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5 Key Financial Goals Before You Turn 60

Mar 21, 2025

Your 50s are a critical decade—this is when you can either set yourself up for a smooth transition into retirement or create financial challenges that make it far more stressful than it needs to be. Here are five key financial goals you should aim to check off before turning 60. If you accomplish these, you may even be able to retire earlier than expected!

 

1. Know When You Can Actually Retire

Many people don’t have a clear idea of when they can retire. There are two important steps to figuring this out:

Understand Your Spending: Even if you don’t keep a strict budget, you should have a rough estimate of your monthly expenses within $400–$500. There are two ways to do this:

  • Look back at your spending over the past 2–3 months and calculate an average.

  • Track your spending going forward using a budget tool.

Create a Retirement Plan: The best time to put a retirement plan in place is 5 to 10 years before retirement. This gives you time to make necessary adjustments. Many people don’t realize they’re in a better financial position than they thought and could retire earlier than expected. Everyone’s financial situation is different, so don’t rely on generic “retirement savings targets” like $1.7 million—create a plan specific to you.

 

2. Maximize Your Savings

Your 50s are likely your highest income-earning years. If your mortgage is paid off or close to it, and your kids are financially independent, you may have more disposable income than ever before. How you use this extra cash flow matters.

Take Advantage of Employer Matching Plans: Many people overlook free money available through workplace matching programs. Check with your HR department to see if your company offers a group RRSP or defined contribution plan where they match your contributions.

Save in the Right Places:

  • Higher income earners: RRSPs can provide significant tax savings since you contribute at a high tax rate and withdraw at a lower rate in retirement.

  • Lower income earners: TFSAs may be a better option, offering tax-free withdrawals in retirement.

  • Consolidate Your Assets: If you have multiple accounts across different financial institutions, start consolidating them. Spreading your money across eight different banks is not diversification—it just complicates things.

 

3. Have a Clear Plan for Your Investment Portfolio

Your investment strategy should shift as you approach retirement. For decades, you’ve been focused on saving and growing your wealth. Now, it’s time to start planning how you’ll draw down those assets.

Key Portfolio Adjustments:

  • Consider setting aside 3 to 5 years of cash flow to cover expenses and avoid selling investments during market downturns.

  • Re-evaluate your risk tolerance and investment strategy to align with retirement income needs.

  • Work with a financial planner to determine which accounts to draw from first (e.g., RRSPs, TFSAs, or non-registered accounts) to minimize taxes.

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4. Update Your Legal Documents

Estate planning isn’t just about financial assets—it’s about making sure the right people are in place to make decisions if something happens to you.

Key Documents to Review:

  • Will: Ensure it reflects your current wishes, especially if you have a blended family or other complexities.

  • Power of Attorney (POA): Assign someone to handle financial and healthcare decisions if you’re unable to.

  • Estate Tax Planning: Without proper planning, a significant portion of your estate could end up going to the CRA instead of your loved ones.

 

5. Build a Retirement Bucket List

Retirement isn’t just about finances—it’s about what you’re retiring to, not just what you’re retiring from. Many retirees struggle with the transition because they haven’t thought about how they’ll spend their time.

Ask Yourself:

  • What hobbies or activities do you want to pursue?

  • Do you want to travel? If so, where?

  • Would you like to volunteer or mentor?

  • Are there new skills or interests you’d like to explore?

Your first 10–15 years of retirement (the “go-go phase”) are when you’ll have the most energy and ability to do what you love—so plan for it now!

•••••

Taking control of your financial future in your 50s is key to a stress-free retirement. By understanding when you can retire, maximizing savings, adjusting your investment strategy, updating your estate plan, and defining your retirement lifestyle, you can ensure a secure and fulfilling future. Head to our YouTube channel for more financial planning and retirement advice.

If you need expert guidance tailored to your situation, contact our office today—we’re here to help build a retirement plan that works for you.

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