Choosing to retire is one of the most significant steps you'll take in your life, so it's essential to get it right. Unfortunately, if you do a quick internet search on the best time to retire in Canada, you'll probably see a lot of contradicting information. This is why consulting a financial advisor in Canada is the best thing you can do for yourself when you start thinking about retirement.
Retirement is not a one size fits all scenario, even though the average age for retirement in Canada is 60 to 65 years because this is when you can access some government benefits. Many personal things determine the best time for you to retire as an individual. But, to develop an excellent pre-retirement plan, you need to have a financial advisor in Edmonton in your corner.
Now that we have established that there is no specific retirement time, let's talk about the perfect retirement age range. Once you clock age 59, you want to start thinking about the next steps for your work life. Do you want to retire in the next year? Five years? Or even ten years? About 53% of Canadians over 70 years old are still working, so retirement depends on a few factors;
The Investments you have in place
Once you start thinking about retirement, it is time to switch up your investments and invest in something that may become a source of income for you during your retirement. This is where a financial advisor in Alberta, Canada, comes in. A financial advisor can tell you the right places to invest based on your previous investments and retirement goals.
Retiring without a proper investment plan or investments in place means you may be setting yourself up for struggles. Investments are like a cushion that will keep you grounded as you enjoy retirement. If you already have assets, the question becomes, what kind? It's essential to have a clear vision and plan for retirement and investments because you cannot wholly depend on government schemes and benefits to get through your retirement age. Our best advice? See a Canada financial advisor to be on the safe side.
Your Streams of Income
There are many ways to make money without even lifting a finger, and when you're projecting the time to retire, you have to consider the options available. For example, money can come from your Canadian pension plan, a rental property, an established small business, and other investments.
The overall idea is to ensure you do not depend on one income stream because this is risky. Instead, consider how many streams of income you have and how many you plan to have, then work to cover the gap, if there's any.
If you think you have enough reliable multiple streams of income, then you might be ready to retire. But, again, an Edmonton financial advisor should be able to give you the best advice.
Retirement Savings
Financing your golden years with your savings is possible; you just need to know how to save money with your retirement in mind. An Alberta financial advisor can help you calculate what you need to save, how to avoid high fees, and how to make use of tax-advantaged accounts.
With the right information, you can accumulate wealth by saving and investing correctly. Some sure ways to increase your savings are employer matches and tax-advantage accounts. Tax-advantaged accounts are accounts that are tax-exempt or tax-deferred and offer different tax benefits in addition to these.
Not many people use a tax-advantaged account, mainly because they are unsure how it works or what it takes to have one. But to retire with substantial savings that you can rely on, you need to take advantage of these opportunities.
Employer matching is when a company deducts a percentage from your salary and saves it in an account for you without taxes. People who work in a corporation or organization should take advantage of this opportunity to save.
If you own a business or are self-employed, you're not left out; you can open an RRSP or TFSA- A tax-advantage account dedicated to holding your retirement investments and funds.
Even if you already have retirement savings stashed, it may or may not be enough, but seeing a financial advisor in Canada can help you clear any doubts you may have about your retirement savings.
Having a Retirement Budget
Your retirement budget will depend greatly on your lifestyle and monthly spending. Therefore, it would be best if you had already mapped out how much you plan to spend on different needs during your retirement and, of course, know for sure where the funds will be coming from.
The retirement budget you draw up will determine if you'll live comfortably or not. Working with a financial advisor means having a professional draw up a tailored retirement budget for you. All your streams of income and investments will be considered while they create the perfect budget for you.
Your retirement budget will also greatly depend on the age you choose to retire. If you're retiring early, it simply means you would need a bigger retirement budget.
Eligibility to Apply for Government Retirement Plans
The traditional retirement age for Canadians used to be 65, but the times have changed, and these days even people at that age still work full-time. You can only enjoy most of the retirement plans set up by the Canadian government when you clock at least 60 years of age.
For example, you can apply for the Canadian Pension Plan if you're age 60, but you have to bear in mind that your pension might be smaller than that of someone who applies when they hit 65 or 70.
You can also enjoy many other benefits under the CPP, like survivors' pensions, children's benefits, and disability pensions, depending on your age and disposition. All of these benefits have unique requirements; you just need to know which one you qualify for, and the best way to do this is with a seasoned financial advisor.
The Best Age to Retire in Canada
So, retirement is all about your journey through life as an individual. Only you can decide when it's time to hit the brakes after careful consideration of all these factors with a financial advisor in Canada. In the meantime, the best thing to do is see a financial advisor in Canada and get advice on how best to multiply your streams of income and accumulate wealth in preparation.
The best time to retire in Canada depends on your financial status, needs, and unique lifestyle. Although 65 is the traditional retirement age, you can choose to retire earlier or later depending on all of the mentioned factors. What matters is that you retire right when you want to.
To avoid any financial issues as you make your retirement plans, contact an expert financial advisor in Edmonton by reaching out to us at DeHaan Private Wealth. Someone is waiting to walk you through the intricacies of planning for your retirement the right way; you don't have to do it alone!