For many, planning out a retirement savings plan can be daunting. However, setting aside additional funds to supplement your government supported retirement plan can help meet your long-term retirement goals.
SkyCap Financial is one of Canada’s premier personal lenders. Because retirement savings is so important, we invited SkyCap Financial to review ways to help long-term retirement savings:
- Figuring out the right retirement age
Whether you want to retire at age 60 or 70, retirement plans are still important for you to structure your future. Knowing your age of retirement can help you structure your future for after you retire.
More specifically, knowing your age of retirement can also help you figure out how much money you need to save, and how much money you will be earning through the Canadian Pension Plan (CPP). When you reach retirement age in Canada, you may qualify for a number of discounts to supplement your retirement plans, including: low-fee bank accounts, groceries, insurance and public transportation.
- Dealing with loans and debt early
Paying off loans can reduce your overall debt and keep you from dipping into your retirement savings. Large loans, such as mortgage payments, offer automatic payment programs that help you stay up to date with your payments. Keeping track of your loans and debt will help prevent paying for debts into your retirement and dipping into retirement funds!
- Planning for Unexpected Expenses
Determining where you want to be financially when you retire can be difficult to predict. Having a financial cushion to predict for “unexpected expenses” can help protect your retirement plan.
- Reviewing your Assets
Taking control of your future also means reviewing the assets you already have to make sure your future plan aligns with the amount of money you will have available. This means keeping track of your properties, investments and beneficiary costs.
- Beneficiaries and support
A major component to your retirement plan, and more broadly, your estate plan, will be keeping track of your beneficiaries and people you want to support financially. Once you calculate the amount of money you will need to support yourself, plus your beneficiaries, it gives you a clearer idea of how much money you will need to support your family after you retire. Some hard costs for beneficiaries can include education or living expenses.
