Retirement marks the start of a new chapter, full of freedom and fresh adventures. But to make it enjoyable, you need a solid plan. That’s where a prepare for retirement checklist comes in. This guide blends practical tips from trusted sources like government experts and financial pros. Whether you’re in Canada dreaming of cottage life or in the U.S. eyeing sunny beaches, these steps help you build a worry-free tomorrow. We’ll cover everything from saving smart to legal safeguards, all in simple terms. Let’s dive in and get you ready.
Why Start a Retirement Preparation Checklist Now?
Life speeds by, and retirement sneaks up fast. Many folks wait until it’s too late, only to scramble. But smart planning turns stress into excitement. In Canada, surveys show 76% of adults over 45 worry about outliving their savings. Across the border in the U.S., the average worker needs to replace 70-90% of their income to keep their lifestyle. A retirement preparation checklist acts like a roadmap. It keeps you on track, spots gaps early, and boosts confidence.
Think about it: The average Canadian expects to retire at 64, but nearly half doubt they’ll hit that mark due to rising costs. In the U.S., folks aim for $1.26 million in savings for comfort. Starting young lets compound interest work magic—your money grows on itself over time. Even if you’re closer to the finish line, small tweaks now pay off big. This checklist draws from top resources, like Canada’s official financial tips and U.S. planning guides, to fit both worlds.
Ready to build your nest egg? Follow these steps before retirement to stay ahead.
Step 1: Know When and How to Kick Off Your Retirement Planning Checklist
The first move in any prepare for retirement checklist? Figure out your timeline. Don’t wait—start today, no matter your age. Experts say the earlier, the better. Why? Time turns small savings into big wins. For example, saving $200 a month from age 25 at 7% return could grow to over $500,000 by 65.
- Assess your current spot: Tally what you’ve saved. In Canada, the average RRSP balance hovers around $113,000 for those in their 50s. In the U.S., 401(k) averages hit $617,000 by the 50s—above the benchmark of six times salary.
- Set your retirement age: Aim for 65? Or earlier? Canadians now retire at 65 on average, up from 61 in 2005, thanks to costs.
- Talk to a pro: A financial advisor can map your path. Those with one feel twice as confident.
Tip: Use free tools like the Canadian Retirement Income Calculator to project your future. It’s quick and eye-opening.1
This step sets the tone for your retirement planning checklist. You’re not just saving—you’re building a life you love.
If you want to sharpen your day-to-day money habits before you map out retirement, take a look at our Money Mastery Guide. It breaks down simple ways to get control of your cash flow, manage debt, and build stronger savings habits. The more solid your foundation is now, the easier it is to hit your long-term goals.
Step 2: Crunch the Numbers—Figure Out How Much You Need
Next in your prepare for retirement checklist, estimate your needs. How much cash to quit work? Most aim to cover 70-80% of pre-retirement income. If you earn $60,000 now, target $42,000-$48,000 yearly in retirement.
- Track expenses: List must-haves like housing (30% of budgets) and fun like travel. Canadians spend $48,000 yearly on average post-65.
- Factor in inflation: Prices rise 2-3% yearly. That $50,000 today could be $90,000 in 20 years.
- Use the 25x rule: Multiply annual spending by 25. For $50,000, save $1.25 million. Canadians eye $1.02 million on average.
Example: Sarah, 45 in Toronto, earns $70,000. She needs $1.75 million total, including pensions. Her plan: Boost savings by 15% of income.
Benchmarks help too: By 30, save 1x salary; by 50, 6x; by 65, 10x. Falling short? Cut debt first—high-interest cards eat savings.
This math isn’t scary—it’s empowering. It shows exactly what your retirement preparation checklist targets.
Once you’ve outlined your timeline and savings targets, you may find it helpful to walk through a fuller pre-retirement roadmap. Our step-by-step planning guide covers income sources, tax moves, lifestyle choices, and the key decisions to make in your final working years. It’s a good companion if you’re closing in on retirement and want to stay organized.
Step 3: Prioritize Goals in Your Steps Before Retirement
Not all dreams fit one box. Your retirement planning checklist must balance retirement with life now—like kids’ college or a home down payment. Experts say: Secure basics first, then layer on extras.
- Build an emergency fund: Aim for 3-6 months’ expenses. It shields your retirement pot from surprises.
- Pay off high-debt: Tackle credit cards (average 20% interest) before extra savings.
- Weigh big goals: Kids’ education? Family travel? Rank them. In Canada, 26% plan part-time work in retirement for extras.
Quick Win: If your job matches RRSP or 401(k) contributions, max it—free money! U.S. workers leave $1,300 yearly on the table by skipping matches.
Prioritizing keeps your how do I prepare for a retirement checklist realistic. You’re saying yes to tomorrow without no’s today.
Step 4: Pick the Right Accounts and Investments
Choose where to stash cash—it’s key in any prepare for retirement checklist. Tax perks make these grow faster.
For Canadians: RRSPs, TFSAs, and Pensions
- RRSP: Deduct contributions from taxes. Withdraw tax-free in retirement. Average balance: $144,000.
- TFSA: Grow tax-free forever. Great for flexible access.
- CPP/OAS: Base income starts at 65. Average CPP: $900/month; defer for 42% more. Max OAS: $713/month, but clawback hits high earners.
Pro Tip: Split CPP with a spouse to cut taxes—saves thousands yearly. Check Canada’s retirement checklist for full details.
For Americans: 401(k)s, IRAs, and Social Security
- 401(k): Employer match? Grab it. Contribute up to $23,500 in 2025, plus $7,500 catch-up if 50+.
- IRA: Roth for tax-free growth; traditional for upfront deductions.
- Social Security: Claim at 62 for less, or 70 for 76% more. Average benefit: $1,900/month.
Invest wisely: Young? Go stocks for growth. Nearing retirement? Mix in bonds for safety. Low-cost index funds beat 90% of pros over time.
This step supercharges your steps before retirement. Right accounts mean more money working for you.
Step 5: Update Your Budget as a Retiree
Budgets shift in retirement—no more commute costs, but healthcare rises. In your prepare for retirement checklist, refresh yours yearly.
- Track income streams: Pensions, withdrawals, part-time gigs. Canadians get $15,159 on average from CPP/OAS.
- Cut smart: Housing eats 35%; downsize if needed. U.S. seniors spend $315,000 lifetime on health.
- Plan fun: Allocate 10-20% for travel or hobbies.
Example: Mike in Vancouver slashed $500/month on utilities by going solar—frees cash for grandkids.
Tools like apps or spreadsheets keep it simple. This ensures your retirement preparation checklist funds the life you want.
Step 6: Review Insurance and Health Coverage
Health surprises hit hard—plan ahead. Medicare in the U.S. starts at 65; Canada’s universal care covers basics, but extras add up.
- U.S. Focus: Enroll in Medicare Parts A/B; add D for drugs. Long-term care insurance? Buy early—costs soar after 75.
- Canada Focus: Update provincial plans; consider private dental/vision. 20% of seniors work to cover gaps.
- Life/Disability: Ensure coverage fits new life.
Alert: Fraud targets seniors—most common crime in Canada. Spot red flags like unsolicited calls.
Strong coverage protects your retirement planning checklist from wipeouts.
Step 7: Tackle Legal Must-Dos—Wills, POA, and More
Don’t skip papers—they guard your legacy. In your how do I prepare for a retirement checklist, legal prep ranks high.
- Make/Update Will: Name beneficiaries; get a lawyer. Costs $500-1,500 but saves family fights.
- Power of Attorney (POA): Appoint someone for finances if you’re unable. Key for “loss of independence.”
- Income Splitting: Share pensions with spouse—cuts taxes 20-30%.
Story: After Tom’s stroke, his POA handled bills smoothly—no court chaos.
Review every 5 years or after life changes. This secures peace for your steps before retirement.
Step 8: Plan Housing and Lifestyle in Retirement
Where you’ll live shapes costs. Downsizing frees equity; staying put means upkeep.
- Options: Stay home, move to a condo, or a retirement community. Canadians eye housing as 62% retirement strategy.
- Costs: Factor taxes, maintenance. Abroad? Check pension impacts.
- Lifestyle: Hobbies? Travel? Budget 10% for joy.
Idea: Retirees in Florida or B.C. cut costs 15% by relocating smart.
This step makes your prepare for retirement checklist livable—not just numbers.
Step 9: Watch for Taxes, Credits, and Working Options
Taxes linger post-work. Claim credits to stretch dollars.
- Canada: Pension credits, age amount ($8,000 deduction). Defer CPP to 70 for boost.
- U.S.: Roth conversions avoid RMD taxes at 73.
- Work?: 49% of Canadians plan it for fun/income.
Hack: Split income—saves $2,000+ yearly.
Stay sharp; rules change. This polishes your retirement preparation checklist.
Step 10: Build in Buffers for the Unexpected
Life throws curves—recessions, health woes. Your retirement planning checklist needs flex.
- Diversify Investments: Stocks, bonds, real estate.
- Emergency Pot: 1-2 years’ expenses liquid.
- Review Yearly: Adjust for markets, health.
61% fear outliving cash—buffers ease that.
You’re not just surviving—you’re thriving.
Prepare for Retirement Checklist: At Least One H2 Recap
Here’s your printable prepare for retirement checklist in one spot. Check off as you go:
- Set a timeline and goals.
- Calculate needs (25x rule).
- Prioritize (fund first, debt next).
- Choose accounts (RRSP/401(k)).
- Budget update.
- Insurance review.
- Legal docs (will/POA).
- Housing plan.
- Tax smarts.
- Buffers for surprises.
Print it, track progress. For more, see NerdWallet’s 5-step guide.2
FAQs: Common Questions on Your Retirement Preparation Checklist
How much should I save each year for retirement?
Save 10-15% of your income. If that’s tough, start with 5% and increase yearly. Max out employer matches—it’s free cash!
When should I claim CPP, OAS, or Social Security?
Defer if you can. In Canada, wait until 70 for CPP to boost it by 42%. In the U.S., claim Social Security at 70 for up to 76% more monthly.
What if I’m behind on my retirement planning checklist?
No panic—use catch-up options. Over 50? Add extra to RRSPs or 401(k)s. Cut one big expense, like dining out, to free $200+ monthly.
Do I need a financial advisor for my steps before retirement?
Yes, if confused. They spot gaps and ease stress—planners with one feel twice as ready. Start with a free consultation.
How often should I update my prepare for retirement checklist?
Review yearly or after life changes like a new job or health shift. Keep it fresh to stay on track.
If you’re earlier in the journey and want to build confidence with the basics, our beginner’s guide to retirement planning is a great place to start. It explains the core concepts in plain language and helps you understand how savings accounts, pensions, and investment strategies fit together. It’s a useful primer before you dive into more detailed checklists.
Conclusion: Wrap Up Your Prepare for Retirement Checklist
A strong prepare for retirement checklist turns dreams into reality. You’ve got the steps: From early savings to legal shields, each builds security. Canadians and Americans alike face similar hurdles—rising costs, longer lives—but action wins. Remember, 21% of planners feel extremely optimistic. Join them. Start one step today; your future self thanks you.
What’s your first move on this retirement planning checklist—budget tweak or advisor chat? Share below!
References
- Government of Canada. (2025). Your retirement financial checklist.
Targets Canadian seniors/retirees with practical steps on budgeting, CPP/OAS, insurance, wills, POA, housing, fraud, and income splitting. Assumes near-retirement audience focused on protection and eligibility. ↩︎ - NerdWallet. (2025). Retirement Planning: A 5-Step Guide.
Aimed at U.S. working adults (20s-60s) planning ahead. Covers starting early, estimating needs, prioritizing, accounts (401(k)/IRA), and investments. Educational for beginners to experienced savers. ↩︎