5 Steps for Retirement

4
 minute read

Retirement is a milestone many of us look forward to—but reaching it with peace of mind takes thoughtful planning. One of the most common questions people ask as they approach this stage is: “Do I have enough to retire?” The answer depends on how well you’ve prepared. Here are five essential steps to help you retire with confidence and clarity.

1. Start the planning process early

Time is one of your greatest allies in retirement planning. The earlier you begin, the more flexibility and opportunity you have to shape your financial future. Starting in your 30s or 40s allows you to take advantage of compounding growth, make informed career and savings decisions, and weather market volatility. Even if you’re starting later in life, it’s never too late to put a meaningful plan in place.

Many people approach financial advisors just days before retirement—it’s possible to help, but earlier planning allows for more strategic decisions and better outcomes.

Action steps:
• Estimate how much you’ll need annually in retirement by speaking to one of our portfolio managers or using our free retirement savings calculator.
• Identify all possible income sources: pensions, government benefits, RRSPs, TFSAs, company plans, etc.
• Start automating regular monthly contributions to retirement accounts.

Tip: Begin by calculating your projected retirement expenses, including housing, health care, travel, and inflation, to understand your income needs well in advance.

Starting early gives your retirement savings time to take advantage of compound growth. Even small contriubutions become substantial over time.

2. Build your financial roadmap

A financial roadmap turns your retirement dream into a structured plan. It should detail your income needs year by year, anticipated expenses, investment strategy, withdrawal plans, and contingencies. It should also address how taxes, inflation, and estate goals will be managed.

Without a roadmap, decisions are often reactive rather than proactive, increasing the risk of running out of money or missing tax-saving opportunities.

Action steps:
• Work with one of our portfolio managers to create a financial plan with key milestones.
• Stress-test your plan under different market return and inflation scenarios.
• Integrate tax planning: consider the timing of RRSP withdrawals, TFSA usage, and CPP/OAS decisions.

Tip: Update your roadmap every 12–18 months or after major life events (e.g. job change, inheritance, or health issue).

 

3. Maximize your assets

This step is about shifting your mindset from accumulation to distribution. It’s no longer just about growing wealth—it’s about converting that wealth into income that supports your lifestyle. This might mean repositioning your investments into dividend-paying stocks, fixed income, or income-focused funds.

As you approach or enter retirement, risk management becomes more important. You have less time to recover from market downturns, so balancing growth and preservation is essential. Adjusting your asset allocation to reduce volatility while ensuring reliable income—such as using dividend-paying equity or fixed-income products—can create financial stability in retirement.

In addition, this is a good time to address any high-interest debt, like credit card balances or unsecured loans, which can eat away at your retirement income. Using credit effectively and exploring tax-deductible debt—like investment loans or home equity strategies—can create efficiencies. You might also consider strategies such as income splitting, where applicable, to reduce your household tax burden and retain more wealth.

Action steps:
• Identify any non-productive assets (e.g. unused real estate, underperforming holdings) and evaluate their potential for income generation.
• Consider tax-efficient withdrawal strategies, like drawing from non-registered accounts first or spreading out RRIF/RRSP withdrawals over multiple years to minimize income tax payments.

Tip: Revisit your portfolio annually to ensure it aligns with your current income needs and risk level.

 

4. Plan for the unknown

Life has a way of surprising us—health issues, family emergencies, market downturns. Your plan should account for these. That means maintaining cash reserves, having insurance in place, and building flexibility into your withdrawal strategy. Even a well-built plan must be able to adapt when circumstances change.

One of the most important ways to prepare is to protect your income. Ensure you have short-term and long-term disability insurance during your working years to protect against unexpected illness or injury. As you approach retirement, review your life and living benefits insurance to make sure you have enough coverage to meet end-of-life needs, pay off liabilities, or support dependents.

Action steps:
• Set aside 6–12 months of essential expenses in an accessible emergency fund.
• Plan for healthcare costs, including insurance premiums, prescription coverage, or out-of-pocket medical expenses.
• Secure adequate disability and life insurance coverage, including critical illness and long-term care where appropriate.
• Use conservative return assumptions (e.g. 4% instead of 6%) to build margin for error into your forecasts.

Tip: Review your plan annually with your portfolio manager to adjust for changes in personal health, family situation, or market conditions.

 

5. Enjoy retirement with confidence

Once your plan is in place and your assets are aligned with your goals, it’s time to enjoy the life you’ve worked hard for. A clear strategy and sustainable withdrawal plan will allow you to focus on what matters most—time with family, travel, hobbies, etc.—without financial stress.

You shouldn’t be reacting to every market dip. A well-designed retirement plan is built to weather uncertainty. One of the best ways to maintain that confidence is to have an experienced portfolio manager by your side. They can help you stay disciplined, monitor your investments, and make objective adjustments when needed. A steady hand can help you avoid emotional decisions and stay focused on your long-term plan.

At Matco, our portfolio managers can prepare a comprehensive financial plan tailored to your retirement goals—so you can make informed decisions with clarity.

Action steps:
• Work with a portfolio manager to monitor your plan regularly and make adjustments as needed.
• In retirement, consider setting up automatic withdrawals from your investment accounts to simulate a regular “paycheque.”
• Review and refresh your goals annually—retirement is not static.

 

Retirement is about freedom. Let your plan take you there.

Your financial roadmap should reflect your evolving goals and adapt to whatever life brings. It’s not just about the numbers—it’s about feeling confident that your financial future is on track. If you haven’t begun planning yet, or if you’re looking for a second opinion, consider starting a conversation with a trusted professional. The earlier and more intentionally you plan, the more rewarding your retirement journey can be.

Ready to take the next step?

Our team is here to turn knowledge into results. Start building your financial future by speaking with an advisor.