Canadians are living longer and facing a greater responsibility today to fund their retirement. Saving and building a “retirement nest egg” for the future is becoming more important. However, many Canadians are not saving enough to maintain their desired standard of living throughout their retirement.
In retirement, many Canadians have a reduced income since they are no longer working. It’s important to think about how much you will need to retire comfortably, whether you will be relying on a reduced income, and whether that will be enough.
Since we’re living longer and our life expectancies continue to increase, our retirement savings will be stretched further. To help yourself prepare for a comfortable and sustainable retirement, you will need to plan your retirement carefully, and understand how Canada’s retirement income system works. It is important to consider your options. The earlier you start planning, the more options you will have.
With proper planning, you can save enough for the standard of living or lifestyle you want in retirement. As retirement planning may be a complicated process, you may want to consult a financial professional who specializes in retirement planning.
It is important to research and prepare questions that you want answered before meeting. Write down your financial goals and ask how your financial professional can help you achieve them. To help you choose the right financial professional, see Working with a financial professional.
Keep in mind that while planning for your retirement is a long-term commitment, plans can change. For example, you may wish to retire at an earlier age than you originally planned, or you might have changed jobs and now earn a different income. Review your retirement plan annually and after every significant event in your life to see how well you’re doing and consider whether you need to make any changes.