Ready, Set, Retire!
A Step-by-Step Guide for Canadians 10–15 Years Away from Retirement Guide Prepared by Callum Sutherland, CFP
Table of Contents
Max Out Your Retirement Accounts
Clear High-Interest Debt
Create a Detailed Budget for Retirement
Practice Living on Your Projected Retirement Income
Build (or Boost) an Emergency Fund
Understand Your Pension Options
Optimize Your Tax Strategy
Plan Your Estate
Visualize Your Ideal Retirement
Consult a Financial Planner (Hint: That’s Me!)
Introduction
Welcome to Ready, Set, Retire!, a Canadian-focused guide designed to help you smoothly sail into your golden years. If you’re 10–15 years away from retirement (or even if you’re a bit closer—or a bit further), these steps will help you prepare both financially and emotionally.
From maximizing your RRSP and TFSA contributions to visualizing your ideal post-work life, we’ll delve into 10 essential actions. And because nobody likes to read a dry, jargon-heavy manual, we’ve sprinkled in some humor and real-life context. After all, planning your retirement should feel empowering, not like a trip to the dentist.
This guide is brought to you by Callum Sutherland, CFP, a Certified Financial Planner dedicated to helping Canadians turn their retirement dreams into reality—without losing their sense of humor along the way. He did have some help from friends and tech.
1. Max Out Your Retirement Accounts
What to Do
Boost your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) contributions to hit your annual limits—or get as close as possible. Consider your taxable income now compared to in retirement. Ask about making a contribution in December when you are 71.
Why It Matters
RRSPs offer tax-deferred growth, which can supercharge your retirement savings.
TFSAs offer tax-free growth—perfect for both long-term investment and mid-term goals.
The earlier and more consistently you contribute, the greater your “snowball effect” of compounding returns.
How It Affects You
Financially: Enjoy the potential for a bigger nest egg—meaning more freedom to travel, spoil the grandkids, or pursue that hobby you’ve always dreamed about.
Emotionally: A growing RRSP/TFSA can feel like a warm safety blanket on a cold Canadian winter’s night, easing any anxieties about your future.
Resources
Government of Canada – RRSP Overview
Government of Canada – TFSA Overview
2. Clear High-Interest Debt
What to Do
Focus on wiping out credit card balances and personal loans with sky-high interest rates. Consider methods like the “avalanche” (tackling highest interest first) or “snowball” (smallest balance first).
Why It Matters
High-interest debt can eat away at your wealth like a moose chewing through your prize garden.
Reducing or eliminating these debts frees up cash you can redirect to your retirement accounts.
How It Affects You
Financially: Freeing yourself from high interest means more money stays in your pocket—where it belongs.
Emotionally: Picture sleeping peacefully without that ominous cloud of debt overhead. It’s a liberating image, isn’t it?
Resources
Book: The Wealthy Barber Returns – David Chilton
Website: Credit Counselling Society
3. Create a Detailed Budget for Retirement
What to Do
Estimate your monthly retirement expenses—including travel, hobbies, healthcare, and daily living. Match these costs to your projected retirement income (CPP, OAS, pensions, savings, etc.).
Why It Matters
Having a clear picture prevents both overspending and undersaving.
A detailed retirement budget is your personal “GPS,” showing you how much you need and where to allocate it.
How It Affects You
Financially: A realistic budget helps you prioritize essential spending while leaving room for fun.
Emotionally: No more “Where did my money go?” panic attacks—just a confident stride into your golden years. Hint: It might be Amazon or other subscriptions.
Resources
PDF: CPA Canada – Budgeting Essentials
Website: You Need a Budget (YNAB)
4. Practice Living on Your Projected Retirement Income
What to Do
Take your anticipated monthly retirement income and try living on it for a few months.
Why It Matters
This dress rehearsal spots unrealistic assumptions and lifestyle gaps before they become problematic.
Adapting gradually to a lower income is far less painful than a cold-turkey approach on Day 1 of retirement.
How It Affects You
Financially: You’ll see how feasible your retirement budget truly is and where to tighten or loosen the belt.
Emotionally: Builds confidence. When retirement actually hits, you’ll already be a pro at living the new lifestyle.
Resources
Website: Government of Canada – Financial Planning Tools
Book: Retirement Still Rocks – Diane McCurdy
5. Build (or Boost) an Emergency Fund
What to Do
Set aside 3–6 months’ worth of living expenses (or more if you’re risk-averse) in a readily accessible account.
Why It Matters
Emergencies—like sudden health issues, house repairs, Covid,or job loss—can derail your retirement savings if you’re not prepared.
An emergency fund keeps you from tapping into high-interest credit cards or, worse, your retirement nest egg.
How It Affects You
Financially: Preserves your long-term investments and saves you from crushing interest charges.
Emotionally: Peace of mind. Knowing you’re equipped to handle life’s curveballs is priceless.
Resources
PDF: FCAC – Creating a Saving Plan
Book: The Total Money Makeover – Dave Ramsey
6. Understand Your Pension Options
What to Do
Dig into the details of your workplace pension (if available), plus government benefits like CPP (Canada Pension Plan) and OAS (Old Age Security).
Why It Matters
Pensions and government benefits can be the backbone of your retirement income.
Knowing how much you’ll receive (and when) helps you plan more accurately for any savings gap.
How It Affects You
Financially: You’ll know if your pension or CPP alone isn’t enough, letting you adjust savings accordingly and when to start collecting CPP.
Emotionally: No unpleasant “I get how much?” surprises in your mid-60s. You’ll be ready for whatever the numbers reveal.
Resources
Government of Canada – Public Pensions
PDF: Ontario Pension Board – Member Guide (an example; your own pension plan may have similar resources)
7. Optimize Your Tax Strategy
What to Do
Explore Canadian tax-smart tactics—like spousal RRSPs, income splitting, strategic RRSP withdrawals, FHSA,and TFSA usage—to legally minimize your tax bill.
Why It Matters
More of your money goes toward your retirement goals instead of Ottawa’s coffers.
Taking advantage of legal tax efficiencies can make a big difference over 20–30 years.
How It Affects You
Financially: You’ll have more “fun money” for retirement, or maybe the option to retire sooner.
Emotionally: No more tax-time dread. You’ll know you’re playing by the rules and winning.
Resources
PDF: CPA Canada – Tax Tips for Canadians
Book: Make Sure It’s Deductible – Evelyn Jacks
8. Plan Your Estate
What to Do
Create or update your will, assign financial and healthcare Powers of Attorney, and ensure a healthcare directive is in place.
Why It Matters
Protects your loved ones from legal disputes and confusion—no one wants a real-life Game of Thrones showdown. It happens more often than you think.
Can reduce or avoid taxes and fees, allowing more of your estate to flow to your beneficiaries.
How It Affects You
Financially: Saves on legal costs, reduces taxes, and ensures your assets are passed on according to your wishes.
Emotionally: The relief of knowing that your affairs are in order and your family can grieve without family stress and chaos is invaluable.
Resources
Website: Canada.ca – Making a Will and Estate Planning
PDF: Ontario Bar Association – Estate Planning Toolkit
9. Visualize Your Ideal Retirement
What to Do
Describe how you’ll spend your time in retirement: Will you volunteer, travel, start a side business, or perfect your golf swing?
Why It Matters
Retirement isn’t just about numbers; it’s about living a fulfilling life. A clear vision helps tie your finances to why you’re saving.
Knowing your goals keeps you motivated to stick to your plan.
How It Affects You
Financially: You’ll tailor your savings to support the lifestyle you want—whether that’s a condo in Florida or a cabin by the lake.
Emotionally: Helps avoid the “What do I do now?” post-retirement slump. You’ll be ready to dive right in.
Resources
Book: Victory Lap Retirement – Mike Drak & Jonathan Chevreau
Website: Retire Happy Blog – Jim Yih
10. Consult a Financial Planner (Hint: That’s Me!)
What to Do
Schedule regular check-ups with a Certified Financial Planner to align your investments, tax strategy, and retirement goals.
Why It Matters
Expert advice can catch blind spots you’d never spot alone (tax rule changes, portfolio risk, estate hiccups, and more). Money is more emotions than numbers.
A planner offers accountability, making sure the “you” who’s too busy today doesn’t sabotage the “you” who wants to retire tomorrow.
How It Affects You
Financially: Avoid costly mistakes, optimize your savings and investments, and gain clarity on when you can realistically call it quits.
Emotionally: Enjoy peace of mind knowing a pro is in your corner, ready to pivot your plan if life throws you an R.A. Dickey knuckle ball(Bluejays reference).
Resources
Website: FP Canada – Find a qualified financial planner
PDF: Advocis – Guide to Financial Planning
Final Thoughts
Congratulations on taking these crucial first steps toward a secure, fulfilling retirement! Remember:
Consistency: Regularly review, minimum annually, and update your plan—small but steady changes can make a massive difference.
Adaptability: Life rarely goes exactly as scripted. Stay flexible, adjusting your plan when circumstances change.
Support: Consider working with a professional (yes, like yours truly!) who stays on top of trends and legislation to keep your retirement on track.
Ready to Dive Deeper? Contact Callum Sutherland, CFP for a personalized plan. Together, we can fine-tune these strategies to suit your unique dreams, goals, and timelines. Here’s to a future filled with possibility and peace of mind!
Disclaimer
This guide is for informational purposes and should not replace personalized professional advice. Always consult a qualified financial advisor, tax professional, or legal professional regarding your specific situation. Individual results may vary.