7 quick tips for retirement planning in Canada

Early retirement would be a dream come true for many people. With a solid plan, it may be possible.

Here are some helpful tips.

  1. Know your goals. Whether you want to travel, learn a new skill, indulge a hobby or simply maintain your current standard of living, find out how much you need to save.
  2. Find more ways to save. Eliminating debt before you retire leaves more room to do what you want, and so does spending less in general. Look for ways to cut down on your regular, everyday expenses. With as little as an extra $50 a month, you can invest in an RRSP or TFSA through our segregated funds that come with powerful guarantees.
  3. Consider downsizing. If you’re paying a mortgage for square footage you don’t need, think about lowering your debt by opting for a smaller home and investing the difference into your retirement plan. You can also save on gas and insurance with a more affordable, fuel-efficient vehicle.
  4. Work longer and ease into retirement. Working longer or getting a part-time job is a great way to transition into retirement. You can also calculate how much your retirement income will be with government pensions and other programs.
  5. Find the right life insurance plan. Life insurance is a key component of most retirement and estate plans. Just like saving for retirement, we have recommendations based on your stage of life.
  6. Critical illness insurance. Your chances of developing a critical illness increase as you get older. Most of our critical illness policies are available until age 65, at which point you can choose a plan that repays your premium if you don't develop a critical illness.
  7. Retirement income. When the time comes, you can choose various registered and un-registered retirement income options, including RRIFs and annuities. Your Financial Advisor can help you select exactly what you need for that stage of retirement.

Talk to us about maxing out your Tax-Free Savings Account (TFSA) and RRSPs to benefit from their tax advantages. Most experts agree that you should save at least 10% of your income, with a portion of that held aside for emergencies. Also ask us about segregated funds: they’re only available from insurance companies and allow you to invest as aggressively or conservatively as your comfort level allows, while protecting your capital.

Contact your Financial Advisor for more information.