After years of active work, post-retirement is the time to enjoy what you have saved up and invested. Many things go into retirement planning and most times, it is advised to engage the services of a financial advisor in order to get the best retirement plan. you do not want to make costly errors in choosing the right retirement plan or calculating what should be an adequate savings plan for post-retirement. Some of the retirement plans you can go for include: Tax-Free Savings Account (TFSA), Old Age Security (OAS), Registered Retirement Savings Plan (RRSP), and Canada Pension Plan (CPP). Depending on your type of income and other factors, you can choose any of the various retirement plans available in Canada.
Tips To Start A Retirement Plan
- Start Early – The period you start saving for retirement has an important role to play in your total retirement savings. That is why it is always advised to start as early as possible. It goes a long way in determining the worth of your savings at the end of the day. Also, don’t miss out on pre-authorized plans as they can help grow your retirement savings.
- Start To Minimise Your Post Retirement Commitments – Even though you have planned to have buoyant retirement savings and your income supports this strategy, it is important to cut down on unnecessary financial commitments in your post-retirement days. This is to allow you to enjoy your retirement days to the fullest. Some of the ways you can go about it include avoiding additional credit cards post-retirement, consolidate your debts through refinancing options and debt consolidation loans. You should also endeavour to pay up your mortgage before retirement.
- Include Unexpected Expenses – This is a matter of preparing for unforeseen expenses that may arise post-retirement. These are expenses you may not expect will arise post-retirement but they arise anyway. It is best to provide a cushion for those kinds of expenses in your savings plan.
Factors You May Forget When Planning Your Retirement
- Post-retirement Budget – You might have been busy planning your savings structure to forget that you will also need to live on a budget post-retirement. This is to help you manage your savings once it is that time of your life. Budget for your groceries, rent, and other post-retirement expenses so that your savings will last you for as long as possible.
- Post Retirement Source of Income – This is also an important thing to consider but many people forget. You have to consider what your source of income will be post-retirement or whether there won’t be any. This will allow you properly calculate how much to save that would be enough for post-retirement.
- Keep Track – Once you have drawn out a retirement saving plan and you have commenced saving in it, it easy to forget about the account. However, it is important to keep track of your savings. This is to enable you to know whether you are meeting your target savings.
Keep in touch with your advisor to avoid missing steps in your financial readiness. That is what they are there for.