Six tips to help you prepare for retirement
Your retirement is about so much more than ending a career. It’s about starting something new and making the most of the opportunities ahead.
Here are six tips to help you prepare:
Look at your financial forecast
Review your retirement savings including: pension plans, savings accounts, non-registered investment accounts and registered investments. Then speak to your advisor to have them forecast how much income you’ll likely generate for your retirement.
Check out additional income sources
Are you eligible for other sources of retirement income, such as the Canada/Quebec Pension Plan, Old Age Security or Guaranteed Income Supplement? Calculate what you can expect and when.
Check that you’re on target
Draft a budget of your estimated retirement expenses, remembering to adjust for inflation. Compare this figure against the totals from your financial forecast and additional income sources. Will you be able to afford the lifestyle you want? Should you try to save more or adjust your retirement lifestyle expectations?
Review your investments
Does your investment portfolio reflect your current stage in life? Check with your advisor to make sure your portfolio is on course for meeting your retirement goals.
Mark your 71st birthday
Make sure you convert your registered savings by the end of the year you turn 71 or you may experience tax implications.
Make sure your retirement income will be enough
If you’re worried about outliving your savings, consider supplementing any government or employer pensions with investments that can provide additional sources of income once you retire.