The prospect of retirement is exciting but planning for it requires making important decisions in order to ensure that retirement is fulfilling and free of worries. Ensure that you are fully prepared for this significant stage of your life by considering the following.<\/p>\n
Determine how much money you need for retirement<\/strong><\/p>\n The amount of money you will need to save depends on the ways in which you plan to spend your retirement. Some important factors to consider include:<\/p>\n Familiarize yourself with sources of retirement income<\/strong><\/p>\n \u00a0<\/strong>There are a variety of income sources available to retiring Canadians. Some of the most common include:<\/p>\n This list is not exhaustive, and there are many other sources of income for retiring Canadians. Please consult a TEP for further information.<\/p>\n Create a Budget<\/strong><\/p>\n Creating a budget is vital to retirement planning \u2013 as is following the budget during retirement. Having a plan to manage money can help balance income with everyday expenses and guide spending. In addition, as someone retires, their expenses change. For example, while a person may no longer spend money on commuting to and from work, or their residence may be paid off, they may spend additional money on interests and hobbies, travel, or supporting dependents.<\/p>\n How long someone lives will also impact how much money they will need for retirement. Statistics indicate that people live longer than in the past. As such, new retirees are advised to budget for at least 30 years of retirement.<\/p>\n Pay outstanding debts <\/strong><\/p>\n As sources of income are less flexible once a person is retired, it is important to ensure that retirement income stretches as far and as long as possible. As such, it is important to clear as many outstanding debts as possible. Such debts may include credit card bills, mortgage payments, lines of credit, etc. Even if it is not possible to clear the debts entirely, lowering the amounts owed is prudent when planning for retirement.<\/p>\n Deciding when to retire<\/strong><\/p>\n Deciding when to retire is a significant decision. It is important to have a basic idea of how long someone will be retired in order to plan accordingly and ensure that there is enough money to support the retiree throughout the entire duration of retirement.<\/p>\n In deciding when to retire, some factors to consider include:<\/p>\n For further information, or assistance in preparing for retirement, please consult a TEP<\/a>.<\/strong><\/p>\n\n
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