Retirement Planning

There's a lot that goes into planning for your retirement. The earlier you start your retirement planning, the more prepared you'll be when the time comes.

In retirement, many Canadians have a reduced income since they're no longer working. It's important to think about how much you'll need in order to retire comfortably, and, if you'll be relying on a reduced income, whether it'll be enough for the type of retirement lifestyle you want.

Because retirement planning can be a complex process with many things to consider, you may want to talk to a financial professional who specializes in retirement planning.

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Other Sources of Retirement Income to Consider

If you're like most Canadians, the money you receive once you retire will come from different sources:

• The Canada Pension Plan (CPP) and Old Age Security (OAS) are government pensions most Canadians will have;
• You may qualify for another government program called the Guaranteed Income Supplement (GIS); and
• You may have Registered Retirement Savings Plans (RRSPs) or other investments, or you have a pension from another employer.

Who to Contact for Retirement Planning Advice

We recommend that you seek advice from an independent financial advisor before making any retirement decisions. To help you choose the right financial professional, the Government of Canada has some helpful guidelines here.

How Much Retirement Income Is Enough?

Your retirement goals and your spending habits will form the basis of how much you need to save. Most people considering retirement ask themselves (and their partner) the following questions and then discuss them with a trusted, independent advisor when planning for their retirement:

• How long do I and my partner expect to live?
• What is my desired retirement lifestyle?
• Do I plan on travelling more frequently?
• What are my partner's retirement plans?
• Do I want to work in retirement?
• Do I plan on staying in my home or do I plan to move to a different community?
• What is my health like and what is my partner's health like?
• Are there aging parents or dependant children to consider?