How to plan for old age when you don’t have kids

In fact, the proportion of Canadian women without biological children has been rising steadily, up to 17.4% of those over 50 in 2022. And family sizes are smaller than they used to be, which lowers the chances that the kids people do have will be nearby, available, and capable of helping. “Many people assume their adult children will step in to help with things like tech issues, downsizing or health care,” says Kara Day, a financial planner in Vancouver. “If you don’t have kids to lean on, retirement looks different, and it requires more intentional planning.”

So what’s a childless retiree-to-be to do when it comes to prepping for old age? We spoke to the experts for some advice. Here’s what they recommended.

Build a community

A big family with lots of kids and grandkids, siblings, and niblings is, at its best, a built-in community where people look out for each other. If yours is small or non-existent, that’s not a problem, says Day, you just need to DIY. “Without children to step in, you need to build your own safety net,” she says. “That means building your own support system, such as friends, neighbours, or community groups.”

Another way to put it: “Make friends with younger people,” says Milica Ivaz, principal financial planner at Sensible Financial Solutions in Victoria. The advice is a bit tongue-in-cheek, but it’s not just for the times you need these new friends to lift heavy things for you. It’s also to help keep you happier and healthier for longer. 

“Feeling isolated impacts your mental capabilities,” Ivaz says, adding that joining social groups and staying relevant matters as well. “I’ve seen clients that don’t know what to do with themselves when they retire, and they don’t have that social interaction, and they’re not happy.” The World Health Organization backs Ivaz up: “Research shows that social isolation and loneliness have a serious impact on physical and mental health, quality of life, and longevity,” it says. 

Housing and transportation for advanced age

When you choose a place to live, what factors are on your must-have list and how will that change as you get older? No one likes to imagine losing their mobility or ability to drive, but these are common occurrences that should be planned for in advance. “We won’t be driving forever,” Ivaz says. But if you choose a living situation with good walkability and access to public transit, she adds, “it will be easier.” 

Larger homes with larger yards require more upkeep, which is one reason downsizing is so common among seniors (another is the opportunity to free up more capital). One lesser-known option that’s kind of halfway between buying and renting is a life lease, in which the property buyer pays a purchase price and then monthly maintenance fees in order to take up long-term residence (but not ownership) of a home.

If you think you’ll want to stay in your house as you age, there’s the option of renovations to improve accessibility, such as upgrading your bathroom to include a walk-in shower with room for two (that’s you and your care aide) or widening doorways to accommodate a wheelchair. Ivaz also suggests setting up a home equity line of credit (HELOC) for the maximum amount—even if you don’t need the money now—in order to “prevent any fraudulent actions with the property” and provide a source of cash should the need arise when you do move out of your home—for example, before and during a house sale.

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As for that time in the future when you may no longer be able to care for yourself, Day recommends thinking about it early. “Research local services like tech help, home care, or senior centres before you actually need them,” she says. And if you think long-term care (LTC) might be in your future (as it is for many), look into your options early on, “as the cost can vary quite a bit.” Private LTC facilities in B.C., for example, can cost between $7,000 and $18,000 per month, she says, while publicly subsidized options (reserved for lower-income seniors) are more affordable. Depending on what you’ve got saved for retirement, you might want to consider long-term care insurance. 

Get your finances and services in order

We can’t know what the future will bring. Surely today’s 70- and 80-somethings never anticipated needing help connecting their new dishwasher to the wifi (why is that a thing, again?). But from mowing the lawn and snow removal to meal prep and in-home care, there are plenty of costs associated with the declining abilities (or motivation) that tend to come with aging. And these need to be planned for, Day points out. “While child-free adults may have saved more during their working years, they’ll likely face higher expenses in retirement because they’ll need to pay for services children often provide,” she says. “Even small tasks, like moving furniture or setting up a new phone, may require paid help. So budgeting for those extra supports is important.”

Ivaz, for her part, doesn’t think a child-free retirement is necessarily more expensive—many of her clients in this age group are helping adult children buy a home, for example—but she agrees that it’s a good idea to account for all potential future costs when creating a retirement plan. She divides up retirement into three phases: the “honeymoon” during which you might spend more on travel and activities, the “settled” era where you’re focused more on living in your own space, and the phase “where you need some help.” How much money you need for each of these is “very personal,” she says, so Ivaz suggests coming up with what-if scenarios and looking at how you’ll cover those costs. 

Another way to make life easier for future you is to simplify things as you approach retirement. “If you can, consolidate accounts so you’re not juggling too many logins and statements,” Day suggests. “Keep a list of accounts and passwords in a secure location.” 

Prevent fraud, identity theft and bad decisions

There’s no shortage of horror stories about seniors losing their life savings to scams or unscrupulous acquaintances. And it seems like the fraudsters are getting more and more sophisticated. There’s also the worry of cognitive capacity: what if, in the early stages of mental decline, you withdraw all your money out of your safe exchange-traded funds (ETFs) or mutual funds and spend it on a hot but risky stock? Luckily, there are ways to stave off these kinds of issues.

Day suggests starting with basic security. Set up account alerts to notify you of any unusual activity, using password managers, and enabling two-factor authentication. “Another smart move is to automate bill payments to avoid missed payments or sneaky overcharges,” she says. Speaking of bills, there are also business practices out there that are fully legal but morally questionable, like letting people pay current market rates for internet download speeds that are a decade or more out of date. Consider marking your calendar for regular check-ins that you’re getting the best possible deals on the services you need—and no more.

There are other safeguards you can put in place, too, Ivaz says. For example, add a trusted contact person to your financial accounts. This is not so they have access to your money, but so the bank can call them in case of suspicious activity. Add beneficiaries (a successor holder in the case of your spouse) to your investment accounts now so they can’t be changed later, even by your designated power of attorney should you become incapacitated. Another trick, Ivaz adds, is to delay receiving Canada Pension Plan (CPP) and Old Age Security (OAS) benefits until age 70. You instead dip into other accounts, such as RRSPs, if needed in the meantime—not just so you can draw a higher amount, but for security, too. 

“Your CPP amount will not be exposed to market fluctuation,” she says, nor is it subject to your own personal investment decisions. Plus, your own savings can run out if you live to a ripe old age, but government benefits are for life.

Speaking of investment decisions, both Day and Ivaz suggest that DIY investors consider switching to a paid financial advisor as they age, to help with planning as well as safeguards. “I know everyone’s afraid of fees, but those fees have come down significantly over the years,” Ivaz says. “And professional money management has its place.”

One more thing: be extra-skeptical about what you see online, especially when it’s asking you to submit any personal information. In this age of artificial intelligence–enabled scams, all is not what it seems, from deepfake videos of the prime minister offering investment advice to “fun” social-media memes that somehow need your mother’s maiden name. When in doubt, say no. Skip tapping or clicking in favour of verifying first.

Put legal back-ups in place

You might pass away peacefully in your sleep at the ripe old age of 97 while in full possession of your faculties. But just in case that doesn’t happen, Day says, “make sure you have legal documents in place so someone you trust can act on your behalf if needed.”

Power of attorney (POA) is the big one. It’s essentially a document that assigns someone else the right to make decisions for you when you’re no longer able. Health-care directives are another category to think about. In British Columbia, for example, the government offers a guide to create an Advance Care Plan that details your wishes for future health care, including what kinds of treatments you’ll accept. (Search “health care directive” and your province or territory to find information relevant to you.) 

And then there’s estate planning. “Without heirs, you’ll want to be clear about where your money goes, whether that’s to friends, extended family or charitable causes,” Day says. “Outline your intentions in a will and keep beneficiary designations up to date.”

This is where that community and those younger friends we mentioned above come in. Without an obvious “most responsible child” to name as POA or executor, the decision can be harder. The key is to pick someone you believe is capable—not necessarily to do the work themselves, but to be able to enlist the right support when and if the time comes. 

Know what you want and have a plan

Some people have very specific ideas of how they want their future to go, down to the make and model of their coffin or urn; others are far more laissez-faire. No matter which part of the continuum you’re on, it’s a good idea to set up the basics long before they’ll be needed. 

As for the rest of it, from housing to health care to investment decisions, having a written plan of how you’d prefer things shake out will be a comfort not just to you, but to anyone needing to make decisions on your behalf. 

“I’ve dealt with many retirees over my career, and those plans that we created were very close to reality,” Ivaz says. Having a plan for dealing with infirmity, she adds, “will give you that freedom and confidence that you can live your life and enjoy retirement.” 

This is especially true for people without adult children to rely on, says Day. “Without kids, your safety net has to be one you build yourself, financially, legally, and socially,” she says. “The earlier you start, the stronger it will be.”

Read more on planning for retirement:

• “We’re well off in retirement. How can we pay less tax?”
• OAS payment dates in 2025, and more to know about Old Age Security
• CPP payment dates in 2025, and more to know about the Canada Pension Plan
• RRIF and LIF withdrawal rates: Everything you need to know

About Kat Tancock

Kat Tancock is a writer, editor, translator and content strategist based in B.C. She writes for publications including The Globe and Mail, Chatelaine and Asparagus.

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