In this blog post, I’ll go over the best retirement strategies you can use that will put focus on building a financially healthy future!
As always, should you have any questions or comments, feel free to leave them below or reach out to me via any of my social media networks!
Some might say that your retirement income is something that you should start thinking about when you’re in your 20s and build aggressively by the time you’re in your 30s. However, this historically, is not the case with most Canadian 20 year old’s…
That said, and as the adage goes, it’s never too late to begin if you haven’t yet come up with effective retirement income strategies for yourself. Here are some retirement income tips you can use that might help you create the nest egg you’ll need when you decide to call it quits and stop working.
Retirement Income Strategy #1 – Calculate Your Goal
The first thing you’ll need to do is calculate what kind of retirement income you’ll want to have or put more simply, your financial goal at retirement. Retirement in Canada can vary from 61 and 68 years of age, depending on your financial, health, marital and debt situation in those years.
What you’ll need to do is come up with a definitive amount of money that you want to save by the time you’re 60. That way, you will have a significant amount of money saved a few years before you actually stop working. Creating a realistic savings plan using your goal as a guideline is an excellent way to become fiscally responsible and work/earn towards the retirement lifestyle you want and envision for yourself and loved ones.
It should be an amount that you can save comfortably no matter what you do. For example, your goal might be to save $50,000 by the time you’re 60, and you may be 40 years old now. You can save $50,000 by the time you’re 60 years old just by putting away a little over $208 a month. The point is to highlight that you can start saving today once you have set your goal and calculated that goal is in fact achievable and realistic.
Strategy #2 – Review Your Tax Deductions and Credits
The next thing you want to do is review all of the tax deductions and credits that relate to your retirement savings. For example, the registered pension plan deduction will allow you to deduct your contributions from your taxes if you meet certain qualifications. It’s a wonderful way to reduce your taxes while you’re saving for your future.
A few other deductions and credits worthwhile looking into are also available to you.
As an Assante Capital Management Ltd. financial advisor, I spend a lot of time with clients (young and old) going over retirement strategies to find all financial elements which you could benefit from.
Retirement income strategy #3 – Create at Least Three Savings Streams
Another strategy for your retirement savings is to create at least three different savings streams.
For example,
- You may want to put money into a high yield savings account as one stream.
- The second stream might be an investment account.
- The third stream could be something like a Registered Retirement Savings Plan.
Separating your retirement funds into different plans will help you monitor their success and productivity. The financial advisors at Assante Wealth Management and I can help you choose the best streams to use for your savings.
Strategy #4 – Pay into Your Retirement Savings First
Another strategy that many debtors fail to use is the “pay yourself first” strategy.
That means you should put money into your retirement savings before you do anything else with your money.
Here’s a simple example to highlight this financial thinking. Let’s say that you plan to save $50 a week for the next 20 years. You should remove the first $50 from your paycheck each time you get it. Put the money away into your untouchable savings before you do anything else with that paycheck.
This strategy will help you to prioritize yourself and your future. Many people don’t hold themselves high on the priority list, and some of them never get ahead because of it. Try this strategy if you’ve been struggling with saving money for your retirement. You’ll see how quickly you benefit from it!
Retirement strategy #5 – Keep Your Health up to Par!
Another important tip is to keep yourself as healthy as possible at all times. It goes without saying, however, you have to stay healthy if you want to be able to work until the age of retirement. No brainer right? However, you would be surprised!
Any smart or well executed retirement strategy will be useless if you do not engage yourself in a lifestyle that will keep you fit! Make sure you eat a healthy diet and get exercise at least three times a week. Visit your doctor regularly!
Retirement income strategy #6 – Cut Your Expenses!
Another strategy for boosting your retirement savings is to cut your expenses. Saving is making!
You can do that by taking a close look at all of your household bills and your extra bills and cutting things that you don’t need. You can cut extra smartphone features and premium cable channels, for example, if you feel that you can live without them. You’ll be surprised how much money you can save that way.
Last strategy #6 – Pay Your Debts
It is crucial to keep debts to a minimum always but especially when working towards executing your goal. It is of utmost importance that you pay down your debts as quickly as possible so that you have the least amount of financial burden as you get older.
Paying down debt is an excellent way to assure financial retirement is easier for you. Contact all of your creditors and get on easy repayment plans so that you don’t overwhelm yourself with bills once retired.
These are just a few of the ways you can kick-start your retirement plan today and work towards a goal that you envision for yourself.
Years go by quickly. It is wise for you to get a jump on your financial future today.
Being a financial advisor with Assante Capital Management Ltd. allows myself and my fellow teammates the ability to access a slew of information that can do nothing but help advise you on the best strategies to consider when you are ready to begin planning for retirement.
Contact me or any member of my team if you are curious to speak with a retirement advisor with experience in retirement income strategies. You’ll be glad you took the time to invest in your future peace and financial serenity.
This material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources however no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please make sure to see a professional advisor for individual financial advice based on your personal circumstances. Rates are not guaranteed and are subject to change at any time without notice
