Retirement doesn’t look like it did a generation ago. Fewer people have workplace pensions. The cost of living on Vancouver Island keeps climbing. And we’re living longer—meaning more years to fund.

No wonder many Islanders ask: “Will I have enough?” The truth is, retirement isn’t about hitting a magic number—it’s about building an income plan that fits your life and goals. That plan looks different if you’re downsizing in Duncan, running a small business in Parksville, or dreaming of sailing the Gulf Islands.

Whether retirement is decades away or already here, let’s bust some common myths and share some practical steps you can take today. Being better informed about money issues around retirement, and knowing a few ways to address your specific concerns, can really help provide some peace of mind.

7 retirement myths vs. reality

Your needs in retirement will change over time. The early years may be full of travel and adventure, while later years may bring more focus on health or comfort. A strong plan gives you flexibility to adapt as life evolves. Step one? Bust those myths.

Myth 1: “I need a million dollars to retire.”

Reality: Rather than starting by aiming for a magic number, you need to focus on income that matches your lifestyle.

Hearing you need “a million dollars” can be discouraging. The truth is, your needs depend on your family needs, housing, health, and planned lifestyle. If your mortgage is paid off, you may need far less. If you plan to travel or expect higher medical costs, you may need more. On the Island, rising house prices can work in your favour if you downsize or relocate to a lower-cost community.

What to do: Try Coastal Community’s retirement planning calculator to see what you’ll actually need.

Myth 2: “It’s too late to start saving money.”

Reality: Every step you take, no matter when you take it, can improve your future income.

Many people don’t start really thinking about and seriously saving for retirement until their late 20s, 30s, or even older. Islanders who work seasonally or on contract often think they can’t save, but even $100 a month adds up over time. The key is to make small, consistent contributions. Cutting back on expenses or rejigging debt can free up cash to put toward your savings.

What to do: Use a TFSA for flexible, tax-free growth*. Make catch-up RRSP contributions if you can. If you think you’re behind, Coastal Community financial consultants can help you build a catch-up plan that fits your income and life stage.

Myth 3: “I have to stop working completely when I retire.”

Reality: Many retirees choose part-time or seasonal work to stay active and earn income.

Working in retirement isn’t for everyone, but it’s increasingly popular for some people. For many, it’s not only about extra money, it’s also about purpose and community connection. On the Island, opportunities range from tourism and the service sector to helping out at farmers’ markets. Remote work is another option, letting you earn from home or while travelling.

What to do: Think about the kind of part-time work or freelance projects you’d enjoy. Then factor that income into your retirement planning, along with Canada Pension Plan (CPP), Old Age Security (OAS) pension, registered savings plans, and taxes.

Myth 4: “I won't spend as much money in retirement.”

Reality: Some costs do drop, while others rise or stay consistent.

While you may spend less on commuting or work clothes, many retirees spend more on travel, hobbies, or healthcare. On the Island, downsizing to a condo or townhouse could lower your housing costs, but strata fees might come into play. If you’re still carrying a mortgage, paying it down before retiring can bring peace of mind.

What to do: Track your credit card spending with Collabria's CardWise app to see where your money’s going. Review your monthly transactions in online banking. Build a flexible budget that includes health costs, travel, and emergencies. Automated savings can help cover the unexpected.

Myth 5: “All I need is my RRSP.”

Reality: RRSPs are helpful, but shouldn’t be your whole plan.

While RRSPs are excellent for saving, you need to pay tax when you make withdrawals in retirement. This means you may not have enough money for everything you need. That’s why many people also use TFSAs, non-registered investments, or rental income. TFSAs are especially useful thanks to their flexibility, and you won’t be taxed for withdrawing from your TFSA—no matter what life stage you’re in. (Just remember to keep within your annual contribution limit.)

What to do: Aim to diversify. Contribute to your RRSP and a TFSA and other savings tools. We can help you find the right balance of tax benefits and income stability.

Myth 6: “All I need is my government pension.”

Reality: CPP and OAS usually cover only part of your needs.

Government pensions provide a foundation, but most people need more to cover their full lifestyle. On Vancouver Island, we don’t need to remind you that costs like housing, groceries, and ferry travel can stretch your budget thin. Another factor to consider is when to start CPP—at 60, 65, or later. Even those few extra years working can make a big difference.

What to do: Think about how to add to your pension with savings and investments, and ask for advice if you’re not sure how. Planning early can help you avoid gaps later.

Myth 7: “I shouldn’t have debt in retirement.”

Reality: Being debt-free is always a worthy aim, but manageable (or “good”) debt isn’t always bad.

Carrying a little debt doesn’t mean you can’t retire. Some Islanders keep a small mortgage or use a home equity line of credit (HELOC) for renovations, travel, or family support. The key is making sure your payments don’t overwhelm your income.

What to do: Focus on paying down high-interest debt first. If you carry a mortgage or HELOC, make sure the payments are well within your retirement budget.

Your Island retirement, your way

Coastal Community can help you take the next step, whether that’s paying down debt, deciding when to take CPP, or making the most of your savings. Our financial consultants are here to meet you where you are and plan the best way forward.

Ready to plan your future? Chat with us today!