How to Adjust Your Financial Plan Mid-Year for Better Retirement Outcomes

Life doesn’t follow a script—and neither does retirement planning. Whether it’s an unexpected expense, a job change, a market downturn, or a new financial goal, adjusting your plan partway through the year can make all the difference in reaching your ideal retirement.

The mid-year mark is the perfect time to pause, assess, and pivot where needed. Here’s a comprehensive guide to reviewing your retirement strategy and making changes that will protect and enhance your long-term financial health.

1. Revisit Your Retirement Savings Contributions

Your contribution levels should reflect both your income and your current goals. Review how much you’ve contributed so far to your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA). Are you on track to maximize your contribution room?

Questions to Ask:

  • Have you maxed out your RRSP or TFSA contributions this year?

  • Have there been changes to your income, expenses, or employment?

  • Could you increase your monthly contributions—even by $50 or $100?

Pro Tip:
Set up automatic transfers to your RRSP or TFSA. Automating your savings removes the temptation to spend and ensures you're consistently building your retirement nest egg.

Quick Reference (2024 Contribution Limits):

  • RRSP: 18% of your earned income up to $31,560

  • TFSA: $7,000 (plus any unused room)

2. Review and Rebalance Your Investment Strategy

Investments should align with your time horizon and risk tolerance—and those can change over time. If you're within 10 years of retirement, consider shifting your portfolio gradually toward a more conservative asset mix, emphasizing capital preservation.

What to Look For:

  • Is your portfolio too aggressive or too conservative based on your retirement timeline?

  • Are your current investments meeting your expected rate of return?

  • Have you reviewed your mutual funds, ETFs, or individual stocks lately?

Pro Tip:
Use this opportunity to rebalance your portfolio. This involves selling some of the investments that have grown disproportionately and reinvesting in underweighted areas to maintain your desired asset allocation.

Example:
If your portfolio is now 75% stocks and 25% bonds, but your goal is 60/40, it's time to shift some gains into safer investments.

3. Evaluate and Update Your Retirement Expenses

Even the best-laid plans need revisiting. As inflation, healthcare needs, and lifestyle expectations shift, so should your projections for retirement spending.

Expense Categories to Reassess:

  • Healthcare: Prescription drugs, dental care, vision care, and private insurance

  • Housing: Mortgage, property tax, condo fees, home maintenance, or potential downsizing

  • Transportation: Vehicle upkeep, public transit, or retirement travel

  • Lifestyle: Dining out, travel, hobbies, entertainment

  • Emergencies: Unexpected home repairs, family support, or health costs

Pro Tip:
Build a flexible retirement budget that includes “core” (needs) and “discretionary” (wants) expenses. Prioritize fixed and essential costs, then layer on optional lifestyle spending. Include a buffer for inflation and unexpected expenses.

4. Reassess Your Retirement Timeline and Goals

Mid-year is a great time to reflect on your desired retirement age and the lifestyle you hope to enjoy. Life changes—such as a career change, a health issue, or an inheritance—can impact your expected timeline.

Ask Yourself:

  • Has your target retirement age changed?

  • Are you planning any life changes that could impact your retirement (e.g., relocating, changing careers, downsizing)?

  • Do you need to accelerate your savings rate to retire earlier?

Pro Tip:
If you’re planning to retire before 65 (before OAS/CPP kick in), make sure your savings can cover the gap in income. A retirement projection with your financial planner can help clarify if you’re on the right path.

5. Don’t Forget About Taxes and Estate Planning

Tax efficiency and estate planning can protect your assets and ensure your legacy is passed on smoothly.

Mid-Year Actions:

  • Are you minimizing taxes through RRSP withdrawals, TFSA usage, or income splitting?

  • Do you have a current will, power of attorney, and beneficiary designations on your accounts?

  • Should you consider a retirement income plan that outlines when and how you’ll draw from your accounts (RRSP → RRIF, pension income, non-registered funds, etc.)?

Pro Tip:
A mid-year review with a tax-savvy financial planner can help you spot hidden savings opportunities and avoid costly mistakes before year-end.

Conclusion: Small Tweaks, Big Results

Retirement planning isn’t a one-and-done event—it’s a journey that requires regular check-ins. By taking the time to evaluate your savings rate, investments, expenses, and long-term goals at mid-year, you stay proactive and adaptable.

The earlier you adjust, the more time your money has to work for you.

Whether you're behind on contributions or looking for optimization opportunities, mid-year is your chance to course-correct and end the year strong—with greater clarity, confidence, and control.

Mike Gomes, CFP