Retirement Planning

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

In retirement, many Canadians will have a reduced income since they are not working any more. It is important to think about how much you will need in order to retire comfortably, whether you will be relying on a reduced income, and if that will be enough for the type of lifestyle you want in retirement.

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.

Watch the Fast Track video

Other Sources of Retirement Income to Consider

If you are like most Canadians, the money you receive once you retire will come from different places.

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).
You may have Registered Retirement Savings Plans (RRSPs) or other investments, or maybe you have a pension from another employer.

What are the common sources of retirement income I may use while retired?

Government Pension Plans

Canada Pension Plan (CPP)
Old Age Security (OAS)
Guaranteed Income Supplement (GIS)

Employer Pension Plans

Your LAPP Defined Benefit Pension
Other Defined Benefit Pensions
Defined Contribution Pensions
Deferred Profit Sharing Plans
Group Registered Retirement Savings Plans (RRSPs) you may have

Registered Investment Income

Registered Retirement Savings Plan (RRSP)
Locked-In Retirement Account (LIRA)
Locked-In Retirement Income Fund (LRIF)
Life Income Fund (LIF)
Annuities

Non-Registered Investment Income

Interest on personal savings
Interest from GICs
Dividends from or sale of stocks
Interest from bonds
Dividends from or redemption of mutual funds
Conversion of home equity
Income from business assets
Income from real estate
Liquidation of personal assets

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 spouse or partner) the following questions and then discuss them with a trusted, independent advisor when planning for their retirement:

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