Many people assume they’ll need at least a million dollars before they can retire. But as financial planners, we’ve seen how often the reality is quite different. Some clients were already financially ready, they just didn’t realize it yet.
If you’re convinced you need another decade of work before retiring comfortably, you might be missing out on some of the best years of your life.
Here are five signs that you might be closer to retirement than you think, how to spot them, and what steps to take next.
Sign #1: You Don’t Need to Replace Your Entire Income
One of the most common misconceptions we hear is that you need to match your full pre-retirement income in retirement. But that’s rarely the case.
Once the mortgage is paid off, the kids are out of the house, and you’ve stopped saving for retirement, your expenses usually go down.
For example, if you currently earn $120,000 per year, after tax, savings, and debt, you may only be spending around $60,000 annually. That’s the number to focus on.
To find your own number:
- Start with fixed costs like groceries, housing, and insurance.
- Add lifestyle expenses such as travel, hobbies, and entertainment.
You may discover that your retirement spending needs are much lower than you thought.
Sign #2: You Have More Income Sources Than You Realize
Many people only think about their RRSPs or TFSAs when planning for retirement. But you may have several other income sources that count.
These might include:
- CPP and OAS
- Work pensions
- Rental income
- Non-registered investments
- Side consulting or part-time work
Even a modest monthly income from a small rental or part-time work can significantly reduce the pressure on your savings. Listing all your future income sources on paper can help you see how they work together—and how close you might be to your goal.
Sign #3: You Can Take Advantage of the “Tax Valley”
If you retire in your late 50s and delay CPP and OAS until 60 or 65, you may have a few low-income years. That’s an opportunity.
Rather than leaving your RRSPs untouched, withdrawing modest amounts now while you’re in a lower tax bracket can reduce your lifetime tax bill. This strategy, often called an RRSP meltdown, can also help avoid higher mandatory RRIF withdrawals and OAS clawbacks later.
Working with a planner to develop a tax-efficient withdrawal plan can save you hundreds of thousands of dollars in taxes over your retirement.
Sign #4: Work Is Taking a Toll on Your Life
Retirement is not always about money. It’s also about your time, energy, and health.
If work is burning you out or taking you away from what matters most, it might be time to rethink your schedule. Full retirement isn’t the only option. You could:
- Reduce hours
- Take on flexible consulting work
- Transition gradually to a part-time role
Even reducing your hours by 30 to 50 percent can create more freedom while still supporting your financial plan.
Sign #5: You’re Financially Ready, But Emotionally Stuck
Some people keep working not because they have to, but because they feel they should. They’ve done enough, but they’re waiting for someone to give them permission to stop.
Retirement isn’t something you earn from others. It’s something you plan and choose for yourself. If your plan works and the only thing holding you back is uncertainty, that’s a sign to speak with a planner.
Clarity, not more money, is often the missing piece.
Final Thoughts
Many Canadians are closer to retirement than they think. If even one or two of these signs felt familiar, you owe it to yourself to run the numbers.
At Trans Canada Wealth, we help people retire with confidence, not regret. Our team can build a personalized plan that aligns your lifestyle, taxes, and goals so you can make informed decisions.
Need help figuring it out? book a free call and let’s see what’s possible.
