Retirement Planning Checklist for London, Ontario: Everything You Need Before You Retire

Retirement is the biggest financial decision you will ever make. Get it right and you can enjoy decades of financial security. Get it wrong and you may run out of money, overpay on taxes, or miss out on government benefits you are entitled to.

Here is the complete checklist I work through with every client approaching retirement in London, Ontario.

1. Know Your Retirement Income Sources

Before you can plan, you need to know where your retirement income will come from:

• Canada Pension Plan (CPP): You can start as early as age 60 or delay until 70. Each year you wait after 65 increases your payment by 8.4%. Each year you take it before 65 reduces it by 7.2%. The right timing depends on your health, other income, and tax situation. Read more: When Should You Take CPP?
• Old Age Security (OAS): Available at age 65 (or deferred to 70 for a 36% increase). Subject to clawback if your income exceeds roughly $90,000. See our OAS optimization strategies guide for ways to protect your benefits.
• Employer pension: If you have a defined-benefit or defined-contribution pension, understand the payout options — lump sum vs. annuity, bridge benefits, survivor options.
• RRSPs and RRIFs: Your RRSP must be converted to a RRIF by December 31 of the year you turn 71. Minimum withdrawals are required each year.
• TFSAs: Tax-free withdrawals at any time. A critical tool for managing your tax bracket in retirement.
• Non-registered investments: Taxed differently (capital gains, dividends, interest) — the order in which you draw from these accounts matters.
• Corporate retained earnings: If you are a business owner, how and when you extract corporate savings affects your retirement tax bill significantly.

2. Build Year-by-Year Income Projections

A rule of thumb like "you need 70% of your pre-retirement income" is a starting point, but it is not a plan. A proper retirement plan projects your income, taxes, and savings year by year from now through age 95+.

This projection should show:

• When you can retire
• What your after-tax income will look like each year
• When to start CPP and OAS
• How to draw down RRSPs to minimize lifetime taxes
• Whether you will trigger OAS clawback (and how to avoid it)

3. Optimize Your Tax Strategy

The five to ten years around retirement are your biggest tax planning opportunity. Key strategies:

• RRSP meltdown: If you retire before 65, your income may drop temporarily. This is the ideal window to withdraw RRSP funds at a lower tax bracket before mandatory RRIF withdrawals start.
• Pension income splitting: Once you turn 65, you can split up to 50% of eligible pension income with your spouse, potentially saving thousands in taxes.
• TFSA maximization: In the years before retirement, ensure both spouses have fully funded TFSAs. Tax-free income in retirement is the most valuable income.
• Tax planning strategies specific to Ontario brackets and surtax thresholds.

4. Review Your Life Insurance

Your life insurance needs change as you approach retirement:

• Do you still need it? If your mortgage is paid, your kids are independent, and your investment portfolio is large enough, you may be able to reduce or eliminate term coverage.
• Estate planning use: Permanent life insurance can cover the final tax bill on your estate, ensuring your family inherits assets rather than selling them to pay taxes.
• Corporate-owned policies: For business owners, corporate-owned life insurance can be a powerful tool for tax-efficient wealth transfer.

Get an honest assessment: Life Insurance in London, Ontario.

5. Review Your Investment Strategy

As you approach retirement, your investment strategy should shift:

• Risk tolerance: You may need to reduce equity exposure, but do not go too conservative too early. You still need growth to fund 25-30 years of retirement.
• Income generation: Your portfolio needs to produce reliable cash flow. This means a mix of dividend-paying equities, bonds, and other income-generating assets.
• Fee review: If you are still paying 2%+ in mutual fund fees, switching to a low-cost investment approach before retirement can add years of income to your plan.
• Asset location: Where each investment is held (RRSP, TFSA, non-registered, corporate) affects your after-tax returns. Proper asset location becomes even more important in retirement.

6. Plan Your Estate

Even if retirement feels like enough to think about, estate planning should happen now:

• Will and powers of attorney: Every Ontario adult needs an up-to-date will, a power of attorney for property, and a power of attorney for personal care.
• Beneficiary designations: Review beneficiaries on all RRSPs, TFSAs, insurance policies, and pensions. Outdated designations are one of the most common and costly estate mistakes.
• Probate minimization: Ontario probate fees are 1.5% on assets over $50,000. Strategies like joint ownership, beneficiary designations, and multiple wills can reduce this significantly.

For a comprehensive walkthrough of wills, powers of attorney, probate, and tax-efficient wealth transfer, read our estate planning guide for Ontario families. Learn more: Estate Planning in London, Ontario.

7. Consider Healthcare and Long-Term Care Costs

Ontario's healthcare system covers a lot, but not everything:

• Prescription drugs (if you are not covered by an employer plan or Ontario Drug Benefit)
• Dental care
• Vision care
• Long-term care or home care beyond what OHIP covers
• Travel insurance (critical if you plan to spend winters elsewhere)

Build a buffer in your retirement plan for these costs.

8. Work with a Retirement Advisor

The complexity of retirement planning — CPP timing, RRSP meltdown, OAS clawback, tax optimization, insurance review, estate planning — is exactly why most people benefit from working with a retirement advisor in London, Ontario.

A good retirement advisor does not just help you invest. They build a year-by-year plan that coordinates all these pieces and adjusts as your life changes.

Get Started

If retirement is within 10 years, now is the time to build your plan. Book a free 15-minute call and I will give you an honest assessment of where you stand. If you want to start with a self-assessment, try the Retirement Readiness Scorecard.

Related reading: Can You Retire at 55 in Ontario?, When Should You Take CPP?, and How Much Do You Need to Retire in London, Ontario?. Take the Retirement Readiness Quiz or learn more about working with a financial advisor in London, Ontario.