The Importance Of Retirement Planning In Canada

January 11, 2019

The Importance Of Retirement Planning In Canada

Retirement planning is one of the most important financial activities a person or a family performs in order to have a financially stable retirement. Unfortunately, only a small number of Canadians work towards developing a detailed plan that enables them to live their dream retirement life. According to a survey, 43% of retired Canadians believed they planned and saved enough for retirement, yet only 15% are living out their retirement dreams.

In a recently conducted survey, over 80% of respondents admit that saving for retirement is a vital goal, but more than half of respondents have never considered contributing to an RRSP or any other investment plan. A recent poll suggested that only 32% of Canadians are nearing retirement without any savings.

Retirement planning should not be considered as a one-size-fits-all financial exercise. How much money you will need in order to have a prosperous golden years depends on your intended retirement lifestyle. It is important for you to start planning today so that you can make the future as predictable as possible. Consider working with a financial advisor to project your expenses, investment possibilities, and income.

How your retirement should look like?

The definition of retirement has changed over the last couple of decades. With Canadians living healthier and longer lives, retirement doesn’t necessarily mean that you have to quit your job one day and plan to do nothing at all. You may choose to continue working the way you were doing before retirement or you may consider a part-time job to accomplish your financial goals.

Proper planning is the only way you can have the opportunity to meet your retirement goals. Whether you want to spend time with your family or want to travel the world, it is important that you feel confident about your financial situation. It isn’t wise to treat retirement planning as a simple budgeting process, rather it is a process that includes a number of factors. Therefore, talk to a financial planner or investment advisor who has the expertise and knowledge to help you plan and achieve your retirement goals.

The value of retirement planning

A comprehensive retirement planning process will define your retirement goals and develop strategies to achieve them. It is something that many undermine because, for many Canadians, it is more convenient to spend now rather than save for a long-term objective, like retirement. One of the purposes of early retirement planning is to realize that it is disadvantageous to get short-term benefits at the expense of major long-term dreams.

Start working on a consistent savings plan by regularly depositing to a dedicated account such as registered retirement savings plan (RRSP), invest for the long term, and determine the ideal time to draw down on personal savings. If you are not sure where to start or how to plan a financially stable retirement, seek guidance from a professional.

About Kewcorp Financial

Kewcorp Financial is a team of financial advisors in Edmonton where we help you plan for the retirement. Our financial advisors start with understanding your current financial situation, analyzing your retirement goals, and highlighting factors that may affect your retirement goals.