Preparing for Retirement: How to Find Your Number

Start with spending, not income

Most retirement calculators start from your current income and apply a replacement rate — usually 70%–80%. But retirement spending rarely mirrors working-life income. Some costs fall (commuting, work clothes); others rise (travel, health, hobbies). The right starting point is your projected retirement spending, not your current earnings. Build a retirement budget first; the income you need flows from it.

Account for every income source

Retirement income comes from more than your savings. A complete plan accounts for all of it.

• Government benefits — CPP and OAS — which most people underestimate.
• Employer pensions, if you have one.
• Registered savings — RRSP/RRIF, drawn down tax-efficiently.
• Tax-free savings — TFSA, which doesn't trigger tax or clawbacks.
• Non-registered investments and other assets.

Model the order and the tax

The order in which you draw your accounts — and the tax each withdrawal triggers — can change how long your money lasts by years. Drawing RRSP/RRIF income to fill the lower tax brackets, supplementing with TFSA to avoid bumping brackets, and timing CPP and OAS strategically is the difference between a plan that lasts and one that runs out. This is where a retirement income strategy earns its keep.

Your number is more achievable than you think

When we model a real retirement — grounded in projected spending, all income sources, and a tax-efficient drawdown strategy — most clients discover their number is more achievable than the calculators suggested. The fear of 'not enough' often shrinks into a clear, actionable plan. We help clients find their number, build the strategy to reach it, and review it as life changes — because retirement readiness isn't a destination you arrive at once. It's a plan you live into.