Canadian financial planning
Retirement planning in Canada is different (and easier) than it is for many people in the United States where there is less social security in place. Of course, many Canadians want to have more than enough to live on in their retirement so they keep other investments (such as real estate) and they invest in RRSPs, RRIFs and other funds.
Its important to think of retirement planning as much more than just financial planning.
Here are some tools and information from our community of experts in retirement planning:
In Canada, retirement planning is made somewhat easier by The Canada Pension Plan and old age security but of course, for many people this will not be enough to live the kind of life they really had planned in retirement.
There are several worthwhile retirement planning tools and tips from around the web:
- The government of Canada provide a retirement income calculator. Keep in mind that predictive tools such as these are quite limited.
- If you are approaching retirement or know someone who is, the online Canada Pension Plan application kit makes it easy to apply.
- You can also learn about the benefits of and issues related to retirement abroad.
- Comfort Life also offers up to date advice on financial planning, including insurance, taxes and other legal matters.
True financial planning for retirement is a complex issue with many variables including (but not limited to): investments (i.e. stocks, bonds, funds); real estate; debt; taxes; cash flow (income and expense) analysis and prediction; insurance and defined benefits (e.g. OAS, Canada pension benefits, employer plan benefits, etc.) There are various dynamics that will always be difficult to account for, notably health care requirements and changes to markets such as real estate, investments and the cost of living.
For a happy retirement, you'll need more than just financial well being
Retirement planning usually entails the narrow concept of financial planning. While finances are important, it's also important to realize that a well-planned retirement ought to be require something more holistic than mere finances (as important and practical as that aspect of life is).
As you near retirement age it's important to consider how to do well psychologically and spiritually, and in relationships, perhaps especially in changing relationships you have with your children. While these areas are too complex to offer any real advice in a space like this, it's important that you realize that retirement and all that it brings – more free time, diminished responsibilities, time for reflection, and many other changes - carries with it implications you would do well to prepare for ahead of time. Money is important but it's not everything.
Planning for a retirement home
Finally, it's important to remember that many senior citizens will eventually require care to one degree or another. Avoid denial of this. Consider the retirement home you want and how you will be able to afford it.
Throughout the history of Comfort Life we have covered the topic of planning for retirement in a seniors' home. You need to be aware that while retirement homes might seem costly, living in a home significantly reduces many other costs such as daily transportation, home maintenance, restaurant meals and many other costs.