Ready to retire

Your retirement expenses

The following steps can help you get started on your income planning:

Step 1:

Estimate potential retirement expenses.

Identify your expenses and divide them into the following categories:

  • Essential (must-haves)
  • Discretionary (nice-to-haves)

Discuss these choices with anyone affected by your retirement income, because what is essential to one person may not be essential to someone else.

Step 2:

Identify income sources for your essential expenses.

Match guaranteed or lifetime sources of income to your essential expenses. These can be payments from the Canada Pension Plan or Quebec Pension Plan, Old Age Security or a company-sponsored defined benefit pension plan. Any gaps between your essential expenses and lifetime sources of income can then be filled by drawing on savings.

Step 3:

Find funding for your discretionary expenses.

Create a plan to fund discretionary expenses from your savings. A financial advisor can provide guidance on tax-efficient strategies that can help maximize the income from your savings while still generating growth in your portfolio for future years.


To help you sort through this information, the following tools, Determine your anticipated expenses , and Identify your sources of income , will help you prepare for discussions with your advisor.