Written by Brayden Grant, CIM
Cornerstone Financial Management Inc.
Published May 4, 2026
Thinking about retirement can be a daunting topic. It could seem very far away, or it could be around the corner. There are a number of different thoughts one might have: Can I afford to retire? What does my retirement income look like? How much should I save to fulfill my retirement needs and wants? The questions could go on and on. In this post, I wanted go over key concepts and realities to help prepare for the next step. When you set clear expectations, have mindful goals, and budget and save accordingly, retirement can be accomplished.
There was an article earlier this year from the Financial Post that made me think to write this post. A survey from the Bank of Montreal asked people how much they think they needed to afford retirement. The results differ province by province, but the concerning figure was a 26.5% increase from their initial survey from 2019 (which is higher than the inflation rate over the same period). The average person in Canada needs ~$1.7 million to retire comfortably.
Many people feel they won’t be able to achieve this target, as saving more each pay cheque can certainly seem a daunting task in today’s environment. Some folks feel that retirement isn’t even possible. Other people have saved their whole life and are unsure how retirement will work!
When thinking about retiring, we have to control our ‘controllables’: budgeting, tax efficient investing, setting goals, and income planning can be managed. We can also think of the behavioural biases that might impact our decision to retire, naming these biases can help address them more appropriately. Let’s start here.
An interesting article from Advisor.ca titled ‘The retirement planning gap’ had a great overview on the behavioural biases that most people face when dealing with retirement. When you are able to recognize these biases, you have a better chance overcoming any hardships when making retirement decisions.
Loss aversion: We feel losses more than gains. Not only from investing, but also from your routine, status and socialness. Retiring influences all these aspects.
Status quo bias: Continuing to work means no change. Change disrupts structure and puts you out of your comfort zone. Once you can accept change as inevitable, the unfamiliar becomes familiar.
Overconfidence in adaptation: You may have the mindset that you’ll ‘figure it out’ when the time comes. Without proper planning, you set yourself up for anxiety and stress.
Identity anchoring: Your occupation sometimes is a main identity. Breaking that tie can be daunting.
Now that we have an idea on what might impact us mentally, what are actionable steps to take when planning for retirement? Here are four ideas that can help set the framework for retirement:
1. Budgeting. A word that makes peoples eyes glaze over in boredom. Sometimes the simplest concepts lead to the greatest differences. Having a well thought out budget pre-retirement can easily help you reach your goals. Post retirement it is just as valuable to make sure your money lasts!
2. Tax Efficient Investing can be a major contributor hitting financial goals. We have multiple tools at our disposal like TFSAs and RRSPs. Also take advantage of company contribution plans. Using these accounts effectively can make the difference for a second stream of income in retirement.
3. Of critical importance is Setting a Goal. Having a rational, well thought out goal of what you want in retirement can help create steps to take you there, like creating a financial plan.
4. All the focus is on saving and potentially investing leading up to retirement, but then the switch flips and you need to think of your new income streams. We can call this the de-accumulation phase. Where will your sources of income come from – CPP, OAS, work pension, and investing accounts like your RIF or LIF? Make sure to be familiar with where your next dollar is coming from.
Having expert advice to monitor behavioural biases, help implement and follow through on plans, and create the appropriate financial pathways will hopefully allow you to retire ‘successfully’.
Retirement is one of the major life changing events. It’s important to take the time to have an idea on what you want in the future. Self reflection and rational expectations are needed to get you to this next stage. Once you’ve achieved retirement, making sure it lasts and you can live comfortable and happy should be the goal.