10 Things To Consider While Planning For Your Retirement

By Author: Hexavision Enterprise
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“Retirement is when you stop living at work and start working at living.”

Retirement is something everyone starts thinking about at an early age. You may already have made thousands of plans for your retirement. But making a plan is easy. Coming up with specific things to make your plans a reality is a lot harder.
Live in Toronto? Consulting a financial advisor in Toronto is easy but there are a lot of things to finally decide and make plans before going through with it. A financial advisor is a professional who provides their clients with financial advice and services based on their situation.
We are here to make it easy a simple for you. Mentioned below is a step-by-step guide that will come in handy and things to consider while planning for your retirement.

I. DO A PRE-RETIREMENT CHECK

There are a lot many things to consider before you actually start considering retirement.
• You should make sure that you have an emergency fund stacked away in a place like high-interest savings investment account before you even start saving for your retirement. There are many financial advisors ...
... in Toronto who can assist you with the same.
• Another important part of retirement planning is that you prepare a will.
• Buying life insurance also helps.
• Keep an estimate about your spending after you retire. It will help you in saving accordingly.
• Set at least a rough amount of date you want to retire at.
• Consult a financial advisor in Toronto.

II. FIGURE OUT WHEN YOU WANT TO RETIRE

Figuring out when you want to retire when you are 18 years old is not a problem. But once you cross a significant age, making ends meet in retirement is not easy if you have not already decided your retirement time. There is no official age of retirement in Canada but the Canada Pension Plan (CPP) considers 65 to be the normal retirement age. How much CPP you get depends on how much you have contributed to the system. The government provides you with two safety nets if you wish to retire. 65 is the earliest age for eligibility for Old Age Security (OAS). Consulting a financial advisor in Toronto will make it easier for you to calculate all the possibilities and get proper advice.

III. UNDERSTAND HOW MUCH YOU NEED TO RETIRE

The next step is to figure how much you will need for retirement. There are many factors that affects how much you need to retire and you have to plan for them to the best of your ability. Taxes, if you are a homeowner or not, the place where you live, sources of income matter a lot. You have to plan accordingly and appropriately.

IV. KNOW WHAT BENEFITS YOU WILL GET

Every Canadian can reap some benefits from their retirement from the government, depending on how much you have contributed. There is an Old Age Security Pension (OASP), which is a monthly payment you can get if you are 65 or older. There is also a Canada Pension Plan (CPP), a monthly taxable benefit that replaces a part of your income when you retire.

V. PAY YOUR DEBT FIRST

Paying your debt first is necessary even if you are saving significantly for your retirement. Saving a large amount and not paying your debt is almost as same as having no savings. Make sure that you repay your debt if any before you actually start saving for your retirement. If you earn a good income, think about doing the both at the same time.

VI. START AS EARLY YOU CAN AND CONTRIBUTE AS MUCH AS POSSIBLE FOR YOU

Starting as early you can is a good step in ensuring a good retirement and a significant amount of savings. It is never too early to start for savings. Contribute to your savings as much as you can. Avoid unnecessary expenditure and save up as much as you can. Consulting a financial advisor in Toronto is easy and will help you with an appropriate plan for the same.

VII. TAKE ADVANTAGE OF YOUR GRRSP

GRRSP or Group Registered Retirement Savings Plan, is set up by an employer for his employees as a workplace benefit. You will be able to enjoy the tax savings on contributions immediately and also you can earn extra money from your work without doing extra work.

VIII. DISCOVER THE BEST ACCOUNTS TO USE

If you do not have first-hand knowledge on what accounts are best for you, consult a financial advisor in Toronto. The first place you should place your savings is the GRRSP. If you do not have one, you can go for Retires Retirement Savings Plan (RRSP), which is a retirement saving and investment plan for employees and self-employed. This is an advantage that you can make use of. You will not be tempted to spend your saved income and it will be invested right and in an appropriate manner. You can also go for Tax Free Savings Account (TFSA), in which any contribution you make is tax free. For this, consulting your financial advisor in Toronto will be helpful as they are more knowledgeable.

IX. PREPARE FOR THE TRANSITION TO RETIREMENT

It is important for you to plan how your retirement will look for you. You will have more time in your hands once you retire. Plan what you will do with it. A little planning about your life after your retirement will help you down the road. It is always better to prepare for the transition to retirement, financially and mentally. Prepare yourself for utilizing your post-retirement time in relaxation and efficiently.

X. STICK TO YOUR PLAN

Sticking to your plan is necessary. Ensure that you are not getting confused till the last minute and have a full proof plan. Helping a financial advisor helps as he will provide complete offers and plans suitable for you according to your financial situation. Do not go against your already made plans unnecessarily and trust your hard work.

So, are you ready to take the first step towards planning for your retirement? Remember, start as early as you can and contribute as much as you can. Be prepared and choose what is best for you wisely. Consulting a financial advisor in Toronto will help you go a long way.