The clock is ticking — how to plan your retirement before it is too late

Start early and let time work

The longer money remains invested, the more opportunity compounding has to work. Modest, regular contributions started early may accomplish more than a much larger effort begun close to retirement.

The goal is not to find a perfect moment. It is to establish a realistic rhythm and increase it as your income grows.

• Automate a contribution from every pay
• Reinvest tax refunds
• Review the amount after a salary increase

Estimate your future needs

A useful plan begins with a practical picture of the life you want. Separate essential expenses from optional projects, then allow room for health care, home maintenance, and unexpected costs.

This projection creates an income target and reveals the gap between your expected resources and your needs.

• Housing, food, and health care
• Travel, leisure, and family support
• Debt and obligations that may remain in retirement

Know every source of retirement income

Retirement income often comes from several pillars: QPP, Old Age Security, an employer plan, and personal savings. RRSPs, RRIFs, TFSAs, LIRAs, LIFs, and non-registered investments do not receive the same tax treatment.

Understanding how those sources fit together helps you decide when to claim public benefits and begin withdrawals.

Coordinate withdrawals and tax

A strong strategy considers more than investment returns. It also accounts for income tax, credits, and benefits that may be reduced as taxable income rises.

A withdrawal plan can establish when to convert an RRSP to a RRIF, which accounts to use first, and how to coordinate QPP with an employer pension.

Review the plan regularly

Income, projects, debt, and health all change. An annual review lets you refresh assumptions, correct course, and confirm that your insurance protection still fits your situation.