Retiring in 2026? Five Key Steps to Help you Retire with Confidence

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For many Canadians, the start of a new year brings fresh goals, new routine, and for some, a major life transition: retirement. If 2026 is the year you're planning to retire, the decisions you make right now matter more than ever.

In a recent series of conversations with Canadians across the country, one theme came up repeatedly. Beyond taxes, the number one concern was simple but powerful: "Can my retirement plan actually work?"

Even more concerning, many of these individuals were already working with an advisor but didn't trust the advice they'd been given. Without confidence in the plan, they were unable to make the final decision to retire.

If that sounds familiar, you're not alone. Let's walk through five practical steps you should take if you're hoping to retire in 2026 and how to focus not just on the numbers, but on the life you want after work ends.

Step 1: Build a Realistic Retirement Budget

Understanding what you spend is one of the cornerstones of a sustainable retirement. Regardless of whether you've accumulated $1 million or $5 million, knowing where your money goes month to month and year to year is critical.

As retirement approaches, spending often changes. Travel, renovations, hobbies, and family support can increase expenses in the early years. At Retiring Canada, we often model retirement spending in three phases.

• Go-Go years: Active, higher spending

• Slow-Go years: Reduced pace and spending

• No-Go years: Lower activity and expenses later in life

Spending is one of the few retirement variables you can partially control. Gaining clarity here is often the first step toward real retirement confidence.

Step 2: Review your Investment Portfolio

As you near retirement, your investment strategy must evolve. This isn't about making big bets or becoming overly conservative it's about balance.

A properly diversified, globally invested portfolio should:

• Reduce concentration risk

• Coordination with your income needs

• Align with your tax strategy

Investment decisions don't exist in a vacuum. If your portfolio isn't coordinated with your retirement income and tax plan, your long-term retirement sustainability may be at risk.

Step 3: Request CPP and Pension Estimates

Knowing how much you'll receive from CPP, OAS, and any defined benefit pensions is essential but knowing when to start them is just as important.

Once CPP or OAS starts, you have a very limited window to reverse that decision. In many cases, the optimal start date is later than age 65 but only proper planning reveals that.

Even if you're retiring before 60, these estimates help shape the income strategy that bridges the gap to government benefits.

Step 4: Create a Tax-Efficient Decumulation Plan

Retirement planning isn't just about saving it's about withdrawing money in the right order.

A tax-efficient decumulation plan considers:

• RRSPs and RRIFs

• TFSAs

• Non-registered accounts

• Pensions, corporations, and rental income

The early years of retirement are especially important. Decisions made or avoided during this time can significantly impact taxes, longevity of your portfolio, and your overall peace of mind.

Step 5: Review your Estate Planning Documents

Estate planning isn't just 'what if' planning it's retirement planning.

Key documents include:

• A valid Will

• Power of Attorney

• Advanced healthcare directive

Without these in place, an unexpected event could derail not only your plans, but your spouse's ability to remain retired and financially secure.

Beyond the Numbers: The Softer Side of Retirement

Once the financial foundation is solid, retirement planning shifts from spreadsheets to life.

Ask yourself:

• How will you spend your time?

• Where will your sense of purpose come from?

• How will you maintain social connections?

• How will you protect your health?

Confidence in your financial plan creates the mental space to focus on what retirement is really about you.

Action Items

If retirement is on the horizon, consider these next step:

• If you're retiring in 2026, a second opinion from a retirement-focused team may give you clarity and confidence.

• If retirement is still a few years, don't wait many decisions are far more effective when made early.

• Share this episode with anyone you know who's planning to retire in 2026.

When it comes to retirement, don't take chances.

Make a plan so you can retire with confidence.

All comments are of a general nature and should not be relied upon as individual advice. The views and opinions expressed in this commentary may not necessarily reflect those of Harbourfront Wealth Management. While every attempt is made to ensure accuracy, facts and figures are not guaranteed, the content is not intended to be a substitute for professional investing or tax advice. Please seek advice from your accountant regarding anything raised in the content of the podcast regarding your individual tax situation. Always seek advice of your financial advisor or other qualified financial service provider with any questions you may have regarding your investment planning.