Markets are constantly changing. You already know this, of course, but it sometimes bears repeating.
We often put off financial and retirement planning because it can be daunting at best, and we don’t like to imagine ourselves in a stage of life that some would consider “old”.
On the other hand, however, we want to be prepared. And there are those of us who are simply counting down the days until we can say goodbye to our jobs and hello to a life of leisure.
So, in order to actually enjoy that leisure time, we’re going to have to talk Retirement Planning.
With that in mind, here are some tips on saving for retirement, including Canadian pensions, and other sources of retirement income:
Set Retirement Goals
What do you want to do when you’re retired? Will you be traveling? Will you have children or grandchildren to care for? Debt or mortgages to pay off? Perhaps you’ll decide to acquire a new hobby or two. It’s important to regularly review your budget as your spending habits and lifestyle change, to ensure your retirement goals are realistic, and adjust as needed.
Apply for Public Pension Benefits
Most Canadian seniors are entitled to Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP) benefits. Your income and age at retirement will determine how much you receive, as well as any associated benefits you may qualify for. To receive the Canadian Pension, you’ll need to be at least 60 years old, and have made at least one valid CPP contribution through work done in Canada. It’s also important to note that you’ll need to apply in advance of your final day of work, to ensure you begin receiving payments within the month of the start date you choose.
Other Sources of Retirement Income
The two most common sources of retirement income aside from your CCP and Old Age Security, are your RRSP (Registered Retirement Savings Plan) and TFSA (Tax Free Savings Account). Ideally you would have been contributing periodically to either over the course of your professional career but it’s never too late (or early) to start!
You may also have additional personal savings or investments, and you may even choose to continue working some! Lots of people do enjoy their jobs, and some employers actually top up your CPP or RRSP savings.
The Government of Canada even has a handy Retirement Income Calculator you can find here.
This is a lot of information to take in! If planning for retirement stresses you out, please reach and book a free consultation with Steven today.