Buckle Up: 6 Practical Tips to Manage Tariffs and Inflation on a Fixed Income
As Canadians continue to feel the effects of tariffs and inflation, seniors on a fixed income are among the hardest hit. From escalating grocery prices to shrinking investment portfolios, there’s growing concern on how to make ends meet.
One of the best retirement strategies is to plan for the worst and hope for the best. If your plan already does that, you’re in a stronger position to handle today’s challenges. If not, it’s never too late to make smart adjustments. Learn more in our blog, How to Build an Exceptional Estate Plan.
Plan for the Worst and Hope for the Best
This month’s article will outline 6 practical tips to navigate financial strain.
1. Maximize Government Benefits
Understanding the benefits available through government programs is a good place to start—they can help offset the effects of inflation.
- Canada Pension Plan (CPP): These benefits are automatically adjusted for inflation each year. In 2025, the cost-of-living increase is 2.6%, which can help with rising costs.
- Check if you’re receiving the maximum available. You may qualify for additional CPP credits, such as the Post-Retirement Benefit.
- Old Age Security (OAS): A key source of income for many retirees.
- If you have a lower income, explore your eligibility for the Guaranteed Income Supplement (GIS), which provides extra support.
- Property Tax Relief: Many provinces offer property tax deferral or reduction programs for seniors.
- Contact your local municipality to see what’s available in your area.
2. Cut Costs on Essentials
The rising costs for food, utilities, and housing requires an increased focus on expenditures.
Food Savings
- Plan meals and shop smart: Make a list based on what you already have at home. Stick to the shopping list and use comparative price apps like Flipp.
- Use coupons and reward programs: Digital tools like Checkout 51 can help you save. Loyalty programs such as PC Optimum or Air Miles add up quickly.
- Take advantage of Senior Discounts Days: Look for savings at stores like Shoppers Drug Mart, Bulk Barn and Safeway.
- Bulk shop wisely: Stock up on non-perishables or items you can freeze from stores like Costco and Bulk Barn.
- Reduce food waste: Store food properly and make use of leftovers.
- Cook at home: It’s often much cheaper than dining out or ordering take out.
Utility Savings
Energy costs are another area where small changes can lead to savings:
- Switch to LED light bulbs.
- Install a programmable thermostat to better manage heating and cooling.
- Check out if you qualify for provincial energy assistance programs, such as Ontario’s LEAP (Low-Income Energy Assistance Program).
Housing Considerations
As housing costs continue to rise, it may be time to reassess your living situation:
- Consider downsizing to a condo or other maintenance free options
- Explore shared living arrangements with family or other seniors.
For more ideas on alternate housing arrangements, check out our articles:
3. Review Investment Strategies
Recent market volatility—primarily due to tariffs and their unknown economic impacts—can be unsettling, especially for those relying on investments to fund retirement. Now is a good time to schedule a review with your financial advisor.
Here’s how they can help:
- Optimize withdrawal strategies: Your advisor can guide you on smart withdrawal timing from accounts like RRSPs or TFSAs, helping to minimize taxes.
- Ensure diversification: A review may show you should reduce exposure to industries affected by tariffs when the timing is right, such as manufacturing.
- Explore inflation-protected investments: Your advisor can introduce you to certain types of inflation protected securities.
4. Find Opportunities for Additional Income
There are many opportunities for seniors to augment their existing income – a crucial consideration when investment returns are declining and inflation is reducing your purchasing power. The good news? There are flexible and creative ways to boost your earnings:
- Consider a part-time job: Working even a few hours a week can help ease financial pressure and provide a sense of purpose. Look for roles that fit your skills and schedule, such as tutoring, consulting, or remote work.
- Explore passive income: If you have extra space in your home, renting out a room can offer both financial support and companionship—especially helpful for seniors living alone.
- Declutter and sell unused items: Whether online or at consignment shops, selling things you no longer need is a simple way to generate quick cash.
5. Leverage Senior Discounts
From groceries and pet supplies to insurance and entertainment, many businesses offer exclusive discounts for seniors. These savings can really add up over time:
- Pharmacies: Stores like Shoppers Drug Mart offer discounts on medications and health products.
- Transportation & attractions: Enjoy reduced fares on public transit and discounted admission to museums, galleries, and other venues.
- Membership perks: Programs like CARP offer bundled discounts on a range of services—from travel to insurance to retail.
Don’t hesitate to ask—senior discounts aren’t always advertised, but many retailers are happy to apply them if you mention it at checkout.
6. Create a Budget and Monitor
When it comes to managing your finances—especially during times of economic uncertainty—a monthly budget is essential. As the saying goes: you can’t manage what you don’t measure.
Here’s how to get started:
- List your essential expenses first: Focus on must-haves like housing, taxes, and healthcare. Try to separate needs from wants—not always easy, but definitely worthwhile.
- Review variable expenses with intention: Look for areas where you can cut back, such as entertainment, gifts, takeout, and travel. Use discounts and loyalty programs to manage costs for things like groceries and pet care.
- Track your spending regularly: Whether you prefer a spreadsheet or a budgeting app, tracking your expenses helps you stay accountable and identify areas where you can find further savings.
The more awareness you have, the more power you gain to make smart, sustainable adjustments.
You can’t manage what you don’t measure.
Conclusion
While inflation and tariffs can threaten making ends meet, especially if you’re on a fixed income, you have access to tools and resources that can help. By cutting costs, sticking to a budget, exploring new income streams, and making the most of available programs and discounts, you can better navigate these uncertain times.
Planning ahead—and adjusting as needed—is one of the smartest ways to stay financially resilient.
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Did this article help you feel more confident about managing your finances in inflationary times? Let us know how you’re adjusting your plan—we’re here to support you.
Financial Concierge™ offers Professional Executor and Power of Attorney services to assist with executor, attorney duties or help with managing daily financial activities. Learn more about Financial Concierge™ here.
Author: Janet Jackson, Contributor: Jill Chambers
DISCLAIMER: This blog is not intended to be legal or financial advice and should not be construed as anything other than for information purposes.
