Retirement Planning

There's a lot of thought that goes into retirement planning. The earlier you start your planning, the more prepared you'll be when the time comes.

It's important to think about how much money you'll need in order to retire comfortably, whether you'll be relying on a reduced income, and if that income will support the lifestyle you want in retirement.

You can use this Retirement Expense Worksheet to compare your pre- and post-retirement income.

How Much Retirement Income Do I Need?

Your retirement goals and your spending habits will form the basis of how much income you'll need. Common retirement planning questions to ask yourself (and your spouse or partner, if you have one) are:

  • How long do I expect to live? What about my spouse or partner, if I have one?
  • What is my desired retirement lifestyle?
  • Do I plan on travelling more frequently?
  • What are my spouse or partner's retirement plans?
  • Do I want to work in retirement?
  • Do I plan on staying in my home? Do I plan on moving to a different community?
  • What is my health like? What is my spouse or partner's health like?
  • Do I have aging parents or dependent children to consider?

Who to Contact for Retirement Planning Advice

We recommend that you seek advice from an independent financial advisor before making any retirement decisions. To help you choose the right financial professional, the Government of Canada has some helpful guidelines.

Other Sources of Retirement Income to Consider

For many Canadians, retirement income will come from multiple sources. The Canada Pension Plan (CPP) and Old Age Security (OAS) are federal pensions most Canadians will collect. You may also have Registered Retirement Savings Plans (RRSPs), other investments or even a pension from another employer. The following is a list of common sources of income for you to consider when retirement planning.

Common Sources of Retirement Income

Government Pension Plans

  • Canada Pension Plan (CPP)
  • Old Age Security (OAS)
  • Guaranteed Income Supplement (GIS)

Registered Investment Income

  • RRSPs
  • Locked-In Retirement Account (LIRA)
  • Locked-In Retirement Income Fund (LRIF)
  • Annuities
  • Non-Registered Investment Income

Employer Pension Plans

  • Your PSPP defined benefit pension
  • Other defined benefit pensions
  • Defined contribution pensions
  • Deferred profit sharing plans
  • Group RRSPs
  • Registered Investment Income

Non-Registered Investment Income

  • Personal savings
  • Guaranteed Investment Certificates (GICs)
  • Dividends from or sale of stocks
  • Interest from bonds
  • Dividends from or redemption of mutual funds
  • Conversion of home equity
  • Income from business assets
  • Income from real estate
  • Liquidation of personal assets