Retirement Planning

Retirement planning isn't just about saving money. It's about knowing exactly how much you need, how to get there, and how to make your money last once you retire. Most people approach retirement with two questions:

"Do I have enough?" and "When can I actually stop working?"

The answer depends on where you are in your journey.

Pre-Retirement: Building Toward Your Goal

If you're still working, retirement planning is about reverse-engineering your future. Here's how we approach it:

Step 1: Define Your Retirement Lifestyle

How much money do you need each year to live the life you want in retirement? $50,000? $70,000? $100,000?This isn't about guessing. We look at your current spending, adjust for changes in retirement (no mortgage, no commute, but maybe more travel), and arrive at a realistic annual income target.

Step 2: Account for Guaranteed Income Sources
You're not starting from zero. Most Canadians have income streams already lined up:

CPP (Canada Pension Plan) – Based on your contribution history, you'll receive a monthly payment starting as early as age 60 or as late as age 70.

OAS (Old Age Security) – Available at age 65 for most Canadians who meet residency requirements.

Employer Pensions – If you have a defined benefit or defined contribution pension, this adds to your guaranteed income.

We calculate exactly what these sources will provide and subtract that from your total income needs.

Step 3: Determine Your Savings Gap

Let's say you need $70,000 per year in retirement, and CPP, OAS, and your pension will provide $35,000. That leaves a $35,000 annual gap.Using a safe withdrawal rate (typically 4% annually), we work backwards to determine how much you need saved by retirement. In this case, you'd need approximately $875,000 in invested assets.

Step 4: Break It Into Monthly ContributionsNow that we know the target, we calculate how much you need to save each month to reach it—factoring in your current savings, expected investment returns, and years until retirement.

If you're 35 and want to retire at 65, that's 30 years to accumulate $875,000. Contributing $1,200 per month to your RRSP or TFSA at a 6% annual return gets you there.The goal is simple: give you a clear number and a clear path to get there.

During-Retirement: Maximizing Your Income

Once you've reached retirement, the strategy shifts. Now it's about withdrawing money in the most tax-efficient way possible and making your savings last.The biggest mistakes retirees make:

- Taking CPP or OAS at the wrong time
- Withdrawing from the wrong accounts first
- Paying more tax than necessary.

Here's what we optimize:

1. When to Take CPP

You can start CPP as early as age 60 or delay it until age 70.Starting at 60 reduces your monthly benefit by 36%.Waiting until 70 increases your monthly benefit by 42%.The decision isn't obvious. It depends on your health, other income sources, life expectancy, and whether you need the cash flow immediately. We run the scenarios and determine the optimal timing for your situation.

2. When to Take OAS

OAS is available at 65, but you can delay it until age 70 for a higher monthly payment (0.6% increase per month delayed).However, OAS is also subject to clawback if your income exceeds certain thresholds ($90,997 in 2024). If you have substantial RRSP or pension income, taking OAS early might actually cost you money.We model your income projections to determine the best time to start OAS without triggering unnecessary clawbacks

3. How Much to Withdraw from RRSP, TFSA, and Non-Registered Accounts

This is where most retirees leave money on the table.RRSPs are fully taxable when withdrawn. Taking too much in one year pushes you into higher tax brackets.TFSAs are tax-free, making them ideal for supplementing income without increasing your taxable income.Non-registered accounts are taxed on capital gains and dividends, which are taxed more favorably than RRSP withdrawals.

My Investment Approach:

Professionally managed mutual fund portfolios tailored to your timeline and risk tolerance
Diversified across Canadian, US, and international markets
Regular rebalancing to keep you on track
No emotional decision-making - we stick to the plan even when markets are volatile