10 Things Retirees Must Do Before 2027

Summary

The video gives Canadian retirees a year-end checklist for preparing their finances and retirement plans for 2027. Its central message is to plan withdrawals and spending in advance, compare actual account balances with the plan, and revisit tax, benefit, and estate arrangements.

10 actions to consider

1. Prepare an “income wedge” for 2027. Set aside or otherwise protect the income planned for the next 1–3 years, so a market decline does not force you to sell investments at a loss to fund withdrawals. The speaker cites downturns in 2022, 2020, 2018, 2015, 2011, and 2008 as reminders that strong markets do not persist indefinitely.

2. Review retirement spending. Track where money goes and assess whether spending is too high—or, as the speaker says is common, too low during the active early-retirement years. Use a retirement plan to understand how much you can spend, and from which sources, without jeopardizing the plan.

3. Compare account balances with the plan. Check year-end balances against the amounts projected in your retirement plan and discuss material differences with an advisor. The speaker suggests that deviations of roughly 10–15%, and sometimes up to 20%, may be within a reasonable range when markets fluctuate. A deviation of over 20% may warrant revisiting the plan, including its income and tax assumptions. These are guideposts, not guarantees.

4. Consider year-end tax optimization through investment losses. For a non-registered (taxable) investment account, review gains and losses that could affect the current year’s tax position. The speaker recommends discussing this with an investment professional rather than providing detailed tax instructions.

5. Set up retirement-income accounts ahead of withdrawals. If retiring in late 2026 or early 2027, consider whether to open and fund a RRIF/RIF or LIF before year-end if you plan to withdraw funds in 2027. The speaker notes that financial institutions may have deadlines in November or early to mid-December. They say RRSP funds can be transferred to a RRIF before year-end, allowing minimum payments in 2027 without tax withheld at source; those payments remain taxable income. Confirm the timing and treatment with a planner or financial institution.

6. Review estate documents and beneficiaries. Check that wills, powers of attorney, account beneficiaries, and successors are current and consistent with your intentions, particularly where blended families or later marriages add complexity. The speaker estimates that updating a will may cost around $1,000–$1,500.

7. Review how you spend your time. Assess your routines, relationships, health, and how you want to use your time in retirement. This is primarily a lifestyle consideration, but it also relates to spending priorities.

8. Set specific goals for 2027. Write down two or three new or challenging goals. Identify the steps, any required spending, and a deadline. The speaker suggests sharing and displaying the goals to help stay accountable.

9. Reassess government-benefit timing. Review when to start Canada Pension Plan (CPP) and Old Age Security (OAS) payments. Consider the timing alongside other income sources and your retirement plan—for example, whether to take OAS at 65 as planned or defer it, or whether early CPP still makes sense.

10. Know how much to withdraw and where it will come from. A retirement plan should specify the amount, account, and timing of next year’s withdrawals.

Framework and key figures

• Compare actual year-end account balances with plan projections.
• Treat a 15–20% deviation as a potential review threshold; reassess the plan if the difference exceeds roughly 20%.
• Plan withdrawal income for the next 1–3 years in a way intended to reduce the risk of selling investments during a downturn.
• Review withdrawals, spending, taxes, and CPP/OAS timing together rather than in isolation.

Assets, accounts, and instruments mentioned

• Accounts: RRSP, RRIF/RIF, LIRA, LIF, and non-registered investment accounts.
• Government benefits: CPP and OAS.
• No individual stocks, ETFs, bonds, commodities, cryptoassets, or market indexes are named.

Disclosures

The speaker does not give an explicit “not financial advice” disclaimer in the subtitles. They repeatedly advise viewers to consult a retirement or investment professional about their circumstances.

Presenters and sources

• Adam, speaking for Parallel Wealth.
• Stephanie, Adam’s wife, is mentioned in a personal example but is not presented as a co-presenter.