How to Protect Your Lifestyle in Retirement?

Investia Financial Services Inc.

Discover how to establish a good retirement plan that combines achieving your goals and peace of mind.

Did you know that over 1 out of 5 people (21.8%) of working age in Canada is close to retirement, between 55 and 64 years of age?¹ This number has never been so high. Retirement is a major life event that results in concerns and preparation.

Concerns about retirement

Here are the 3 main concerns of Canadians age 55 and over:²

Have enough savings (36%)
Maintain their standard of living (31%)
Impact of inflation (34%)

Where to begin?

Assess your income sources, assets and debts. The amounts you will have available for retirement may come from different sources, such as public pension plans, private pension plans and personal savings. If you currently have debts, here is an interesting article that can help you prioritize between paying down and saving for retirement.

Determine the approximate age at which you wish to retire. This step is essential, because it will determine the amount you must save to maintain your lifestyle in retirement.

Calculate the savings you will need. The experts estimate that to maintain the same standard of living, you must provide for an income equivalent to about 70% of the gross salary you had before your retirement. The key to success to achieve this goal is to start saving soon and make a budget. To establish your budget, you must identify your fixed expenses and ask yourself about your retirement goals. Do you want to travel, go on several excursions…? These are all important factors to consider.

Working life vs. retirement period: plan your disbursements

People who retire at age 55 is likely to have a retirement almost as long as their working life on the job market!

In this situation, it is especially important that a disbursement plan be part of your retirement plan that accounts for your life goals and your particular situation. Because government benefits are unavailable before age 60, all of your retirement income will have to come from your personal savings (RRSP, TFSA, pension fund). Don’t hesitate to contact an advisor to help you establish a retirement plan based on your needs.

Making sure you have enough savings

How much money must you have for retirement? The answer to this question is different for each person. It all depends on your standard of living, your financial commitments, your goals and the age when you will retire. Use the Retirement Calculator to help you know how much money you must save for your retirement. Canadians retire around age 64 on the average³. With the assistance of this article, determine the best time to retire based on your different income sources.

Maintaining your standard of living

You planned your savings to benefit from your retirement, but what about your life insurance coverage? Term life insurance is an advantageous solution to meet your need for coverage. It lets you protect the financial health of your loved ones based on your specific needs, at a lower cost. Read this article to learn the reasons to opt for term life insurance. Maintaining your standard of living in retirement can be a challenge for some. See these tips to achieve your retirement goals!

What about you?

Are you part of the 53% of Canadians age 55 and over who have a retirement plan?⁴ To find out if you are ready for retirement, answer this questionnaire, which will help you ask yourself the right questions

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This presentation was prepared, by Paul Davidson, Investment Fund Advisor, for the benefit of Journey Wealth a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this presentation comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the Fund Fact sheet or prospectus before investing. Mutual funds are not guaranteed; their values change frequently, and past performance may not be repeated.