Term Deposit and Savings Account rates have dropped to 50 year historic lows. The Federal government is talking about adjustments to various pension programs. How do you ensure that you have a financially secure retirement with all of this uncertainty?
Establish your financial foundation - Many people have an idea of when they would like to retire but have little idea how much money they have already saved up. Between work pension plans, mutual funds, term deposits, RRSPs and TFSAs, people can have money spread out among many investment options. Before you decide when to retire you should know how much you have available to you today as a starting point.
Determine how much you need in retirement - Some people plan to do a lot of travelling in retirement and others plan to stay close to home and family. Some will still have debt going into retirement and others will have been out of debt for years. Your retirement can sustain any of these choices if you have planned and prepared for it. To begin planning start by figuring out how much you will really need to live on during retirement. Take into account that your health costs may increase over the years. Once you know how much you will need to live on each month you can work those numbers back to determine how much you will need to have saved upon retiring. A financial planner can help your numbers be realistic and they can help determine any potential OAS and CPP cash flow into your monthly budget.