Retirement Planning – Starting early makes it easy
If you belong to the millennial cohort, retirement’s not likely top of mind. Or, how to finance it isn’t. You may think “I need a career before I can think of retiring from it”. Yes, but it’s important to know what’s ahead to ensure you’re on the right path to the best golden years.
Why now? What difference does it make?
If you live paycheque to paycheque, like many do in the beginning, you can make ends meet. But what happens when you’re 65, not working, and want to travel, spend time with family or play bridge at the club? After 40 years of work, you deserve to enjoy yourself without hesitation.
Isn’t CPP going to cover it?
You’ve been paying into Canada Pension Plan (CP) since your first well-paying job - so have millions of Canadians. The average CPP cheque is $685.11 per month. Even if you’ve paid off your home by retirement, there are electricity, water, internet, food, property tax and health bills to cover.
Check out our retirement calculator to see how much you’ll need for the future you want.
I contribute to my Registered Retirement Savings Plan (RRSP), isn’t that enough?
An RRSP is a brilliant way to save money for retirement with some great incentives. You can use your RRSP towards the down payment of your first home, towards your education, and you get a chunk of money during tax time. Did you know you pay tax on that money when it’s withdrawn? The tax-time lump sum payment is the tax you’ll be paying when you’re 65.
Investments are for Wall Street
Actually, investments are for any street, including yours. RRSPs, Tax-Free Savings Accounts, mutual funds, and stocks are all options available to you. If you’re great at saving, make that money work for you. Not great at saving? Remember that tax -time lump sum? Invest it.
How do I get started?
If you start now, it won’t sink your bank account later. Learn the basics from one of our investment specialists or advisors. They know the ins and outs of investing, so you don’t have to. Manage your investments in a few minutes on the bus, or waiting in line for coffee with the Qtrade Investor app.
I’m too stressed about money. I can’t think about this right now.