We all start to prepare for our retirement years at different stages in our lives. The most effective strategy is to begin in your 20s or 30s with the purchase of your first Registered Retirement Savings Plan (RRSP).
A good strategy will carry you right through retirement - confident in the knowledge that your finances will last you for a lifetime.
Regardless of your age, the key to a financially secure retirement is to start now!
Start by clicking on the statement that most closely reflects your current situation to determine the financial strategy that works best for you:
Retirement is a Long Way Away
While it's impossible to estimate exactly how much you'll need for retirement 30 or 40 years from now, it's important to start saving for it today.
By contributing to a RRSP while you're young, you put time on your side and watch your savings grow tax-free over the long term.
Have a look at RRSPs and how they can help you save more effectively for your retirement.
Retirement 10 or 20 Years Away
If you're planning retirement 10 to 20 years from now, you still have time to prepare.
Your may want to concentrate on reducing your debt load, including your mortgage. Extra disposable income will help you increase your retirement savings.
Because of the potential tax benefits, however, it is generally advisable to employ this debt-reduction strategy only after having maximized RRSP contributions each year. The growth of your RRSP will generally be greater than the cost of your debts over the same period.
If you've delayed saving for retirement, consult our Saving for Retirement section for strategies that can help you make up for lost time.
Retirement is Less than 10 Years Away
If you're planning retirement within the next 10 years, you need to begin working out the details now.
If you find you're on track, terrific! If you haven't reached your retirement goals yet, you still have time to consider a range of options:
- delay retirement until your financial situation is more secure
- step up your savings program in the remaining period before you retire
- look for alternate sources of retirement income such as business interests or a second career
- identify ways to simplify your retirement lifestyle
Continue maximizing your RRSP contributions during this period and concentrate on reducing your debts, if any.
Also, use this period to ensure you have adequate credit in place - people often find it more difficult to qualify for credit once they are no longer working.
Get the information you need to make decisions about your future by consulting our Planning for Retirement section.
I'm Already Retired
If already retired, your main priority at this stage is to carefully manage your assets.
You want to ensure that your assets are adequate to maintain your current lifestyle.
A solid strategy for retirement will help you meet your income needs and investment objectives throughout your and your spouse's lifetime.
If you haven't done so already, make an appointment with your account representative or account manager to review your retirement strategy. Exploring all your options now can make a world of difference later on.
Consult our Managing Your Retirement section to explore the kinds of retirement income strategies that best suit your current retirement needs.
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