Retirement Planning for Small Business Owners in Canada

Business owners may have no workplace pension. They also may have much of their money tied up in the company.

In plain English: This guide explains the main ideas. Rules, prices and tax treatment can change. Check official documents before making a decision.

Know your personal budget

Separate household bills from business expenses.

Keep a cash cushion

Savings can help when business income slows.

Understand TFSA and RRSP options

These accounts have different tax rules and contribution limits.

Plan for company taxes

Money inside a company is not the same as money you can spend personally.

Do not count on a sale

A business may sell for less than you hope, or it may take time to find a buyer.

Plan who takes over

Succession means deciding who will run or own the business later.

Think about insurance

Life and disability coverage may help with certain risks.

Avoid putting everything in one place

Owning one business already puts much of your financial future in one asset.

Estimate retirement bills

Include housing, food, travel and health needs.

Get the right help

An accountant, lawyer and financial professional may each have a role.

Questions worth asking

• What is my main goal?
• What will it cost?
• What are the rules and risks?
• What could change later?
• Who can explain the details?

Visit the Financial Learning Centre or contact Ali Aftab to learn more. This is general education, not personal insurance, investment, legal or tax advice.