Retirement is a big step for most, because it is more than just ending a job or career. So, it is important to make the most of your future by being fully prepared for your retirement. In order to do this, there are a few things to keep in mind. First and foremost, you need to make a financial forecast for your future. You do this by reviewing your pension plan and investment assets with us. This includes things such as your banking accounts (savings and non-registered investment accounts) and also your RRSPs. Once reviewed, we will be able to tell you how much income you can expect to generate from your own assets once you retire. It is also important for you to look into your additional income sources, such as your pension plans and government programs such as Old Age Security (OAS) and the Canada Pension Plan (CPP). This income can be added to your asset income to determine how much to expect and when.
You should also generate a budget for yourself to prevent you from over-spending or exhausting your finances. You can do this by tallying all of your retirement expenses and then adjusting them for inflation. You can then compare this total with your asset and additional income total to determine what to expect in terms of lifestyle. If you find that you are not on target to have the finances you need when you retire, we can review your asset allocation in your investment portfolio and make changes to meet your retirement income goals. Or, you can supplement your retirement income with additional investment solutions to provide an increased guaranteed income to last throughout your retirement. One thing you should not forget is to make sure you convert your RRSPs to RRIFs or annuities before you turn 72, otherwise you could lose half the value of your RRSPs to taxes. So, mark your 71st birthday on the calendar, and remember to convert your RRSPs before the end of the year.
The most important tip to remember in preparation for retirement is to consult us. We can give you expert advice that can help you with determining your current income, budgeting, and providing you with investment solutions.