BUILD YOUR FUTURE
Prepare for Your
Retirement
Learn how retirement income may come from different sources, how expenses and risks can change over time, and why planning ahead can help create greater financial flexibility.
retirement BASICS
Retirement Is More Than Reaching an Age
Retirement planning is about understanding how your future expenses may be supported when employment income is reduced or stops. It starts with knowing what you may need and where income could come from.
Retirement Expenses
Some expenses may decrease in retirement, while others may remain the same or increase.
Housing
Food
Transportation
Health-related costs
Travel and lifestyle
Family support
Start by understanding the lifestyle your retirement income may need to support.
Retirement Income
Retirement income may come from several different sources rather than one single account or benefit.
Government benefits
Workplace pensions
Personal savings
Investments
Other income
Understand how your different income sources may work together.
Retirement planning connects future expenses with the financial resources available to support them.
your retirement needs
How Much Income Might Retirement Require?
There is no single retirement-income amount that fits everyone. Your needs can depend on your lifestyle, housing, health, family responsibilities, taxes, and how long retirement may last.
1. Essential Needs
Start with expenses that are likely to continue regardless of lifestyle choices.
Housing
Food
Utilities
Transportation
Insurance
Understand the cost of maintaining your basic lifestyle.
2. Lifestyle Goals
Retirement may also include activities and priorities that are important to you.
Travel
Hobbies
Family activities
Community involvement
Personal goals
Retirement planning should reflect how you actually want to live.
3. Future Changes
Expenses may change as retirement progresses.
Housing changes
Health-related expenses
Family support
Reduced travel
Long-term care considerations
Your needs may not remain the same throughout retirement.
A useful retirement-income target starts with your expected expenses—not a universal percentage or rule.
income sources
Retirement Income Can Come From Several Places
A retirement plan may combine government benefits, workplace plans, personal savings, investments, and other sources of income.
1. Government Benefits
Eligible Canadians may receive retirement-related benefits from government programs based on applicable rules and circumstances.
CPP or QPP
Old Age Security
Other applicable benefits
Understand what you may qualify for and when benefits may begin.
2. Workplace Plans
Some employers provide pension plans, group retirement savings, or other workplace benefits.
Defined-benefit pension
Defined-contribution plan
Group retirement savings
Know what your employer plan provides and how it works.
3. Personal Resources
Personal savings and investments can help supplement other retirement income.
Registered accounts
Tax-free accounts
Non-registered savings
Other assets
Personal savings can provide additional flexibility.
Retirement income often works best as a combination of different sources rather than relying on only one.
GOVERNMENT BENEFITS
Understand the Role of Public Retirement Programs
Government retirement programs may provide part of your retirement income, but eligibility, payment amounts, taxation, and timing can depend on the program and your circumstances.
CPP or QPP
These contributory programs may provide retirement income based on factors such as contributions and when benefits begin.
Your benefit may differ from someone else's.
Old Age Security
OAS is a federal retirement benefit with eligibility rules that differ from CPP/QPP.
Eligibility and payment amounts depend on applicable rules and circumstances.
Other Government Support
Some retirees with lower incomes may qualify for additional income-tested benefits, subject to eligibility requirements.
Government programs should be reviewed using current official information.
Government benefits can form part of retirement income, but they may not cover every retirement expense or goal.
BUILDING YOUR RETIREMENT RESOURCES
Know What You Are Building Before Retirement Begins
The financial resources you accumulate during your working years can become an important part of your future retirement income.
1. Workplace Retirement Plans
Understand whether your employer provides a pension, group savings plan, matching contributions, or other retirement benefits.
Know what your workplace plan is building for you.
2. Personal Savings
Regular personal savings can supplement government and workplace retirement income.
Registered savings
Tax-free savings
Other investments
Consistent saving can increase future flexibility.
3. Other Assets
Some households may also have other assets or income sources that affect retirement planning.
Business interests
Rental income
Other investments
Property decisions
Consider how each resource fits into the larger retirement picture.
Retirement planning becomes clearer when you understand what resources you are building and what role each one may eventually play.
RETIREMENT RISKS
Retirement Can Last Longer Than You Expect
Retirement planning involves more than accumulating money. Several financial risks can affect how long retirement resources may need to last.
1. Longevity
Living longer means retirement income may need to support expenses for more years.
Plan for the possibility of a long retirement.
2. Inflation
Rising prices can reduce what the same amount of money can buy over time.
Future expenses may cost more than they do today.
3. Market & Income Changes
Investment values, interest rates, income sources, and expenses can change throughout retirement.
Flexibility becomes important when conditions change.
A retirement plan should consider not only how much you accumulate, but how long those resources may need to support you.
from saving to income
Eventually, Accumulated Savings Need to Support Spending
Before retirement, the focus is often on building assets. During retirement, the focus increasingly shifts toward how those resources can support ongoing income and expenses.
1. Understand Your Income
Identify which income sources may be predictable and which may vary.
Government benefits
Pension income
Investment withdrawals
Other income
Know what income may arrive regularly.
2. Understand Your Withdrawals
Personal savings and investments may need to be converted into retirement spending over time.
Withdrawals should be considered in relation to future needs.
3. Keep Flexibility
Retirement needs and financial markets can change, so plans may need adjustment over time.
Avoid treating retirement income as a one-time calculation.
Retirement planning connects accumulated resources with a sustainable approach to future spending.
REVIEW & ADJUST
Your Retirement Plan Should Change as Life Changes
Income, expenses, health, family responsibilities, government benefits, and financial markets can change. Reviewing your retirement plan helps keep it aligned with your current circumstances.
Track Your Progress
Keep an updated picture of your savings, investments, pension benefits, government benefit estimates, and retirement goals.
Review Your Needs
Revisit expected expenses, retirement timing, income sources, and major changes in your financial or family situation.
Update Your Plan
Adjust savings, investment priorities, retirement timing, or future income expectations as circumstances change.
Track Your Progress
Keep an updated picture of your savings, investments, pension benefits, government benefit estimates, and retirement goals.
Review Your Needs
Revisit expected expenses, retirement timing, income sources, and major changes in your financial or family situation.
Update Your Plan
Adjust savings, investment priorities, retirement timing, or future income expectations as circumstances change.
Retirement planning is not a one-time calculation. Review your income needs, resources, and priorities as your life changes.
Quick SELF-CHECK
How Well Do You Understand Your Retirement Plan?
A few practical questions can help you see which parts of retirement planning you understand and which areas may need more attention.
Do you know approximately when you would like to retire?
Do you understand your expected retirement expenses?
Do you know what government benefits you may qualify for?
Do you understand your workplace pension or retirement plan?
Do you know what personal savings and investments you are building?
Have you considered inflation and the possibility of a long retirement?
Do you understand where retirement income may come from?
Have you reviewed your plan after major financial or life changes?
NEXT ACTION
Ready to Turn Reflection Into Action?
A clearer retirement plan begins with understanding your future needs, income sources, and the resources you are building today.
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