Retirement may feel years away, but the choices you make today can have a significant impact on the lifestyle you'll be able to enjoy later. And while there's no single formula for a successful retirement, avoiding a few common planning mistakes can help keep your financial goals on track.
Here are five to watch for.
1. Relying too heavily on government benefits
Government benefits such as the Canada Pension Plan (CPP), Québec Pension Plan (QPP) and Old Age Security (OAS) can provide an important source of retirement income. But they may not be enough on their own to support the lifestyle you have in mind.
To put this in perspective, the maximum CPP retirement pension at age 65 is $1,507.65 per month for benefits starting in 2026. The average amount for new beneficiaries is considerably lower, at $858.34 per month as of July 2026.
(Source: Canada.ca)
Your retirement plan should consider how government benefits fit alongside your personal savings, workplace pensions and other sources of income.
2. Waiting until later to start saving
When it comes to retirement savings, time can be one of your most valuable assets.
Starting earlier gives your investments more time to grow and benefit from compounding. Even smaller contributions made consistently over a longer period can make a meaningful difference.
The important thing isn't necessarily to start with a large amount. It's to start when you can and build your savings strategy as your financial situation evolves.
3. Counting on an inheritance
An expected inheritance may seem like part of your future financial picture, but there are many reasons the amount you ultimately receive could differ from what you expect.
Family members may live longer, face significant expenses during retirement or need more of their assets for their own care and lifestyle. Their estate could also be affected by taxes and other obligations.
Instead of making an inheritance part of the foundation of your retirement strategy, consider it a potential bonus. Your retirement plan should ideally be able to support your goals without it.
4. Overlooking insurance in your retirement strategy
Retirement planning isn't only about accumulating assets. It's also about protecting the plan you've worked hard to build.
An unexpected illness or other major life events could create financial pressure at a time when you'd prefer to preserve your retirement savings. Depending on your circumstances, insurance with living benefits can help provide an additional layer of financial protection.
Life insurance can also play a role in estate planning, including providing liquidity to help address certain financial obligations at death.
The right protection strategy will depend on your needs, assets and goals.
5. Underestimating inflation
A dollar today won't necessarily buy the same amount 10, 20 or 30 years from now.
Inflation, measured by changes in the Consumer Price Index, gradually reduces purchasing power. This means the income that comfortably supports your lifestyle today may not be enough to provide the same lifestyle in retirement.
When estimating your future retirement income needs, make sure inflation is part of the conversation.
Retirement planning is about more than reaching a number
A strong retirement strategy brings together income, savings, protection and estate considerations. And because your needs can change as your life evolves, it's worth reviewing the plan regularly.
Your Assumption Life advisor can help you look at the complete picture, identify potential gaps and build a retirement strategy aligned with the future you have in mind.
