Saving for retirement is a long journey with a destination that, at many times, feels far off. But once that last day of employment rears its mixed-emotions head, fantasies about pursuing sports, hobbies and travel are often displaced by anxiety about what lies ahead. How will you spend your time? Where will you live? And, perhaps most importantly, how will you pay for it all?

After so many years of marching to the beat of the save-for-retirement drum, it can be hard to imagine spending that money when the time comes. Indeed, drawing down your retirement savings is not a simple affair; taking too little can leave you with few options with respect to how to spend your senior years, while taking too much could leave you with years to live - and nothing to live on. Before you sit down with an advisor to discuss your options, here are some factors to consider. [More: Find out why you should contribute to your RRSP this year]

Start early Nearly every piece of retirement advice revolves around a simple edict you probably learned when you were young: always be prepared. The final stage of your working years is no different. According to personal finance expert and author, Gordon Pape, those who are approaching retirement need to start preparing their portfolios at least five years in advance. This involves winding down higher-risk investments in favour of low-risk dividend stocks, bonds and anything with a regular cash flow. Why? Because you don't want to be forced to switch your portfolio in a hurry - especially if market conditions are not in your favour.

"As you approach retirement, your focus shifts from growth to safety and income," Pape advises. "Make the transition gradually so that when the time comes to stop work, your portfolio is set up." [More: Retirement 101: Your guide to saving and planning for your retirement]

Demolish debt Nearly half of Canadians (47 percent) are concerned about the debt they'll be carrying into retirement, according to a poll released by Sun Life Financial in February. According to Pape, that's a huge mistake.

Think debt's no big deal? Not so fast. Current interest rates are at a historic low, which means that big, old debt is likely to cost you a whole lot more in the future up to 50 percent more, according to Pape's estimate. In other words, that mortgage or line of credit could be a financial disaster just waiting to happen, especially for someone on a fixed income.

The solution? Make sure your debt retires before you do, Pape says, even if it means keeping that 9-to-5 for a few more years than you'd planned. [More: Does it make sense to borrow for your RRSP? Here's what you need to consider...]

Slow and steady Many retirees have big plans for their post-work years. Unfortunately, the increasing health and longevity that many people now enjoy put them in a tough position. It's only natural to want to kick your retirement off by getting out and enjoying your free time. But if you take that round-the-world cruise early on, you might be left with very little to keep you afloat in your final years, pun intended. This doesn't mean you have to abandon all your grand plans; just be sure to consider the long-term picture before throwing down a lump sum for a luxury.

When to withdraw You can begin collecting Canada Pension at age 60 and you can convert your RRSP to a RRIF and begin receiving regular payments whenever you choose. Indeed, after all your hard work, you probably can't wait to get your hands on this money. Unfortunately, there's a cruel trick to spending retirement income the longer you put it off, the more you'll have to spend.

Sticking it out to age 70 before collecting CPP can mean a payment that's a full 42 percent higher than it would be if you started collecting your payments at age 60. As for your RRSPs, Pape recommends that you avoid converting them to RRIFs until absolutely necessary to avoid minimum withdrawal requirements until they become mandatory at age 71. Receiving a payout from an RRIF means pulling your nest egg out of its cozy tax-sheltered refuge, thus subjecting yourself to more tax and lower investment returns. Pape says it may be worth converting a small RRIF earlier to receive $2,000 per year and capitalize on the Pension Income Tax Credit. Overall though, it's best to tuck those RRSPs in for a few extra years. You'll thank yourself later. [More: Cracking the golden nest egg of retirement: Can you retire and still have debt?]

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Retirement savings to spending: How to handle the transition