.
If you are in Canada, make sure you have signed up for the Canadian Dental Health Care Plan. It is now open to qualifying Canadians of all ages so I signed up about a week before the government sent me out the letter saying I qualified. This will cover a lot of basic dental care (x-rays, fillings, cleaning) and partly cover major dental costs.
6. Set micro goals for the future
Even if you’re not saving a chunk every month, it helps to have tiny, concrete goals.
- Add $100 to an emergency fund.
- Save enough for one dental checkup.
- Build a $50 fun fund for a day out.
- Pay for an annual pet expense (vaccines, etc.) bit by bit.
These goals give you a sense of progress, without setting you up to fail.
7. Invest wisely (even without money)
If you do come into a bit of money (a gift, small inheritance, tax credit), here are realistic options:
- Dividend-paying stocks or high-interest savings accounts.
- TFSA: No tax on gains, flexible withdrawals. (Canadian saving program)
- Guaranteed Investment Certificates (GICs): Low return, but very safe.
- But also: consider investing in yourself – a course, better shoes for walking, or an ergonomic chair. All are investments in your quality of life.
Financial plan for seniors
OK. So let’s wrap up what retirees should have on a financial plan.
Goals:
- Stay debt-free
- Save for fixed annual expenses
- Maintain housing, food, and healthcare stability
- Live with dignity and enjoyment
Monthly Plan:
- Track expenses
- Review for savings opportunities quarterly
- Contribute small amounts to sinking funds (horse, fun, emergency)
- Review benefits annually
Flex Goals:
- One low-cost or free adventure per month
- Try one cost-saving idea per week
- Watch for seasonal income boosts (GST credit, climate rebates, etc.)
Mindset:
- Progress, not perfection
- Community over isolation
- Creativity over consumption
Are you a low-income retiree? What else would you add to a financial plan for retirees?
Published by Cheryl @ The Lifestyle Digs on December 11, 2025.
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