How to Prepare for Retirement in Canada
Posted by Ocean Wealth
We’ve got it pretty good up here. There’s a reason why Canada consistently ranks as one of the best countries to live in. It’s so highly regarded that the 2019 Best Countries Rankings by U.S. News and World Report ranked it ahead of Sweden and Denmark for quality of life. There's no denying the gentle allure of the Great White North.
If you’re lucky enough to call Canada home, you might be even luckier to retire here. Whatever province you decide to do it in, there’s something special in each one. Unfortunately, a lot of us don’t even seem to have a plan of how retirement will play out. It’s even been said that 6 out of 10 Canadians have no plans for retirement.
Whether you’re planning to retreat to the picturesque west coast, the friendly east coast, or anywhere in-between — you need to be prepared. Retirement planning may not be the easiest thing to engage in, but there are certain aspects of it you need to consider. That’s why we’re here to help prepare you for retirement in Canada.
Map Out Your Retirement Lifestyle
Everyone has different things they want to do in retirement. Some people love to travel, and others like to stay put. The important part is to know what you want ahead of time. That way, you can carry out your financial planning accordingly and in anticipation of retirement. It doesn’t have to be an extremely detailed plan either. It can be as simple as a retirement vision or overall direction outside the workforce.
You should do this no matter where you live, and Canada is no exception. For example, if you own a large home in Victoria, you may realize that you don’t have the same need you had for it 10-15 years ago when the kids were still around. Perhaps you want to downsize and move to another area of the province, such as the Okanagan. Or you want to move to be closer to family outside of the province, like in Alberta or Ontario. There are dozens of different retirement scenarios out there.
Minimize Debt While You’re Working
This one might be easier said than done — but it’s some essential food for thought. According to a CIBC poll, about 59% of retirees are in debt, and 19% of that number says their debt has grown in the last year. While it may be impossible to entirely rid yourself of debt when you retire, minimizing it should be a priority.
It’s unlikely that the retirement lifestyle you’re looking for includes a pile of debt. That’s why you need to be chipping away at it when your earnings are still at their full capacity. In retirement, you’re only making a fraction of what you did as a full-time worker. If you’re finding it tough to manage your own wealth, speaking with a financial advisor. They might also be able to give you some perspective on your overall financial situation.
Sit Down with a Financial Advisor
Canada is home to some of the best and most highly qualified financial advisors in the world. Use that to your advantage. These professionals are a phenomenal resource that you can utilize on your financial planning journey. If you’re not sure how you’re going to function during retirement, a financial advisor can step in and offer the proper guidance.
In fact, we’ll make it extra easy for you. Get in touch with us today, and we’ll set you up with one of our trusted advisors with years of experience in financial planning for retirement. Let’s grab a coffee and talk about how we can help you secure the best financial future for your retirement.