There's a kind of stress that rarely gets talked about, one that quietly builds as you get closer to retirement, or even after you've stepped away from work.
It's not about whether you've saved enough.
It's about whether you're doing the right things with what you've saved.
This is decumulation anxiety, the fear that you're withdrawing money the wrong way, making irreversible decisions, or following advice that no longer fits the world we live in.
Retirement Isn't a Finish Line, It's a New Set of Questions
For decades, Canadians have been told to save into RRSPs, max out TFSAs, and invest for the long term. But the moment you retire, the rules shift, and the advice often doesn't.
Suddenly, you're expected to:
- Know exactly how much to withdraw each year
- Decide when to take CPP and OAS
- Weigh tax efficiency against flexibility
- Guess whether markets will crash or inflation will spike
- Plan your estate, even if no one ever taught you how
And the truth is, there's no single right answer. What works for one person might be completely wrong for another, yet most advice still follows outdated formulas or generalizations.
That uncertainty is where decumulation anxiety thrives.
Practically Speaking, It's Not as Simple as It Looks
Most Canadians have a general idea of how much they need to cover their lifestyle. Let's say you're aiming for $65,000 per year in after tax income. That part is simple enough.
But where do you take that money from?
Withdrawing from your TFSA is easy. You take out $65,000, and you get $65,000—no tax, no hassle. But is it really that simple? That TFSA space is incredibly valuable. While the contribution room is restored the following calendar year, any withdrawn funds stop compounding tax-free until you reinvest them. In the meantime, that money could have stayed invested and growing. So while you can get the room back, the lost growth potential may be harder to recover.
Your RRSP, on the other hand, will soon be converted into a RRIF by age 71, forcing you to take out a minimum amount each year whether you want to or not. And those withdrawals are fully taxable. Remember that RRSP contribution you made 15 years ago to get a tax break? Well, now it's time to pay up.
Then there are your non-registered investments. Withdrawals here might trigger capital gains tax, depending on how those investments have performed. Should you harvest some gains now? Wait? Use dividends instead? Again, no simple answer.
So while getting to $65,000 in spending might sound easy on the surface, figuring out how to take that money in the most tax efficient and sustainable way is where the real planning begins.
Most Canadians Are Guessing, And They Know It
Most people don't want a generic financial plan. They want clarity: Am I on track? What if I make a change? What's the smartest move right now?
That's why we built Optiml. It doesn't give one-size-fits-all advice. It runs the numbers for your exact situation to show what's possible, what's optimal, and what each scenario would look like if you tried something different.
When it comes to retirement withdrawals, Optiml does the math. It calculates where you should withdraw from — TFSA, RRSP, or non-registered — when to do it, and how much to take from each. Some years it might be a balanced mix across all three. Other years might call for a different approach. It all depends on your unique plan, tax situation, and goals.
We don't just tell you what the average person might do. We show you what works best for you.
Final Thought
Decumulation anxiety doesn't come from a lack of intelligence, it comes from a lack of clarity. You've spent decades building your savings. You deserve to feel confident in how you use them. If you've ever asked, "Am I doing this right?", the answer doesn't have to be a guess.
Try Optiml Free Today!