Pre-Retirement and Retirement Planning Checklist

Planning for retirement can feel both exciting and overwhelming. After years of saving, investing, and working toward your goals, the transition to retirement represents a major life shift: one that’s not just financial, but emotional and practical as well. Whether you’re five years away or already retired, having a comprehensive checklist can help ensure nothing falls through the cracks. This guide outlines the key steps for Canadians to take before and during retirement so you can approach your next chapter with clarity and confidence.

Understanding the Two Stages of Planning
Retirement Planning typically happens in two stages:

1. Pre-Retirement (5–10 Years Before Retiring) – Focus on fine-tuning investments, and preparing for lifestyle changes.
2. Retirement (Your First 5–10 Years Retired) – Shift to managing income, taxes, and spending.

This checklist walks through both phases, with practical considerations and financial
strategies for each.

Step 1: Clarify Your Vision for Retirement

Retirement means something different for everyone. Some imagine travel or leisure,
while others look forward to volunteer work, a part-time role, or more time with family. Understanding your vision will shape your financial needs. Ask yourself what an ideal day in retirement looks like, where you want to live, and how much flexibility you want in your lifestyle and spending. Once you have a clear vision, it becomes easier to design a plan that aligns with it.

Step 2: Estimate Your Retirement Income Needs

A common rule of thumb suggests you’ll need about 70–80% of your pre-retirement
income to maintain your lifestyle. However, the exact number depends on your unique circumstances. Consider basic living expenses, discretionary spending, healthcare costs not covered by provincial plans, and taxes or inflation. A Certified Financial Planner® can help model various scenarios to ensure your income aligns with your goals.

​Step 3: Review All Sources of Retirement Income

Retirement income often comes from multiple sources. Review the following to ensure your projections are accurate: government benefits (CPP, OAS), employer pensions, personal savings, RRSPs, TFSAs, non-registered investments, and other income (rental properties, part-time work, or business income). Understanding how these work together, and how they’re taxed, is key to maximizing your income.

Step 4: Optimize Your RRSP and TFSA Strategies

Your RRSP and TFSA remain vital tools leading up to and throughout retirement. In
your final working years, review your RRSP and TFSA contributions. Consider a
spousal RRSP if your partner earns less, balancing future taxable income. An optimal
mix of RRSPs and TFSAs can help create flexible income streams in retirement.

Step 5: Plan for the RRSP-to-RRIF Transition

By the end of the year you turn 71, your RRSP must be converted to a Registered
Retirement Income Fund (RRIF) or an annuity. RRIFs require annual withdrawals that
count as taxable income. Planning this transition ahead of time helps control your tax rate by timing withdrawals strategically, avoid unnecessary clawbacks of OAS, and coordinate with TFSA withdrawals to manage total taxable income. A financial planner can help you determine the best sequence of withdrawals to stretch your savings further.

Step 6: Create a Withdrawal Strategy

​The order in which you draw from various accounts can significantly impact how long
your money lasts. A coordinated withdrawal plan can help manage taxes. Common
strategies include drawing from non-registered accounts first, using TFSA withdrawals for tax-free supplemental income, and coordinating RRIF withdrawals with CPP and OAS to smooth taxable income over time.

Step 7: Review and Adjust Your Investment Mix

As retirement approaches, it’s important to reduce risk without sacrificing growth. Your investment strategy should balance safety with long-term sustainability. Consider gradual shifts in your investment strategy and ensuring your portfolio supports your withdrawal needs and inflation protection. Remember: you may spend 30 years or more in retirement, so your money needs to support you.

Step 8: Evaluate Health and Insurance Coverage

Healthcare is often one of the most underestimated expenses in retirement. Review
health, dental, and prescription coverage (especially if losing employer benefits), long-term care insurance options, and life and disability insurance. Having appropriate coverage in place helps protect your assets from unexpected medical costs.

​Step 9: Factor in Inflation and Longevity

With Canadians living longer than ever, planning for 30+ years of retirement income is essential. Inflation also erodes purchasing power over time, meaning your money must keep working even after you stop.

Step 10: Build a Retirement Spending Plan

A spending plan turns your retirement savings into an actionable strategy. Rather than withdrawing at random, map out a predictable structure. Categorize your spending into essential (housing, food, utilities, insurance), lifestyle (travel, dining, hobbies), and legacy (gifting, charitable giving, or supporting loved ones). This approach ensures you prioritize what matters most while keeping your savings sustainable.

Step 11: Prepare Emotionally for the Transition

While financial readiness is key, emotional readiness is equally important. Retirement can bring new freedom, but also uncertainty or loss of structure. Planning your days, not just your finances, helps create a fulfilling life after work. Think about how you’ll stay active, engaged, and connected. Many retirees find joy in volunteering, mentoring, or part-time consulting. A clear sense of purpose contributes as much to well-being as financial security does.

Step 12: Schedule Regular Financial Reviews

Retirement planning is not a one-time event. Life, markets, and personal goals all
change. Reviewing your plan annually ensures it remains aligned with your evolving
needs. Use each review to check progress on your goals, adjust for market performance or lifestyle shifts, and update tax, insurance, and more. Working with a financial planner helps you make proactive adjustments rather than reactive decisions.

Step 13: Prepare for the Unexpected

Even the best retirement plans face surprises: market downturns, health challenges, or unexpected expenses. Building flexibility into your plan allows you to adapt. Flexibility and preparedness are your best defenses against uncertainty.

Step 14: Celebrate Milestones Along the Way

Retirement planning isn’t just about reaching a finish line, it’s about celebrating the
journey. Acknowledge each milestone, whether it’s paying off debt, reaching a savings target, or completing your first year of retirement. Taking time to recognize progress helps keep you motivated and confident as you transition into the next phase of life. Wherever you are on the path to retirement, working with a Certified Financial Planner® can help you clarify your goals, simplify your decisions, and create a strategy that grows with you.

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This article is for informational purposes only. Please consult a qualified certified
financial planner for personalized recommendations.

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