Are You Sabotaging Your Retirement Without Realizing It? 7 Pitfalls

When you retire, you stop getting a paycheck—but decisions don’t stop. If you’re not properly guided, you might make big mistakes without realizing it. We dig into the 7 most common retirement pitfalls, from claiming benefits too early to not spending enough of your savings.

This one is packed with financial wisdom, real-life examples, and tough love.

“You plan for 30 years. If you’re wrong, you’re going to run out of money—or miss out on life.”

You’ll Learn

Claiming CPP/OAS too early
It’s tempting to claim benefits as soon as you retire—especially when the paycheck stops. But doing so could lock in lower income for life.

Taking CPP at 60 can reduce your pension by up to 36%
Delaying to 70 boosts it by as much as 42%
Most retirees will live past 85—plan for longevity

Waiting too long without a plan
Delaying can be smart, but only if it’s intentional. Without a clear strategy, you’re guessing—and that rarely ends well.

Always balance life expectancy, income needs, and portfolio performance
Run simulations to compare scenarios like claiming at 65 vs. 70

Ignoring pensions and benefits as fixed income
Treating CPP, OAS, or defined benefit pensions like a bonus instead of core income may lead to unnecessary fear or ultra-conservative investing.

These are bond-like: predictable, inflation-adjusted, and safe
Recognizing this allows you to hold more equities for growth

Playing it too safe with cash and GICs
Feeling safe isn’t the same as being financially secure. Overloading on ultra-low-risk assets may jeopardize your long-term goals.

GICs might not beat inflation after tax
Timing the market by “waiting it out” often leads to missed growth
Volatility is part of investing—have a plan to navigate it

Yield obsession
A high yield can look like an easy retirement solution—but that illusion can cost you big.

Products like Zim or YieldMax offer eye-popping payouts, but with unstable returns and high risk
Focus on understanding how the yield is generated, not just the number
A stable 4% from solid companies often beats a collapsing 12% yield

Not spending enough
Saving is ingrained in many retirees, but retirement is when you should spend the money you worked so hard to earn.

Know your safe spending range—don’t leave joy on the table
Without a plan, fear will keep you from enjoying what you’ve built

Assuming spending stays flat
Retirement is dynamic. Budgets should evolve with your life stages: Go-Go, Slow-Go, and No-Go.

Early years may require more “fun” money for travel and activities
Later years often shift toward health care and home support
Plan for flexible spending over rigid budgeting

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