a financial planner's top 8 tips for things to do before you retire

As retirement approaches, it's crucial to lay a solid foundation for your future financial well-being. It's a significant life transition, one that's best approached with confidence and peace of mind. This isn't a comprehensive guide by any means, but is a collection of my tips for 8 things to check off your list before you retire, based on my observations of guiding clients before, during and after retirement as their financial planner. Whether you're counting down the days until retirement or just beginning to plan, I want to  empower you to make informed decisions and set yourself up for a fulfilling and financially secure retirement journey.

Pay down debt: When mortgage rates were at 1% - 3% it was fine to have a mortgage. Now that they are in the 5% - 6% range, having a mortgage in retirement will limit options and lifestyle choices. Working a few extra years or downsizing are options to help eliminate any debt.

Check CPP contributions: These can be found by logging into your Service Canada account. Knowing what you will receive at 60, 65 and 70 will help with cashflow planning. Also, if self-employed, ensure all your earning years are accounted for. If you have taken years off for child-rearing, make sure you apply to have those taken into account.

Check pension numbers: Did you contribute to a Defined Benefit pension plan decades ago and then found a new job/role? Those funds have been invested and growing steadily over the years. Check back with your pension plan (HOOP, OMERS, OPSEU, etc.) to determine your monthly pension AND if there is pension buy back credits for purchase.

Own a car that could last you 10 years: Having a reliable car free from significant repair costs will help cash flow. It can be frustrating in year 1 or 2 of retirement having to spend $50k to $70k on a new car. Hint Hint* Toyota’s, Honda’s, Lexus are always reliable cars!

Have major dental work done: If you are on a company benefits plan, get any crowns, bridges and fillings done before you are paying out of pocket. Also, explore what the costs will be to self-insure or to stay on the benefits plan after retirement at your own cost.

Know employment options: Many clients will retire for a year and then return to work as they have more to give. Other common options are doing Board work, working part-time, or working for another company. Retirement employment can be a great source of funds to do the extras you might normally feel guilty about, like going on a dream vacation, getting that new car or helping the kids out financially.

Build up your cash wedge: I want to see 1 year of income in cash! Why? So that when markets fall (and they will) you can use this cash wedge to draw on, and not your portfolio. 1-2 years in cash acts as an insurance policy against market risks and provides peace of mind.

Know your “burn” rate: I have found there are three numbers everyone has about spending. There is the number you hope you are spending, what you think you are spending and what you are actually spending. Know your actual spend rate and include expenses that are not regular, like house maintenance, saving for a vehicle and insurance. I have found that unexpected lump sum expenses can throw a budget off. A buffer in your budget will help you account for those extra expenses.

As you embark on this journey towards retirement, remember that careful planning and thoughtful consideration of your financial goals and priorities are key. By implementing some, or all, of the tips and strategies outlined, you can take proactive steps to safeguard your financial future and make the most of your retirement years.