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 External link. Opens in a new window. (or the CompuPension External link. Opens in a new window. calculator in Quebec).
In a 2018 Desjardins Insurance Financial Health and Wellness Survey of nearly 3,000 Canadians:
58% of respondents who have a written financial plan have $50,000 or more in savings.
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, 382 KB) Opens in a new window. 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
Ask an advisor to help you 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