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But money isn’t their only issue. Mark has had a stroke and cancer. Neither has recurred, but he knows that it’s better to quit his business and take it easy sooner rather than later. They already take Canada Pension Plan benefits of $13,488 per year. In two years, they can add Old Age Security, which will total $13,237 per year in 2014 dollars, to their income. Mary also already receives an indexed work pension of $3,900 per year. What will make or break their retirement plans comes down to handling their debt and drawing income from their financial assets. They figure they can work to 67, but 65 remains an option.

“We can work this out, but they will need to rethink how they generate income and make better use of their assets,” says Derek Moran, head of Smarter Financial Planning Ltd. in Kelowna, B.C. “They might even have to extend their working lives a few more years to 70.”

The biggest problem is that their house amounts to 73% of their net worth and doesn’t produce any income. They have a basement suite they could rent out, but they prefer not to be landlords. Given their need for income, they should reconsider renting the apartment for what could be an extra $1,200 per month, Moran suggests. Or they could downsize their home and reinvest any money they liberate.