Planning for retirement

Planning retirement as an individual

Retirement planning is essentially the process of investing and saving your money, monitoring and adjusting your expenses and integrating government plans to be able to retire comfortably and enjoy life. Those who are saving face some challenges that previous generations have not had to worry about, such as a fluctuating inflation rate. The best way to be secure is to have a plan in place; the earlier you start to invest and save, the better. Most realize that you can not only rely on government-generated income to take care of you.

Start preparing as early as you can and maintain it. If you are a parent you can do things for your young one (s) to help them right from the get go to secure a good financial future. The most important thing you can do for them is to make sure you take care of your financial future first. Your pension income will appreciate, thanks to your positive investment returns with Experior agents helping you along the way.

It’s incredibly important to think about what you want your life to be like when planning for your retirement. Start by writing down your retirement goals and creating a checklist of the actions you need to take to get there.  It can seem overwhelming for sure. Your Experior Associate can help with this and make the process a bit simpler and easier to follow. They realize that you’ll need to make sure you have enough money to maintain your lifestyle for many years. The simplest way to start is to simply save regularly into an investment and  have an emergency fund. 

The reason an emergency fund is an important piece to your retirement savings plan is so that when that emergency comes up, you will not need to touch your retirement fund. Once the emergency has passed then you can start to replenish your emergency fund.  It’s also important to include the cost of inflation and life expectancy in your planning.

A good retirement plan considers how you want to live, where you’ll be, whether you want to travel, and what activities you enjoy. List your short-term goals, medium-term goals, and long-term goals, and assign each a dollar amount. Again an Experior Associate can help with these things with our proprietary software.

Types of retirement income and savings accounts

Retirement plans and income may come from government programs, benefit pensions, mutual funds, segregated funds and your personal savings. The Service Canada website is specially designed to help you find all the information you need for their part of your plan before, during and even when you’re in early retirement. Service Canada – Canada.ca

A Canadian Registered Retirement Saving Plan is a type of investment account that allows you to save money for the future while getting tax relief on current income that is set aside for this investment. Your retirement savings and investments will grow tax-free until you withdraw them at retirement, generally into an annuity, an RRIF, or lump sum. 

A TFSA is a registered investment or savings account that you can use to achieve any savings goal. You can invest money in a TFSA and not pay tax on the interest it earns, and you can withdraw money from a TFSA without paying any penalty or tax.

Life Insurance can provide a lump sum of money that can provide income or cover unpaid taxes realized at death to allow your loved ones complete access to your assets. Everything you’ve worked hard to build for your family can stay with them when you’re gone, all from the proceeds of life insurance policies. 

These are the two major government pension programs that people can receive retirement plan funds from. Employees contribute automatically to CPP in their working years so that retirees can withdraw an income once they retire after age 60. The OAS is funded out of general tax revenue and isn’t dependent on you having paid into that system.

FAQ

There is the possibility of the retirement age increasing or changing in the future. If you have contributed to the CPP at least once, you are eligible for a monthly pension once you reach the age of 60.

Investing is very important when it comes to planning your golden years, because money you invest and save will supplement your government generated retirement income. Attempting to retire on Government plans only,  will be insufficient to meet your income requirements and leaves you open to a lack of retirement dignity.

Retirement planning is as unique as you are. It depends on the kind of lifestyle that you want when you are retired. 

You can contribute to your RRSP every year if you have earned income or if you have unused contribution room. The Canada Revenue Agency (CRA) will allow you to contribute up to 18% of your earned income for the previous year, however you can’t contribute more than the annually set maximums.  

As inflation/deflation takes place, it will increase or decrease the purchasing power of your saved funds. It’s important to have a plan to save as much as possible now so you have enough money later.

The amount of money you need to invest to retire comfortably depends on the individual’s unique circumstances. Over time, your investments will make a big difference in your retirement. Your Experior Associate will help you discover your personal Financial Independence Number.

A reverse mortgage can give you access to your home equity without selling your house. If you’ve owned your home for a long time, a reverse mortgage may help you live out your retirement years worry-free in the dream home that you built and planned to live in for life. However this may not be the best solution for you. To find out if this makes sense for you and your situation, you need to talk with an Experior Associate as everyone’s situation is unique.

How Experior Financial can help you save for retirement funds

Our financial associates will show and create a plan to aid a client as they navigate through life’s uncertainties and ensure their family’s financial security. We will help to make sure clients can fund expenditures such as housing costs, tax bills, and other living expenses. An associate will be able to provide you with tips and make sure you understand tax deductions, benefits, and services offered to clients. We use our Expert Financial Analysis software to build a recommendation with the current best rates and products available for investors. Get recommendations from our team of experts, regardless of your risk tolerance or financial situation.

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