5 Common Retirement Planning Mistakes You Should Avoid
If retirement has been on your mind lately, you’re not alone. Many people I meet have worked hard, saved consistently, and done their best to make smart decisions yet still feel unsure about whether everything is working the way it should be.
That feeling is completely normal.
Retirement planning can get complicated quickly. You are balancing taxes, income, government benefits, investments, and family priorities, all at once. Small decisions in one area can create bigger outcomes in another.
The good news is that with the right plan, you can make stronger decisions at every stage of retirement. Here are five retirement planning mistakes I see most often, and how I suggest approaching each one.
1) Saving in the wrong account
Many Canadians save consistently, but use the wrong account mix.
Some people put too much into RRSPs when a TFSA would give them more flexibility later. Others do the opposite and miss valuable RRSP deductions during high-income years. I also see overcontributions to RRSPs and TFSAs, which can create avoidable penalties.
Account choice affects your tax bill now and in retirement. A strong plan sets the right savings priority based on your income, expected retirement cash flow, and long-term tax position.
2) Waiting too long to plan retirement income
Most people put a lot of time into building savings and very little time into planning withdrawals.
Retirement income planning works best when it starts before retirement. The order you draw from RRSPs/RRIFs, TFSAs, non-registered accounts, pensions, and government benefits has a direct impact on taxes and long-term sustainability.
A written drawdown strategy helps you control tax brackets, reduce benefit clawbacks, and keep your plan on track over time.
If you’re unsure whether your retirement income strategy is set up efficiently, this is a great time to review it. Book a meeting, and we can walk through your options together
3) Taking CPP too early without running the numbers
CPP timing is one of the biggest retirement decisions you will make.
Starting CPP early gives you income sooner, but at a permanently reduced amount. Delaying CPP increases your monthly benefit for life. The right decision depends on your health, other income sources, tax situation, and expected longevity.
This decision should be based on planning, not assumptions. Running the numbers first gives you a clear path forward.
4) Missing OAS and income-splitting planning
Old Age Security clawback can reduce benefits when income is structured inefficiently.
With proper planning, many households can lower total tax and reduce clawback exposure through income splitting and better withdrawal design. Pension income credits also create opportunities, especially after age 65, when eligible income is structured correctly.
These details make a meaningful difference over retirement. Coordinating income sources year by year helps you keep more of what you have built.
5) Delaying estate and tax planning
Estate planning is a core part of retirement planning
A current will and powers of attorney are essential. Beyond that, families need clear planning around beneficiary designations, tax on death, account structure, and efficient asset transfers.
When this work is done early, families have more choices and better outcomes. It also helps reduce stress and uncertainty during difficult times.
Plan ahead with confidence
Retirement planning is an ongoing process. The decisions you make before retirement shape your flexibility later, and the decisions you make in retirement shape how long your income lasts.
If you are still saving, now is the time to align your account strategy, tax planning, and long-term income goals. If you are retired, there are still many ways to improve withdrawal efficiency, reduce tax, and strengthen your estate plan.
A well-coordinated plan helps you keep more income, make better decisions with confidence, and enjoy retirement with greater peace of mind.
Ready to turn these ideas into a clear action plan? Book an Introduction Call and let’s build it together.
Jason Blucke, CFP®, CIM, BBA, helps Canadians build retirement plans that are clear, tax-efficient, and built to last. He works with clients at every stage, from those still building wealth to those managing income in retirement, with advice that connects today's decisions to long-term financial peace of mind.
This is a general source of information only. It is not intended to provide personalized tax, legal or investment advice, and is not intended as a solicitation to purchase securities. Jason Blucke is solely responsible for its content. For more information on this topic or any other financial matter, please contact an IG Advisor. Trademarks, including IG Wealth Management and IG Private Wealth Management, are owned by IGM Financial Inc. and licensed to subsidiary corporations.