Bolstering Your Financial Literacy

Christopher Bowlby - Nov 08, 2023
Financial literacy is a fundamental and necessary skill every person should develop to ensure the protection and growth of your wealth.

Financial literacy is a fundamental and necessary skill every person should develop to ensure the protection and growth of your wealth. In Canada, November is Financial Literacy Month and it’s the perfect reminder that the journey to financial confidence is ongoing and our knowledge must continue to evolve as we grow older.


For many older adults, the prospect of retirement brings with it a mixture of excitement and uncertainty, particularly concerning financial matters. Developing robust financial literacy is crucial to navigating this phase of life smoothly and securely. Here are our top tips for older Canadians nearing retirement to bolster their financial knowledge and confidence.


Understanding Retirement Funds and Benefits

As you near retirement, it is vital to acquaint yourself with the various retirement benefits available in Canada. The Canada Pension Plan (CPP) and Old Age Security (OAS) are vital components. Knowing when and how to apply for these benefits, understanding the eligibility criteria, and exploring the implications of deferring payments are crucial steps in maximizing retirement income.


Diversification and Risk Management

As individuals transition into retirement, it's prudent to re-evaluate investment portfolios. Diversification is essential to mitigate risk. Consider shifting investments towards less volatile options while ensuring a mix of assets that align with your risk tolerance and financial goals. Consulting with a financial advisor could be immensely beneficial in this process.


Budgeting and Expense Management

Crafting a post-retirement budget is key. Understanding current expenses and estimating future costs, including healthcare, leisure, and day-to-day living, is vital. Having a well-structured budget can help track expenses and manage cash flow effectively.


Understanding Tax Implications

Tax laws can significantly impact retirement income. Being aware of tax breaks available to seniors, such as pension income splitting, can optimize tax efficiency. It's also important to comprehend the tax implications of withdrawals from retirement accounts and investments.


Estate Planning and Wills

For many seniors, ensuring their financial legacy is an essential aspect of retirement planning. Establishing wills, power of attorney, and other estate planning measures are crucial to safeguard assets and ensure they're distributed according to one's wishes.


Avoiding Financial Scams and Frauds

Unfortunately, seniors are often targets of financial scams. Developing a keen awareness of potential scams, being cautious with personal information, and verifying the legitimacy of financial opportunities can safeguard against fraud.



Empowering yourself with greater financial literacy not only ensures a more secure retirement but also instils confidence in navigating the complexities of managing personal finances in later life. By embracing the guidance outlined above and seeking professional advice when needed, seniors can lay a solid foundation for a financially sound and fulfilling retirement. If you have any questions about how you can better prepare yourself for retirement and improve your understanding of your finances, don’t hesitate to reach out to our team to learn more.