Ideally, retirement is something we dream about and look forward to. But with people living longer and needing to fund 25 to 30 years or more, it’s become a source of worry for many. Will I have enough to fund the lifestyle I want? What if I outlive my savings?
One of the most effective ways to ease this anxiety is to get a handle on your financial future.
Step 1: Choose the year you aim to retire. As a guideline, you might want to consider that the average retirement age, from 2009 to 2013, was 61 for public sector employees, 63 for private sector employees and 66 for self-employed individuals.1
Step 2: Estimate the future value of your nest egg. We can help you to estimate future contributions and rates of return to project the value of your savings at retirement.
Step 3: Think about how you will use your savings. If you’re worried about outliving your savings, you may want to build a dependable income source that covers basic lifestyle expenses for your lifetime. It may be guaranteed or highly secure and include government pension benefits, life annuities and low-risk instruments. A healthy portion of your nest egg can also be invested for growth, to help fund long-term needs.
Making these financial projections helps turn a hazy future into a known quantity. If you’re on track to meeting your retirement goals, great. If not, we can work with you to develop a plan to get you back on track. That might involve saving more, retiring later or modifying your desired retirement lifestyle. Simply having a plan will help reduce retirement savings anxiety.
If you have any concerns at all about meeting your retirement goals, please talk to us. We’ll work with you to put together retirement projections and plans that will help put your mind at ease.
1 Statistics Canada CANSIM, Table 282-0051, accessed 2014