Your retirement years are meant to be relaxing and let you pursue everything you had to put off during your working years.

 But if you don’t have enough money to sustain your lifestyle, retirement can be stressful and worrisome.

These are three steps every pre-retiree needs to take to help them enjoy financial freedom and remove the financial uncertainty during their retirement years:

  1. Determine your goals.
  2. Plan your path.
  3. Be aware of all your income sources.




Step 1: Determine your goals.

How do you picture your retirement years? Do you want to travel or start a second career? Perhaps you want to downsize, move somewhere the cost of living is lower, and spend your days volunteering or working on a garden.

You may need up to 70% to 80% of your pre-retirement income during your retirement years. However, this amount can be significantly impacted by what you plan to do during your retirement years and any other obligations you have, such as debt or family commitments.

You also need to consider inflation and what kind of estate (if any) you wish to leave behind. We will help guide you through this.


Step 2: Plan your path.

Once you know how you want to spend your retirement years, you can determine roughly how much cash you’ll need to support yourself. 

Calculating your net worth can give you an idea of your financial health. List everything you own and its value (assets), and then subtract what you owe (liabilities) to determine your net worth. If your net worth isn’t as high as you’d like, here are some tips to increase it:

  • Get rid of debt. Debt is even harder to manage if you’re on a fixed income during your retirement years. One option for debt management is consolidating your debts and paying them off with a low-interest line of credit. 
  • Make the most of your Registered Retirement Savings Plan (RRSP). Growth in an RRSP is tax-deferred, and you can split income via spousal RRSPs. Make sure you diversify your RRSP investments to include equity and fixed-income holdings. 
  • Consider consolidating your investments. This can make it not only easier to manage your portfolio but it can also reduce the overall costs associated with investing.
  • Organize your investments to minimize the tax you must pay. For example, capital gains and dividends are taxed lower than interest income. 




Step 3: Be aware of all your income sources.

On top of your registered and non-registered assets, you may receive retirement income from the following.  

    • Government benefits, including the Canada Pension Plan (CPP) and Old Age Security (OAS). 
    • Company pension. If you participated in an employer-sponsored pension plan, you would be eligible for a payout during your retirement years. 
    • The sale of a business or a property. 

We can help you plan so you can enjoy your dream retirement – call us today!

Latest News for Pre-Retirees

2024 Federal Budget Highlights

2024 Federal Budget Highlights

On April 16, 2024, Canada’s Deputy Prime Minister and Finance Minister, Chrystia Freeland, presented the federal budget.
While there are no changes to federal personal or corporate tax rates, the budget introduces:

• An increase in the portion of capital gains subject to tax, rising from 50% to 66.67%, starting June 25, 2024. However, individual gains up to $250,000 annually will retain the 50% rate.
• The lifetime exemption limit for capital gains has been raised to $1.25 million. Additionally, a new one-third inclusion rate is set for up to $2 million in capital gains for entrepreneurs.
• The budget confirms the alternative minimum tax changes planned for January 1, 2024 but lessens their impact on charitable contributions.
• This year’s budget emphasizes making housing more affordable. It provides incentives for building rental properties specifically designed for long-term tenants.
• Introduces new support measures to aid people buying their first homes.
• Costs for specific patents and tech equipment and software can now be written off immediately.
• Canada carbon rebate for small business