5 Retirement Questions Canadians Keep Asking (And How to Answer Them Wisely)

If you’re approaching retirement and quietly wondering, “Am I really doing this right?” — you are in very good company.

After years of working with Canadians in their 50s, 60s, and beyond, I can tell you something with confidence: retirement planning is rarely derailed by lack of effort. It’s usually disrupted by lack of clarity.

The same five questions come up repeatedly in client conversations. Not because people aren’t trying — but because retirement today is more complex than it was for previous generations.

The good news? With the right structure and a calm, disciplined approach, retirement can become one of the most financially confident chapters of your life.

Let’s walk through the questions that matter most — and how to answer them wisely.

Key Takeaways

  • Build your retirement income plan from real spending — not outdated rules.

  • Separate essential expenses from lifestyle spending to create flexibility.

  • Your asset allocation must match your income strategy and behaviour.

  • RRIF timing decisions can materially impact lifetime taxes.

  • Withdrawal sequencing is one of the most underused retirement levers.

1) How Much Income Will I Actually Need in Retirement?

This is where many well-intentioned plans quietly go off track.

For decades, Canadians were told to aim for roughly 70% of their pre-retirement income. While simple, this rule often misses the reality of how people actually live.

As a seasoned planner, I encourage clients to start somewhere far more reliable: their real cash flow.

Step 1: Look at what is truly leaving your bank account

Pull the last 6–12 months of spending and identify your baseline lifestyle. Then subtract expenses that typically disappear in retirement:

  • Commuting and parking

  • Work clothing

  • Retirement savings contributions

  • Mortgage payments (if nearing payoff)

What remains is often eye-opening — and far more accurate than any rule of thumb.

Step 2: Layer in your retirement vision

Early retirement years often bring higher discretionary spending, not lower. Consider:

  • Travel and experiences

  • Health and wellness investments

  • Supporting family

  • Hobbies you finally have time for

Step 3: Separate needs from wants (this is critical)

This single exercise builds enormous financial confidence.

When markets inevitably fluctuate, retirees who know their non-negotiable monthly number sleep much better at night.

Wise perspective: Retirement planning is not about predicting every dollar perfectly — it’s about building enough structure to remain calm when uncertainty shows up.

2) What Should My Asset Allocation Be?

Many investors still search for the “perfect” portfolio mix.

In reality, the right allocation is deeply personal and should reflect not just your timeline — but your retirement income style and emotional tolerance for volatility.

Your mix should consider:

  • Time horizon

  • Required income from the portfolio

  • CPP, OAS, and pension income

  • Legacy goals

  • Behaviour during past market downturns

Here’s the truth many people need to hear:

The best portfolio is the one you can stick with when markets are uncomfortable.

A technically perfect portfolio that gets abandoned during volatility becomes the wrong plan.

Seasoned guidance: Build for endurance, not just optimization.

3) How Do RRIF Withdrawals Work — And When Should I Start Thinking About Them?

This transition catches many Canadians off guard.

When your RRSP converts to a RRIF:

  • Minimum withdrawals begin the following year

  • Withdrawals are fully taxable

  • Required withdrawal percentages rise with age

  • Full conversion must occur by December 31 of the year you turn 71

But here is where thoughtful planning creates real value.

The often-missed window: your 60s

Many retirees experience a temporary dip in taxable income after leaving full-time work but before government benefits fully ramp up.

This can be an extremely valuable tax-planning window.

Strategic moves may include:

  • Partial RRSP withdrawals

  • Early RRIF conversion in stages

  • Income smoothing strategies

  • Pension splitting coordination

Handled properly, these decisions can meaningfully reduce lifetime tax drag.

Encouragement: Small proactive decisions in your early retirement years can create disproportionate benefits later.

4) Should You Consider Moving Your Investments?

Before making any move, pause and ask a better question:

Is your current strategy giving you clarity and coordination — or just statements and performance reports?

At this stage of life, investment management alone is not enough. Pre-retirees and retirees benefit most from integrated planning, including:

  • Retirement income mapping

  • Tax efficiency planning

  • Withdrawal sequencing

  • Longevity stress-testing

  • Estate and legacy alignment

Quiet red flags to watch for

You may benefit from a second opinion if:

  • Your income plan feels vague

  • Tax strategy is rarely discussed

  • The focus is primarily on returns

  • You don’t feel fully confident in the roadmap

Trusted advisor perspective: Retirement success is rarely about finding a better fund — it’s about building a better coordinated plan.

5) What Are the Tax Implications When I Withdraw Money?

This is one of the most powerful — and most underutilized — levers in retirement planning.

Different account types behave very differently.

RRSP / RRIF

  • Fully taxable as income

  • Can affect income-tested benefits

  • Mandatory withdrawals (RRIF)

TFSA

  • Tax-free withdrawals

  • No impact on OAS

  • Highly flexible for income smoothing

Non-Registered Accounts

  • Capital gains when selling

  • Annual tax on interest/dividends

  • Valuable planning flexibility

Important insight: It’s not just how much you withdraw — it’s where you withdraw from first that often determines tax efficiency.

The Bottom Line

Retirement today is longer, more dynamic, and more personal than ever before.

But here’s the encouraging truth I want you to take with you:

  • Most Canadians are closer to being on track than they think.

  • What’s often missing is not effort — it’s coordination and clarity.

  • With thoughtful adjustments, your plan can become far more resilient.

Retirement is not about perfection.

It’s about building a plan strong enough — and flexible enough — to support the life you’ve worked so hard to create.

Mike Gomes, CFP