For most people, sitting down to work on retirement planning is about as much fun as going to the dentist! (We threw in a good-natured pun for all those hardworking Canadian dentists to add a little smile to your day!)
Preparing for your golden years today can pay off in a much more comfortable retirement tomorrow. Predictions are that many Canadians will face a retirement gap. Here are two crucial areas of the retirement planning process:
Determining how much you need to save. A financial planner can help you figure out that magic number – the amount you should be trying to save for retirement given your income and financial obligations. This is a crucial step in retirement planning. Pencil in an annual progress review on your calendar.
Figuring out which types of retirement vehicles make the most sense. There are many different ways to prepare for retirement, depending on your age, your financial resources and your debts and obligations. Of course you’ll want to participate in a Registered Retirement Savings Plan. Suppose you are in your 40s or 50s and you’re worried about outliving your savings in retirement. (And that’s a justified fear with many pundits predicting a huge upswing in the over-100 set!) That’s why you may want to look into annuities. Of course, if you’re short on time, many retirement experts suggest you have the correct balance between anticipated years left in your working career versus setting aside some funds for enjoying life, before time runs out!
An annual retirement checkup is a great time to get those retirement planning questions answered!