5 Retirement Moves Most Canadians Overlook

By Kevin Ridgway, CFP® | 📧 info@primenetfinancial.com |

🌐 primenetfinancial.com | ☎ 905-327-8644

Retirement isn't what it used to be—and that’s not necessarily a bad thing. But today, most Canadians are on their own when it comes to crafting a plan that balances income, lifestyle, taxes, and peace of mind. Whether you're five years away from retirement or already there, there are some critical moves (and common blind spots) you don’t want to miss.

✅ 1. Know Your Withdrawal Strategy

Most people focus on saving for retirement, but very few understand how to spend in retirement efficiently. Should you draw from your RRSP first? Or your TFSA? When should CPP and OAS come into play? What about your LIRA or non-registered accounts?

A well-structured withdrawal strategy can stretch your dollars further and minimize unnecessary taxes. That’s why we stress-test multiple drawdown scenarios—so you’re not guessing, you’re planning.

✅ 2. Prioritize Tax-Efficient Income Planning

There’s a reason some retirees run out of money while others build wealth through retirement. The difference often comes down to taxes.

Too often, income splitting, pension credits, or capital gains strategies get missed. We build personalized tax maps that align with your unique account structure and future income needs, to ensure you’re not paying more tax than necessary.

✅ 3. Don’t Underestimate Longevity and Healthcare Costs

Here’s the hard truth: people are living longer, but most retirement plans don’t reflect that. On top of that, healthcare costs and assisted living can add unexpected pressure on your finances.

Planning for a 30+ year retirement horizon isn’t pessimistic—it’s smart. We use realistic life expectancy models and healthcare inflation assumptions to help you avoid any unpleasant surprises down the road.

✅ 4. Avoid Going Too Conservative Too Early

A big mistake many new retirees make is moving all their investments into GICs or cash too early. While it might feel “safe,” this often leads to portfolios that can’t keep up with inflation or spending needs.

Instead, we recommend building a globally diversified portfolio with the appropriate mix of growth and income based on your risk tolerance and time horizon. Cash plays a role, but it shouldn’t be the whole game plan.

✅ 5. Account for Inflation (Seriously)

Inflation quietly eats away at your purchasing power. If your retirement income plan doesn’t account for 2–3% inflation (or more in some sectors), you may end up needing to make unwanted lifestyle cuts later on.

Our retirement projections always show figures in real dollars, factoring in inflation, taxes, and lifestyle changes over time.

Putting It All Together: A Real-Life Retirement Scenario

Meet Timmy, age 59, who wants to retire at 61 and spend $65,000/year in retirement. He has:

• RRSP & LIRA $840,000

• TFSA $134,000

• Emergency savings (fully liquid) $32,000

• A mortgage-free home valued at $900K

By mapping out his inflows (CPP, OAS, RRSP, TFSA, etc.) and outflows (taxes, spending), we found his financial assets would run out by age 86 if nothing changes. That led us to explore options like:

• Delaying retirement by a year or two to fully fund Retirement until 95 years of age

• Ladder spending (spend more in earlier retirement, and tapper down as you get older, which is what we see in real time)

• Leveraging home equity later in retirement (will have the ability to downsize or drawdown on the equity of the home)

• Optimizing investment portfolio to fit Tim's plan and still remain within his risk tolerance

This kind of planning isn’t about cutting back—it’s about making smart choices now to protect your lifestyle later.

How We Help at PrimeNet Financial

A real retirement plan goes way beyond a spreadsheet or a bank brochure. We help our clients answer the real questions:

• How much can I safely spend in retirement?

• What should I draw from first—RRSP, TFSA, LIRA, or pension?

• What rate of return do I need to stay on track?

• What does my estate plan look like, and will my kids be okay?

Our Holistic Planning Process Includes:

• 🔍 Retirement income mapping

• 📊 Portfolio analysis with transparent fee breakdowns

• 💼 Tax and estate planning integration

• 🧾 CPP/OAS optimization

• 🧭 Real-time scenario testing (spend more? retire earlier?)

Final Thoughts

Most Canadians aren’t failing to plan—they just don’t know where to start. We make the process clear, visual, and practical. The sooner you map out your retirement journey, the more options you’ll have along the way.

📞 Book a complimentary retirement review

No pressure. Just clarity.