The Importance of Growth Investments Post-70

Why Staying Invested in Growth Still Matters in Retirement

At age 70, many Canadians face significant financial decisions. Retirement is well underway, RRSPs must be converted to RRIFs, pensions are flowing in, and the traditional advice may suggest pulling back entirely from growth investments. However, this strategy can sometimes be short-sighted.

With Canadians living longer, facing rising healthcare costs, and experiencing inflation that erodes purchasing power over time, staying partially invested in growth assets beyond age 70 can be a critical component of long-term financial security. At DO Wealth, we help clients design retirement strategies that strike the right balance between income, stability, and continued growth—even into their later decades.

1. Longevity Risk: Your Portfolio May Need to Last 25–30 Years

Canadians are living longer than ever. According to Statistics Canada, a 70-year-old woman has a 50% chance of living to age 90. For couples, the likelihood that one partner will live past 95 is significant. This increased longevity puts pressure on retirement portfolios to last for two or even three more decades after age 70.

A purely conservative approach, such as holding only GICs or low-interest bonds, may not be sufficient to sustain income over such a long time frame. The real risk may not be market volatility—it may be running out of money.

2. Inflation Is a Silent Threat in Retirement

Over time, inflation gradually reduces the purchasing power of your savings. Even at an average 2.5% inflation rate, the cost of goods and services can double in under 30 years. For retirees living on a fixed income, this can dramatically erode financial comfort and independence.

Growth investments, such as equities and equity-based mutual funds or ETFs, have historically outpaced inflation. While they come with more volatility, they also provide the opportunity for long-term wealth preservation through capital appreciation and dividends.

3. Healthcare and Eldercare Costs Will Increase

As we age, our healthcare needs and associated costs typically rise. While Canada’s healthcare system covers basic medical needs, many additional costs—such as dental care, vision, prescription drugs, mobility aids, and in-home support—are not fully covered by public plans.

In 2025, Canada's health benefits cost trend is projected to increase by 7.4%, up from 5% in 2024. Additionally, specialized care, such as round-the-clock services, can cost up to $30,000 per month. Planning for these potential expenses requires a portfolio that not only protects your capital but continues to grow.

4. RRIF Withdrawals and Tax Strategy

Once you convert your RRSP to a Registered Retirement Income Fund (RRIF), you must begin withdrawing a minimum amount each year, based on a government-prescribed formula. These withdrawals are taxable income.

If your RRIF is invested too conservatively, it may not grow fast enough to offset mandatory withdrawals, which can increase the risk of depleting your account prematurely. Including some growth investments in your RRIF can help sustain the account’s value over time and reduce reliance on other taxable sources of income.

Smart tax strategies may also include:

• Delaying CPP or OAS to maximize future payments

• Using a TFSA for ongoing tax-free growth

• Managing RRIF withdrawals to avoid OAS clawbacks

  
  

5. Leaving a Legacy or Supporting Family

Many retirees are not just thinking about their own lifetime—they're thinking about the next generation. Whether it’s helping children with home ownership, contributing to grandchildren’s education through RESPs, or leaving charitable bequests, growth assets can support long-term legacy goals.

Investing in quality equities, dividend-paying stocks, or balanced mutual funds can help grow your estate, even while drawing income from it. A planned legacy strategy ensures your wealth has lasting impact beyond your lifetime.

6. Risk Management and Portfolio Diversification

A common misconception is that growth investments equal high risk. In reality, risk is relative to how and where you invest.

A 70-year-old with adequate pension income may be in a strong position to invest a portion of their savings for long-term growth, especially if they do not need to draw heavily on investment income. A diversified portfolio can include:

• Canadian blue-chip stocks

• Dividend-focused mutual funds

• Real assets like REITs for income and inflation protection

  
  

A “bucket strategy” is often recommended:

• Short-term bucket for immediate needs (cash, GICs)

• Medium-term bucket for steady income (bonds, balanced funds)

• Long-term bucket for growth (equities, ETFs)

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This approach balances stability with long-term potential.

7. The Role of Professional Advice

Investing after 70 requires a personalized approach. It’s not about chasing returns—it’s about making strategic decisions that account for your goals, timeline, lifestyle, and risk tolerance. At DO Wealth, our team specializes in helping seniors and retirees:

• Allocate assets wisely across all registered and non-registered accounts

• Minimize tax burdens

• Build sustainable income streams

• Plan legacies and charitable giving

• Adjust investments in response to life changes or market conditions

  
  

Whether you're managing your own wealth or supporting an aging parent, professional guidance can make all the difference.

Final Thoughts

Aging doesn’t mean stepping away from growth. In fact, incorporating growth investments into your retirement strategy may be one of the smartest ways to protect your independence, preserve your lifestyle, and leave a meaningful legacy. With careful planning, risk-aware investing, and expert advice, Canadians over 70 can continue to make their money work for them.

Let’s talk about how your investments can grow with you. Contact DO Wealth to schedule a consultation today.