6 ways to plan for retirement

The average Canadian spends twenty years in retirement, but many fail to prepare for this stage in life.

6 ways to plan for retirement

Saving and preparing for retirement can be easier than you think if you take the right steps and make the right decisions during your working years.

Whatever stage you’re at there are things you can do to improve your retirement so you can live comfortably.

Canada offers several financial plans and benefits for retirees, but for most people, it won’t be enough for them to continue paying their expenses.

Here are six simple ways that you can prepare yourself.

1. Estimate how much you will need

  • Is your home mortgage paid off?
  • Do you hope to travel in your retirement years?

All of these things add up. Write everything down and see how much you require to do all of things you hope to do and all of the things you need for a comfortable and happy retirement.

Some experts estimate that you will need approximately 70 per cent of your pre-retirement income per year.

2. Save money

This one is obvious, but a lot of people feel like they’re still too young to worry about retirement.

  • You’re never too young to start preparing. Set goals for yourself and do your very best to meet them.

3. Contribute to a retirement savings plan

It’s a great way to put money aside for your retirement, and the best part is that you can deduct it from your income taxes.

There are limits to how much you can contribute, but if you have the money to max out your contribution, you can save a lot for your retirement.

4. Don’t dip into your savings

Once you’ve saved a large chunk of money for retirement, you might be tempted to dip in a little bit to pay for other things in your life.

Do your best to resist these urges because it could lead to falling behind and penalties for early withdrawal.

5. Invest

Your savings accounts will earn interest over the years, but a faster way to earn is by investing. It’s not always easy making smart investments, and there’s always a risk of losing out.

Talk to an expert and opt for lower-risk investments. Never make investments your primary retirement plan, because even low-risk investments can drop and cost you money.

6. Talk to a financial advisor

Financial advisors are experts on helping people plan for retirement.

Always make sure you’re talking to someone with a good reputation to ensure that you are getting the best advice. Most financial advisors have helped many people retire comfortably and can do the same for you.

The material on this website is provided for entertainment, informational and educational purposes only and should never act as a substitute to the advice of an applicable professional. Use of this website is subject to our terms of use and privacy policy.
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