Ep 183 - 7 Expensive Mistakes Affluent Retirees Make in Their 60s

In this episode of Your Retirement Planning Simplified, Joe Curry outlines seven expensive retirement planning mistakes affluent Canadians make in their 60s. From CPP and OAS timing to RRSP and RRIF withdrawal strategies, tax-efficient investing, and purposeful spending, this conversation will help you protect your retirement income plan and avoid costly missteps.

Key Takeaways

A projection is not a retirement plan. If you don’t know what to do when markets fall or inflation rises, you likely have a spreadsheet - not a real retirement income plan with guardrails.

CPP timing isn’t a break-even puzzle. For many affluent retirees, delaying CPP can function as longevity insurance and strengthen guaranteed, inflation-indexed income later in life.

RRSP withdrawals must be personal, not generic. “Melting down” your RRSP early can work - but in the wrong situation, it may increase lifetime taxes and reduce after-tax wealth.

Both overspending and underspending are risks. Your go-go years should be intentional. Spending without a framework, or refusing to spend out of habit, can both derail a fulfilling retirement.

Helping your children needs structure. Supporting family can be meaningful, but large gifts should fit within your retirement income planning strategy to ensure long-term sustainability.

Insights Worth Sharing

“A projection tells you what might happen. A plan tells you what to do when it does.”

“CPP isn’t a break-even math problem — it’s longevity insurance.”

“Paying less tax isn’t the goal. Having more after-tax wealth is.”

“There’s just as much risk in being too conservative as being too aggressive.”

“If your kids are going to inherit it anyway, why not use some of it to build memories together?”

Retirement Done Right: Avoiding the Subtle Mistakes That Cost You Most

If you’re in your 60s, have built a solid nest egg, and are either retired or about to be, here’s the truth: most retirement mistakes aren’t dramatic. They’re subtle. And they’re expensive. In this episode of Your Retirement Planning Simplified, we unpack seven costly mistakes affluent Canadian retirees make - and more importantly, how to avoid them.

The first mistake is confusing a projection with a plan. A Monte Carlo simulation or retirement spreadsheet is helpful, but it’s only a starting point. A real retirement income plan answers critical questions: What happens if markets drop 25%? When can you safely increase spending? What are your guardrails if inflation stays elevated? Without clear decision rules, you’re guessing.

Next, we tackle CPP timing. Too many Canadians treat CPP as a break-even math exercise. But for higher-net-worth retirees, CPP often works best when viewed as longevity insurance. Delaying CPP can significantly increase guaranteed, inflation-indexed income later in life, reducing pressure on your investment portfolio in your 70s and 80s. It’s not about what your neighbour did - it’s about what fits your retirement income strategy.

Another major mistake is blindly following generic RRSP or RRIF withdrawal strategies. Yes, early “RRSP meltdown” strategies can be smart in lower-income years. But if you’re already in a high tax bracket, accelerating withdrawals may simply trigger tax sooner and reduce tax-deferred compounding. The goal isn’t minimizing taxes today, it’s maximizing after-tax wealth over your lifetime and for your beneficiaries.

We also discuss asset allocation. Rules of thumb like “100 minus your age” ignore inflation risk, multiple time horizons, and your personal comfort with volatility. Retirement income planning in Canada requires balancing short-term spending needs with long-term growth - not relying on outdated formulas.

Then there’s spending. Some retirees overspend in the go-go years without stress-testing sustainability. Others underspend out of lifelong saving habits, ultimately dying with more than they retired with, often unintentionally. Purpose and mindset in retirement matter just as much as tax-efficient investing.

Finally, we address helping children and grandchildren. Supporting family can be deeply meaningful. But significant gifts should be integrated into your withdrawal strategy and estate plan, not handled emotionally or ad hoc.

Retirement income planning isn’t about spreadsheets or shortcuts. It’s about coordination: CPP and OAS timing, RRSP and RRIF withdrawals, tax-efficient investing, sustainable spending, and estate and legacy planning in Canada - all working together.

If you recognize yourself in any of these mistakes, the good news is this: they’re often fixable, especially when caught early.

Learn more about our retirement planning process at MatthewsAndAssociates.ca.