Planning for retirement is essential to ensure a financially secure future, particularly as Canadians are living longer. To achieve a comfortable retirement, it's important to understand your financial needs and goals, identify potential sources of income, and develop a plan to save and invest wisely.
In Canada, you can take advantage of government programs, employer-sponsored plans, and your own savings to help you live your best life in retirement. Your advisor can guide you through the complexities and keep you informed as programs and rules are updated.
Retirement planning is an essential part of your overall financial plan. It can seem overwhelming at times, but your advisor can help break the process down into manageable steps and explain everything so you can make well-informed decisions. These six steps will help you get the right strategies and tools in place so you can enjoy a financially secure future.
It’s never too early or too late to start planning for your retirement. With more time, you can get the most benefit from compounding returns and grow a larger nest egg. But even if you’re in your 50s or 60s, planning can help you build wealth and achieve your financial goals.
What will life cost once you’ve retired? Some expenses like commuting and drycleaning may drop. Others like travel and healthcare may rise. Online calculators and your advisor can help you figure out what amount of income will meet your needs.
When the government offers you money, don’t leave it on the table! Often, programs like the CPP and OAS will be the foundation of your retirement income. Add to them by contributing to registered plans like RRSPs and TFSAs to get tax-deferred or tax-free investment growth.
Does your employer offer an RPP or Group RRSP? Take advantage of it, especially if your employer matches your contributions. That’s more free money you can put towards your retirement.
Holding a diversified mix of stocks, bonds, and other types of assets helps to minimize risk and maximize returns. This gives your investments the best chance at a smoother ride, allowing you to have more money to spend in retirement.
Don’t let surprise costs derail your retirement plan. Critical illness, long-term care, and other forms of insurance can help safeguard your savings so you have enough money to last for life.
Whether you’ve been building your investment portfolio for years, or you’re just getting started, there’s more to a wealth plan than putting money away for retirement. We’re here to help.
Insurance protects savings from unforeseen circumstances, and retirement savings provide income beyond insurance benefits. A complete retirement plan should factor in insurance for financial security.