The average life expectancy for Canadians is just over 80 years old. However, as science and medicine progress, this number will keep increasing.
No doubt, you’re excited to live a long retirement, filled with meaningful experiences. But increasing life expectancy and other factors must be considered when retirement planning.
How much do you need to save to live the lifestyle you’re aiming for?
To answer that question, we’ve compiled this brief but comprehensive retirement guide. Read on to learn the steps you need to take now to achieve the retirement of your dreams.
Estimate Your Expenses
The first step is to establish the lifestyle you’re saving for. The more lavishly you plan to live, the more you’ll need to put in the work now to save.
The crux of this step is setting a budget. Many expenses may stay the same, such as utility bills or groceries. But work expenses will disappear, and you’ll likely want more disposable income.
Find Sources of Income
Once you’ve decided how much you’ll spend each month, as well as large purchases, you have an income goal. The next step is how to achieve it.
To do that, evaluate potential sources of income available when retiring in Canada. Then you can use CI Assante Wealth Management's inflation calculator to check whether they will cover your expenses.
Potential Canadian Retirement Income Streams
Most people think of company pension programs when retirement planning. But don't forget to consider government programs for retiring in Canada. You likely qualify for one of these income sources:
Canada Pension Plan
Quebec Pension Plan
Old Age Security
Guaranteed Income Supplement
Finally, you have the opportunity now to invest your current wealth to create new income streams. Rather let your savings generate wealth for you than let them lose value in a savings account.
Two of the most popular methods are investing in property and other companies. These both offer the potential for lifelong income if properly protected.
Account for Risks to Your Income Streams
With several income sources in mind, you can make a solid lifestyle plan. But it’s always worth investigating the risks of your investments. For example, you wouldn’t want to make a large purchase based on an income stream that later falls through.
In another vein, are you thinking of retiring to a different place? Will that affect how your finances are taxed? Consider risk factors like these for each income stream to establish how much you can realistically spend.
Talk to Retirement Planning Professionals
Thorough retirement planning lets you achieve the life you deserve. As diligent as you can be on your own, there are significant benefits to consulting with professionals.
Our resources and expertise forecast your wealth and risks more accurately than you could on your own. And we help you take advantage of as many sources of income as possible so your lifestyle is sustainable.
Would you like the professionals to ensure your plan’s success? We service clients from all across Canada, in three northern locations. Talk to our team at CI Assante Wealth Management today to get started.