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.
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
Employer Pension Plans
Registered Investment Income
Non-Registered Investment Income
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 advisor when planning for their retirement: