Retirement Financial Planning Services
Retirement is the goal most Canadians work toward their entire career, yet it is also one of the areas where planning is most frequently delayed, underestimated, or left entirely to chance. The decisions you make today about how you save, where you
invest, and how you structure your finances will directly determine the quality of your retirement tomorrow. Whether you are just starting your career, approaching your peak earning years, or within a decade of your target retirement date, the right plan makes all
the difference.
Our retirement planning specialists provide personalized guidance to individuals in every stage of their working life whether you are employed, self-employed, a small business owner, or a corporation. We work with you to build a comprehensive retirement strategy that integrates registered savings plans, government benefits, tax planning, and investment selection into a clear, actionable roadmap to financial independence in retirement.
How Much Money Do You Need to Retire?
One of the most common and most important questions in retirement planning is: how much is enough? The honest answer is that it depends entirely on your individual lifestyle, goals, and circumstances. There is no single universal number, but there are key factors that determine the retirement savings target that is right for you.
Your target retirement income: Most financial planners suggest targeting 70 to 80 percent of your pre-retirement income to maintain your standard of living, though your personal spending patterns, travel goals, and lifestyle ambitions will determine your actual number.
The impact of inflation: A dollar today will not buy the same amount of goods in 20 years. We factor inflation into every retirement projection to ensure your savings target accounts for the real purchasing power you will need throughout retirement.
Your expected retirement duration: With Canadians living longer than ever, a retirement that begins at 65 may last 25 to 30 years or more. Planning for longevity is essential to avoid outliving your savings.
Government benefit entitlements: Your CPP and OAS entitlements will form the base of your retirement income. We calculate your expected benefits and determine exactly how much personal savings you need to bridge the gap to your retirement income goal.
Sources of Retirement Income in Canada
A well-structured retirement income plan draws from multiple sources each with different tax treatment, flexibility, and timing considerations. Understanding how these sources interact is essential to minimizing tax and maximizing the income available to you throughout retirement.
- Canada Pension Plan (CPP)
The Canada Pension Plan provides a monthly retirement pension to Canadians who have contributed to the plan during their working years. The amount you receive depends on how much and how long you contributed. You can begin collecting CPP as early as age 60 (at a reduced amount) or defer until age 70 (at a significantly increased amount). Choosing when to start CPP is one of the most impactful — and most misunderstood decisions in retirement planning. We model the break-even analysis and tax implications to help you choose the start date that maximizes your lifetime benefit.
- Old Age Security (OAS)
Old Age Security is a monthly government pension available to most Canadians aged 65 and older, regardless of employment history. OAS can also be deferred to age 70 for an enhanced monthly benefit. For higher-income retirees, OAS is subject to a clawback under the OAS Recovery Tax, which begins once net income exceeds a threshold set by the government each year. We incorporate OAS timing and clawback management into your retirement income plan to maximize what you keep.
- Converting RRSPs to Retirement Income
Your RRSP must be converted to a Registered Retirement Income Fund (RRIF) or annuity by the end of the year you turn 71. From that point, you must withdraw a minimum amount each year, which is included in your taxable income. The timing, sequencing, and amount of RRIF withdrawals have a significant impact on your tax bill, your OAS clawback exposure, and your estate. We develop a RRIF drawdown strategy that minimizes taxes and preserves your wealth as long as possible.
- Employer-Sponsored Pension Plans
If you have participated in a workplace pension plan, whether a defined benefit, defined contribution, or group RRSP, we incorporate those entitlements into your overall retirement income projection. We advise on pension payout options, the survivor benefit election, and how employer pension income interacts with your CPP, OAS, and personal savings.
Our Retirement Planning Services
We offer a comprehensive suite of registered savings and investment vehicles designed to help you build, protect, and efficiently draw down your retirement wealth. Our services include:
Additional Retirement Planning Considerations
A complete retirement plan addresses more than just savings and income. We provide guidance across the full range of decisions that affect your financial well-being in retirement, including:
Tax deductions, credits, and expense claims: Ensuring you claim every eligible deduction and credit to reduce your tax burden in retirement, including the age amount, pension income amount, medical expense credit, and caregiver credits.
Working while collecting a pension: Understanding the impact of continued employment income on your OAS, CPP, and pension entitlements and planning your work-to-retirement transition accordingly.
Housing decisions in retirement: Evaluating the financial implications of downsizing, renting, moving to a retirement community, or remaining in your home, including the tax-free treatment of your principal residence on sale.
Retiring or living abroad: The tax, benefit, and insurance implications of spending your retirement years outside of Canada, including non-resident withholding tax on CPP, OAS, and RRIF income, tax treaty considerations, and provincial health insurance rules.
Budgeting in retirement: Creating a realistic retirement spending plan that accounts for fixed and variable expenses, healthcare costs, travel, and lifestyle goals and stress-testing it against different market and longevity scenarios.
Annuities: Explaining how annuities work, when they make sense as part of a retirement income plan, and how to compare life annuity, term-certain annuity, and variable annuity options.
Frequently Asked Questions
The best time to start saving for retirement is as early as possible. The power of compound growth means that money saved in your 20s and 30s grows significantly more over time than the same amount saved in your 50s. That said, it is never too late to start. Even if you are approaching retirement with limited savings, a well-structured plan can make a meaningful difference to your retirement income. We work with clients at every stage and help them make the most of the time and resources they have.
The right answer depends on your current income, your expected retirement income, and your personal financial goals. Generally speaking, if you are in a high tax bracket today and expect to be in a lower bracket in retirement, the RRSP is typically the priority — you get a large deduction now and withdraw at a lower rate later. If you are in a lower bracket today or expect to have significant income in retirement, the TFSA may deliver better after-tax results. In many cases, contributing to both in the right proportion is the optimal strategy.
By December 31 of the year you turn 71, you must close your RRSP and convert the funds into either a Registered Retirement Income Fund (RRIF), a life or term-certain annuity, or a combination of both. A RRIF requires you to withdraw a minimum amount each year based on your age and account balance, with withdrawals taxed as ordinary income. We help you plan this transition well in advance to minimize the tax impact and optimize your retirement cash flow.
Yes. Even with a workplace pension, there are important planning decisions to be made, including when to retire, how to take your pension payout, how to coordinate your pension with CPP and OAS, and how to manage any personal savings alongside your pension income. A comprehensive retirement plan ensures all these income sources work together in the most tax-efficient way possible.