By Shea Sanche, CFP® · Last reviewed: April 2026
Retirement isn't one phase - it's four. Understanding the go-go, slow-go, no-go, and legacy stages changes how you plan, spend, and allocate.
Stage One: The Go-Go Years
The early years of retirement are characterized by high activity, good health, and significant discretionary spending. Travel, hobbies, family activities, and lifestyle purchases are front-loaded in this stage. Research on retirement spending consistently shows that real spending tends to be highest in the early years. The planning implication: retirement income models that assume flat, inflation-adjusted spending throughout retirement underestimate early spending and overestimate later spending. A better model front-loads higher spending in the go-go years - when you have the health and energy to actually use it.
Stage Two: The Slow-Go Years
Typically spanning the mid-seventies to mid-eighties, the slow-go years see a natural reduction in discretionary activity. Travel becomes less frequent. Physical limitations begin to emerge. Spending on experiences tends to decrease, while spending on healthcare and comfort begins to increase. Income planning in this stage often becomes simpler: CPP, OAS, and pension income cover a larger share of needs, and pressure on portfolio withdrawals typically decreases.
Stage Three: The No-Go Years
The no-go years are characterized by significantly reduced mobility, often coinciding with meaningful healthcare needs. Spending on personal care, home modifications, and potentially long-term care becomes a dominant planning variable. This is the stage most retirement plans underplan for. The cost of quality long-term care in Canada can reach $5,000 to $12,000 per month in private facilities. Without a specific plan - whether through insurance, earmarked assets, or family support - this cost can rapidly deplete an estate.
Stage Four: The Legacy Years
The legacy years involve the final transfer of accumulated wealth - through estate distributions, charitable giving, or gifts to the next generation. Planning in this stage is largely about ensuring the estate plan is current, that assets pass according to your wishes, and that the tax bill at death is minimized to the extent possible. Understanding that retirement has four distinct stages - with different spending profiles, different risk tolerances, and different planning priorities - leads to fundamentally better retirement income plans. For a comprehensive look at retirement income planning, our Retirement Planning hub covers the full decision landscape.
Common Questions
Answers to the questions people actually ask.
How much do I need to retire in Canada?
Should I take CPP early or defer it?
What is the best withdrawal order in retirement?
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Key Takeaway
Planning for retirement as a single phase with flat spending is a common and costly mistake. Spending patterns change dramatically across the four stages, and a plan that accounts for this reality produces better outcomes and less anxiety.