Financial Planning for Retirees in Ontario

Retirement in Ontario looks different than it did a generation ago. People are living longer, healthcare costs are rising, and the financial decisions retirees face — when to start CPP, how to draw down registered accounts, what to do with a pension — have real, lasting consequences. Getting those decisions right requires a deliberate plan, not a set-it-and-forget-it approach.

Marc Pineault is a financial planner with Pineault Wealth Management and The Co-operators, serving retirees and near-retirees across Ontario from his office in London. He helps clients build retirement income plans that are designed to last, minimize taxes, and adapt as life circumstances change.

Sequencing Retirement Income: Which Accounts to Draw First

One of the most consequential decisions in retirement is the order in which you draw from different accounts and income sources. Should you take CPP at 60, 65, or 70? Should you draw from your RRSP before converting it to a RRIF at 71? Should you use TFSA funds early or preserve them for later? How does a defined benefit pension affect the answers?

There's no single right answer — it depends on your marginal tax rate, your spouse's income, your health, and your estate goals. But the sequencing decision can have a significant impact on your lifetime tax bill and how long your money lasts. Modeling different scenarios with a financial planner before you retire — and revisiting the plan annually during retirement — is how retirees protect themselves from making decisions that look fine in the short term but create problems later.

Managing the RRIF Conversion and Minimum Withdrawals

When you turn 71, your RRSP must be converted to a Registered Retirement Income Fund (RRIF). From that point, you're required to withdraw a minimum amount each year based on your age and the account balance. These withdrawals are fully taxable as income.

For retirees with large RRSPs, the mandatory minimums can push them into higher tax brackets — especially later in retirement when the required percentages increase significantly. Strategic planning around RRIF withdrawals, including the potential for early RRSP drawdowns before age 71, can reduce the total tax paid over a lifetime. This is an area where financial planning has a very concrete and measurable value.

CPP and OAS: Timing and Optimization

Canada Pension Plan benefits can be started as early as age 60 or as late as age 70. Starting early means a permanent reduction in the monthly amount; delaying means a permanent increase. For someone in good health who doesn't need the income immediately, delaying CPP — especially to age 70 — can result in significantly higher lifetime income.

Old Age Security (OAS) becomes available at 65, with an option to defer to 70 for an enhanced monthly benefit. OAS is also subject to a clawback for higher-income retirees, which affects how some clients structure their income strategy.

Coordinating CPP and OAS timing with your other income sources is an important part of retirement income planning. It's not just about maximizing the government benefit — it's about integrating it into a plan that minimizes your overall tax burden and ensures sustainable cash flow.

Estate Planning and Protecting What You've Built

Retirement planning doesn't end with your income strategy. For many retirees, passing assets to children or grandchildren — tax-efficiently and with minimal friction — is a meaningful goal. Understanding how registered accounts are treated at death, how beneficiary designations work, and whether trusts or other structures make sense for your situation is part of a complete retirement financial plan.

Insurance also plays a role in retirement planning — whether that's covering the risk of a long-term care need, protecting a spouse from the financial impact of an early death, or using permanent life insurance as part of an estate strategy.

Work With a Retirement-Focused Financial Planner in Ontario

Marc Pineault, financial planner, works with retirees and pre-retirees across Ontario through Pineault Wealth Management. Whether you're five years from retirement and trying to get your plan in order, or already retired and wanting to make sure your income strategy is optimized, Marc can help you build a plan that's built to last.

Contact Marc today to start the conversation.

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This article is for educational purposes only and does not constitute personalized financial advice. Please consult a qualified financial planner before making any financial decisions.