Pre-Retirement Checklist for Canadians

As a Canadian planning for retirement, it’s natural to want to feel confident that your finances, lifestyle, and future needs are all in place.

This pre-retirement checklist helps you take the time now to prepare for the future.

We break down what to focus on, step by step, so you can move into retirement feeling ready.

10+ Years Before Retirement

At this point, you should focus on building a strong financial base.

This is the ideal time to assess your spending, income sources, and investments while planning ahead for healthcare and long-term care needs.

Laying the groundwork now will set you up for a more secure and stress-free retirement later.

Estimate Your Living Expenses

• Track your current spending habits.

• Account for inflation in future projections.

• Use budgeting tools to forecast future financial needs.

Assess Your Retirement Income Sources

• Estimate your Canada Pension Plan (CPP) benefits.

• Estimate your Old Age Security (OAS) benefits.

• Review your workplace pension plans.

• Evaluate your personal savings (RRSPs, TFSAs, etc.).

Optimize Your Investment Portfolio

• Ensure your investments match your risk tolerance and retirement timeline.

• Apply tax-efficient strategies to grow and preserve your savings.

Prepare for Healthcare and Long-Term Care Needs

• Understand what is covered by Canadian healthcare.

• Explore private health insurance options to fill potential gaps.

• Consider purchasing long-term care insurance.

• Plan for the potential costs of aging and long-term care services.

3-5 Years Before Retirement

This stage is about locking in details and reducing financial risk.

You should finalize your retirement budget based on realistic income and spending projections.

Make sure it accounts for healthcare, travel, and unexpected costs.

Do a Financial Check-Up

• Assess all income sources and projected retirement expenses

• Use retirement calculators and budgeting tools to clarify your financial outlook

Focus on Reducing Debt

• Prioritize repayment of high-interest debt

• Create and follow a structured debt reduction plan

Review or Create an Estate Plan

• Set up or update your will

• Designate and review beneficiaries

• Ensure legal documents (e.g., power of attorney, health directives) are in place

• Reassess life insurance or other coverage to protect your estate

Plan Your Post-Retirement Activities

• Explore hobbies and interests you want to pursue

• Plan for social engagement and community involvement

• Prioritize health and wellness routines for long-term quality of life

6-12 Months Before Retirement

At this point, it’s time to turn your plans into actionable steps.

Finalize income sources, lock in your retirement date, and start applying for benefits.

Healthcare coverage needs to be sorted, and your financial plan needs to support a stable, comfortable transition.

Create a Detailed Income Plan

• List all income sources: CPP, OAS, RRSPs, TFSAs, pensions, etc.

• Decide when to start each one for best tax and cash flow results.

Set Your Official Retirement Date

• Choose a firm retirement date

• Notify your employer and confirm timelines for benefits and HR requirements

Start Government Benefits and Income Products Applications

• Apply for CPP, OAS, and other benefits early.

• Submit forms for annuities or other income products if needed.

Review Health Benefits During Retirement

• Check if you can extend your workplace health plan.

• Compare private plans to cover gaps.

• Look into long-term care and critical illness insurance.

General Pre-Retirement Tasks

The focus here is getting ready for the practical aspects of life in retirement.

Your legal affairs should be organized.

It's also smart to meet with a financial advisor and make arrangements in case you're unable to manage things on your own later.

See the top 5 factors to consider when planning for retirement for a more indepth approach.

Finalize Estate Planning

Make sure your will is current and reflects your wishes. Prepare powers of attorney and health directives to address medical or legal decisions if you're unable to make them yourself.

Create a Budget for Day-to-Day Expenses

Figure out how much you'll need each month to cover essentials like food, housing, utilities, and transportation. Base this on your expected retirement income to avoid surprises.

Consult with a Financial Advisor

Speak with a professional to review your retirement plan. They can help fine-tune your investments, minimize taxes, and ensure your savings can support your lifestyle.

Plan for a Possible Loss of Independence

Think ahead about what happens if you can't manage your affairs. Set up trusted decision-makers and consider future care options, both financially and legally.

Reviewing Public Pensions & Benefits

The goal here is for you to be properly positioned to access the public benefits available to you.

Knowing if you qualify for pensions and how your marital status and residence history could affect your benefits will help ensure you're fully prepared to access the financial support you're entitled to.

Understand Your Eligibility for OAS and CPP

Make sure you know if you qualify for OAS and the CPP. Check the requirements ahead of time so you can apply smoothly when the moment comes.

Consider the Impact of Your Marital Status

Your marital status can influence your benefits.

Being single, married, divorced, or widowed may have different effects on what you're entitled to.

Track Your Residence History

Keep a record of where you've lived, especially if you've spent time outside Canada.

Your residence history can affect your eligibility and payment amounts for public benefits.

Additional Considerations

There are more things to keep in mind, such as planning large expenses.

Taking these steps reinforces your preparedness for a secure retirement.

Plan for Larger Expenses

Plan for any big costs that may arise during retirement.

Consider healthcare expenses, as they can increase with age.

You should also account for possible household repairs of the financial support of family members.

Explore Provincial and Territorial Programs

Each province and territory in Canada may offer unique benefits and support programs for retirees.

Take the time to research what is available in your area to be sure you're not missing out on anything made for your location.

Check Out Additional Programs and Benefits (Indigenous Persons)

If you are Indigenous, you may be entitled to additional retirement benefits and programs.

Look into these to make sure you're accessing all the support you're entitled to.

This could include financial assistance or special benefits designed specifically for Indigenous seniors.