Whether you plan it or not, retirement will arrive sooner or later. You can choose to close your eyes and hope that everything will go well financially, or you can plan it. Let's stay down-to-earth and dispel some myths together.
I will have a comfortable retirement thanks to pensions under public pension plans
The simple answer: no.
The most complete answer: income under public retirement plans from the Government of Canada (Old Age Security program) and the Gouvernement du Québec (Québec Pension Plan) provides basic protection in the event of retirement. However, it is not sufficient to ensure that you can maintain your standard of living. To carry out your projects and continue doing what you love when you retire, you must count on your workplace pension and/or your personal savings to bridge the gap.
I cannot afford to save for my retirement
The sooner you start saving, the less effort you will need to make to save! Do not underestimate the impact that a little amount of money set aside on each payday or every month can have. A consultation with a financial planner could help you choose the savings vehicles that are more advantageous for you. Take the time to ask your financial planner to help you build a realistic and sustainable savings plan based on your life situation and needs.
Investing amounts in savings vehicles is a good start. The most popular are registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs).
I can do my own financial planning for my retirement
Planning your retirement on your own is not always a good idea. Yes, you might have the skills to do so, but many Québeckers:
- ignore what their sources of retirement income will be;
- do not know the percentage of income they will need to replace throughout retirement;
- think that they will never save enough;
- start saving only when they turn 50.
It is a disturbing finding for people who think they are able to plan for their retirement without assistance. You can do so despite everything by using, among other things, calculation tools such as SimulR. But, get the help you need. Your future is at stake.
What you absolutely need to remember
It is better to:
- set yourself some goals, set money aside (even a small amount) as soon as possible and on a regular basis;
- review your capacity to save regularly;
- reorganize you retirement plan based on your priorities or life events that could occur (buying a house, birth of a child, marriage, separation, etc.);
... than not do anything.
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