Retirement is much more than money; it is about you, your family, and your community. A long happy retirement starts with being prepared: emotionally, socially and physically, and of course, financially. Whether you're approaching retirement age or making sure you’re on track, having a financial plan will do wonders for your future and your peace of mind.

Here are a few key things to consider for navigating the retirement planning process and maximizing benefits so you can retire on your own terms:

• Understanding government benefits
• Considering your housing situation
• Managing investments

Understanding government benefits

The Canada Pension Plan and Old Age Security

The Canada Pension Plan (CPP) and Old Age Security (OAS) are two essential government programs designed to provide financial support once you retire. The CPP is funded by employee and employer contributions, while the OAS is a non-contributory program funded by general tax revenue.

If you’ve been contributing to CPP as an employed or self-employed person, you’re eligible for CPP payments in retirement. You can apply for the CPP retirement pension as early as age 60, but you won’t be eligible for the full amount until you reach age 65.

OAS, being a tax-funded program that doesn’t require individual or employer contributions, is available to most Canadians 65 and older who meet the legal status and residency requirements.

The key requirements here are:

• You must be a Canadian citizen or a legal resident of Canada at the time your OAS application is approved.
• If you live in Canada, you must have been living here for at least 10 years after the age of 18.
• If you live in another country, you must have been a Canadian citizen or legal resident on the day before you left Canada, and have lived in Canada for at least 20 years after the age of 18.
• To qualify for the full OAS pension, you must have lived in Canada for at least 40 years after age 18.
• If you’ve lived in Canada for less than 40 years after age 18, you may still qualify for a partial OAS pension. The amount you can get is calculated on a sliding scale based on your years of residence in Canada after age 18, divided by 40.
• If you were living abroad but employed by a Canadian company or a qualifying international organization, those years could potentially count towards the residency requirement.

Deciding when to start receiving your CPP and OAS benefits depends on your individual circumstances and lifestyle. If you start receiving CPP early, your monthly payments will be lower, but you'll get them for longer. Conversely, if you wait until age 70 to start taking CPP, your monthly payments will be higher.

For OAS, you can choose to delay your pension benefits for up to five years. The longer you delay, the larger your pension payment will be each month, until you turn 70. After that, there is no more financial benefit to waiting.

If you have a spouse or common-law partner, you may be eligible for a CPP retirement pension share or a CPP survivor's pension. If your spouse or partner is eligible for OAS but has a lower income, they may be eligible for the Guaranteed Income Supplement (GIS).

The RRSP and RRIF

Most are familiar with RRSPs, the tax-differed investment plan that lets us get a tax break during our highest income earning years. But once you retire, your RRSP becomes an RRIF that you take funds out of, instead of putting them in.

You can make the switch at any time before the end of the year you turn 71. At that point you’ll have to withdraw a steadily increasing amount from your RRIF every year based on your age and a percentage of your savings. Everyone’s situation is unique. Depending on other sources of retirement income and your overall tax situation, being strategic about your RIFF withdrawals can help minimize your family’s tax burden. Speak to your advisor about your personal circumstances.

Considering your housing situation

Housing needs and desires fluctuate throughout your life, and retirement brings its own set of considerations. Downsizing to a smaller home or a retirement community can be a financial benefit and reduce the stress of responsibilities like home and landscaping maintenance. Weigh the pros and cons and consider factors like being close to family, healthcare facilities, and other amenities that add value to your lifestyle.

Retirement is an excellent time to review and update your will and estate plans. Make sure your documents accurately reflect your current wishes and beneficiaries. You may want to consult with a legal professional to ensure that your plans are up-to-date, complete, and in compliance with the latest regulations. Fortunately, estate planning is a core area of expertise among the Coastal Community advisory team.

When your income and expenses change, it’s important to update your household budget to reflect the new reality. Your expenses will likely increase in some areas, and they may be lower in others. Consider reduced income, potential changes to healthcare costs, and any other shifts in your housing expenses.

Involving your family in these sometimes touchy discussions can make the road to retirement a lot less bumpy for everyone. Share your preferences around long-term care, living arrangements, and any potential moving plans. This open communication will help ensure that your family is prepared to support you and your choices.

Managing investments

Your working career might be coming to an end, but your investment journey shouldn’t be. Take a good look at your investment portfolio and adjust your asset allocation to align with your retirement goals and risk tolerance. This is where getting some professional advice will likely be a good idea. A good financial advisor can help ensure that your investments are still optimized for growth and maximizing income during retirement.

As you get older, you may want to shift towards a more conservative asset mix with more of your money invested in fixed-income assets like bonds to reduce risk and volatility. Working with a Certified Financial Planner will help ensure your investment strategy continues to meet your goals. If you still have debt to take care of, check out our guide to paying it off while still optimizing for a great retirement.

Maximize contributions to your Tax-Free Savings Account (TFSA) to receive tax-free or tax-efficient investment income in retirement. Withdraw from your taxable accounts first to allow tax-deferred accounts like RRIFs to keep growing.