Financial planning for women in Canada

Financial planning for women in Canada requires strategies that account for career breaks, caregiving responsibilities, longer life expectancy, and the growing role women play as wealth decision-makers. Whether you're stepping away from work to raise children, caring for aging parents, or planning a retirement that could span 30 or more years, a personalized financial plan can help protect your independence and build long-term security.

At Raymond James, we believe every woman's financial journey is unique, and your plan should be too.

TL;DR — Key Takeaways

• Canadian women earn approximately 87 cents for every dollar men earn, and the gender pension gap sits at 17%.
• More than half of all women in Canada (52%) took on caregiving responsibilities in 2022 significantly higher than the 42% of men who provided care.
• Women in Canada live an average of 4.4 years longer than men (83.9 vs. 79.5 years), meaning retirement savings must stretch further.
• By 2028, women are expected to control nearly $4 trillion in assets in Canada - up from $2.2 trillion in 2019.
• A comprehensive financial plan covering cash flow, insurance, estate documents, tax planning and tax-efficient investing can help close these gaps and build long-term confidence

Why Financial Planning Looks Different for Women in Canada 

Women in Canada face a distinct set of financial realities that shape how they save, invest, and plan for the future. Understanding these realities is the first step toward building a plan that truly works. 

The gender wage and pension gap 

Canadian women earn approximately 87 cents for every dollar men earn. For Indigenous, racialized, and women with disabilities, the gap is wider. This pay disparity compounds over a lifetime - reducing contributions to the Canada Pension Plan (CPP), Registered Retirement Savings Plans (RRSPs), and employer-sponsored pension plans. 

The result is a gender pension gap of approximately 17%. For every dollar of retirement income men receive, women get only 83 cents. In 2021, the average annual income for retired women was $36,700 - and approximately 200,000 women over 65 lived below the low-income threshold. 

The caregiving reality 

More than half of all women in Canada - 52% of those aged 15 and older - took on caregiving responsibilities in 2022, whether supporting children, aging parents, or adults with long-term health needs. That's significantly higher than the 42% of men who provided care during the same period. 

Women who are "sandwich caregivers" - caring for both children and aging parents simultaneously - face compounding financial pressures. Career interruptions, reduced work hours, and foregone promotions can significantly reduce lifetime earnings and retirement readiness. 

Longevity risk 

Women in Canada live an average of 4.4 years longer than men (83.9 vs. 79.5 years). A 75-year-old woman today has a 50% chance of reaching age 92 and a 30% chance of reaching 95, according to the Canadian Institute of Actuaries. 

Living longer means retirement savings must stretch further — and the likelihood of facing expensive health events such as cancer, cardiovascular disease, or dementia increases substantially. Longevity risk is now inseparable from health risk for Canadian retirees. 

The wealth transition opportunity 

A powerful financial shift is underway. By 2028, women are expected to control nearly $4 trillion in assets in Canada, up from $2.2 trillion in 2019. As women increasingly become the primary inheritors of wealth through the "great wealth transfer," they will manage a growing share of family and intergenerational wealth. 

At some point in their lifetime, 90% of women will be the sole financial decision-maker. More than 66% look first to a financial advisor for clarity and direction. This is a pivotal moment - and the right financial plan can help women take ownership of their financial futures with confidence and purpose. 

How Career Breaks Affect Your Long-Term Financial Plan 

Career breaks whether for parenting, caregiving, education, or personal well-being are a reality for many Canadian women. While these decisions are deeply personal, their financial implications deserve careful planning. 

Impact on CPP contributions and RRSP room 

When you stop working or reduce your hours, your contributions to the Canada Pension Plan decrease — and so does your future pension benefit. Similarly, RRSP contribution room is based on earned income. A five-year career break starting at age 35 can reduce your RRSP room by tens of thousands of dollars and significantly lower your projected CPP retirement benefit. 

The good news: Canada's CPP child-rearing provision can help. If you were the primary caregiver of a child under age 7 and your earnings were lower during that time, the CPP will exclude those low-earning months from your benefit calculation — potentially increasing your pension by hundreds of dollars per month. 

Strategies to stay on track during a career break 

Even during a career pause, there are meaningful steps you can take to protect your financial future: 

• Spousal RRSP contributions: Your working spouse can contribute to a spousal RRSP in your name, preserving tax-advantaged savings and enabling income splitting in retirement. 
• TFSA contributions: Your TFSA contribution room accumulates every year you are a Canadian resident aged 18 or older — regardless of whether you're earning income. Use this room to continue building tax-free savings. 
• Maintain insurance coverage: Review your life, disability, and critical illness policies before a career break. Coverage gaps during this time can leave you financially vulnerable. 
• Stay connected to employer benefits: If returning to work is part of your plan, understand how your employer pension, group benefits, and RRSP matching programs work — and what steps you'll need to take to re-enroll.

Returning to the workforce 

Returning to work after a career break is also an ideal time to revisit your financial plan. Update your budget, reassess your retirement timeline, and consider whether your investment strategy still reflects your goals and risk tolerance. A Raymond James advisor can help you model different scenarios and create a clear path forward. 

Planning for Caregiving Responsibilities 

Caregiving is one of the most significant — and often under planned — financial realities Canadian women face. 

The financial cost of unpaid caregiving 

The costs of caregiving extend beyond time. Reduced work hours, missed promotions, early retirement, and out-of-pocket expenses for care services all take a toll. Many women report that caregiving responsibilities have directly impacted their employment, their savings, and their emotional well-being. 

For women in the "sandwich generation," the challenge is compounded: supporting children's education and activities while simultaneously managing care for aging parents requires careful financial coordination. 

Tax credits and government support in Canada 

The Canada Caregiver Credit (CCC) is a non-refundable federal tax credit designed to help Canadians who support a family member with a physical or mental impairment. In 2026, the maximum federal credit is up to $8,601 for eligible dependents aged 18 and older. Provincial programs may offer additional support for example; Ontario provides an additional caregiver credit of up to approximately $5,500. 

Other supports include the Disability Tax Credit, the Medical Expense Tax Credit, and provincial home care programs. A qualified tax professional or financial planner can help you identify all available credits and deductions. 

How a financial advisor can help 

At Raymond James, our Financial Planning and Tax Consulting specialists help assess your full financial picture, structure cash flow, and address tax considerations, so your long-term plan stays on track through changing life transitions. An advisor can model caregiving scenarios — projecting how reduced income or part-time work affects your retirement timeline, your insurance needs, and your estate plan. 

Longevity Risk: Planning for a Retirement That Could Last 30 or More Years 

Longevity is a gift, but it also introduces financial complexity that requires thoughtful planning. 

What longevity risk means for women in Canada 

Longevity risk is the chance of outliving your financial resources during retirement. For women, this risk is amplified by longer life expectancy, the gender pension gap, and the higher likelihood of living alone in later years. Life expectancy at birth in Canada reached 83.1 years in 2026, and survival probability tables show that women have a meaningful chance of reaching their mid-90s. 

Ensuring your retirement income lasts 

A sustainable retirement income plan should consider: 

• CPP timing: Deferring CPP from age 65 to 70 increases your benefit by 42%. For women who are likely to live longer, this strategy can provide significantly more income over a lifetime. 
• Annuity considerations: A portion of retirement savings allocated to an annuity can provide guaranteed lifetime income, reducing the risk of running out of money. 
• Drawdown strategies: Work with your advisor to create a tax-efficient withdrawal plan that balances income from RRSPs/RRIFs, TFSAs, non-registered accounts, and government benefits. 
• Emergency reserves: Maintain 1–2 years of living expenses in an accessible account to cover unexpected costs without disrupting your long-term investment strategy. 

Healthcare and long-term care costs 

Three of the most financially consequential health risks in retirement are cancer (44.3% lifetime probability), cardiovascular disease, and dementia. While Canada's public healthcare system covers many treatment costs, out-of-pocket expenses — including prescription drugs, travel, private care, and long-term care facilities — can be substantial. 

Planning for healthcare costs is an essential part of any retirement plan, particularly for women who are statistically more likely to need long-term care. 

Brain health and financial decision-making 

Brain health plays a critical yet often overlooked role in how families plan, manage, and transfer wealth over time. Changes in cognition can affect judgment, confidence, and financial decision-making long before a formal diagnosis. Raymond James has partnered with the Baycrest Foundation to connect leading brain health research with thoughtful financial planning oversight — helping Canadian families protect cognitive well-being, wealth, and legacy across generations. 

Learn more about brain health and financial planning

Insurance and Estate Document Basics Every Woman Should Know 

Insurance and estate planning are foundational elements of a comprehensive financial plan — and they're especially important for women navigating career transitions, caregiving, and longer retirements. 

Life insurance, disability insurance, and critical illness coverage 

• Life insurance provides financial protection for your dependents if something happens to you. It's especially important if you have children, a mortgage, or other financial obligations. 
• Disability insurance replaces a portion of your income if you're unable to work due to illness or injury. Coverage gaps during career breaks can leave you exposed. 
• Critical illness insurance provides a lump-sum payment if you're diagnosed with a covered condition (such as cancer, heart attack, or stroke), giving you flexibility to cover treatment costs, household expenses, or time off work. 

Review your coverage regularly and especially before or during a career transition. 

Estate planning essentials 

At a minimum, every Canadian woman should have: 

• A valid will that reflects your current wishes for asset distribution 
• A power of attorney for property, authorizing someone to manage your financial affairs if you become incapacitated 
• A power of attorney for personal care, authorizing someone to make healthcare decisions on your behalf 
• Updated beneficiary designations on RRSPs, TFSAs, insurance policies, and employer plans 

Without these documents, provincial intestacy laws — not your wishes — will determine how your assets are distributed. 

Why estate planning matters especially for women 

Women's longer life expectancy means they are more likely to outlive a spouse, manage wealth independently in later years, and navigate intergenerational wealth transfer. Research shows that women are more inclined than men to give while living, reflecting a desire to create meaningful impact for loved ones and communities during their lifetimes. 

Our Estate and Trust Services and Charitable Giving Foundation support clients by helping them give with intention while safeguarding family harmony, preserving wealth, and creating lasting legacies. 

Explore estate and trust services

Your Financial Planning Checklist 

Use this 10-step checklist to build — or strengthen — your financial plan. 

1. Review your current financial snapshot: Income, expenses, savings, debt, insurance, and net worth. 
2. Assess your CPP/QPP statement: Check your contribution history via My Service Canada Account; identify gaps from career breaks. 
3. Maximize tax-advantaged accounts: Contribute to your RRSP (or spousal RRSP), TFSA, and FHSA (if eligible) to catch up on missed years. 
4. Evaluate your insurance coverage: Ensure life, disability, and critical illness policies are adequate, especially before or during a career break. 
5. Update your estate documents: Confirm your will, power of attorney for property, and power of attorney for personal care are current. 
6. Review beneficiary designations: On RRSPs, TFSAs, insurance policies, and any employer plans. 
7. Model caregiving scenarios: Work with your advisor to project how reduced income or part-time work affects your retirement timeline. 
8. Plan for longevity: Stress-test your retirement plan for a 30+ year horizon; consider CPP deferral, annuity options, and healthcare cost projections. 
9. Build an emergency fund: Target 3–6 months of living expenses in an accessible account. 
10. Schedule an annual financial review: Life changes frequently; your plan should keep pace. 

Frequently Asked Questions 

Q1: What is financial planning for women in Canada, and why is it different?

Financial planning for women addresses the unique realities Canadian women face including career breaks, caregiving responsibilities, longer life expectancy, and the gender wage and pension gap to build a plan that protects independence and long-term security. 

Q2: How do career breaks affect my retirement savings in Canada?

Career breaks reduce your CPP contributions and RRSP contribution room, which can compound over time. A five-year pause can result in tens of thousands of dollars less in retirement income. The CPP child-rearing provision can help by excluding low-earning years from your benefit calculation. 

Q3: What is longevity risk, and why does it matter more for women?

Longevity risk is the chance of outliving your savings. Canadian women live an average of 4.4 years longer than men, so retirement plans must account for a longer drawdown period, higher healthcare costs, and the increased likelihood of living alone in later years. 

Q4: What government benefits are available for Canadian women who are caregivers?

The Canada Caregiver Credit provides a non-refundable federal tax credit of up to $8,601 for those supporting a dependent with a physical or mental impairment. Provincial programs may offer additional support. Other credits include the Disability Tax Credit and the Medical Expense Tax Credit.

Q5: What estate documents should every Canadian woman have?

At minimum: a valid will, a power of attorney for property, and a power of attorney for personal care. These documents ensure your wishes are followed, and your assets are protected if you become incapacitated or pass away.

Q6: How can I catch up on savings after a career break?

Use spousal RRSP contributions, maximize your TFSA room (which accumulates even when you're not earning income), consider the First Home Savings Account (FHSA) if eligible, and review employer plan options when returning to work.

Q7: What is the gender pension gap in Canada?

The gender pension gap in Canada is approximately 17%. For every dollar of retirement income men receive, women receive approximately 83 cents. This gap has persisted since 1976 despite substantial increases in women's workforce participation.

Q8: How can a financial advisor help with caregiving-related financial decisions?

An advisor can model scenarios showing how reduced work hours or career pauses impact your long-term plan, identify tax efficiencies such as the Canada Caregiver Credit, and ensure your insurance and estate documents are up to date for all life transitions.

Q9: Why is insurance important for women during career transitions?

Disability and critical illness insurance provide income replacement or lump-sum benefits if you can't work. Coverage gaps during career breaks can leave you financially vulnerable at a critical time. Reviewing your policies before a transition helps ensure continuity of protection.

Q10: How do I start a financial plan with Raymond James?

Connect with a Raymond James advisor who can build a personalized plan around your goals, life stage, and unique circumstances. Whether you're early in your career, navigating a life transition, or planning for retirement, your advisor is your partner every step of the way.

Talk to an advisor

Glossary of Key Terms 

Term	Definition
Longevity Risk	The risk of outliving your financial resources during retirement.
Gender Pension Gap	The percentage difference in retirement income received by women compared to men. In Canada, this gap is approximately 17%.
Sandwich Caregiver	A person providing unpaid care to both children and aging or dependent adults simultaneously.
Spousal RRSP	A Registered Retirement Savings Plan where one spouse contributes to the other's plan, allowing income splitting in retirement.
Power of Attorney (POA)	A legal document authorizing someone to make financial or personal-care decisions on your behalf if you become incapacitated.
FHSA	First Home Savings Account a registered account helping Canadians save for their first home, tax-free. Contribution room accumulates regardless of income.
CPP Child-Rearing Provision	A CPP provision that excludes low-earning years spent as the primary caregiver of a child under 7 from your benefit calculation, potentially increasing your pension.

Start the Conversation. Plan With Confidence. 

Every woman's financial journey is unique. A Raymond James advisor can help you build a plan that accounts for career breaks, caregiving, longevity, and everything in between — one as distinctive as you are. 

Whether you're building wealth, navigating a transition, or planning for the decades ahead, we're here to listen, understand, and help you move forward with clarity and confidence.