Short Answer
Most Canadians spend more time planning a vacation than planning retirement. This checklist covers the decisions you need to make in the 12–24 months before you stop working — many of which have irreversible financial consequences if timed wrong.
Income Sources: What Will You Have?
Map every potential retirement income source before finalizing your retirement date:
| Source | Estimate your monthly amount |
|---|---|
| CPP | Check My Service Canada Account |
| OAS (at 65 or deferred) | Check My Service Canada Account |
| Employer pension (DB or DC) | Request pension statement from HR |
| RRSP/RRIF withdrawals | Based on balance and withdrawal plan |
| TFSA withdrawals | Tax-free; no impact on OAS/GIS eligibility |
| Non-registered investments | Capital gains and dividends taxable |
| Part-time work or consulting | Plan for how long and how much |
| Rental income (if any) | After expenses and depreciation |
| Spouse or partner income | Factor in combined household picture |
Build a monthly income estimate. Compare it to your expected monthly expenses. If the gap is significant, you may need to adjust your retirement timeline or income mix.
CPP Timing Decision
| Start age | Effect on monthly payment | Break-even vs age 65 |
|---|---|---|
| 60 | -36% (0.6%/month reduction) | ~74 years old |
| 61 | -28.8% | ~75 years old |
| 65 | Standard amount | — |
| 66 | +8.4% | ~63 years old |
| 67 | +16.8% | ~63 years old |
| 68 | +25.2% | ~63 years old |
| 69 | +33.6% | ~63 years old |
| 70 | +42% | ~65 years old |
If you are in good health and have other income in your early 60s, delaying CPP is usually financially advantageous. If you have health concerns or need cash flow immediately, taking it earlier may make sense.
OAS Timing Decision
| Start age | Monthly OAS increase | Annual increase |
|---|---|---|
| 65 | Standard | — |
| 66 | +7.2% | +7.2% |
| 67 | +14.4% | +7.2% |
| 68 | +21.6% | +7.2% |
| 69 | +28.8% | +7.2% |
| 70 | +36% | +7.2% |
You must apply for OAS — it is not automatic. Apply 6 months before you want payments to begin. Deferring past 65 reduces the risk of the OAS clawback if your income is high immediately after retirement, then drops.
RRSP/RRIF Planning
| Decision | Deadline |
|---|---|
| Convert RRSP to RRIF | December 31 of the year you turn 71 |
| Consider early conversion for income splitting | Anytime before 71 |
| Spousal RRSP contributions | Before you or your spouse turns 71 |
| RRSP withdrawal before 71 to use lower tax years | Flexible — timing is everything |
The RRIF minimum withdrawal rate starts at approximately 5.28% at age 71 and rises each year. If your RRIF is large, mandatory withdrawals could push you into OAS clawback territory. Planning withdrawals early — while income is lower — can reduce lifetime tax significantly.
Healthcare Coverage Gap
Provincial health plans cover physician and hospital services. They do not cover:
| Gap | What you may need |
|---|---|
| Prescription drugs | Private supplemental insurance or provincial senior drug program |
| Dental care | Private insurance or pay out-of-pocket |
| Vision care | Private insurance or pay out-of-pocket |
| Extended care / home care | Long-term care insurance or personal savings |
| Travel health insurance | Critical if travelling outside province or Canada |
Arrange private supplemental insurance before you leave your job if possible — group benefits conversion options exist for a limited window after you leave (often 31–60 days). After that, new coverage requires underwriting and may exclude pre-existing conditions.
Debt Before Retirement
| Debt type | Recommended approach |
|---|---|
| Mortgage | Aim to enter retirement with mortgage paid off or a clear plan |
| Car loan | Ideally paid off; fixed income makes variable car costs difficult |
| Line of credit | Pay off or convert to fixed-term repayment plan |
| Credit card | Zero balance on entry — interest is expensive on fixed income |
Entering retirement with significant variable-rate debt is high risk. Fixed income cannot easily absorb rate increases.
Income-Splitting Opportunities
| Strategy | Benefit |
|---|---|
| Pension income splitting | Allocate up to 50% of eligible pension income to lower-income spouse |
| Spousal RRSP (before 71) | Build up spouse’s RRSP for lower-bracket withdrawals later |
| TFSA withdrawals for low-income spouse | Does not count as income — no OAS clawback risk |
| Delay higher earner’s CPP/OAS | Defer higher earner’s benefits while drawing lower earner’s first |
Estate and Documents Checklist
| Document | Status to confirm |
|---|---|
| Will | Up to date and executed |
| Powers of attorney | Both property and personal care |
| RRSP/RRIF beneficiary designations | Updated to current wishes |
| TFSA beneficiary or successor holder | Updated |
| Life insurance policies | Review coverage needs and beneficiaries |
| Executor named | Confirmed willing and capable |
Before Your Last Day of Work: Checklist
- Income sources mapped with monthly estimates
- CPP start age decided (and application submitted if starting at 65)
- OAS application submitted (6 months before desired start)
- RRSP/RRIF conversion plan in place
- Group health and dental end date confirmed; replacement coverage arranged
- Outstanding debt eliminated or managed
- Will, POA, and beneficiary designations reviewed
- Pension transfer or statement obtained from employer
- Monthly retirement budget drafted and compared to income estimate
- Emergency fund maintained (3–6 months still recommended in retirement)
Bottom Line
Retirement planning is not just about having enough saved — it is about timing your income sources, managing taxes across accounts, and protecting your lifestyle from healthcare cost gaps. Working through this checklist 12–24 months before your intended date gives you enough lead time to adjust if anything is not in order.