Retirement Planning
Retirement planning isn’t something many people think about until it’s far too late! Although it’s a long way off, we all must save for retirement if we’re going to thoroughly enjoy it. And everyone deserves to enjoy their retirement!
Retirement Savings Options
There are several retirement plans available in Ontario, and how you save depends on your habits and personal finance preferences. Each plan has its own pros and cons, but you can choose from the following:
- Canada Pension Plan. Most employers automatically deduct from your paycheck for automatic contribution to this.
- Old Age Security Pension. Everyone qualifies for this once they reach 65.
- Guaranteed Income Supplement. This is designed for lower-income retirees.
- Registered Retirement Savings Plan. This is a popular plan because contributions are protected from income tax and can be applied to a variety of investments such as stocks or a mutual fund.
- Tax-Free Savings Account. This is another popular option as it’s flexible. It’s also free from tax penalties and accrues interest. If needed, though, you can withdraw at any time.
- Employer Pension Plans. Not all employers offer one, but you should always take advantage if they do.
Retirement Savings Tips
Many people put off retirement planning but it’s overwhelming and scary and they don’t know where to start! You can’t neglect it forever, though. Even if you don’t have a perfect, well-structured plan in place yet, follow these basic tips and you’ll be on the right track:
- Pay off debt as fast as possible.
- Stick to a reasonable budget every month.
- Be smart about investing.
- Keep your spending habits in check.
- Maintain the best possible health coverage you can.
- Consult a financial planner for professional guidance.
Don’t Let Retirement Get You Down
It’s perfectly normal to feel stressed and overwhelmed at the concept of retirement. It doesn’t have to be difficult, though.
Get in touch with us here at Buckler Insurance and we’ll be there every step of the way.
