Ever thought about creating your own retirement savings strategy? It's not as complicated as you might think!
You can start by getting a better idea of what you want. Then you can show a representative what you've come up with.
If you want to take it a step further, check out the federal government's Canadian Retirement Income Calculator (or the CompuPension calculator in Quebec).
4 steps to a winning retirement savings strategy
Step 1: Set your retirement goals and determine how much money you'll need so you can…
- Get an idea of when you'll retire
- Start making plans for your retirement: travel, buying property abroad, helping to pay for your grandchildren's education, etc.
- Decide whether you want to use the simple method (70% of your pre-retirement income) or this retirement budget document (PDF, 244 KB) to calculate your financial needs
Step 2: Figure out where your retirement income will be coming from and what your savings needs will be so you can…
- Get an idea of where your retirement income will be coming from: a group retirement savings plan through your employer, a part-time job, Old Age Security benefits, etc.
- Estimate how much you need to save to make sure you'll have enough money when you retire
Step 3: Determine your investor profile and make investment choices so you can…
- Establish your risk tolerance for market fluctuations
- Determine which types of investments are available to you and whether they match up with your savings goals and risk tolerance level
Need help with your investor profile?
Step 4: Review your strategy each year and make adjustments so you can…
- Assess whether you've achieved your goals
- Make any adjustments if your situation has changed
- Get help from specialists if you're not getting the results you want
Tips from an expert
Talk to a representative or a financial planner about…
- Taking out life insurance to make sure your loved ones are taken care of when you die
- Buying other coverages (disability, critical illness, long-term care, etc.) to protect your savings in case you get sick or become disabled
- Improving your retirement savings strategy
Talk to your employer about your group retirement savings plan so you can…
- Contribute to the plan through payroll deductions without significantly reducing your net income
- Learn more about the terms and conditions of your group retirement savings plan and the types of investments available