Your Year-End Financial Planning Checklist: Setting Up 2026 for Success
As the year draws to a close, it’s the perfect time to take stock of your financial picture: what went right, what changed, and what opportunities remain before December 31. Whether your goal is to optimize taxes, maximize contributions, or simply enter the new year with confidence and clarity, proactive year-end planning can make a measurable difference.
Here’s a focused checklist to help you wrap up 2025 on solid financial footing.
Review Your Registered Accounts
Registered Retirement Savings Plan (RRSP)
If you’re planning to contribute for the 2025 tax year, you have until March 2, 2026, but making your contribution before year-end can accelerate your tax refund and give your investments a head start on tax-deferred growth.
Your contribution limit for 2025 is 18% of your earned income from 2024, up to a maximum of $32,490.
Consider spousal RRSPs to balance income and reduce future tax exposure in retirement.
If you withdrew from your RRSP under the Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP), make sure you’ve repaid the required amount to avoid it being taxed as income.
Tax-Free Savings Account (TFSA)
The TFSA contribution limit for 2025 is $7,000, bringing the total cumulative room since 2009 to $102,000 for those eligible every year.
Year-end is a great time to rebalance or take withdrawals if you anticipate large expenses in 2026. Withdrawals made before December 31 will restore contribution room on January 1.
First Home Savings Account (FHSA)
For those saving toward a first home, or helping children or grandchildren do so, the FHSA continues to be one of the most powerful new planning tools in Canada.
The annual contribution limit is $8,000, with a lifetime maximum of $40,000.
Contributions are tax-deductible like an RRSP, and withdrawals for a qualifying home purchase are tax-free like a TFSA.
If the funds aren’t used for a home purchase, they can be rolled into your RRSP or RRIF tax-free, preserving your savings for retirement.
Review Insurance and Estate Documents
As your financial situation evolves, so should your protection and estate plans.
Confirm that your beneficiaries are up to date on RRSPs, TFSAs, pensions, and life insurance.
Revisit your Will and Powers of Attorney to ensure they reflect your current wishes and family structure.
Evaluate life and disability insurance coverage: does it still align with your income, debt, or succession plans?
Consider a trust review if you’ve made gifts or are planning intergenerational transfers.
Revisit Your Investment and Cash Flow Strategy
The end of the year is an ideal time to assess performance and ensure your portfolio reflects your goals for the year ahead.
Ask yourself:
Has your risk tolerance changed following market conditions in 2025?
Are you holding excess cash that could be working harder through a diversified, risk-managed market approach?
Does your portfolio still align with your retirement timeline or business transition goals?
If you’re drawing retirement income, consider strategic withdrawals from RRSPs or corporate retained earnings to manage taxable income and avoid Old Age Security (OAS) clawbacks in 2026.
Plan Ahead for 2026
The best year-end planning focuses on setting the stage for the next year, rather than just closing out the current one.
As you look toward 2026:
Schedule an annual review with your financial advisor in early January to discuss any life or business changes.
Map out next year’s RRSP, FHSA, and TFSA contributions to benefit from consistent investing.
For business owners, revisit your succession or exit planning timeline; tax rules are set to change in 2026, including the increase to the capital gains inclusion rate for certain transactions.
For families, review education savings (RESP) strategies and any intergenerational wealth transfer plans you want to advance next year.
Final Thought
Year-end planning is about more than simply checking off boxes. Taking time to review your finances before the calendar turns ensures your wealth strategy remains aligned with your goals, minimizes surprises, and keeps your legacy intact.
If you’d like guidance on how these year-end strategies fit your broader plan, reach out to your advisor. A thoughtful review today can help you start 2026 on your best financial footing.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or tax advice. The information reflects 2025 limits and legislation as of publication and may change. Readers should consult their financial advisor or qualified professionals before implementing any strategy.
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