Retirement Planning
When thinking about retirement, it can be overwhelming to figure out all the numbers, like what age you’re going to retire, how much money you need and how long you need the money to last. We are here to help and provide guidance to achieve your retirement dreams
Here are the topics we address with our clients:
Income Needs
- Determine how much you need in retirement.
- Make sure you account for inflation in your calculations
Debts
- If you have any debts, you should try to pay off your debts as soon as you can and preferably before you retire.
Unexpected Events
- As you age, your insurance needs to change. First, review your insurance needs and your medical and dental insurance because many employers do not provide health plans to retirees.
- Review your life insurance coverage because you may not necessarily need as much life insurance as when you had dependents and a mortgage, but you may still need to review your estate and final expense needs.
- Prepare for the unexpected such as a critical illness or long-term care.
- One other consideration that’s not typically discussed is divorce. This can be an uncomfortable question. However, divorce among adults ages 50 and over is rising, which can be financially devastating for both parties.
Government Benefits
- Check what benefits are available for you on retirement.
- Canada Pension Plan- decide when would be the ideal time to apply and receive CPP payment. (Payment depends on your contributions)
- Old Age Security- check pension amounts and avoid OAS clawback.
- Guaranteed Income Supplement- if you have a low income, you could apply for GIS.
Income
- Review your company pension plan. Check if it’s a defined benefit or contribution plan. Determine if it makes sense to take the pension or the commuted value.
- Make sure you save regularly towards retirement- in an RRSP, TFSA, or non-registered account. Ensure the investment mix makes sense for your situation.
- Don’t forget to check if there are any income sources. (ex. Rental income, side job income, etc.)
Assets
- Are you planning to use the sale of your home or other assets to fund your retirement?
- Will you be receiving an inheritance?