Bill’s Blog | October 1, 2025
You have been thinking about retirement for some time, but have you carefully considered this new chapter of your life, the pros, the cons, and the risks you will face? Retirement planning is best achieved over many years of careful consideration of multiple factors. Retirement planning is a vast topic, but I would like you to consider some of the most important things to think through and then develop a solid long-term plan that achieves your objectives.
So, let us look at seven critical factors before you pull the trigger and retire.
- What are your purposes in the last chapter of your life?
- What are your most important goals?
- Have you saved/invested sufficiently to sustain your lifestyle and needs for 20, 30, or more years? What type of investments will you have in your retirement years?
- Have you developed several solid streams of income? How much income will you need per month?
- Tax planning with your accountant and financial advisor is important. What investments with you draw from first to minimize tax or not incur OAS clawbacks? Without proper guidance, you can have significant tax consequences.
- Estate planning and leaving a legacy.
- Do you have an active fitness and health plan for your retirement?
1) I would say that having a clear purpose in your later years is actually one of the most critical things to think through before you retire. Why? As humans, we are designed by God to live with purpose. When people no longer have a clear vision or purpose in their lives, death comes rather quickly. Many of you will recall that in Canada, a couple of decades ago, it was mandatory for us to retire at age 65, unless you were self-employed. An interesting statistic was that the average male died at age 67! Why? Much of their identity and self-worth was tied up in their work. Once there were no more calls, requests for help, or contributing to a worthy cause (their career), the candle of life dimmed, and often men would feel lonely and depressed.
So, please develop a plan. Have multiple weekly events that you consistently do, whether in the community, your faith life, mentoring younger people, having a part-time gig that you love doing, hobbies, or doing regular volunteer work. Many like myself have no plans to retire. Yes, I will slow down as the years go by, but I plan to work, contribute until the day I no longer can or die! Many entrepreneurs think the same way and consider Warren Buffett or Jimmy Pattison, who run billion-dollar corporations in their 90s. Statistically, many Canadians are putting off retirement because they cannot afford to retire due to high inflation, carrying large debt, or not having sufficient savings. The new 65 is closer to 70 and beyond. Lastly, many Canadians love what they do and just keep doing it as long as they can. Plus, having extra income helps with the high cost of living, being able to travel, or helping family members.
2) So what are your goals in the last chapter of your life? Please be realistic with your goals. Some dream of endless vacations, sipping mai tais on a beach or in some exotic place for months on end. Truthfully, traveling is awesome and enjoying new cultures, so having it as one of your goals is great for many people; however, after a couple of weeks or months, most people long to return home and get back to their regular routines with family and friends. Another consideration is the high cost of travel, so be realistic. I encourage you to write out your top five or ten goals and then develop a plan to work to achieve them.
3) The majority of Canadians do not start serious saving and investments until after 50. Why? Education for yourself and eventually helping your young adults with education, having children, purchasing a home, and the cost of living are all huge financial commitments. Start saving and investing as early as you can, even if it is only a few hundred dollars per month. The earlier you start, the better. Ensure you are properly diversified into several asset classes (not all stocks and bonds) and assets that are not correlated. Second, seek help from a competent financial professional who has a broad enough basket of solutions. Many Canadians do not have sufficient financial knowledge or understanding of their options. It is not their fault in most cases, as our education system does not make it a part of our curriculum, and many parents do not pass on financial education. You do not need to be a PHD in Finance or Investing, but I strongly encourage you to learn as much as you can. Learning should continue throughout your entire life. It is your financial future; having little or no wealth provides you with very few options.
I often explain to clients that the two most critical things to consider, whether you are planning retirement or you are already retired, are “Protecting your capital and ensuring you have several income streams for your later years.” Understanding basic financial cycles and which asset classes to be in is critical to your financial future. Be willing to make changes during your financial journey. Remember, all asset classes will correct (healthy and normal) or at times markets/assets will crash (not healthy or normal), and they can experience prolonged declines (and can be a decade or longer). “Nothing goes up forever, and all asset classes have risk!” Eliminate debt before you retire, as it will be a noose around your financial neck. Lastly, learn simple hedging strategies if you are in the markets or seek out a professional who does hedging for their clients. Remember, you do not receive a hero’s medal for losing 30, 40, or 50% of your wealth…you just get depressed!
4) I have already mentioned the importance of several diverse income streams (can be rental income, business income, investment and dividend income, pensions, REITs or MICs, to name a few). Another important consideration is when you will start CPP and OAS? Deferring a few years can make a huge difference to long-term income planning. CCP increases 8% towards your lifelong income for each year you defer, inflation-adjusted, and OAS increases 7%. It is vital that you develop a whole plan around income streams. Also, ensure you know what income you will need to achieve your desired retirement or slow-down years.
5) Tax planning. This is another area that is critical to long-term planning, and many Canadians put it off or do not do it at all. A very costly mistake in my opinion! As an investment and life insurance broker, I am fairly knowledgeable regarding our tax system. However, I am not an accountant, and I, too, ask my accountant for guidance as our tax system is constantly changing. I encourage you to do the same. Remember, taxes will be your greatest expense over your lifetime. I do not mind contributing my fair share, but I do not want to overpay due to a lack of knowledge. Without proper tax planning, it can cost you tens or hundreds of thousands of dollars over your working lifetime. I prefer my hard earned money going into my investments, rather than to CRA, and you should too!
6) Estate Planning & Legacy. You and I will work 50 to 60 years of our lives, or some longer. The old adage is true: “You can’t take anything with you once you die”! So where do you want your wealth and property to go? Without proper estate planning, thousands to tens or hundreds of thousands of your hard-earned wealth will go to taxes, accountants, and lawyers. If you don’t have a will or an estate plan, don’t worry, “the government has one for you”! Estate planning is extremely important, and there are many facets to having a complete one. Some people naively think they have an estate plan simply because they wrote out a will on a napkin. A will is critical, but it is just one small part of an estate plan. Different assets are taxed differently. Remember, you can defer tax with different strategies (trusts, IPP or PPP, etc.), but eventually the taxman cometh! How is that tax going to be paid, and what are the best ways to strategize? It is critical that you understand what happens to assets left in the bank, properties, and life insurance contracts. Once you die, there are consequences for your loved ones left behind, the executor, and whether the estate was wisely planned and communicated. The more you can keep out of the estate once you die, the better, as it bypasses probate and long time frames of the assets being tied up and taxed. Most people want to pass their wealth along to family, friends, or a worthy cause. To leave a legacy requires careful and thoughtful planning.
7) Though last, health and fitness plans are critical to an enjoyable retirement and our later years. There has been significant research done on the long-term benefits of being proactive throughout your life with fitness and health strategies. I have enjoyed fitness my entire life, with many varied sports in my early years, and going to the gym, running, hiking, cycling, and thousands of walks with my dear wife and friends. Staying close to your ideal weight has incredible health benefits, and staying active on a regular basis improves both your mental and physical well-being. The sooner you get started, the better, and keep at it as long as you can!
What you eat does matter, and as the old adage goes, “You are what you eat” is scientifically true! Minimize or avoid: sugar, processed and refined foods, trans-fats, bad oils and synthetic additives/sweeteners, and excessive drugs except for what is essential. All of these create inflammation in the body and diminish the quality of your life. Eat whole foods and organic foods as much as you can. I am not a health expert, but I have read hundreds of articles, books, listened to podcasts from health experts, and I continue to learn. Why? Because health matters. Without a healthy body, our choices rapidly diminish, and life becomes very challenging. One of your biggest risks in your retirement years will be health issues and the tremendous costs, especially if you become disabled mentally or physically. A better plan is to keep active, build a health team of quality professionals who can guide you to stay fit and healthy well into your later years.
So, in closing, I hope this Blog was helpful to get you thinking about retirement or your slow-down years. I encourage you to start thinking about this vital part of your life sooner rather than later. I will take many years of thought, planning, and guidance (with several trusted experts) to get you to your desired lifestyle in your golden years. May you be blessed with healthy, purposeful, and enjoyable years. The key is to get started, planning with the many facets of a meaningful later life and leaving a positive legacy.
Bill Westmacott, Life Insurance broker (BC), estate planner, and wealth coach.