For most of our working lives, financial advice is simple: save more, invest consistently, and build your portfolio. But eventually, the conversation changes. Instead of asking how to grow your money, the question becomes how that money will support your lifestyle.

On this episode of Think Smart with TMFG, we explore the psychological and financial shift that happens as people move from accumulation to spending in retirement. Many savers spend decades building their wealth, only to discover that actually using it can feel uncomfortable.

We discuss why this transition can be difficult, including the concept of loss aversion, a behavioural bias that makes people feel the pain of seeing their portfolio decline more strongly than the benefit of using it for their lifestyle.

We also look at the structure of retirement income in Canada. Programs like CPP and OAS provide a base level of income, but for most people, they are not enough to maintain the lifestyle they’re used to. That’s why personal savings, pensions, and investment withdrawals play such an important role in retirement planning.

The key is understanding that retirement planning isn’t just about building wealth. It’s about building the confidence to use that wealth in a way that supports the life you worked so hard to create.

Question for our listeners:

📌 If you’d like help turning your savings into a retirement income plan, you can connect with our team here: Schedule a meeting.

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