5 money management tips for a successful retirement

#1. Reassess your insurance needs

When nearing retirement, you’ll need to pay attention to your insurance coverage — and the costs of that coverage.

Life insurance needs as you approach retirement

First, calculate how much life insurance coverage your beneficiaries will require in order to settle your estate. If you are still working, then a quick rule of thumb is to get a policy that covers 10 times your annual salary. For example, if you earn $50,000 each year, you’ll need a life insurance policy that pays your beneficiaries $500,000 or more.

But as you get closer to retirement both your premiums and the amount paid out to your beneficiaries may change.

That’s because as we age, the chance of dying becomes greater and, as a result, insurance premiums rise. However, as we age, the probability of paying down our debt is also greater, which means our beneficiaries require a smaller lump-sum payout to settle your estate. As a result, shopping around for your best life insurance options becomes a priority as you near retirement.

Finally, don’t forget to verify and update beneficiaries to avoid probate delays.

Update your car and home insurance

Canadians nearing or in retirement should evaluate their car insurance policies and eliminate unnecessary add-ons. Platforms like YouSet allow you to compare quotes from multiple trusted providers, ensuring you get the best coverage at the lowest cost. By reducing your car insurance costs, you can continue to enjoy the freedom of using your own vehicle without the burden of higher operating costs.

For home insurance, you’ll want to consider how you will be spending your retirement. For instance, if you plan to travel south during the winter, be aware that your prolonged absence could void your home insurance policy. To avoid a catastrophic claim event from being rejected by insurance provider, be sure to read your policy and ask your insurer what steps to take.

Better still, by using digital platforms, like YouSet, you eliminate the need of finding a broker or shopping from provider to provider. As a fully digital insurance brokerage platform, YouSet simplifies the process of buying home and auto insurance.

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#2. Explore real estate investments for stable returns

Real estate has long been a stable investment for building wealth. However, traditional property investments might feel overwhelming for retirees who don’t want to deal with the stresses of being a landlord, especially the massive upfront costs. Options like real estate investment funds (REITs) or exchange-traded funds (ETFs) that focus on property offer an accessible way to invest in diversified real estate portfolios.

To start, you’ll need to open an investment brokerage account; one option is Questrade where accountholders don't pay annual fees, and when you start investing, you’ll pay just $4.95 per trade up to a maximum of $9.95 to buy stocks or REITs, and $0 per trade to buy ETFs. This means that you can sign up for Questrade, transfer money into your account and build a real estate-focused ETF portfolio all for $0. Use REITs and the monthly, quarterly and annual income can easily help supplement your retirement income.

#3. Make saving effortless with automated tools

Even in retirement, small savings can add up. Consider using tools like Moka, which round up your everyday purchases to the nearest dollar and automatically invest the spare change. For instance, buying a coffee for $3.75 would trigger an automatic $0.25 investment.

Over time, these micro-investments can grow into a meaningful nest egg for unexpected expenses or future opportunities. For instance, if you implemented this spare change investment strategy and invested $2.50 each day, by the end of the first year you’d have $900 invested.

Add this money to a high-interest savings account or a Tax-Free Savings Account (TFSA) to get your money earning for you, where you could compound these savings for a sizeable slush fund that's ready for your retirement years.

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#4. Secure your retirement portfolio with gold

Investing in gold is a classic inflation hedge. Unlike fiat money, gold can’t be printed, and its value remains steady amid global economic shifts. Its safe-haven status often attracts investors during crises, making it a reliable option for preserving wealth.

Buying bullion, however, can be inconvenient, often requiring in-person transactions and pickups. A simpler alternative is investing in gold or precious metals through exchange-traded funds (ETFs). For example, the iShares Gold Trust (NYSE:IAU) tracks gold's daily price movements, while the Aberdeen Standard Physical Gold Shares ETF (NYSE:SGOL) holds physical gold stored in secure vaults.

Gold ETFs have delivered impressive returns over the past five years. The iShares Gold Trust (NYSE:IAU) posted annualized returns of 11.63%, and SGOL achieved 12.40%, both outperforming the 8.66% annualized return of the S&P/TSX Composite Index (TSX:OSPTX).

Like REITs, to tap into gold and precious metals, you'll need to open an online investment account. For instance, open a CIBC Investors’ Edge account and enjoy low commissions on trades and no or minimal account maintenance charges (depending on the size of your portfolio). Build your portfolio with CIBC Investor’s Edge and get up to 100 free trades and over $200 in cash back. Use promo code EDGE2425 and get exposure to dozens of REITs, offering both stability and growth potential — perfect for supplementing retirement income.

#5. Consult a financial advisor for personalized guidance

Retirement comes with unique financial challenges, from managing pensions to navigating taxes. Consulting a trusted financial advisor can help you optimize your income streams and investments.

Services like Advisor.com match you with fiduciary advisors who specialize in creating personalized retirement plans. Studies show that working with an advisor can improve returns by up to 3% annually, making it a worthwhile investment for peace of mind.

There are plenty of ways to source a trusted advisor in Canada, whether through major banks such as Scotiabank, RBC or TD, or a simple online search (be sure to specify Canada or, more specifically, your city). The Government of Canada also has a great resource for choosing a financial advisor.

But, it’s crucial to be vigilant and thorough throughout this process. Financial advisors should have a minimum of one professional designation, such as Certified Financial Planner (CFP), Chartered Life Underwriter (CLU) or Registered Financial Planner (RFP), to prove they meet the necessary qualifications. Always check for relevant issuing bodies to ensure the advisor you’re considering is up to date and compliant with how to advise you on future money moves.

Bottom line

By implementing these strategies, Canadians nearing or in retirement can make 2025 a financially secure and stress-free year.

Sources

1. Financial Consumer Agency of Canada: Choosing a Financial Advisor