Ep 190 - When You Retire in Canada, Tell NO ONE (Until You Do These 3 Things)
In this episode, Joe Curry breaks down three essential steps to take immediately after retiring in Canada to avoid costly mistakes. Learn how to optimize your RRSP withdrawal strategy, properly time CPP and OAS, and build a sustainable retirement income plan.
Key Takeaways
Your first year of retirement is a unique tax year. Don’t assume it’s the best time to aggressively draw down your RRSP.
CPP and OAS timing should be part of a broader retirement income planning strategy, not standalone decisions.
Without a clear cash flow plan, it’s easy to overspend early in retirement and create long-term financial stress.
Tax-efficient investing in retirement requires coordinating withdrawals across RRSPs, TFSAs, and non-registered accounts.
A structured retirement income plan helps ensure your money lasts while still allowing you to enjoy life after work.
Insights Worth Sharing
“Don’t start pulling from your accounts until you know how it fits into your plan.”
“The year you retire is not a typical low-income year - it’s a planning year.”
“CPP and OAS decisions are not one-off choices - they’re part of a bigger strategy.”
“Spending without a plan is how you end up with regrets later in retirement.”
“You want to enjoy retirement - but with the confidence your money will last.”
The First 3 Financial Moves to Make When You Retire in Canada
Retirement often starts with excitement, and rightly so. After decades of work, you finally have the time to travel, celebrate, and enjoy life. But as I’ve seen working with many Canadian retirees, that excitement can quickly lead to financial missteps if you don’t have a clear retirement income plan in place.
In fact, the first year of retirement is one of the most important and misunderstood periods in your financial life.
Let’s walk through three key steps to help you start retirement on the right foot.
1. Rethink Your RRSP Withdrawal Strategy
Many people assume that once they retire, it’s time to start aggressively withdrawing from their RRSPs. But the reality is, your retirement year is often a higher-income year than expected. You may still have salary, bonuses, severance, or even pension income, all of which are taxable. That means jumping into a large RRSP withdrawal strategy too early could push you into a higher tax bracket.
Instead, treat this as a planning year. Project your total income, understand your tax position, and decide whether this is a year to fine-tune withdrawals or wait for a lower-income year to begin a structured RRSP drawdown.
2. Coordinate CPP and OAS Timing with Your Plan
One of the biggest mistakes I see is people choosing when to take CPP and OAS without a full retirement income strategy. These decisions affect everything - your tax brackets, your RRSP withdrawal strategy, and even whether you trigger the OAS clawback. For example, taking CPP early reduces your benefit permanently, while delaying increases it. OAS has its own considerations, including clawbacks once your income crosses certain thresholds. The key is to look at the full picture: your income sources, your goals, your longevity expectations, and your legacy plans. There is no one-size-fits-all answer.
3. Build a Clear Cash Flow Plan
The early phase of retirement often feels like a “honeymoon period.” Travel, renovations, and celebrations can add up quickly. I’ve seen retirees spend 20–25% of their savings in the first year alone - without realizing it. To avoid this, you need a structured plan. Start by separating essential expenses from lifestyle spending, then identify your larger one-time goals like travel or helping family. From there, create a consistent “paycheque” using the right mix of accounts - RRSPs, TFSAs, and non-registered investments - to fund your lifestyle in a tax-efficient way.
The Bottom Line
Retirement isn’t just about having enough money - it’s about using it wisely. By coordinating your RRSP withdrawals, CPP and OAS timing, and spending plan, you can enjoy retirement with confidence, knowing your income is sustainable and aligned with your goals.
Learn more about our retirement planning process at MatthewsAndAssociates.ca.