Transitioning into retirement takes careful planning, so make sure you give yourself as much time as possible to prepare. While financial planning may seem daunting, there are many resources available to help ease the stress. Read on for a couple of tips on things you can do ahead of time to make sure that when the time comes for you to retire, you are ready to go!
Apply for Government Benefits
It’s a good idea to learn the timelines of certain government benefits, like CPP, so you can make sure you get your payments on time. Applications for CPP can take up to nine months, so be sure to look into any other pension plans or programs you’re going to be applying for.
Pay off Your Debts
In an ideal situation, you’d have all your debts paid off before you retire. This will allow your retirement income to stretch farther. Make sure to speak to a financial planner to learn how you can manage your debt and pay it off quickly.
Calculate Your Monthly Retirement Income
The Government of Alberta has created a calculator that will help you determine your retirement income, based on a number of factors like:
- CPP contributions
- Employer pension
- RRSP contributions
Make A Budget
Take some time to sit down and figure out how much you need to make ends meet once you enter retirement. Once you’ve established this number, compare it to your monthly retirement income. If it matches – great! If not, you know that you’re going to need to find ways to either save more money, cut your spending in retirement, or boost your retirement income.
Start Saving Now!
Contrary to what many people believe, you are never too young (or old) to start saving for your retirement. Compound interest is a young saver’s best friend, and is the best way to grow your money long term.
Talk With A Financial Advisor
It’s important to sit down with a financial advisor to chat about your retirement. A financial advisor can help you create a plan that will let you meet your income needs in retirement.