5 Potential Retirement Mistakes That Could Cost You Thousands

Give yourself a pat on the back.

At PKAG, we know how hard you worked to build your retirement nest egg.

But even the most disciplined retirees can lose thousands to timing, tax, and overlooked decisions. 

Most of these mistakes are like cavities; they’re small, hidden, and easy to miss until they’ve already caused damage to your cash flow, tax return, and investment accounts.

Over a 30 year retirement, these cavities can grow into financial root canals.

Five Common Retirement Mistakes

1. Paying more tax than necessary

Without a tax adjusted income plan, you can trigger higher tax brackets, lose credits, or increase OAS clawback.

2. Withdrawing from the wrong account first

Taking income in the wrong order can create avoidable tax bills and shrink long term savings.

3. Leaving investments in the wrong place

Interest, dividends, and capital gains behave differently. When they sit in the wrong account type, your after tax return drops.

4. Missing credits or benefits

Many retirees leave money on the table because they do not structure income around key thresholds.

5. Holding too much cash

Excess cash loses purchasing power. Over time, it creates a drag on your ability to keep pace with inflation.

Small issues like these can grow into large problems over decades of retirement.

Five Ways to Help Prevent These Mistakes

1. Choose your withdrawal order intentionally

TFSA, RRIF, and non registered accounts each affect tax differently. The right order can lower lifetime tax and preserve benefits.

2. Structure accounts for tax efficiency

Place interest, dividends, and capital gains in the accounts where they deliver the strongest after tax result.

3. Reduce cash drag

Reinvesting excess cash into an appropriate mix of income and growth investments helps maintain long term purchasing power.

4. Automate your portfolio rebalancing

A disciplined rebalancing system reduces risk drift and protects long-term returns for your portfolio.

5. Plan around income thresholds

Understanding OAS clawback, credit eligibility, and bracket changes can help prevent unexpected tax bills.

Protecting Your Nest

These mistakes are common, but preventable. 

With the right plan, your retirement savings can last longer since you’ll be cavity free.

At PKAG, our goal is to help you avoid costly mistakes and build a retirement strategy that protects your income and your assets.

Ready to start smiling? 

Contact us at info.pkag@cibc.com

This commentary is intended to provide general information and should not be construed as legal, investment, tax or other advice. Individual circumstances and current events are critical to sound planning; anyone wishing to act on the information presented should consult with his or her legal, financial advisor, or tax specialist.

David Popowich and Faisal Karmali are Investment Advisors with CIBC Wood Gundy in Calgary. The views of David Popowich, Faisal Karmali, and guest author do not necessarily reflect those of CIBC World Markets Inc. This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc.