A practical guide to planning, reviewing and enjoying the retirement you have in mind.

Why plan now

A retirement plan turns “I hope I’ll have enough” into a clear picture of what you have, what you’ll need, and how to get there. Most Canadians don’t have one yet.

• 52% of Canadians don’t have a retirement plan.
• 31% of baby boomers don’t know what share of their income they’ll need in retirement.
• 82% of workers don’t believe they’ll have enough income to live the way they want.

Source: Mackenzie Investments, 2021 Retirement Reality Check.

The three phases of retirement

Gearing up

Your most active years. More spending on travel, renovations and projects.

Slowing down

Energy eases but hobbies continue. Less on projects, more on health.

Putting on the brakes

Mobility declines. Health care may become the main, and larger, expense.

Your top three concerns

1. Having enough savings.
2. Keeping your standard of living.
3. Coping with inflation and market downturns.

A good plan accounts for the unexpected. Some risks are out of anyone’s control, but we build in room for inflation, for a long life, and for serious illness, so a surprise doesn’t derail your retirement.

Before our next review

• Life changes: Anything new? Marital or job status, children leaving home, or new goals like a cottage or a grandchild’s education.
• Your finances: Room and reserves. New debt? A healthy emergency fund? Are you using your full RRSP and TFSA room?
• Your family: Protection. Is your will current? Are beneficiaries named on your RRSP or RRIF? Is your insurance still right?
• Timing: Retirement date. Has your target age, pension or comfort with market ups and downs changed?

When markets are down

It’s natural to feel uneasy. How we respond depends on how close you are to needing the money.

• 10 or more years away. You’ll ride through several ups and downs before you need the money.
• Close to retiring. If the timing looks poor, we’ll talk honestly about whether waiting a few months makes sense.
• Already retired. Your income plan should already hold enough in steadier investments to ride it out.

Your health matters, too. A change in your health can affect when to start government pensions. Let me know so we can adjust.

Getting started checklist

• Tell me about any change in marital or employment status.
• Check your emergency fund.
• Use your full RRSP and TFSA room.
• Update your will and power of attorney.
• Confirm beneficiaries on your RRSP or RRIF.
• Review your life, disability and critical illness coverage.

Drawing income wisely

The order you draw on your savings affects how much tax you pay and how long your money lasts. This sequence works well for many people; we’ll tailor it to you.

• Key date: Starting CPP and OAS. You can change your mind about delaying, but once benefits start you can’t undo it.
• Key date: Age 71. RRSPs must become RRIFs, and LIRAs become LIFs, by December 31 of the year you turn 71.

A typical income order

1. Know your after-tax needs.
2. Use guaranteed income first: CPP, OAS, pensions and required RRIF or LIF withdrawals.
3. Fill gaps tax-efficiently from your TFSA and non-registered savings.
4. Then draw on RRSPs/RRIFs and LIRAs/LIFs as needed, splitting income with your spouse where possible.

Living well in retirement. Stay active, stay connected, and watch for scams: be wary of unexpected requests for money or account access. When in doubt, call me. You’re always welcome to bring your spouse or adult children to our meetings.

Let’s talk about your retirement

Whether it’s 15 years away or next spring, the best time to plan is now.

Book a conversation with Michael, or call the office at 506-406-6100 (cell 506-440-6196). Email: [email protected]. Ask for a printed copy of this brochure at your next meeting.

For general information only; not tax or legal advice. Rules for government benefits and registered plans can change. We’ll review the details that apply to you together.