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Christy Bieber
Updated Sep 5, 2025
When retirement is scheduled within three years or less, you're nearing the finish line and must do everything possible to end up in a good financial position.
You don't want to be in a situation where you're ready to give notice, only to find yourself unprepared to thrive or even live comfortably once you no longer have a paycheque coming in.
To make sure you're in a good place to leave work and start enjoying the rest of your life, here are five things you should do with your money ASAP.
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1. Maximize retirement account contributions
If you have just a few years or less to build your savings account balance, you should get serious about doing so.
Your last years of work are key to helping you bulk up your account balance. As you contribute to your account, don't forget to make sure you also have the proper asset allocation. You'll need to draw from your funds soon, so you can't be too aggressive with your investments.
Trading through a discount brokerage account, like CIBC Investor’s Edge can help you save on exorbitant fees and commissions.
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2. Get your cash flow right
Next, you must make a plan for how you'll manage your money. This means considering income coming in and income going out to ensure you can live within your means. A BMO survey found that Canadians believe they’ll need around $1.54 million to retire comfortably.
Income sources typically include the Canada Pension Plan (CPP), Old Age Security (OAS), any pension that's provided by your employer and money from savings/investments. You'll need to make sure this covers your spending needs so you don't outlive your savings.
One popular rule of thumb says that if you take out 4% of your balanced portfolio in year one and adjust that amount for inflation in the following years, your nest egg will last 30 years.
You should also consider keeping six to 12 months’ worth of expenses in an emergency fund to meet any unexpected bills. This way, you don’t have to worry about liquidating your portfolio in the event of an emergency.
You can earn 2.75% interest on every dollar you save with EQ Bank’s Personal Account — provided you sign up for a direct deposit of at least $2,000 monthly. That’s roughly seven times higher than the interest rate offered on traditional savings accounts by big-name banks.
EQ Bank charges no fees or minimum balance requirements, and you can withdraw your funds 24/7 from any ATM in Canada for free. Plus, deposits of up to $100,000 are insured by the CDIC, so you have peace of mind while parking your retirement savings.
3. Decide when to take CPP
Your CPP is going to be a crucial income source, as unlike most money retirees get, these benefits are not expected to run out and are automatically protected against inflation.
You can claim CPP between 60 and 70, but if you wait until 65 or over, you will see your benefits increase.
If you claim CPP before 65, your benefits are reduced by 7.2% per year. If you wait until you’re 65, they will increase 8.4% per year.
You're typically financially better off getting fewer, but bigger cheques once you eventually claim them. However, this won't be the right choice for everyone since there are other factors to consider, so be mindful of your own situation.
Withdrawing from your retirement accounts can help you stay afloat if you wish to postpone claiming CPP.
You can get insights from experts on when to buy, hold, or sell stocks and other investments with CIBC Investor’s Edge. Also, you can invest in low-risk securities such as government bonds, guaranteed investment certificates (GICs), and precious metals — all through one account.
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4. Explore your health insurance options
While provincial plans will cover some healthcare expenses in retirement, the extra benefits you might need depend on where you live, your overall health and savings.
90% of people have at least one risk factor for heart conditions, stroke, or vascular cognitive impairment, according to the Heart & Stroke Foundation of Canada. Plus, 45% of Canadians are at risk of being diagnosed with cancer, according to the 2023 report published by the Canadian Cancer Society.
Hence, purchasing personal health insurance may be useful to substitute any benefits you had from your employer before retiring. But before you decide, you must know how much your insurance will cost, what it covers versus what you are responsible for, and where the money is going to come from to pay for all of this.
PolicyMe’s critical illness insurance policy can help you bridge the gap when provincial healthcare or personal savings aren’t enough.
With tax-free lump sum payouts ranging from $10,000 to $1 million, PolicyMe ensures you have peace of mind in the event you are diagnosed with a critical illness. You can use the proceeds to cover any out-of-pocket expenses or to support any time off work while recovering.
PolicyMe’s critical illness insurance covers 27 critical illnesses and 17 early-stage conditions, with 80% of conditions requiring no waiting period. Here’s how to get started: simply answer four questions, and get an instant, no-obligation quote valid for 90 days.
5. Pay off high-interest debt
Finally, if you have any high-interest debt, you should aim to pay it off before leaving work. Covering interest costs only gets harder on a fixed income, especially with the average credit card interest rates ranging from 19.99% to 25.99%.
If you can get serious about repaying what you owe, then you can enter retirement with a clean slate and free up the money you'd have sent to your creditors to do other things.
If you have multiple outstanding debts, consider consolidating them into one using a personal loan with Loans Canada. This can help you substantially reduce your interest burden, as you’ll only have to make one monthly payment.
Loans Canada lets you shop around for the most competitive interest rates offered by reputed lenders near you for free. The best part? This process doesn’t impact your credit score, and you don’t need to fall under a specific annual income threshold to qualify.
Get started and receive a free, no-obligation quote with rates as low as 9.99% from Loans Canada.
Christy Bieber
Freelance Writer
Christy Bieber a freelance contributor to Moneywise, who has been writing professionally since 2008. She writes about everything related to money management and has been published by NY Post, Fox Business, USA Today, Forbes Advisor, Credible, Credit Karma, and more.
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