Retirement planning: Good reasons to start now
The life you lead in retirement is shaped by the choices you make today. With some sound planning and the support of a good advisor, you can build a solid foundation that will let you lead the kind of life you want to live in retirement. Here are five key factors to consider during the planning phase.
1. Your retirement could last 20 years or more
According to the Statistical showcase on population aging and seniors published by the Institut de la statistique du Québec, life expectancy is on the rise. In 2024, the average life expectancy was 84 for women and 81 for men. And Statistics Canada reports the average retirement age to be 64.5 years today. In other words, the idea that your retirement could last 20 years or more is not a stretch. To ensure you’re able to maintain your lifestyle throughout retirement, careful planning is key—just in case this phase lasts longer than expected.
2. Your pension benefits may not be enough
Your government pension benefits could be lower than you expect. The age at which you choose to start receiving these benefits can also impact how much you’ll get. Although government pension benefits are sure to be a welcome addition to your income after you retire, these payments may not be enough for you to maintain the lifestyle you want. Personalized planning can help you identify potential gaps between your income and needs in retirement and adjust your savings strategy accordingly.
Did you know?
In 2022, the median government pension income that beneficiaries received from the Quebec Pension Plan (QPP), Canada Pension Plan (CPP) and Old Age Security (OAS) was $8,300 per year.1
3. The longer you save, the more you’ll have
Planning ahead gives your savings more time to accumulate. Pro tip: Start saving as early as possible, even if you can only set aside small amounts. As your income increases, you can start saving more. This approach will help you make saving a habit. You’ll also benefit from the snowball effect of compound interest, which is when interest income generates more interest. Another good reason to start early!
4. You’ll reduce your financial stress
Even if retirement seems very far away, many people feel worried about whether they’ll be able to support themselves without earning wages from a job. The best way to quell this uncertainty is to start planning your retirement now. This approach will help you better understand the income you’re on track to have by a certain age, and identify strategies to help you reach your savings goals.
5. You’ll have a better idea of your retirement budget
To create the life you hope to lead in retirement, the first step is to figure out how much money you should be setting aside. A well-thought-out plan can help you get an idea of your future budget and a clearer picture of your finances.
Talk to a professional
Schedule an appointment with an advisor to benefit from personalized support that takes your goals into account. They’ll work with you to map out a plan that will bring you one step closer to a comfortable retirement, so that you can make the most of this next phrase of your life!