It’s never too early to start planning for retirement. In fact, the earlier you start saving and investing, the more time your money has to grow. But what does it take to retire comfortably in Canada? How much should you have saved by the time you quit working? What kind of lifestyle do you want in retirement? And how can you make sure your money lasts as long as you do? Answering these questions isn’t easy, but it’s important to start thinking about them now.
The sooner you start planning for retirement, the better prepared you’ll be when the time comes. Here are a few things to consider as you begin planning for your retirement in Canada.
How much will I need to save?
This is probably the most difficult question to answer when planning for retirement. There are a number of factors that will affect how much money you’ll need in retirement, including your lifestyle, health care costs and inflation. If you’re not sure where to start, there are a number of online calculators that can help give you an idea of how much you’ll need to save. Do a budget. How much will you spend?
What will my income sources be in retirement?
Once you know how much money you’ll need in retirement, it’s important to think about where that money will come from. For most people, pensions and government benefits will only cover a portion of their expenses. That means it’s important to have other sources of income – such as investments or annuities – that can supplement your pension and provide additional security in retirement. Save, save, save.
What kind of lifestyle do I want in retirement?
One of the biggest decisions facing retirees is whether they want to downsize or maintain their current lifestyle. Do YOU want to travel more? Spend more time with family and friends? Or just enjoy a relaxed pace of life without the demands of work? Knowing what YOU want out of life after work is an important part of choosing how you want to live your life during those golden years! Stay healthy.
What other steps should I take?
Don’t retire with debt. If you cannot pay off your debt while working, how are you going to pay that off in retirement when your income is reduced? In addition to saving and investing, there are a few other important steps you can take to ensure that your retirement years are financially secure. First, remember that you’ll likely live into your 80s, at least. So, keep working. In your 60s you have the option to work. You won’t be working in your 80s. You may also want to consider purchasing long-term care insurance to protect against the potential costs of health care in later years. Make sure that you review your investments and savings regularly. You care more about your finances than anyone. Yes, hire an advisor. But keep your eyes on your investments. My best clients know exactly where their accounts are.
Taking the time to plan ahead for retirement can help ensure that you have enough money to live comfortably in those golden years. It’s never too early to start planning, so begin today. Make sure your retirement is secure. With a little bit of planning and preparation, you can be sure that you’ll have the resources to enjoy your retirement years to the fullest!
Contact us at Pension Solutions Canada for help planning for your retirement in Canada. We offer tailored advice and solutions to help you make the most of your retirement. Our team of experts can provide personalized advice and guidance to help you create a secure financial future. Get in touch today to learn more about our services!