What should I consider before retirement?

• Employer health and dental benefits often end at retirement and may need to be replaced.
• Debt carried into retirement is repaid from after-tax retirement income.
• The first years of retirement often cost more, not less, because of travel and projects.
• Sequence-of-returns risk matters most in the years immediately before and after retiring.
• Powers of attorney and personal directives are as important as the will.

Build a realistic monthly budget separating essentials from discretionary spending, then test it against a conservative income projection. Include periodic costs such as vehicle replacement, home maintenance and dental work.

CPP can start as early as 60 with a permanent reduction or as late as 70 with a permanent increase. OAS has its own deferral rules and an income-based recovery tax. The right timing depends on health, other income, and whether you need the cash flow immediately.

A significant market decline in the first years of withdrawals can have a lasting effect. Common responses include holding a cash or short-term reserve for near-term spending and reviewing the withdrawal rate annually rather than fixing it permanently.

• Longevity is the underlying risk: many Canadians will spend 25 to 35 years in retirement.
• Inflation reduces purchasing power even at moderate rates.
• Projections depend on assumptions; no plan can guarantee a future outcome.

• Canada Pension Plan and Old Age Security — Government of Canada
• Insurance and financial basics for consumers — Financial Consumer Agency of Canada
• Statistics on Canadian household income, savings and retirement — Statistics Canada