By Janet Gray
You are retired—or soon to be. This is what you planned for and dreamed about, right? Retirement is supposed to be the stage when you kick back and truly enjoy life after years of working hard. But when your bank statements, investments and bills feel like they’re multiplying faster than rabbits, it’s time for a major financial declutter.
Having excess items at any time of life can be a challenge. Clutter is a time-waster and a distraction. Here’s how you can uncomplicate your personal finances in retirement for less stress and a lot more time doing what you love—which is why you retired in the first place!
Embrace fewer accounts: If you’re juggling multiple chequing, savings and investment accounts—or stacks of paper statements from a bunch of banks—you’re basically running a mini financial empire, but with none of the fun. The fix? Consolidate your accounts as much as possible.
- Pick one main chequing account and maybe just one credit card. (Two max.)
- Merge similar investment accounts. For instance, combine your RRSPs, if possible, and tidy up TFSAs. (Most people are fine with just two TFSAs.)
- This reduces paperwork, lowers odds of missing important notices and keeps tracking simple. And you have less people and emails to monitor.
Automate everything you can: Set up automatic payments for recurring bills, such as utilities, insurance and subscriptions.
- Automate minimum credit card payments so you won’t pay penalties.
- Set up automatic transfers into your “working/operational” account from your retirement income sources—including government benefits and pension plans.
- If you like, also automate a monthly transfer to a “fun money” or emergency account. That will be one less thing to worry about.
Go digital with Your documents: Ditch the old shoeboxes or drawers full of receipts and faded bank statements!
- Scan important docs—statements, insurance, your Will and Power of Attorney (POA)—and store them in a password-protected folder on your computer.
- Go paperless with your bank and investment providers.
- Back up your files with a cloud service or on an external drive, and let your family know how to access them in a pinch. That’s important.
Downsize What You Don’t Need: Retirement is a fabulous opportunity to ask, “Do I really need this?”
- Housing: If the empty nest feels too big and costly, consider downsizing or relocating. Not only can this free up cash, but it’ll also make maintenance and bills like property tax and utilities easier to handle.
- Subscriptions: Audit your streaming, phone or gym accounts and cancel anything you don’t love.
- Credit cards: Stick to one or two with solid rewards. Fewer cards mean less annual fees and a smaller chance for fraud.
Streamline Spending with a Retirement Spending Plan/Budget: It doesn’t have to be restrictive, but it does make sure you’re in control.
- Track a typical month’s expenses or use your bank’s spending categorizer.
- Include fun stuff, but be honest about where you might cut costs.
- Knowing your number helps you avoid anxiety about outliving your savings.
Build a “Set It and Forget It” Investment Strategy: In retirement, you want your money to work for you—on autopilot.
- Rebalance your portfolio with your advisor so it’s not too risky but still growing. (You could need income for potentially 30-plus years.)
- Plan your asset allocation to allow for short-term and long-term withdrawals.
- Set up systematic withdrawals so your monthly “pay cheque” arrives without extra effort.
Purge Debt: Nothing complicates retirement or sleep like having high-interest debt.
- List your debts (credit cards, loans, any lingering mortgage), then make a plan to eliminate the most expensive (highest interest) first.
- If you can, consolidate to a lower-rate product. No more juggling minimums or keeping reminders on sticky notes.
Update Your Will and Estate Plans: It’s not fun to think about, but super important for you and your family members.
- Make sure your Will, POA and beneficiary forms are up to date.
- Store the originals and digital copies together, so loved ones can find them stress-free.
- If you haven’t put your wishes in writing yet, book a call with a lawyer or financial planner—it’s a one-time task that can save your family serious headaches.
Watch for Financial “Clutter” Traps: We all have them! Regularly check for:
- Old RRSPs, LIRAs or employer pensions you’re eligible for.
- Bank accounts you opened for “rewards” and never use.
- Forgotten subscriptions or insurance you don’t need.
Cleaning up once a year keeps it all running smoothly.
Get (Occasional or even ongoing) Help From a Pro: Certified Financial Planners or financial advisors doesn’t just help when markets are crashing. Bring them your questions about government benefits, tax efficiency or streamlining everything. Most are happy to help you figure out the best ways to automate and simplify.
Bottom line: Retirement should be the most chill chapter of your life. Switch to autopilot where you can. Keep only the accounts and investments you actually understand. Audit, automate and ask for help when you need it. By keeping your finances simple and tidy, you can spend less time worrying and a whole lot more time living.
Bonus Tip: If going digital isn’t your thing, pick a trusted relative to help. Sometimes a fresh set of eyes can spot “clutter” you didn’t even know was still there.
Cheers to a clutter-free (and stress-free) retirement.
Janet Gray, CFP is an
advice-only financial
planner with Money
Coaches Canada.
Based in Ottawa,
she serves clients
Canada-wide.
moneycoachescanada.ca/
about/Janet-Gray/
