Experts provide a comprehensive checklist for individuals planning to retire within the next five years or less.

As individuals approach the final five-year window before retirement, financial experts suggest shifting from a growth-oriented mindset to a distribution strategy focused on predictable income. The administration announced that successful retirement planning requires auditing current income streams, such as the Canada Pension Plan and Social Security, to move from guesswork to a solvable math problem. Key strategies include building a "cash wedge" of one to three years of living expenses to mitigate market volatility and determining a safe withdrawal rate. Experts recommend separating "needs," like housing and food, from "wants," such as travel, to ensure baseline costs are covered by guaranteed sources. Additionally, investors should consider the sequence of withdrawals, starting with taxable accounts before moving to tax-deferred assets like IRAs or RRSPs. For those retiring within a year, Christine Benz suggests mapping out a 10-year budget and establishing a clear Social Security strategy. By transitioning from wealth accumulation to capital preservation, retirees can ensure their portfolios provide steady, reliable income regardless of market fluctuations.

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