At what age should I start retirement planning?

There is no single right age to start, but starting earlier generally gives more time for savings to grow and more flexibility to adjust course. Many people begin more formal planning in their 30s or 40s, though it is never too late to review your situation and make a plan going forward.

How much do I need to retire comfortably?

This depends heavily on your expected lifestyle, expenses, and other income sources, so there is no universal number. A more useful approach is to estimate your future expenses and compare them against expected income from government benefits, pensions, and personal savings to identify any gap.

Should I prioritize my RRSP or TFSA?

Both accounts offer different tax treatments and can play different roles depending on your income level, tax bracket expectations, and goals. Many people use a combination of both. Because contribution rules and tax implications can be complex, this is a good question to bring to a licensed advisor or tax professional.

What role does insurance play in retirement planning?

Certain insurance products can help manage risks that could otherwise disrupt a retirement plan, such as unexpected health costs or the need to leave assets to beneficiaries in a tax-efficient way. Insurance is generally a complement to savings rather than a replacement for it, and suitability depends on individual circumstances.

How to Start Retirement Planning in Canada

Start With Your Likely Income Sources

Most Canadians draw retirement income from a combination of sources rather than a single account. Understanding what each source may provide, and when it becomes available, is often the first step in planning.

Government retirement benefits, which change periodically and should be confirmed with official sources
Workplace pension plans, if applicable
Registered Retirement Savings Plans (RRSPs)
Tax-Free Savings Accounts (TFSAs)
Non-registered savings and investments

Estimate What You Might Spend

Retirement expenses often shift rather than simply shrink; some costs like commuting may decrease while others like healthcare or travel may increase. Building a rough estimate of future monthly expenses, even if imprecise, gives you a target to plan around. Many people find it useful to separate essential expenses from discretionary ones when doing this exercise.

Understand the Accounts Available to You

RRSPs and TFSAs are two of the most common registered accounts used for retirement savings in Canada, and each has different rules around contributions, withdrawals, and tax treatment. Contribution limits change periodically, so it is important to confirm current limits with the Canada Revenue Agency or a licensed professional rather than relying on past figures.

Consider How Income Will Be Drawn Down

Saving is only part of the picture; how and when you convert savings into income can also matter. Some people convert RRSPs into a retirement income vehicle at a certain point, while others draw down non-registered savings first. The order and timing of withdrawals can affect take-home income and may have tax implications, which is a good topic to raise with a qualified professional.

Build in a Buffer for the Unexpected

Retirement plans that only account for expected expenses can be vulnerable to surprises such as health costs, market fluctuations, or supporting family members. Considering protection tools, such as certain insurance products, alongside savings can be part of a broader approach to managing these risks, though no strategy can eliminate uncertainty entirely.

When to Bring in a Licensed Advisor

A licensed advisor can help you look at your full financial picture, including savings, benefits, and protection needs, and translate that into a coordinated plan. This is especially useful when your situation includes multiple income sources, a business, or complex family circumstances, where a general online calculator may not capture the nuances.

Information on this website is general in nature and is provided for educational purposes only. It is not financial, insurance, investment, tax, or legal advice, and it does not constitute an offer or solicitation. Any strategy discussed should be reviewed against your own circumstances before you act.

Sam can help you explore financial and insurance considerations and coordinate conversations with your accountant or lawyer where appropriate. Tax advice and legal advice remain with those qualified professionals.

Published August 30, 2026 · Last reviewed August 30, 2026 · Reviewed by Sam Behroozian, Licensed Life Insurance & Financial Services Agent