Have your “financial house” in order

To help prepare for a recession, retirees should also ensure they have their “financial house in order,” says Kabot.

“It’s actually a good approach for everyone, in good times and in bad,” he says.

• For pre-retirees who are looking for more income as they age, Kabot suggests paying down debt, starting off with loans that have the highest interest rate.
• As for income, he says people with defined benefit pensions can rest easy, given those payments are likely to remain intact.
• Retirees should also have a tax-efficient strategy for how and when to collect government income such as the Canada Pension Plan and Old Age Security, says Kassar.
• Lastly, Kassar says retirees should make sure they have a Will and power of attorney in place to ensure their assets are passed on based on their wishes.