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.

About Shea Sanche

Shea Sanche, CFP®, is the founder of Insight Planning Wealth Management and has worked as a financial advisor since 1999. He specializes in financial planning, retirement strategy, and decision frameworks for Canadian families and business owners, with a focus on simplifying complex financial decisions and long-term wealth planning.

He is the creator of Insight 360 OS, a decision and life-design system built to help clients navigate financial complexity, uncertainty, and major life transitions.

Common Questions About This Topic

How much do I need to retire in Canada?

It depends on after-tax spending, inflation, longevity, and how income sources fit together. Strong plans model CPP/OAS timing and withdrawal sequencing, not just a single number.

Should I take CPP early or defer it?

Deferring CPP increases guaranteed lifetime income, but the right choice depends on health, other income, and tax interactions (including OAS clawback).

What is the best withdrawal order in retirement?

There is no universal order. Strong plans coordinate RRSP/RRIF, TFSA, and non-registered withdrawals to manage marginal tax rates and benefit clawbacks over time.