It seems you can’t open a newspaper, turn on your computer, or glance at your phone without noticing someone ranting about retirement. It may seem like a lot of noise, but most of the information has a common thread – what should I be doing to get ready for retirement?
Believe it or not, everyone has a retirement plan – even you. It may not be the greatest plan, “Do nothing and hope for the best.” But if you at least consciously acknowledge where you are in your planning, it helps frame the questions you should be asking yourself, such as:
- When do I want to retire? Do I want to retire?
- Do I know that people in Canada are living longer and longer?
- How much do I make right now?
- How much will CPP provide?
- How much will OAS provide?
- How much will my company pension provide?
- Do I know about RRSP’s and TFSA’s?
- Where will I live when I retire?
- Will I need more income or less income when I retire?
The last question may seem a bit silly. However, when it’s actually asked that way – instead of the usual, “I need more than half of what I make now when I retire.” – it starts an interesting chain of thinking. Well, of course I need less, but how much less? What will I need the money for? Will my house be paid off? Will I still be renting? Will I travel? Will I take up skydiving? Will the kids be gone?
A happy and fulfilling retirement means different things to different people. For you, it may mean transitioning from a full-time career into meaningful part-time work. Or perhaps you envision yourself spending more time with family, starting a garden or making regular visits to the golf course. Once you determine what will give you peace of mind in retirement, the next step is learning how to get there financially.
Simply taking stock of your bills may be a good start in figuring out where you are now and where you might be when you’re ready for retirement. Start by creating a retirement budget including how much money is coming in, how much it will cost to reach your goals and how much debt you have.
At Mondelis, we have the tools to look forward and the experts to help you plan! Contact our experienced team for all of your retirement planning needs.