When you have been working for your whole life, there is nothing quite as exciting as getting near your retirement age. Being able to embrace the freedom of no longer working is something that many people are working towards. However, being able to enjoy retired life is highly dependant on securing your financial future now.
To be able to look forward to a comfortable retirement, you need to start saving as early as possible. This can require a serious commitment to ensure that you will have enough put away when the time comes to leave the workforce. Speaking to a retirement or investment advisor to help you make a plan is a great way to get started.
Retirement planning can be different for everyone. You may have very different needs in your senior years and should plan for every contingency. Putting money away in RRSPs is the most popular way to save for retirement but you can also consider other low risk investments to diversify your portfolio. Take a look at some of the steps you should be taking when you are putting your retirement savings plan together.
Get Rid Of Debt
This is something that many people either don’t consider or choose to ignore, assuming that they will always have some sort of debt. The best advice is to eliminate as much debt as you can before you leave your job for retirement. Don’t be burdened by interest or loan payments when you will already be on a fixed budget. Consolidate your debt to get it paid off faster and find a way to pay down your mortgage as well.
Budget Your Expenses
It is what you will be paying out on a monthly basis that will determine how much money you will need to put away for retirement. Take a look at what expenses can be comfortably eliminated and decide what your monthly income should be. Track your expenses on a monthly basis for a full year to get a reliable picture of what you will need down the road and what can be cut back.
Many people will be able to retire in their own homes without the need for extra assistance. This is the ideal situation for many especially if they are living without a mortgage. However, there are many retirees that will need more care than they can get in their own homes. Retirement homes can provide a safe and comfortable environment for those who need a little help. Keep in mind that your housing expenses will account for a large part of your budget and plan accordingly based on your needs.
Save & Invest
Talk to a financial planner that can help you put a solid savings plan in motion. Put your money into RRSPs that will allow you to save with lower tax rates. You always have the choice to invest your money, but keep to areas that are low risk. Your retirement savings are not something that you want to risk on the stock market.