Retirement Planning Starts Earlier Thank You Think
Turning 65 is often viewed as a milestone connected to retirement, government benefits, and aging. While many Canadians know “something changes” at 65, fewer realize how important it is to start preparing well before they reach that age.
Planning ahead can help people make informed decisions about their finances, benefits, healthcare coverage, and future goals. The earlier people begin exploring their options, the more time they have to understand eligibility requirements, access available supports, and prepare for important transitions.
Did You Know?
Many supports and benefits connected to aging require applications, timelines, or advance planning.
For example, some retirement income supports are not automatically activated, and delays in paperwork or missing information can impact access. The Government of Canada recommends preparing for retirement in advance by reviewing income sources, creating a budget, and understanding available public pensions such as Old Age Security (OAS) and the Canada Pension Plan (CPP).
Research from the Government of Canada also highlights that many Canadians underestimate how long retirement may last and may not fully prepare for the financial realities associated with aging.
Laura Kavanagh, Supervisor of The Way In & Financial Wellness at Carya, says starting the retirement planning process early can make a significant difference.
“Proactive planning helps reduce stress and anxiety and ensures there is no lapse in benefits or financial support during the transition to retirement,” says Kavanagh.
Some government benefit applications can take several months to process, and seniors housing can be unpredictable and not immediate.
There is much to consider when approaching retirement; deciding when to start CPP or OAS and understanding how healthcare needs, taxes, and living expenses may change over time.
“One of the biggest challenges people face is understanding how all of the benefits, services, and financial decisions fit together,” says Kavanagh. “Many people don’t realize how interconnected these systems can be until they’re already navigating them.”
Understand Your Financial Picture
Before turning 65, it is imperative for people to review their current financial situation and expected retirement income.
This may include reviewing monthly expenses, understanding retirement income sources, planning for rising living costs, and considering how spending habits may change in retirement.
The Financial Consumer Agency of Canada recommends creating or updating a retirement budget and using retirement income calculators to better understand future financial needs. Budgeting can play a critical role in preparing for retirement. It helps individuals understand how much income they will need to cover essential expenses such as housing, food, healthcare, and unexpected costs while adjusting to a fixed income.
Proactive financial planning can also help maximize retirement income sources such as Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs).
Learn About Benefits Before You Need Them
The Government of Canada notes that timing can be crucial when applying for benefits. Some individuals may choose to delay benefits to receive larger monthly payments, while others may benefit from applying earlier depending on income, health, and personal circumstances.
Individuals may also underestimate the documentation required to access programs such as Guaranteed Income Supplement (GIS) or provincial seniors’ benefits. Changes in employment status, income, or marital status can affect eligibility for certain benefits and may result in reduced payments or benefit claw backs if not properly understood ahead of time.
“People often assume benefits like CPP and OAS begin automatically,” says Kavanagh. “In reality, each benefit has its own application process, eligibility requirements, and timelines that need to be understood in advance.”
On the bright side, many people are surprised to learn there are supports available beyond CPP and OAS. Depending on their circumstances, this may include programs such as the Guaranteed Income Supplement (GIS), provincial seniors’ benefits, affordable housing options, property tax assistance programs, transportation supports, and community-based services that help older adults remain independent.
Older adults are encouraged to ask questions early and access support from organizations like Carya – you may be eligible for additional benefits.
Review Health and Insurance Coverage
Turning 65 can affect workplace insurance plans, prescription coverage, and healthcare-related expenses, but reviewing coverage early can prevent unexpected gaps and allow people to better prepare for future healthcare needs.
Many individuals are surprised by how their coverage changes when transitioning away from employer-sponsored benefits or programs such as Assured Income For The Severely Handicapped (AISH). Prescription medications, dental care, vision care, and other health-related expenses may not be covered to the extent they expect.
Organize Important Documents & Start Conversations Early
Preparing important documents ahead of time can reduce stress during major life transitions. Identification, financial information, legal documents, emergency contacts, and benefit-related paperwork all play a role in retirement planning. The Government of Canada recommends preparing for future financial decision-making, including considering powers of attorney and updating wills. Whether speaking with family members, trusted professionals, or community organizations, asking questions before challenges become urgent can improve outcomes and reduce stress.
“Reaching out early can make transitions easier and life after 65 much smoother,” says Kavanagh. “When people understand their options before they need support, they’re often in a much stronger position to make informed decisions.”
Why It All Matters
Financial wellbeing is closely connected to mental health, housing stability, independence, and overall quality of life. When people have access to information, support, and planning tools early, they are often better equipped to navigate transitions with confidence and dignity.
Early intervention and prevention are not just about avoiding crisis; they are about helping people remain connected, informed, and supported before challenges become overwhelming.
“Prevention-focused support helps people identify potential challenges and solutions before they become urgent,” says Kavanagh. “Access to reliable information can reduce stress and lessen the emotional and financial burden that often accompanies crisis situations for older adults and their families.”
Retirement planning isn’t something that begins at 65; it begins in the years leading up to it.
Starting conversations early, learning about available supports, reviewing financial plans, and understanding benefit programs can help create greater stability and peace of mind for the future. At Carya, we believe prevention and early support matter, and that accessible guidance can help people age with confidence, dignity, and greater financial wellbeing.
References
Financial Consumer Agency of Canada. (2025). Planning and saving for retirement. Government of Canada. https://www.canada.ca/en/financial-consumer-agency/services/retirement-planning/start-saving-retirement.html
Financial Consumer Agency of Canada. (2025). Retirement planning. Government of Canada. https://www.canada.ca/en/financial-consumer-agency/services/retirement-planning.html
Financial Consumer Agency of Canada. (2025). Your retirement financial checklist. Government of Canada. https://www.canada.ca/en/financial-consumer-agency/services/retirement-planning/retirement-checklist.html
Government of Canada. (2025). Prepare for retirement. https://www.canada.ca/en/services/life-events/retirement/prepare.html
Government of Canada. (2026). Old Age Security: When to start your retirement pension. https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/when-start.html