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Are you looking to retire soon but feeling unsure about what to plan for or where your retirement income will come from? You’re not alone — transitioning from building your nest egg to drawing from it can feel like a big shift. The good news is, with the right structure in place, moving from growth to income doesn’t have to be complicated. In this article, we’ll walk through the key steps to take as you approach or enter retirement — from managing your income sources and taxes to finding balance in your investments. When you’re ready, reach out to Tara Downs Rocchetti, CFP®, to start building a plan that fits your lifestyle and retirement goals.  Planning for the Next Stage of LifeAs you approach or enter retirement, your financial focus shifts from saving to using the savings you’ve built. This stage, known as retirement income planning, involves figuring out how to turn various sources of income into a steady plan that supports your lifestyle and long-term goals. For many people this means thinking about practical questions such as:
These are personal decisions. There’s no one-size-fits-all formula, but understanding how each source of retirement income works and connects can help you make informed choices that fit your situation. Understanding the Sources of Retirement IncomeMost Canadians receive retirement income from three main sources: Government Benefits: Programs such as the Canada Pension Plan (CPP) and Old Age Security (OAS) provide basic income in retirement. CPP is funded through your contributions during your working years, while OAS is a government-funded benefit available to eligible seniors based on residency. Registered Savings: RRSPs are meant for saving during your working years, while RRIFs (Registered Retirement Income Funds) are used to access those savings during retirement. Both are tax-deferred, meaning you pay tax when the money is withdrawn rather than when it is earned. Other Income Sources: This may include employer pensions, non-registered investments, TFSAs, or income from business and real estate. Each source has different tax implications and levels of flexibility. Balancing these income streams can help you manage taxes, cash flow, and your overall financial plan throughout retirement. CPP and OAS: Deciding When to BeginCPP and OAS benefits form the backbone of retirement income for many Canadians, but deciding when to start these benefits can greatly influence the amount you receive. You can start CPP as early as age 60 or defer it until age 70. Starting earlier provides income sooner, but each month you delay increases your benefit amount. The right choice depends on factors such as your health, other sources of income, and your retirement goals. OAS can also be delayed up to age 70 for a higher monthly benefit. However, it is subject to a clawback if your income exceeds a certain limit, so it’s important to understand how it fits within your overall income plan. Working with a financial planner can help you explore different start dates, compare tax outcomes, and determine how to coordinate CPP and OAS with your other income sources.  Transitioning from RRSP to RRIFBy December 31 of the year you turn 71, you must convert RRSPs into retirement income option such as a RRIFs or annuity. A RRIF allows your investments to continue growing while you withdraw regular income, but it comes with required minimum withdrawals that increase with age. Each withdrawal is taxed as income, so your total tax bill will depend on your RRIF income, CPP, OAS, and any other income sources. Planning ahead can help avoid unintended increases in taxable income or the potential loss of certain benefits. Instead of only focusing on the mandatory minimum withdrawal, consider your broader goals, expected expenses, and overall tax situation. A certified financial planner can help create a flexible plan that meets your needs. Order of Withdrawals and Tax EfficiencyThe order in which you withdraw from different accounts can significantly affect your after- tax income over time. Some retirees choose to take modest amounts from their RRSPs or RRIFs before age 71 to manage their taxable income. Others prefer to withdraw from non-registered accounts first to preserve the growth of registered assets. TFSAs often serve as a valuable resource since withdrawals are tax-free and do not affect CPP or OAS. The best sequence depends on your tax bracket, investment mix, and goals. A financial planner can use projections to show you how each option impacts your taxes and retirement now and in the future. Planning Beyond the NumbersRetirement income planning involves more than just financial calculations. It’s also about how your goals and lifestyle change over time. For some, this stage of life brings chances to travel or spend more time with family. For others, it may involve caring for loved ones, relocating, or downsizing. Each decision affects spending needs, tax considerations, and how long your savings may need to last. Common Pitfalls to AvoidEven with good intentions, challenges can arise without a clear plan. Some common issues include:
FAQsWhen should I start CPP or OAS? It depends on your income needs, health, and other income sources. A planner can help weigh the pros and cons of early and delayed benefits. What happens when I convert my RRSP to a RRIF? Your investments stay in the registered account, but you must begin withdrawing a minimum amount each year, which counts as taxable income. How do taxes affect my retirement income? Each type of account—RRIF, TFSA, non-registered—has different tax effects. Planning withdrawals carefully can help manage taxes over time. What is the difference between RRSP, RRIF, and TFSA? RRSPs are meant for saving during your working years, RRIFs provide income in retirement, and TFSAs offer tax-free growth and withdrawals at any age. How can a financial planner help with retirement income planning? A planner can help you coordinate timing, taxes, and sustainability across your income sources and review your plan regularly as your goals change. Retirement income planning involves various factors. Understanding how CPP, OAS, RRIFs, and other assets work together can help you make informed choices for your future. If you live in Hamilton, Burlington, Oakville, Toronto or the surrounding regions and are getting ready to transition into retirement, consider reviewing your options with a Certified Financial Planner. Tara Downs Rocchetti, CFP®, offers personalized retirement planning services to help you gain clarity and confidence in your financial life. This article is for informational purposes only. Please consult a qualified certified financial planner for personalized recommendations.
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AuthorMy name is Tara Downs Rocchetti. I am a CERTIFIED FINANCIAL PLANNER® living in Hamilton, ON. 
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