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Take Control of Your Retirement Income


Smart planning now can help you retire the way you want

Did you know that 1 out of every 5 Canadians will be retired in 2020? By 2030, the number will approach 1 out of every 4.1 With such a significant number of Canadians approaching retirement and living off a fixed income, now is the time for investors to take control of their retirement income.
 
Things to get in order
Nothing will be the same after you retire. If everything goes according to plan, you will be able to do what you want, whenever you want. Sounds good, right? That’s why it is so important to get things in order. Here are key topics that you’ll need to consider:
 
  • Your ideal retirement lifestyle, including large expenses like vacation properties
  • Your retirement date
  • Potential health issues based on family history
  • Taxes, today and in the future
After you clearly document this and any other vital information, ask yourself “How much will I need?”
 
When will you retire?2
46% retired as planned
48% retired earlier than planned due to circumstances beyond their control
6% retired later than planned due to circumstances beyond their control
 
How will you generate your retirement income?
It’s important to note that the rules for Canada Pension Plan (CPP) and Old Age Security (OAS) are changing in order to meet the needs of an aging population. And, while aging investors would typically turn to bonds, historically low interest rates are forcing them to consider higher-risk alternatives.
 
Although your assets may be scattered across different accounts at different firms, you will likely be able to generate a retirement income from a number of the following sources:
 
  • Registered plans, such as a Tax-Free Savings Account (TFSA) or Registered Retirement Income Fund (RRIF)
  • Non-registered investments and savings
  • Government plans, such as CPP and OAS
  • Home equity
  • A private pension from your employer 
Ensuring that these potential sources of income are working together with the appropriate investments that suit your individual needs can take time.
 
The value of advice
Advice can have a positive and significant impact on the growth of your financial assets. Households that receive advice for 15+ years accumulate 2.73x more assets than
households that do not receive advice.3
 
Advisors help with more than just savings. Advisors can also assist you in your efforts to reduce your tax burden and help you organize your estate so that your wishes are met. When it comes to planning for retirement, remember you are not alone.
 
Contact our office today to take control of your retirement strategy.
 
Government of Canada -- Action for Seniors Report, Profile of Seniors in Canada
Retirement in Canada: Lots to Enjoy About ‘Golden Years’ but Financial Worries Loom Large -- Especially for Those Still Working, Angus Reid Institute, July 2015
CIRANO Report: Econometric Models on the Value of Advice of a Financial Advisor


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