The Financial Checklist Every Ontarian Should Complete Before Retiring
The 12 things you need to have in order before you hand in your notice
Retirement is one of the most significant financial transitions of your life. Done well, it's the beginning of a secure, fulfilling chapter. Done without adequate preparation, it can create financial stress that diminishes what should be your best years.
Whether your retirement is 2 years away or 10, this checklist will help you identify what's in order, what still needs attention, and what conversations to have with your advisor before you make the leap.
Contact us today for a complimentary retirement income consultation.
1. Know Your True Retirement Income Needs
Before you can build a retirement income strategy, you need to know what you're funding. Build a detailed retirement budget. Separating essential expenses from discretionary lifestyle spending and project both forward over a 25–30 year horizon. Include a 'year one' budget and a 'year fifteen' budget, accounting for the fact that spending patterns change across retirement.
2. Get Your CPP and OAS Numbers
Create or access your My Service Canada Account to see your projected CPP entitlement at ages 60, 65, and 70. Model the deferral scenarios with your advisor and confirm your OAS eligibility (you generally need 40 years of Canadian residency for the full OAS amount). Understand how and when you'll apply for both.
3. Build a Detailed Withdrawal Strategy
Know exactly which accounts you'll draw from, in what order, and in what amounts. Coordinate RRSP/RRIF drawdown with government benefit start dates, TFSA contributions and withdrawals, and non-registered account liquidation to minimize lifetime taxes. This should be modelled quantitatively, not estimated.
4. Stress-Test Your Portfolio Against Market Risk
Ask your advisor to model your retirement plan against adverse market scenarios. Specifically, a severe bear market in the first five years of retirement. Ensure your portfolio and withdrawal strategy can survive sequence-of-returns risk without depleting your assets prematurely. Confirm you have an adequate cash buffer.
5. Review and Update All Beneficiary Designations
Check the beneficiary designations on every registered account (RRSP, RRIF, TFSA), pension plan, and life insurance policy. Outdated designations naming an ex-spouse, a deceased parent, or having no designation at all can result in funds flowing through your estate unnecessarily, subject to probate fees and delays.
6. Ensure Your Will Is Current and Comprehensive
Your will should be reviewed before retirement. Confirm it reflects your current wishes, names appropriate executors and trustees, includes provisions for minor or dependent beneficiaries, and coordinates with your beneficiary designations. If you don't have a will, make drafting one your first priority.
7. Confirm Your Powers of Attorney Are in Place
You need two Powers of Attorney in Ontario: one for Property (allowing someone to manage your financial affairs if you become incapacitated) and one for Personal Care (allowing someone to make healthcare and personal decisions). These documents are essential and should be reviewed at every major life transition.
8. Review Your Insurance Coverage
Assess your life insurance needs in retirement. You may need significantly less than during your working years, your income is no longer dependent on your employment. Consider whether existing policies should be restructured, surrendered, or repurposed. Separately, evaluate your long-term care insurance situation and your critical illness coverage.
9. Understand Your Pension Options (If Applicable)
If you have a defined benefit pension, review your payout options carefully before making an irrevocable election. Options typically include: full pension to you with no survivor benefit; reduced pension with a survivor benefit for your spouse; or a commuted value transfer to a locked-in retirement account. Each has significant long-term financial implications and the choice cannot be undone.
10. Plan for Healthcare Coverage
In Ontario, provincial health insurance (OHIP) covers most core medical care. But it does not cover prescription drugs for those under 65 (though ODB covers most drugs after 65), dental, vision, hearing, or many paramedical services. Review whether you have post-retirement group benefits through your employer, and if not, assess individual or association health plan options before your employer coverage lapses.
11. Consider the Tax Impact of Your Retirement Year
The year you retire is often a high-income year (final employment income) combined with the beginning of new income sources. Model the tax impact of your transition year carefully. Including severance, vacation payouts, pension commencement, and RRSP/RRIF activity. Some retirees benefit from delaying certain income to the following year.
12. Have the Conversation With Your Spouse
Retirement is a joint life event for most couples, but financial discussions before retirement are often incomplete or one-sided. Ensure both partners understand the income plan, agree on spending priorities, know where all accounts and documents are held, and are jointly prepared for the unexpected. Including the financial implications of one partner predeceasing the other.
One More Step
Once you've worked through this checklist, the most valuable next step is a comprehensive retirement income review with a qualified advisor who specializes in this transition. The difference between a well-planned retirement income strategy and an improvised one can be tens of thousands of dollars per year and a dramatically different experience of retirement itself.
Ready to Work Through Your Retirement Checklist?
We specialize in helping affluent Ontarians prepare for and navigate the retirement transition. Whether your retirement is two years away or ten, now is the right time to ensure every element is in place.
Contact us today for a complimentary retirement income consultation.
Disclaimer
This publication is for informational purposes only and has been prepared from public sources which are meant to be reliable. None of the information in this should be construed as investment advice. Speak to your Investment Advisor to learn if this product is right for you. Designed Securities Ltd. (DSL) is regulated by the Canadian Investment Regulatory Organization (CIRO), and a Member of the Canadian Investor Protection Fund (www.cipf.ca). Christopher Burke is registered to advise in securities to clients residing in Ontario. The views expressed are those of the author and not necessarily those of DSL. This report does not constitute an offer or solicitation in any jurisdiction in which such offer or solicitation is not authorized or to any reliable person to whom it is unlawful to make such offer or solicitation. Content is accurate as of the date of publication, and subject to change without notice.
