👵Retirement Planning in Canada: What You Should Know👴

👵Retirement Planning in Canada: What You Should Know👴

Retirement planning is more than just saving—it’s about ensuring stability, comfort, and dignity across life’s later decades. From CPP and OAS to private savings, Canadians have several income sources, but knowing how to combine them at the right age is essential.

🔹 Retirement Savings by Age: Canadian Benchmarks

Statistics Canada shows retirement wealth differs by life stage:

  • Under 40: Savings usually small, but TFSA and RRSP contributions build long-term compounding.
  • Ages 40–54: Median retirement assets around CAD $250,000–$300,000.
  • Ages 55–64: Median assets exceed CAD $450,000, with retirement top of mind.
  • Ages 65–74: Many live on combined CPP, OAS, and RRIF withdrawals.
  • 75 and Over: Savings often decline, but careful planning helps stretch funds.

đź“Ś Insight: Retirement savings by age is not a rule but a benchmark to guide expectations.

🔹 Core Retirement Income in Canada

Canadian retirees typically draw income from three main sources:

  1. Government Benefits: CPP and OAS provide baseline income. GIS supports low-income seniors.
  2. Employer Pensions: Defined benefit and defined contribution pensions remain vital for stability.
  3. Personal Savings: RRSPs, TFSAs, and non-registered accounts allow tax-efficient withdrawals.

🔹 Pension Investment Over 70 Years Old

After age 71, RRSPs must convert into RRIFs with required withdrawals. At this stage:

  • Guaranteed Income: Some seniors prefer annuities for predictable monthly payments.
  • Balanced Approach: Conservative stocks, bonds, and GICs remain popular.
  • Tax Planning: Income-splitting and age-related credits lower tax burden.

đź’ˇ Pension investment over 70 years old focuses less on growth and more on security, stability, and minimizing risk.

🔹 Role of Retirement Advisors for Seniors in Canada

Professional advice can benefit all ages, but the focus changes over time:

  • Midlife (40s–60s): Advisors help maximize RRSP and TFSA contributions.
  • Early Retirement (65–74): Guidance on RRIF withdrawals and pension coordination.
  • Late Retirement (75+): Specialized retirement advisors for those aged 75 and over Canada help manage healthcare costs, estate planning, and inheritance strategies.

đź“Ś Choosing a retirement advisor for people 75 and over ensures tailored advice for older adults with unique needs.

🔹 Key Considerations for Canadian Retirement Planning

  • Inflation steadily reduces purchasing power—long-term planning is essential.
  • Healthcare and long-term care can be significant late-life expenses.
  • Estate planning (wills, trusts, powers of attorney) should be prepared early.
  • Risk tolerance decreases with age—security outweighs high returns for most.

đź’¬ Canadian Voices

“I started early with RRSPs, but real clarity came from my advisor at 68 when I had to shift to RRIFs.” – Retiree, Alberta

“At 76, my advisor helped me balance healthcare costs with income planning. That guidance was invaluable.” – Retiree, Ontario

đź“Ś FAQ: Quick Answers

Q: When should Canadians start retirement planning?

The earlier, the better. Even small contributions in your 20s and 30s can grow substantially.

Q: Can Canadians still invest after 70?

Yes. RRSP contributions stop at 71, but TFSAs, non-registered accounts, and annuities remain options.

Q: Are retirement advisors worth it for seniors over 75?

Yes—especially for tax planning, estate management, and pension optimization.

âś… Conclusion

Retirement in Canada is a journey, not a deadline. Whether building wealth at 40, managing withdrawals at 65, or securing stability at 75+, the right planning—supported by advisors—ensures peace of mind and lasting financial security.

Have a nice day!