Tips on Retirement Savings Plan

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A retirement savings plan is a way of protecting your post-retirement financial lifestyle.  However, in recent times, recessions, stock-market declines, housing market bubbles, joblessness, and a global pandemic have created a series of challenges for people trying to start, grow, or maintain a retirement savings plan.  With all these economic uncertainties, it’s natural to wonder if you’re doing all you can to protect your retirement nest egg.  Taking a back-to-basics approach can instruct you on how to keep your retirement financial plan on track during uncertain economic times and beyond.

Consider these tried and true tips for a secure and enjoyable retirement.

  1. Make A Realistic Budget
    Determining your retirement income needs starts with making realistic assumptions about your future.  Because of increased life expectancy, retirement years are longer than they used to be.  For Canadians, the average life expectancy is roughly 79 years.  Longevity can also be impacted by genetics, where you live, your marital status, and your lifestyle.  All of these factors into how you plan for your retirement.  It’s also good to be realistic about your post-retirement budget and lifestyle.  Do not make the mistake of assuming that your post-retirement budget will be reduced.  Retirement is becoming increasingly expensive, particularly in the first few years.  It’s essential to have a plan to help mitigate expenses when you are no longer earning a paycheck.
  1. Have A Savings Plan
    Based on these realistic lifestyle assumptions about your post-retirement days, you can begin to determine what you can do now to sustain yourself financially for at least 25 years post-retirement.  
  1. Consider Inflation
    Failing to factor inflation into your plan could take a substantial bite out of your hard-earned nest egg.  Inflation impacts how much your retirement savings will be worth over time, so understanding this is critical to ensure that you have enough assets to last throughout your retirement.
  1. Grow Your Retirement Savings
    Retirement means different things to different people, but the key is to enjoy this time of your life while making sure you don’t outlive your retirement savings.  You are more likely to achieve this with a thoughtfully developed plan that allows you to withdraw money from your portfolio while enabling growth over the longer term.  You can achieve this by using various investment vehicles with reasonable returns.

The Bottom Line

Planning for the future is a complex and sometimes emotional process that is not easy to do without guidance.  If you would like a personal consultation, please contact Winnie at winnie@leoganda.com to set up an appointment with Kari to help you remain objective and focused on your future goals, while planning for a healthy financial future.

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Disclaimer

This information is designed to educate and inform you of financial strategies and products currently available. As each individual’s circumstances differ, it is important to review the suitability of these concepts for your particular needs with a Qualified Financial Advisor.