How Advice-Only Financial Planning Can Help Canadians Prepare for Retirement

Planning for retirement can feel overwhelming, especially if you’re working with a modest income or worried about outliving your savings. Even if you expect to rely mainly on government benefits such as the Canada Pension Plan (CPP), Old Age Security (OAS) and, if eligible, the Guaranteed Income Supplement (GIS), retirement planning is for you too.

You deserve clear, unbiased guidance, whatever your savings balance. An advice-only financial planner helps you understand how your benefits, savings and other income fit together to cover your everyday expenses and build a realistic retirement plan without selling you financial products.

At Credit Canada, we’re here to help you plan for retirement without judgment or pressure. This guide explains how advice-only financial planning works in Canada, what it costs, and where to find affordable support. You can also explore The Future You Money Project, a new program that brings together free tools, calculators, and real stories from Canadians to help you make better financial decisions for your future self.

What Is an Advice-Only Financial Planner and Why Does It Matter?

An advice-only financial planner charges for personalized guidance without selling financial products or managing your investments. You pay for their expertise, with no commissions or product sales influencing their recommendations. That means you can focus on your goals and budget without feeling pressured to buy something.

Depending on your needs, this guidance can cover everyday cash flow, debt management, tax planning, how your investments are allocated, insurance needs and estate considerations. For retirement, a planner brings the relevant pieces together to help you understand what you can afford, how to use your savings and how government benefits fit into your income plan.

How Advice-Only Planners Differ From Traditional Bank Advisors

Before choosing a financial advisor or planner, ask how they’re paid, what fees you’ll pay and whether they earn money from the products they recommend. Here’s how the two models compare.

The Hidden Cost of “Free” Financial Advice

Financial advice can come with costs even when there’s no upfront fee. Some costs are built into the investments you buy, making them less obvious than an upfront planning fee would be.

For example, a mutual fund’s Management Expense Ratio (MER) covers annual management and operating expenses, including applicable taxes. These expenses reduce the fund’s returns. A 2% MER on $10,000 in savings amounts to roughly $200 a year, assuming a constant balance. Over time, those fees also leave less money invested to grow.

Ask for the total cost in dollars, including any separate account or advisory fees. The Ontario Securities Commission’s mutual fund fee calculator can help you understand the longer-term impact of different investment options.

Retirement Planning Without the Product Pitch

Retirement planning helps you understand how government benefits, any savings and other income can cover your expenses. An advice-only planner looks at these sources together, including CPP, OAS and GIS if you’re eligible, to build a realistic monthly budget.

They can also help you decide when to collect benefits and which savings to use first, while considering taxes and benefit eligibility. For example, withdrawing from an RRSP could reduce your GIS payments, while a TFSA withdrawal won’t. This guidance helps you make informed decisions about the money you have, without pressure to buy financial products.

Unlocking Government Benefits by Optimizing CPP and OAS

When you start collecting CPP and OAS, it affects your monthly retirement income. An advice-only planner can help you compare your options based on your health, expenses, and other sources of income.

You can start CPP as early as age 60, but collecting it before 65 reduces your monthly pension. Waiting beyond 65 increases your payments, up to age 70. OAS becomes available at 65, with higher payments if you delay until 70. However, a larger future payment doesn’t automatically make waiting the best choice, particularly if you need that income to cover expenses today.

GIS eligibility depends on your income and other requirements, including receiving OAS. If you delay OAS, you cannot receive GIS during that time. Withdrawals from an RRSP or Registered Retirement Income Fund (RRIF) also generally count as income and can reduce your GIS payments.

Whether your government benefits will cover your retirement expenses depends on the amounts you receive and your costs, particularly housing and debt payments. A planner can help you assess any gap and explore your options. For more information on when to begin collecting benefits, see Service Canada’s CPP and OAS guidelines.

Turning Your Savings Into Income (Decumulation)

Decumulation means using the money you’ve saved to fund retirement. Choosing which account to withdraw from, and when, can affect how much tax you pay and the government benefits you receive.

RRSP and RRIF withdrawals generally count as taxable income. This can reduce income-tested benefits such as GIS and certain tax credits. At higher incomes, it can also mean repaying some or all of your OAS through the OAS recovery tax. TFSA withdrawals are generally tax-free and don’t reduce federal income-tested benefits or credits. With non-registered accounts, the tax impact depends on the interest, dividends, or capital gains you earn.

An advice-only planner helps you compare these options. For example, taking additional money from a TFSA rather than a RRIF could cover an unexpected expense without increasing your taxable income. In other circumstances, drawing from registered savings during a lower-income year could help manage taxes later.

There’s no single withdrawal order that works for everyone. A planner looks at your income, benefit eligibility, and required RRIF withdrawals across multiple years, as well as the tax implications of what you leave behind. For example, money remaining in an RRSP or RRIF when you die may count as income on your final tax return, unless it qualifies for a tax-deferred transfer, such as to a spouse.

Starting this planning before retirement gives you more time to weigh your options. How you contribute to and withdraw from your TFSA and RRSP can affect your future taxes and government benefits. The goal is to balance your spending needs, benefit eligibility and taxes over time, including any tax owed after death.

How Much Does Advice-Only Financial Planning Cost in Canada?

Advice-only financial planning costs depend on the planner, your questions, and the complexity of the work. The key is agreeing on the full scope of the service they will be providing and the total price upfront. Canadian planners may charge hourly, quote a fixed project fee, or offer ongoing support through a retainer.

Hourly Fees vs. Flat-Project Billing

Use these approximate cost ranges as a starting point, rather than a guaranteed quote:

Some advice-only firms publish comprehensive planning ranges reaching $6,000, while particularly complex work can cost more. Confirm whether the quote includes taxes, written recommendations and follow-up support.

Is Fee-Only Planning Worth It If You Have a Smaller Portfolio?

It can be. The value of financial planning depends on the decisions you face, not just how much you’ve saved. Managing debt, covering housing costs and coordinating government benefits can be complex even with limited savings. When your budget is tight, making informed choices can be especially important to your financial security.

Still, the fee needs to fit your budget. Ask about a lower-cost consultation to focus on your most pressing questions, or explore Credit Canada’s Chrysalis Advice-Only Planning for a more accessible option.

Affordable Financial Planning and How Chrysalis Brings Advice-Only Guidance to Every Canadian

Chrysalis is a low-cost retirement planning service that helps you feel more confident about your retirement. It’s designed for low- and moderate-income Canadians aged 50 and older. It can feel like comprehensive retirement planning is a luxury reserved for people with larger incomes. Most advice-only planners charge fees that are out of reach. Commission-based advisors have products to sell. And sifting through the noise online doesn't give you a real plan. That gap is exactly what Chrysalis was designed to fill.

The goal is to provide practical guidance that makes retirement decisions easier to understand. Through Credit Canada’s non-profit service, participants receive support from Certified Financial Planners without a financial product sales pitch.

Paying thousands for a plan can be difficult when your income is limited or your savings are modest. Chrysalis helps address that gap with:

• Affordable planning designed around the needs of low- and moderate-income Canadians
• Qualified guidance delivered by Certified Financial Planners
• Product-free advice focused on your financial well-being and goals
• A clear action plan to help you turn recommendations into practical steps, understand what to prioritize and know where to begin.

Explore which program suits your circumstances and check current eligibility and fees.

Join the waitlist for the Chrysalis group program or apply for the individual program.

3 Steps to Start Planning Your Retirement Today

Start retirement planning by reviewing your spending, estimating your current income, and choosing the right support. The goal is to have a workable picture of your finances. The Canadian Retirement Income Calculator can help you begin.

1. Audit Your Current Cash Flow and Debt

List your monthly income, essential expenses, debt balances, and their interest rates. Include costs that don’t arise every month, such as home maintenance, car repairs and dental care, and set aside a monthly amount for them.

Subtract your expenses and required debt payments from your income to see what’s left. This helps you determine whether you can save, repay debt faster or need to adjust your spending. If high-interest debt is making it difficult to get ahead, a Credit Counsellor can help you develop a manageable repayment plan.

2. Map Out Your Government and Personal Retirement Income Sources

Gather CPP estimates through My Service Canada Account, check OAS and potential GIS eligibility, and review any savings or workplace pension statements you have.

Distinguish between income you can reliably expect each month, such as CPP or a defined benefit pension, and income that depends on investment performance. Remember that income-tested benefits such as GIS can change as your income changes.

Then set your spending target: how much you'll need each month in retirement. It's the most important number in your plan, because every other decision is measured against it. Compare it with your expected income, allowing for taxes, inflation, and unexpected expenses.

3. Consult an Accredited Credit Counsellor or Advice-Only Planner

Choose support based on your needs. A certified Credit Counsellor from a non-profit credit counselling agency can help you manage debt and build a workable budget. A Certified Financial Planner who offers advice-only services can bring retirement income, taxes, investments, insurance needs and estate considerations together into a financial plan. Depending on your circumstances, both services may be valuable.

Verify credentials, ask about compensation, and request a written scope of work before paying.

Am I Too Late to Plan for My Retirement?

No. Even if retirement is approaching or has already begun, planning can help you make the most of what you have. An advice-only planner can review your benefits, spending and any savings withdrawals to identify opportunities to manage taxes and make your income go further. You don’t need to solve everything at once. Start with what you can do today, and seek guidance to help you decide what comes next.

Secure Your Future With Guidance From Credit Canada

Credit Canada offers free, confidential, non-profit credit counselling, especially when debt is getting in the way of retirement planning. The goal is to help you understand your options without judgment. A certified Credit Counsellor can review your budget and debts and help identify realistic next steps.

Speak with a certified Credit Counsellor to start addressing debt, or explore Chrysalis for advice-only retirement guidance.