Are you really ready to retire? Why many Canadians are struggling with retirement planning

Taken together, the data points to a clear retirement readiness gap. Many Canadians hope to retire at a certain age, but the financial reality required to do so comfortably often falls short of expectations.

Related reading: Canadians fear a tougher road to retirement

Why aren’t many Canadians retirement ready?

There are a variety of factors that contribute to this issue:

Not knowing where to start. Questions like “When should I begin planning?” or “Is it really urgent?” often lead to delay. Unfortunately, procrastination can be costly, even when it feels harmless in the moment.

The fear of getting it wrong. Building a retirement plan can feel overwhelming, and some worry that even after all the effort, the plan may still fail. This uncertainty causes many to avoid planning altogether.

Employment security. The assumption that current employment and benefits will always remain secure. Unfortunately, layoffs, restructurings, and health issues can change circumstances quickly.

Housing security. Many Canadians assume they can always sell their home, downsize, or move to a less expensive area if needed. While this can be part of a plan, relying on it as the plan is risky and often emotionally difficult.

Debt. Because debt is so common, it is often normalized. High living costs reinforce the belief that nothing can be done, and long-standing paycheck-to-paycheck living can make insufficient savings feel less alarming than it truly is.

Underlying many of these concerns is a deeper fear: the worry that no matter what steps are taken, the money will eventually run out. This fear is often compounded by limited financial literacy and a lack of professional guidance.

How do you ensure a comfortable retirement?

The first step is acknowledging that a plan is needed now, not later, and recognizing the true cost of waiting. Time is one of the most valuable tools in retirement planning, and delaying decisions reduces flexibility and options.

The next step is finding the right professional support. This means working with an independent financial advisor who specializes in retirement income planning rather than a generalist. Retirement planning is complex, and managing income in retirement is very different from accumulating savings during working years.

Ideally, you should interview several advisors and choose one who understands your goals and is willing to be accountable for results. Planning and investment management should be handled by the same professional. Splitting these responsibilities between multiple parties often leads to higher costs, misalignment, and finger-pointing when outcomes fall short.

A successful advisor-client relationship is a partnership built on trust. To achieve meaningful results, the advisor must be empowered to manage both planning and investments holistically.

Retirement planning is not a one-time event

A proper retirement plan is not something you set once and forget. It should be reviewed regularly—at least annually—and adjusted as circumstances change.

A strong plan addresses critical issues, such as:

Managing inflation throughout retirement

Eliminating or reducing debt

Establishing sustainable savings and emergency reserves

Minimizing taxes

Planning for estate and legacy goals

When done correctly, a plan should reduce concerns about running out of money or being forced to sell your home later in life.

It should also account for unknowns: job loss, major unexpected expenses, or health issues. For example, if one spouse requires long-term care or a retirement residence, does the other want (or need) to move as well? These scenarios are common and must be planned for in advance.

Retirement income requires specialized expertise

Managing money in retirement is fundamentally different from managing money during working years. Income sources such as company pensions, CPP, OAS, RRIF withdrawals, and personal investments must be carefully coordinated. Decisions about when to start each income stream can have a lasting impact on taxes, cash flow, and long-term security.

Time is not on your side in retirement, and mistakes are difficult to correct. This is why working with a retirement income specialist is so important. Most advisors are generalists, and in many cases, this means a change from a current advisor may be necessary.

Finally, remember this: it is never too late to start. Whether you are approaching retirement or already retired, having a well-structured plan can still make a meaningful difference in your financial security and peace of mind.

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About James P. Gunn, CEA,CFP, RRC

James P. Gunn has been a financial advisor for over 25 years. He is the president of the independent wealth management firm Halton Wealth Management in Burlington, Ontario.