The Four Stages of Retirement

Retirement is not a single event; it’s a journey we see clients go through in four distinct stages. At Insight Planning, we adapt our financial planning to match these evolving goals.

Stage 1: Pre-Retirement

This stage is about envisioning your future and putting the financial pieces in place. You’ll assess savings, project expenses, and ensure income sources align with your lifestyle.

• Focus: Reviewing pensions/RRSPs, paying off debt, and finalizing estate plans.
• Key Question: *How much annual income will I need for my desired lifestyle?*

Stage 2: Early Retirement ("The Go-Go Years")

The first few years are often the most active. Retirees take advantage of freedom to travel and explore. This stage typically comes with increased spending.

• Focus: Creating a spending plan that balances enjoyment with longevity.
• Key Question: *Should I take CPP/OAS now or defer for a higher benefit later?*

Stage 3: Mid-Retirement ("The Slow-Go Years")

By middle retirement, spending patterns often stabilize. There are fewer grand adventures and more focus on family, community, or hobbies.

• Focus: Adjusting the plan for longevity and addressing housing needs (downsizing).
• Key Question: *Is my current living arrangement suitable for the long term?*

Stage 4: Late Retirement ("The No-Go Years")

In later years, health and caregiving often become primary concerns. Expenses may rise due to medical treatments or assisted living.

• Focus: Legacy planning, tax-efficient wealth transfer, and health care funding.
• Key Question: *Have I communicated my legacy wishes clearly to my family?*

Final Thoughts

This framework allows us to create personalized plans tailored to your specific goals, ensuring you feel supported as you move through different phases.