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  • Writer's pictureDarryl Smith

Your Cash Flow will Change In Retirement, But You Can Still Maximize Your Wealth!


The last thing you want to worry about during retirement is where your money is coming from. After years of working, it can be frightening to transition from a regular, steady income to a semi- unpredictable cash flow in retirement. But, before you fret, let’s take a look at the difference between income and cash flow and what roles each will play in your retirement.

Planning ahead for your retirement.

As you enter retirement, your idea of income will change. Since you are no longer working full-time, you won’t be receiving the steady, regular paycheque you have grown accustomed to during your career.

Instead, it’s important to plan ahead and create a strategy that generates cash flow during your retired years. Your strategy should account for “life as usual” including routine expenses and bills, but also needs to factor in the cost of living, health care dependence as we age and all the fun stuff you want to do, too! So how can you ensure you’ve generated enough on-going, auto-pilot cash flow to sustain your lifestyle without receiving that steady income from employment?

  • Take advantage of the tools available! Things like TFSAs and RRSPs are in place to help your money grow during your working years. In fact, investments are one of the best ways to make the most of your retirement savings because you’ll enjoy some great benefits come tax time.

  • Don’t forget about RRIFs. If you like the idea of receiving a regular income even during your retired years, you’re not alone! Having income consistency gives many of us peace of mind and allows us to balance our budgets for day to day living. RRIFs are available Canadians so you can roll your registered retirement savings into a registered retirement income account that holds a variety of investments and allows your money to continue growing during your retirement while providing you an income at the same time!

  • Look for alternative sources of cash flow. Your investments aren’t the only sources of income you are limited to during retirement. In fact, many people find options like downsizing or selling off assets appealing for 2 reasons… 1) it reduces the amount of “stuff” in your life and 2) it frees up additional money to fund the lifestyle you want to have in retirement!

​As you plan for retirement, it’s important to understand that your cash flow WILL change, but that’s not necessarily something to worry about. Although you won’t get the same steady employment income you’ve had during your working years, you have the opportunity to free up finances by selling assets that you simply don’t want or need in retirement! With that additional money paired with your investment savings tools, you can create a lifestyle for yourself that you’ve always dreamed about! As it is with anything, the first step in preparing yourself for a great retirement is often the most difficult.

Darryl Smith is here to help you understand your cash flow and income options while helping you create a retirement plan that puts your lifestyle and well being first so you can achieve those big goals, worry- free! Call (705) 434-0562 today, or check out our 10 tips to maximize blue-collar wealth for business owners HERE!

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