From saving to spending: Creating confidence in your retirement income

For decades, retirement planning conversations have focused on one key goal: saving enough. But once retirement arrives, a new challenge begins – figuring out how to spend that money with confidence. While it sounds easy (and is what many of us dream of), this transition can be tougher than you might expect. After years of building wealth, switching from accumulation to withdrawal can feel emotionally daunting and financially uncertain.

That’s why we’re here. We help clients navigate this shift with a clear, comprehensive plan that turns their lifetime of saving into a sustainable income strategy – so they can enjoy retirement without second-guessing every expense.

Why the spending phase feels so unsettling

It’s not uncommon for retirees to worry about running out of money. In fact, a recent study from CPP Investments shows six in ten Canadians are concerned about outliving their savings.¹ Many feel stuck between two conflicting goals: enjoying retirement now, and preserving wealth for later retirement or their family and legacy.

This fear leads many to under-spend. According to a report from the Employee Benefit Research Institute, more than 50% of retirees withdraw less than their portfolio growth allows.² This can lead to missed opportunities for travel, connection, and meaningful experiences.

But it doesn’t have to be this way.

How we help you build a confident retirement income strategy

Every retirement is unique, but the foundations of successful income plans are built on a few key cornerstones.  That’s why we guide you through a comprehensive withdrawal strategy that’s:

• Tax-efficient
• Aligned with your lifestyle goals
• Designed to adapt and evolve with your life

Here’s how we do it.

1. Create a retirement spending plan

We start by identifying your lifestyle goals – whether it’s traveling, supporting family, or simply enjoying hobbies – and map out your expenses accordingly. Then, we assess how much you can safely withdraw from your savings to fund those goals over time.

This isn’t about guesswork. It’s about using data and projections to define a sustainable withdrawal rate. For many, this rate ranges from 3.5% to 5% of your retirement savings annually depending on your age, asset mix, inflation and market conditions.

2. Implement a “retirement paycheque”

One of the best ways to remove the stress from spending is to mimic the regular income flow you were used to during your working years. We can help you set up systematic withdrawals, which are monthly or bi-weekly payments that feel like a predictable paycheque. This approach:

• Reduces anxiety about market timing
• Can make it easier to budget
• Encourages healthy spending habits

It’s a simple shift that makes retirement spending less daunting. 

3. Align your investment strategy with your income needs

Generating retirement income doesn’t mean abandoning growth. Instead, we help you rebalance your investment mix to create the right blend of income-producing assets and growth-oriented investments. This provides both stability and the ability to keep pace with inflation.

Our integrated planning considers:

• Stable income investments (like fixed income and dividend-paying stocks)
• Tax-advantaged withdrawal strategies
• Liquidity for near-term needs

And we review and adjust this mix regularly – because your plan should evolve as your life does.

4. Optimize withdrawals for tax efficiency

One of the most overlooked elements of a retirement income plan is how to best withdraw money. Withdrawing from registered accounts like Registered Retirement Savings Plans (RRSPs) or Registered Retirement Income Funds (RRIFs), non-registered investments, or Tax-Free Savings Accounts (TFSAs) each has their own tax implications.

We guide you through:

• When to convert RRSPs to RRIFs
• Whether to defer or start your Canada Pension Plan (CPP) pension and Old Age Security (OAS)
• How to avoid entering unwanted tax brackets or experiencing OAS clawbacks
• The ideal order for drawing from different accounts

With the right approach, you can keep more of your money working for you and reduce tax stress along the way.

5. Reframe the purpose of money

We often remind clients: retirement isn’t just about security. It’s about joy, too. Money is a tool to create experiences, reduce stress, and make memories. That could mean funding family trips, gifting a child their first home down payment or enjoying your hobbies.

By reframing spending as part of your plan – not something to fear or avoid – we help clients feel empowered to enjoy what they’ve worked so hard for.

Your next chapter deserves clarity and confidence

If you're nearing retirement or already living it, and you're unsure how to turn your nest egg into steady income, you’re not alone. What matters is having a clear, flexible roadmap that aligns with your goals today, and adapts as your life evolves.

We’re here to help you navigate this next chapter with clarity, confidence, and a partnership that lasts.

Let’s talk about your retirement income strategy. Together, we’ll build a plan that lets you enjoy what you’ve earned – without looking back.
 

Sources

1. Canadians fear running out of money in retirement, but there are ways to ease that anxiety. October 30, 2024. CPP Investments. https://www.cppinvestments.com/newsroom/canadians-fear-running-out-of-money-in-retirement-but-there-are-ways-to-ease-that-anxiety/
2. 2022 spending in retirement survey: Understanding the pandemic’s impact. October 6, 2022. Employee Benefit Research Institute. https://www.ebri.org/docs/default-source/pbriefs/ebri_ib_572_spendinginret-6oct22.pdf?sfvrsn=bba5382f_14