Preparing for Retirement at 60: A Guide for Canadians
- Mar 17
- 2 min read
Retirement is either just around the corner or already underway at 60. Whether you plan to continue working for a few more years or fully retire soon, now is the ideal time to ensure your finances, health, and lifestyle are aligned for a secure and fulfilling retirement. Here are a few steps to prepare for retirement at 60.
1. Review Your Financial Readiness
Assess Your Savings & Income Sources
Canadians have several retirement income options. Now is the time to evaluate:
✔ Canada Pension Plan (CPP) – You can start as early as 60 or delay until 70 for higher benefits. Consider your personal financial needs before deciding when to begin collecting.
✔ Old Age Security (OAS) – Starts at 65 but delays increases in monthly payments. Be aware of the OAS clawback if your income exceeds a certain threshold.
✔ Registered Retirement Savings Plans (RRSPs) – At 71, RRSPs must be converted to a Registered Retirement Income Fund (RRIF) or an annuity. Withdrawals are taxable, so planning is essential.
✔ Tax-Free Savings Account (TFSA) – Withdrawals are tax-free, making it an excellent tool for supplementing retirement income without affecting OAS eligibility.
✔ Workplace or Private Pensions – Review your options and determine how they fit into your income plan.
Reduce Debt Before Retiring
Lowering or eliminating debt can significantly improve your financial security. Prioritize:
✔ Paying off your mortgage (if possible)
✔ Eliminating high-interest debt like credit cards
✔ Avoiding new loans unless necessary
Adjust Your Budget for Retirement
Your expenses will change in retirement. Some may decrease (like work-related costs), but others—like healthcare and travel—may rise. A realistic budget will help maintain financial stability.
2. Plan for Your Health & Wellness
Stay Active & Healthy
✔ Exercise regularly—walking, swimming, and strength training keep you mobile and independent.
✔ Eat a balanced diet to maintain energy and prevent health issues.
Plan for Healthcare Costs
✔ Provincial Health Coverage – Each province has different coverage for seniors. Know what’s included and what’s not.
✔ Private Insurance – If you’re losing employer health benefits, consider private health insurance for dental, vision, and prescription coverage.
✔ Long-Term Care Planning – Explore assisted living, home care services, or long-term care insurance to cover future needs.
3. Optimize Your Lifestyle for Retirement
Decide on Your Living Situation
✔Aging in Place? Consider home renovations for accessibility (e.g., grab bars, stairlifts).
✔Downsizing? Selling your home can free up cash and reduce maintenance.
✔Senior Living Communities? These offer social benefits and lower home upkeep.
Stay Socially Connected
✔ Spend time with family and friends to avoid isolation.
✔ Join clubs, volunteer, or take up new hobbies.
✔ Travel while you are healthy and able.
Plan Your Estate
✔ Ensure your will is updated.
✔ Assign Power of Attorney for financial and healthcare decisions.
✔ Discuss plans with your family to avoid future legal or financial conflicts.
Final Thoughts
Retirement planning is more than just money—it’s about ensuring financial security, maintaining good health, and creating a fulfilling lifestyle. By taking these steps now, you can enjoy a comfortable and worry-free retirement in Canada.
What steps are you taking to get ready for retirement? Share your thoughts in the comments!
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