Retirement Planning

Retirement planning today has taken on many new dimensions that never had to be considered by earlier generations.  For one, people are living longer. A person who turns 65 today could be expected to live as many as 20 years in retirement as compared to a retiree in 1950 who lived,  on average, an additional 15 years.  Longer life spans have created a number of new issues that need to be taken into consideration when planning for retirement.

Lifetime income need

There actually is a lifetime after retirement and the need to be able to provide for a steady stream of income that cannot be outlived is more important than ever.  With the prospect of paying for retirement needs for as many as 20 years, retirees need to be concerned with maintaining their cost-of-living.

Health care needs

Longer life spans can also translate into more health issues that arise in the process of aging.  The federal government provides a safety net in the form of Medicare, however, it may not provide the coverage needed especially in chronic illness cases.  Planning for long-term care, in the event of a serious disability or chronic illness, is becoming a key element of retirement plans today.

Estate protection

Planning for the transfer of assets at death is a critical element of retirement planning especially if there are survivors who are dependent upon the assets for their financial security.  Planning for estate transfer can be as simple as drafting a will, which is essential to ensure that assets are transferred according to the wishes of the decedent. Larger estates may be confronted with settlement costs and sizable death taxes which could force liquidation if the proper planning is not done.

Paying for retirement

Retirees who have prepared for their retirement usually rely upon three main sources of income: CPP and OAS, individual or employer-sponsored qualified retirement plans, and their own savings or investments.  A sound retirement plan will emphasize qualified plans and personal savings as the primary sources with CPP and OAS as a safety net for steady income.

Canada Pension Plan and Old Age Security

Our government income plans are constantly changing - not just because of changes in the plans themselves but also because the benefits we will receive change with our ages, contributions, marital status, dependant children, and other variables in our lives. I have put a link on this site which will direct you to Service Canada, where you can not only get general information but actually sign up to get access to your personal information regarding your CPP benefits.