6 Retirement Planning Tips You Can’t Afford to Ignore

/ Retirement / Jul 3, 2023

Retirement planning can be a scary topic to broach, especially when you’re still relatively young and have so much time left in your career. But it’s never too early to start saving for retirement, and if you know how to plan wisely, the future might not seem so scary after all. Here are 6 tips on how to plan financially for your golden years.

1) What you should know about life insurance

Many people choose to purchase life insurance as a retirement planning tool. There are several things you should keep in mind when considering life insurance as a retirement planning tool.

First, you need to make sure that you are insurable. This means that you will need to have a good health history and be able to pass a physical exam.

Second, you need to make sure that you understand the terms of the policy. What is the death benefit? How long will the policy last? What are the premiums?

Third, you need to make sure that you can afford the premiums. Fourth, you need to make sure that the policy is portable so that you can take it with you if you move. Fifth, you need to make sure that the policy is renewable so that it can be continued after retirement.

Talk to our advisors for more information on life insurance and know what option suits you the best.

Also Read:

How to purchase a life insurance policy for the first time

2) Invest in an RRSP

An RRSP is a retirement savings plan that you set up with a financial institution. The money you contribute to your RRSP can be deducted from your income for tax purposes. This reduces the amount of taxes you have to pay and allows your money to grow tax-free.

Recommended Read:

What are the benefits of investing in an RRSP and the TFSA?

3) Start Saving Early

It’s never too early to start saving for retirement. The sooner you start, the more time your money has to grow. Plus, if you start saving early, you’ll be less likely to have to rely on credit cards or loans in retirement.

As a general rule, it’s a good idea to save enough for retirement so that you have about 70% of your pre-retirement income saved up. If you’re self-employed, that percentage goes up because you’ll likely need additional savings for your health insurance and more. Consider consulting a financial advisor if you’re not sure how much money is right for you.

4) Money Management Skills

Managing your money properly is one of the most important retirement planning tips. It’s never too early to start saving for retirement, and the sooner you start, the better off you’ll be.

There are many things you can do to improve your money management skills; start by tracking your spending for a month so you know where all your cash is going. Then work on curbing any costly habits, such as buying too much food at restaurants. Another tip is to have multiple savings accounts that are designed for certain kinds of saving (emergency fund, vacation fund, etc.)

5) Diversify Your Investments

One of the most important retirement planning tips is to diversify your investments. This means investing in a variety of different asset classes, such as stocks, bonds, RRSPs and TFSAs, cryptocurrencies, and real estate. By diversifying your investments, you can minimize your risk and maximize your potential for growth.

6) Be Prepared for Emergencies

No one knows what the future holds, so it’s important to be prepared for anything. An emergency fund can help you cover unexpected costs like medical bills or home repairs. Plus, it can give you peace of mind knowing that you have a cushion to fall back on if needed.

Let’s talk about retirement planning

Know how you to have a proper financial plan in place for your retirement. Get in touch with our experienced Trust Life advisors for a structured retirement plan that is made for you and only you. Free consultation and zero obligations!