Year-End Financial Tips: Preparing for the New Year in Retirement

The end of the year isn’t just a time for celebrations — it’s the perfect moment to pause, review your financial picture, and make strategic adjustments that set you up for a strong and stress-free New Year. For retirees and those approaching retirement, this checklist ensures your income, savings, taxes, and lifestyle plans stay aligned with your long-term goals.

Below is your clear, step-by-step guide to finishing the year strong.

1. Review Your Retirement Income Streams

Whether your income comes from CPP/OAS, RRIF withdrawals, pensions, investments, or part-time work, your first step is making sure everything is optimized — not just functional.

✔️ Immediate Actions

  • Check if your RRIF withdrawals meet the mandatory minimum for the year.

  • Review the sustainability of your withdrawal rate — are you withdrawing too much or too little?

  • If you receive pension income, confirm any indexing or upcoming adjustments for 2026.

  • Evaluate if your investments created income you weren’t expecting (interest, dividends, capital gains).

Why This Matters:

Your income plan is the backbone of your retirement. A small tweak now can prevent tax surprises and improve long-term sustainability.

2. Optimize Tax Efficiency Before December 31

Year-end is one of your best opportunities for tax savings — but only if you act before deadlines hit.

✔️ Immediate Actions

  • Tax-Loss Harvesting: If you have investments in non-registered accounts, consider selling losing positions to offset capital gains.

  • RRSP Contributions (if under 71): Determine if topping up now improves your tax bracket.

  • Charitable Giving: Donations made before Dec. 31 provide 2025 tax credits.

  • Split Income Where Possible: Pension splitting may reduce your combined tax burden.

  • Check OAS Clawback Risk: If your income is nearing the threshold, consider strategies to reduce taxable income.

Why This Matters:

Taxes don’t end when retirement begins — they become more strategic. Smart moves now create simplicity and savings in April.

3. Reassess Your Annual Budget and Spending Habits

Retirement spending is not static. Health, travel, family needs, and lifestyle changes can shift your budget every year.

✔️ Immediate Actions

  • Compare your actual 2025 spending to your projected budget.

  • Identify 2–3 categories to adjust: travel, subscriptions, groceries, or insurance costs.

  • Plan for 2026 “bigger ticket” items: trips, home repairs, vehicle upgrades.

  • Review all recurring charges — cancel what’s no longer serving you.

Why This Matters:

Small adjustments each year protect your long-term income and ensure that your lifestyle remains comfortable and sustainable.

4. Update Your Investment Allocation

Your investments should support your life — not stress you. As you age, your needs and risk tolerance shift.

✔️ Immediate Actions

  • Review your asset allocation: equities vs. bonds vs. cash.

  • Rebalance your portfolio if it has drifted off target.

  • Confirm your investments still align with your time horizon and income needs.

  • Discuss tax-efficient investing options with your advisor.

Why This Matters:

A portfolio that’s not reviewed regularly may expose you to unnecessary risk — or insufficient growth.

5. Revisit Your Estate and Legacy Plan

Year-end is an ideal moment to make sure your wishes are up to date.

✔️ Immediate Actions

  • Confirm beneficiaries on RRSPs, TFSAs, RRIFs, and insurance policies.

  • Update your Will or Power of Attorney if anything has changed.

  • Review any new dependents, grandchildren, or family needs.

  • Consider documenting digital asset access (accounts, subscriptions, passwords).

Why This Matters:

Your legacy is more than money — it’s clarity, organization, and peace of mind for your loved ones.

6. Plan for Health, Wellness, and Lifestyle in 2026

Financial health and physical health are deeply connected. A strong year begins with intentional planning.

✔️ Immediate Actions

  • Estimate upcoming medical or wellness expenses.

  • Review your health benefits or insurance coverage.

  • Plan for activities, travel, or hobbies that support a fulfilling retirement lifestyle.

  • Set one meaningful personal goal for 2026 (fitness, travel, learning, family).

Why This Matters:

Retirement is not just about money — it’s about living fully, intentionally, and joyfully.

Conclusion

Preparing for the New Year in retirement is one of the most empowering steps you can take. By reviewing your income, optimizing taxes, refreshing your budget, and aligning your investments and goals, you create a retirement lifestyle that is stable, purpose-driven, and deeply fulfilling.

Every year offers a new chance to strengthen your foundation — and 2026 can be your most confident year yet.

Mike Gomes, CFP