Retirement Planning

With a little planning the transition from working to retirement can be seamless. What follows is a checklist of things you need to do to get ready for a life of retirement.


retirement planningRetirement Planning Step #1

3-5 Years Before Retirement

Debts: Pay off all your debts.

Major Purchases: Buy all necessary expensive items while you are still working. For example, perhaps you need a new car or the roof on your house needs to be replaced.

Employee Benefits: If your employer provides medical and/or dental insurance have all treatments done while you are still covered.

Health Issues: Do you and/or your spouse have any health problems either now or expect to have in the future? If so, consider buying long term care insurance now.

Finances: Make sure you can afford to retire before you commit to doing so. Calculate how much income you will get each month from all sources – your workplace pension, government pensions and your own savings and investments. Calculate your expected monthly expenses. If there isn’t enough money to cover your expenses either reduce your spending or work a little longer to save more money.

Interests: How do you plan to spend your time once you retire? Do you want to travel, play more golf, volunteer in your community, pursue your hobbies?

Income: Decide how you will convert your savings into income. If you’re not sure how to do this talk to Jacqui McFarlane and she’ll help you do this.



Retirement Planning Step #2

1 Year Before Retirement

Finances: Review your retirement budget. Have you paid off all your debts? Is there sufficient income to pay your living expenses and finance your lifestyle choices?

Drug Benefits: Sign up for any senior drug benefits with OHIP (Ontario).

Will: Review your will. Do you want to make any changes to your executor and/or beneficiaries? What about changes to your living will and/or power of attorney?

Estate Plan: Do you want to make any changes here?

Insurance: Do you have adequate life insurance? What about critical illness or long term care needs?

Taxes: What changes will there be in your income taxes, property taxes? Can you make any changes now to keep taxes on your investments to a minimum?



Retirement Planning Step #3

6 Months Before Retirement

Income: Take the necessary steps to convert your workplace pension and retirement savings to income.

Government Benefits: Apply for any benefits you are entitled to receive such as Canada Pension, Old Age Security, and Guaranteed Income Supplement. Note: to receive the Canada Pension you should apply 9 months before you retire.



Retirement is a big change and challenge to anyone’s life. To make it enjoyable you must do your retirement planning before the ‘big day’ comes. Talk to Jacqui McFarlane – she’s here to help you with your retirement planning decisions.