Plan Your Retirement with Endeavour Wealth

Q: How much money do I really need to retire comfortably?

Many experts suggest around $1.7 million, but a personalized approach uses the 25x Rule: multiply your desired annual retirement income by 25. The ideal amount depends on lifestyle, debt, and healthcare needs.

Q: Is the 4% rule a reliable strategy for Canadians?

The 4% rule is a basic guideline but has flaws for Canadians. It doesn’t consider taxes, CPP/OAS benefits, investment fees, or differences in market returns. A more flexible, personalized strategy is recommended.

Q: How can I create a realistic retirement budget?

Start by estimating income (government benefits, pensions, savings) and expenses (essential, discretionary, one-time). Compare to see if you have a surplus or shortfall. Adjust as needed and factor in 2–4% annual inflation.

Q: Should I pay off debt or save for retirement?

Prioritize paying off high-interest debt. For low-interest debt, investing may be better if expected returns are higher. Most Canadians rely on CPP and OAS as core retirement income sources.

Q: What is the best age to start my CPP pension?

You can start CPP as early as age 60 or as late as 70. Starting earlier means lower payments for longer; delaying increases payments. The best age depends on health, financial needs, and other income sources.

Q: What is the difference between CPP and OAS?

CPP is contribution-based and depends on your work history and contributions. OAS is residency-based and funded by tax revenues. Both provide retirement income but have different eligibility rules.

Q: What is the OAS clawback?

The OAS clawback is a tax that requires higher-income seniors to repay part or all of their OAS benefit if their net annual income exceeds a threshold. Strategic income planning can help minimize this clawback.

Q: RRSP vs. TFSA: Which is better for retirement savings?

RRSP contributions are tax-deductible and grow tax-deferred, with withdrawals taxed as income. TFSAs use after-tax dollars, grow tax-free, and withdrawals are tax-free. The best option depends on your current and future tax brackets.

Q: What are the key rules for my RRSP when I turn 71?

By December 31 of the year you turn 71, you must close your RRSP. You can withdraw in cash, buy an annuity, or convert it to a RRIF—the most common choice, which allows continued tax-deferred growth with required withdrawals.

Q: What are the rules for a Locked-In Retirement Account (LIRA)?

A LIRA holds pension funds from a former employer. You can’t add new money. Funds are usually locked in until at least age 55. By age 71, it must convert to a retirement income fund like a LIF.

Creating a solid retirement plan begins with answering the most fundamental questions about your financial needs and the strategies to meet them. This section tackles the big picture concepts of setting savings goals, understanding withdrawal rules, creating a budget, and managing debt. Use the interactive tools below to get a clearer picture of your own situation.

How much money do I really need to retire comfortably?

▼

While the national average suggests a target of $1.7 million, a more personalized approach is the "25x Rule". This guideline suggests multiplying your desired annual retirement income by 25 to estimate the total portfolio you'll need. Your ideal number depends heavily on your lifestyle, debt, and healthcare needs.

Enter your desired annual retirement income:

$

Your estimated retirement savings goal is: $1,500,000

Is the 4% rule a reliable strategy for Canadians?

▼

The 4% rule is a simple starting point, but it's flawed for Canadians because it doesn't account for several critical factors. A successful retirement income strategy must be more dynamic. Click the factors below to see why.

Taxes: The rule ignores that RRSP/RRIF withdrawals are fully taxable income.

Government Benefits: It ignores CPP/OAS and how large withdrawals can trigger the OAS clawback.

Investment Fees: High Canadian MERs can erode returns, making 4% withdrawals unsustainable.

Historical Returns: The rule is based on past U.S. market data, which may not repeat.

How can I create a realistic retirement budget?

▼

A retirement budget involves forecasting your income and expenses. The key is to be thorough.

1. Estimate Your Income

Government Benefits (CPP, OAS)
Employer Pensions
Personal Savings (RRIF, TFSA, etc.)

2. Estimate Your Expenses

Essential: Housing, food, healthcare, insurance
Discretionary: Travel, hobbies, dining out
One-Time: New car, home repairs

Compare your total estimated income to your total estimated expenses to see if you have a surplus or a shortfall, then adjust your plan accordingly. Remember to factor in inflation of 2-4% annually for your expenses.

Should I pay off debt or save for retirement?

▼

The best strategy depends on the type of debt. Prioritize paying off high-interest debt, but with low-interest debt, it might be better to invest.

High-Interest Debt (e.g., Credit Cards >15%)

Aggressively pay this down. The interest you save is a guaranteed, risk-free "return" that likely beats what you could earn from investing.

Low-Interest Debt (e.g., Mortgage <5%)

If your expected investment returns are higher than the debt's interest rate, it can be mathematically better to prioritize investing in your RRSP or TFSA.

For most Canadians, government pensions form the bedrock of retirement income. The Canada Pension Plan (CPP) and Old Age Security (OAS) are two distinct programs. This section explains how they work and how your decisions can impact your benefits. Use the interactive chart below to see exactly how your choices affect your future income.

What is the best age to start my CPP pension?

▼

You can start CPP as early as 60 or as late as 70. The choice permanently affects your payments. Use the slider below to see the impact. The best age depends on your health, financial need, and other income sources.

Select Your CPP Start Age: 65

Your monthly payment would be adjusted by 0.0%, resulting in an estimated monthly pension of $899.67.

What is the difference between CPP and OAS?

▼

Canada Pension Plan (CPP)

Contribution-Based: Based on your earnings and contributions.
Funding: You and your employer contribute.
Eligibility: At least one valid contribution.

Old Age Security (OAS)

Residence-Based: Based on years lived in Canada.
Funding: General government tax revenues.
Eligibility: Based on residency, not work history.

What is the "OAS clawback"?

▼

The OAS Recovery Tax, or "clawback," requires high-income seniors to repay some or all of their OAS benefit. If your individual net annual income exceeds a specific threshold (updated yearly), you must repay 15 cents of your OAS for every dollar of income above that threshold. This makes strategic income planning crucial to avoid losing government benefits.

Beyond government pensions, your personal savings are the engine of your retirement. Canada offers powerful registered accounts to help you save. Understanding the rules and benefits of the RRSP, TFSA, and LIRA is fundamental to building a successful plan. Use the interactive comparison tool below to see which account best suits your needs.

RRSP vs. TFSA: Which is better for retirement savings?

▼

Neither is inherently "better"—the best choice depends on your income now versus your expected income in retirement. Click below to compare their key features.

What are the key rules for my RRSP when I turn 71?

▼

By December 31 of the year you turn 71, you must close your RRSP. You have three options:

Withdraw in Cash: Generally the worst option due to a massive tax bill.
Purchase an Annuity: Provides a guaranteed, regular payment for life.
Convert to a RRIF: The most common choice. Your investments continue growing tax-deferred, but you must withdraw a minimum amount each year.

What are the rules for a Locked-In Retirement Account (LIRA)?

▼

A LIRA holds pension funds from a previous employer. The funds are "locked-in" to provide retirement income.

No New Contributions: You cannot add money to a LIRA.
Locked-In Status: Withdrawals are generally not permitted until age 55 (depending on provincial/federal rules).
Mandatory Conversion: Like an RRSP, it must be converted to a retirement income fund (like a LIF) by age 71.

Accumulating your nest egg is only half the battle. How you withdraw money can dramatically impact how long your savings last. A tax-efficient strategy aims to minimize your tax bill while maximizing your after-tax income. Explore the recommended withdrawal flow and tax-saving tips below.

What is the most tax-efficient order to withdraw from my accounts?

▼

While every situation is unique, a tax-efficient withdrawal strategy often follows a logical progression through different stages of retirement. Click on a stage below to see the common approach.

Stage 1: Early Retirement

(e.g., age 60-65)

→

Stage 2: Mid-Retirement

(e.g., age 66-75)

→

Stage 3: Late Retirement

(e.g., age 76+)

How does pension income splitting save me money?

▼

Pension income splitting allows a higher-income spouse to allocate up to 50% of their eligible pension income (including RRIF income after age 65) to their lower-income spouse on their tax returns. This moves income from a high tax bracket to a lower one, reducing the couple's overall tax bill. It can also help the higher-income spouse avoid the OAS clawback.

A complete plan extends beyond finances to include your health and estate. Many Canadians are surprised by out-of-pocket healthcare costs, and failing to plan your estate can create immense difficulty for your loved ones. This section covers the essentials for true peace of mind. Use the interactive table to see the gaps in provincial coverage.

What healthcare costs are not covered by provincial plans?

▼

Provincial plans have significant gaps. The table below illustrates common costs not fully covered by Manitoba Health and how private insurance can help. These can amount to thousands annually.

Service	Covered by Manitoba Health?	Covered by Private Insurance?
Prescription Drugs (Out-of-Hospital)	Partial	Yes
Dental Check-ups & Fillings	No	Yes
Eyeglasses & Contact Lenses	No	Yes
Hearing Aids	Partial	Yes
Ambulance Services	No	Yes

What are the essential components of an estate plan?

▼

An estate plan ensures your wishes are followed. The three core legal documents are:

The Will: Outlines how your assets are distributed after death. Names an executor to manage the process.
Power of Attorney for Property: Appoints someone to manage your financial affairs if you become incapacitated.
Power of Attorney for Personal Care: Appoints someone to make medical decisions on your behalf if you cannot.

Start your retirement Planning journey withEndeavour Wealth Management

Confused by Your Retirement Options? You're Not Alone.

Enjoy a retirement customized to your life's dreams and financial goals with Endeavour Wealth management

Partner with Your Trusted Investment professional

to Financial Confidence and Freedom

Schedule Your Consultation

Develop Your Personalized Investment Strategy

Unlock True Financial Freedom

Imagine Retiring on Your Terms

Avoid the Pitfalls of Waiting Too Long to Plan

Frequently Asked Questions about estate Planning

How much money do I really need to retire comfortably?

Is the 4% rule a reliable strategy for Canadians?