Ep 176 – Mailbag Edition: Answering Your Top 5 Retirement Questions
In this mailbag edition, Joe Curry answers five of the most common retirement planning questions Canadians ask—covering retirement income planning, target asset allocation, RRSP-to-RRIF withdrawal strategies, and tax-efficient investing. You’ll learn how to estimate what you actually need in retirement, avoid rules-of-thumb mistakes, and make smarter choices about withdrawals, taxes, and where your investments are held.
Key Takeaways
Start your retirement income plan with real spending, not a rule of thumb. Look at what’s actually hitting your bank account today, subtract expenses that will disappear in retirement, then add in new retirement goals like travel and hobbies.
Separate “needs” from “wants” so you can stay flexible. Knowing your non-negotiable monthly costs helps you plan for market downturns without panicking or derailing your lifestyle.
Your target asset allocation should match your goals and your retirement income style. There’s no one-size-fits-all mix—your comfort level, other income sources (CPP/OAS/pension), and timeline matter more than generic formulas.
RRIF withdrawals are required, taxable, and timing matters. Minimum withdrawals begin the year after you open a RRIF, and strategic withdrawals before age 71 can sometimes reduce lifetime taxes—especially in low-income years.
Where you withdraw from affects taxes and benefits. RRSP/RRIF withdrawals are fully taxable, TFSA withdrawals are tax-free and won’t impact benefits like OAS, and non-registered withdrawals can trigger capital gains (plus ongoing tax on interest/dividends).
Insights Worth Sharing
“When the same question keeps coming up, it means the questions are on a lot of people’s minds.”
“Forget the “rule of thumb”. We want to actually figure out what you’re spending.”
“Any plan we blow up when things aren’t looking good, is the wrong plan.”
“Retirement is not the time to go it alone.”
“It’s always important to view your RRIF withdrawals in the context of your entire income plan.”
Resources
To request a link to fill out the Retirement Income Style Assessment (RISA), or to submit your own questions (perhaps they will end up in our next mailbag episode!), email us at info@retirementplanningsimplified.ca
Mailbag Edition: 5 Retirement Planning Questions Canadians Are Asking Right Now
If you’ve ever sat down and thought, “Am I planning for my retirement in the right way?” - you are not alone. In this mailbag edition of Your Retirement Planning Simplified, I’m answering five questions that keep resurfacing in conversations with Canadians approaching retirement. When the same questions repeat, it’s a good sign they’re on a lot of people’s minds.
1) How do I determine my retirement income needs?
Retirement income planning starts with clarity, not guesswork. Instead of relying on a rule of thumb like “70% of your working income,” begin with what’s actually happening in your bank account today. Look at your current cash flow and subtract the expenses that will disappear in retirement (commuting, work clothing, retirement savings contributions, and possibly a mortgage payment). What’s left is a far better estimate of your lifestyle spending.
Then add in what retirement might bring: more travel, hobbies, or time with family. Your spending may not go down when work ends—sometimes it increases. Finally, separate essentials from discretionary spending. Knowing what you must spend each month helps you stay steady if markets are volatile.
2) What should my target asset allocation be?
There’s no universal “right” asset mix. Your target asset allocation should reflect your goals, time horizon, and - just as importantly - your ability to stick with the plan when markets get tough. That’s why we like starting with a Retirement Income Style Assessment (RISA): it helps align your portfolio with how you naturally think about retirement income.
Also consider your other income sources. CPP, OAS, and pensions can act like “fixed income,” which may allow more flexibility in your investment strategy. The key is avoiding generic formulas and building a portfolio that supports your real plan.
3) How do RRIF withdrawals work?
When you convert an RRSP to a RRIF, you move from saving to withdrawing. Minimum RRIF withdrawals begin the year after you open the RRIF, and those minimums increase as you age. You don’t have to convert until the end of the year you turn 71, but you can convert earlier (even partially).
Here’s where RRSP and RRIF withdrawal strategies become powerful: if your income is lower in your 60s, strategic withdrawals can reduce lifetime taxes and lower forced RRIF withdrawals later.
4) Should I consider moving my investments?
Start by asking whether you’re getting real value for the fees you pay. Are you receiving only investment advice—or comprehensive planning that includes retirement income planning, tax planning, and estate/legacy planning? If you don’t have a clear income strategy or tax discussion, that’s a red flag.
5) What are the tax implications of withdrawing funds?
RRSP/RRIF withdrawals are fully taxable income. TFSA withdrawals are tax-free and won’t affect income-tested benefits like OAS. Non-registered accounts sit in the middle: selling investments can trigger capital gains, while interest and dividends may be taxable each year.
Want help putting this into a coordinated plan?
Learn more about our retirement planning process at MatthewsAndAssociates.ca.