For high-net-worth Canadians, retirement planning in 2025 looks nothing like it did even five years ago. Tax rules have shifted. The cost of living has risen. Capital gains inclusion rates have been adjusted. And longevity risk, which is the risk of outliving your wealth, is more relevant than ever before.

At the Allan Bush Investment Team, we work closely with affluent families, business owners, and professionals across Waterloo Region, Kitchener, and Southwestern Ontario who want more than a basic retirement plan. They want a strategic, tax-efficient, multi-decade wealth roadmap that adapts to shifting economic conditions.

Here is what every high-net-worth Canadian should know in 2025.

1. The Capital Gains Inclusion Rate Has Changed, And It Matters

The updates to capital gains rules are a defining issue for wealthy Canadians, especially those with:

• non-registered investment portfolios
• rental or vacation properties
• business sale proceeds
• corporate investment holdings
• large concentrated positions in a single stock

A higher inclusion rate means more of your capital gains are now taxable, which dramatically affects long-term projections.

Our team is actively helping clients:
• shift assets into more tax-efficient structures
• rebalance portfolios to reduce future tax drag
• plan capital gains crystallization when strategic
• incorporate charitable giving to reduce tax impact

Early planning in this area alone can save families millions over a lifetime.

2. The Order You Draw Income in Retirement Makes or Breaks Your Plan

One of the most misunderstood aspects of retirement planning is withdrawal sequencing, which references the order in which you draw from:

• RRIFs
• TFSAs
• corporate assets
• pensions
• non-registered accounts
• trust structures

The right order minimizes taxes, reduces OAS clawback, and extends the life of your wealth.
The wrong order accelerates taxation and shrinks your retirement runway.

Our high-net-worth planning tools allow us to model dozens of sequencing strategies to find the most efficient path, often saving clients tens of thousands of dollars per year.

3. Inflation-Proofing Retirement for 20+ Years

High-net-worth Canadians often underestimate the impact of inflation over a long retirement. A 2 to 3 percent inflation rate can cut real spending power by half over 25 years.

To help clients stay ahead of inflation without taking unnecessary risk, we emphasize:
• dividend-growing equities
• real assets
• infrastructure
• alternative income solutions
• private credit
• strategic fixed income

And this is where our “Chicken and Egg” investment philosophy becomes essential

As our Founder, Allan explains, dividend investing works because the chicken, the company, must stay healthy for the egg, the dividend, to exist.

A strong and stable company produces dividends.
Those dividends produce income.
And that income compounds into long-term wealth.

It is a self-sustaining loop of:
Quality → Dividends → Reinvestment → Growth → More Dividends

For retirees, this philosophy provides two major advantages:

1. Income that rises faster than inflation
2. Downside protection in volatile markets

This approach is why dividend-growing equities remain a core part of long-term retirement planning for our affluent clients and every Canadian.

4. Longevity Risk: The Hidden Threat Affluent Families Overlook

Canada’s wealthiest communities are also among the longest-living. Many affluent clients in Waterloo, Kitchener, and the Greater Toronto Area can expect a retirement that lasts 30 years or more.

This shifts planning from:
“Will I have enough at age 65”
to:
“How do I sustain lifestyle, legacy, and liquidity from age 65 to 95”

Our strategies include:
• longevity-aware withdrawal planning
• guaranteed income layers, such as GICs
• corporate-class investments
• tax-efficient insurance for estate preservation
• rebalancing to support long-term growth

5. Estate Planning and Wealth Transfer Have Become Urgent

The great Canadian wealth transfer, estimated at over 1 trillion dollars, is now in motion.

High-net-worth Canadians need guidance on:
• updating wills and POAs
• freezing estates
• using trusts effectively
• gifting strategies
• corporate structuring
• charitable giving for tax efficiency
• reducing probate, especially in Ontario

Estate planning is no longer a later issue. It is a core part of retirement readiness and our integrated team of experts are ready to help at the right time.

6. Cross-Border Retirement Is More Complicated Than Ever

Many affluent Canadians spend part of their retirement in:

• Florida
• Arizona
• California
• Nevada

But U.S. estate tax rules and residency thresholds can create unintended tax liabilities.

Together with your tax professionals, we can help clients with avoiding:
• U.S. estate tax exposure
• snowbird residency pitfalls
• double taxation
• currency-exchange drain

With proper planning, snowbird retirement can be seamless and financially efficient.

7. The Need for a True Wealth Management Team Has Never Been Higher

Retirement has become too complex for a single advisor or DIY investor.

The Allan Bush Investment Team offers access to an integrated team of hand-picked professionals.

Retirement is no longer just about having enough. It is about structuring your wealth so it lasts and leaves a meaningful legacy.

Things To Think About

Retirement planning in 2025 requires nuance, strategy, and proactive tax management, especially for high-net-worth Canadians. The Allan Bush Investment Team is committed to helping families protect their wealth, grow it intelligently, and pass it on with intention.

If you are five to fifteen years from retirement, or already there, this is the time to plan smarter, not harder. Give us a shout for a second opinion or a chance to chat about what might be best for your family’s future.