retirement planning

Retirement is a significant life event that requires careful planning and preparation. One of the most important aspects of retirement planning is figuring out how to generate income during your post-work years. In this article, we will discuss some wise retirement income strategies that can help you make the most of your retirement savings.

Harry and Sally both earned high incomes and liked to live the good life. They leased higher end European cars, took two-week exotic vacations almost every year, and lived in a house much larger than they truly needed. To accomplish this lifestyle, they put off retirement savings. Now in their forties, Harry and Sally are realizing they have some catching up to do. Six things to consider are:

Delay no more - Procrastination or bad breaks may have derailed a savings plan. Now is the time to make savings a priority.

According to a 2022 survey,¹ only 35% of Canadians aged 50 and older feel they're financially ready to retire. Sixty-two percent report being unprepared or unsure if they have the resources. In a similar survey, Bromwich+Smith and Advisorsavvy² report that 71% worry they will never be able to save enough to retire comfortably. Sixty-two percent are delaying retirement indefinitely.

Once again, it is that time of year when Canadians turn their attention to make their tax-deductible pension contributions to their RRSP. The word “pension” is used deliberately to emphasize that the whole point of RRSPs and other savings methods is to build savings over time to replace earned income with passive or pension income when retirement arrives.

An important retirement planning skill is having the ability to "sniff out" the future direction of various factors, such as inflation and interest rates for their potential impact on future household spending and savings efforts. "Reading the tea leaves" is a folk lore expression related to the practice of attempting to divine the future from the display of loose tea leaves at the bottom of a cup.

If you're in your 50s, and thinking about your financial future makes you anxious, you're not alone. 70% of Canadians are worried they won't have enough money to retire¹. While you can't go back in time to save more or spend less, it's not too late to get started. Even if you've been saving diligently, your 50s are a good time to assess where things are at. Financial choices you make today could have a big impact on where you are ten years from now.

Here are some helpful tips for you to consider: