Pre-Retirement Timeline
When to Do What
| Age |
Key Actions |
| 50 |
Assess, catch up |
| 55 |
Detailed projections |
| 60 |
Final preparations |
| 65 |
Start retirement |
Age 50 Financial Assessment
Where You Should Be
| Metric |
Target at 50 |
| Retirement savings |
5-6x salary |
| Emergency fund |
12 months |
| Debt |
Low or mortgage only |
| Net worth |
Growing significantly |
Gap Analysis
| Step |
Action |
| 1 |
Calculate current net worth |
| 2 |
Estimate retirement need |
| 3 |
Project growth to 65 |
| 4 |
Identify gap |
Catch-Up Strategies
If Behind at 50
| Strategy |
Impact |
| Maximize RRSP |
Use all room |
| Max TFSA |
Tax-free growth |
| Reduce expenses |
More to save |
| Work longer |
Even 2-3 years helps |
Work Longer Math
| Retire at 65 vs 67 |
Impact |
| 2 more years saving |
+$50,000 |
| 2 more years growth |
+7% on portfolio |
| 2 fewer years spending |
Less needed |
| CPP increase |
+14.4% |
Income Source Planning
Map All Sources
| Source |
Start Age |
Monthly |
| CPP |
60-70 (choose) |
$500-$1,500 |
| OAS |
65-70 (choose) |
$700-$800 |
| Employer pension |
Varies |
Check plan |
| RRSP/RRIF |
Flexible |
Varies |
| TFSA |
Flexible |
Varies |
| Non-registered |
Flexible |
Varies |
Income Timing Strategy
| Age |
Income From |
| 60-65 |
Work, early CPP?, RRSP? |
| 65-70 |
CPP, OAS?, RRIF, pension |
| 70+ |
CPP, OAS, RRIF, pension |
CPP Decision
When to Start
| Start Age |
Impact |
| 60 |
36% less than 65 |
| 65 |
Standard amount |
| 70 |
42% more than 65 |
Decision Factors
| Take Early (60) If |
Delay to 70 If |
| Need the money |
Other income sources |
| Health concerns |
Good health/longevity |
| Spouse has higher CPP |
Want maximum |
OAS Planning
OAS Clawback
| Net Income |
Impact |
| Under ~$91,000 |
Keep full OAS |
| $91,000-$148,000 |
Partial clawback |
| Over ~$148,000 |
Full clawback |
Avoid Clawback
| Strategy |
How |
| RRSP meltdown |
Draw before 65 |
| TFSA withdrawals |
Don’t count as income |
| Income splitting |
Pension sharing |
RRSP to RRIF Planning
Key Dates
| Event |
Timing |
| Last RRSP contribution |
End of year turn 71 |
| Convert to RRIF |
By December 31, age 71 |
| Minimum withdrawals |
Start at 72 |
RRIF Minimum Withdrawals
| Age |
Minimum % |
| 72 |
5.28% |
| 75 |
5.82% |
| 80 |
6.82% |
| 85 |
8.51% |
| 90 |
11.92% |
RRSP Meltdown Strategy
| If Large RRSP |
Consider |
| Draw at 60-65 |
Pay lower tax now |
| Fill lower brackets |
Before other income |
| Move to TFSA |
Tax-free later |
Pension Optimization
Employer Pension Options
| Decision |
Options |
| Start date |
Early vs full pension |
| Survivor benefit |
50%, 60%, 75%, 100% |
| Lump sum vs annuity |
If offered |
| Bridge benefit |
Until CPP starts |
Pension Splitting
| After 65 |
Can Split |
| Up to 50% |
Of pension income |
| Both must file |
To claim |
| Reduces OAS clawback |
Potentially |
Insurance Review
What Changes
| Insurance |
In Retirement |
| Life |
May not need |
| Disability |
Not needed if retired |
| Critical illness |
Evaluate need |
| Long-term care |
Consider now |
Life Insurance Decision
| Keep If |
Drop If |
| Spouse depends on you |
Assets sufficient |
| Estate equalization |
No dependants |
| Business needs |
Coverage expensive |
Healthcare Planning
Costs to Plan For
| Cost |
Planning |
| Prescriptions |
Provincial coverage varies |
| Dental |
Not covered |
| Vision |
Partially covered |
| Mobility aids |
May be needed |
Private Health Insurance
| Option |
Coverage |
| Extended health |
Through employer retired? |
| Private plans |
Purchase if needed |
| Travel insurance |
Essential for snowbirds |
Housing Decisions
Options to Consider
| Option |
Pros |
Cons |
| Stay in home |
Familiarity |
Maintenance |
| Downsize |
Free up equity |
Moving stress |
| Rent |
Flexibility |
No equity |
| Move regions |
Lower cost |
Leave community |
Estate Planning Update
Essential Documents
| Document |
Status |
| Will |
Updated for retirement |
| Power of attorney |
In place |
| Healthcare directive |
Current wishes |
| Beneficiaries |
All accounts updated |
Tax-Efficient Estate
| Strategy |
Benefit |
| TFSA to spouse |
Tax-free transfer |
| RRSP/RRIF to spouse |
Tax-free rollover |
| Life insurance |
Bypass probate |
| Joint ownership |
Automatic transfer |
Age 55-60 Detailed Planning
Create Retirement Budget
| Category |
Monthly Estimate |
| Housing |
$ |
| Food |
$ |
| Transportation |
$ |
| Healthcare |
$ |
| Entertainment |
$ |
| Travel |
$ |
| Insurance |
$ |
| Gifts/charity |
$ |
| Total |
$ |
Stress Test Budget
| Scenario |
Impact |
| Inflation 3% |
Costs increase |
| Market crash |
Income adjust |
| Health issue |
Higher costs |
5 Years Before Retirement
Checklist
| Task |
Done? |
| Detailed budget complete |
☐ |
| Income sources mapped |
☐ |
| OAS/CPP decisions made |
☐ |
| RRSP meltdown planned |
☐ |
| Pension understood |
☐ |
| Insurance reviewed |
☐ |
| Estate plan updated |
☐ |
| Healthcare covered |
☐ |
| Housing decided |
☐ |
| Test retirement budget |
☐ |
Final Year Before Retirement
Critical Tasks
| Task |
Timing |
| Apply for CPP |
11 months before |
| Apply for OAS |
11 months before |
| Confirm pension start |
Per employer timeline |
| Finalize budget |
Detailed |
| Open RRIF if 71 |
If applicable |