Retirement planning
Plan: for peace of mind
It’s never too early or too late to plan for your retirement. We have different options available to help optimize the management of your estate, based on your specific needs. Our comprehensive retirement-planning approach will help your investment by delivering two key benefits.
First, you’ll know once and for all if your level of savings matches your retirement goals. Can you move your retirement forward, or should you push it back in order to save more? Some people don’t invest enough, while others overestimate how much they need to retire. Our job is to steer you right.
Second, comprehensive retirement planning also involves tax planning that aims to minimize your taxes while maximizing your access to annuities and government programs. You also need to optimize how you withdraw from your fund sources at retirement (such as pension funds, RRSPs, TFSAs, non-registered accounts, management companies, and so on). This will ensure the most comfortable retirement possible. Let us help you get there!
A retirement plan that meets your expectations
In this initial step, we’ll compile an inventory of all your assets. We will also sit down to discuss the following:
- At what age would you like to retire?
- Do you have a pension fund? If so, what kind?
- Retraite Québec or the Canada Pension Plan (CPP)?
- How many years have you been contributing to these programs?
- How much are your contributions, and how much retirement pension do you wish to receive from Retraite Québec or the CPP?
- Do you have other retirement revenue sources?
- Are you in good health?
- What do you want to do when you retire?
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Do you want to maintain your current lifestyle when you retire? In that case, most financial-planning specialists estimate you’ll need about 70% of your gross annual income for the last three years that you worked. This is known as the replacement rate. For example, if your annual salary is $60,000 during this period, you will need $42,000 per year to live.
Why 70%? Once you’ve retired, some of your expenses will disappear—such as contributions to the Quebec Pension Plan and, when you’re over 71, to your Registered Retirement Savings Plan (RRSP). You will also cease to pay for employment insurance and group insurance, plus you will be paying less on your income tax.
Why 70%? Once you’ve retired, some of your expenses will disappear—such as contributions to the Quebec Pension Plan and, when you’re over 71, to your Registered Retirement Savings Plan (RRSP). You will also cease to pay for employment insurance and group insurance, plus you will be paying less on your income tax.
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Once we sit down together, we will begin to build different potential scenarios for you. The first may, for example, outline what retiring at 60 would look like, compared to retiring at 65. The revenue sources you’ll need when you retire may come from public pension programs (such as the Quebec Pension Plan and Old Age Security), a complementary retirement plan (pension fund), as well as your personal savings. Our calculations take inflation into account, meaning the increase in the price of consumer goods, as well as the length of your retirement. Since life expectancy continues to increase, you may be enjoying retirement for a long time.
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In this step of the process, you will be able to visualize what the total of your retirement revenue looks like, as well as where it comes from. We can also adjust as needed to provide you with the most accurate retirement picture to meet your needs.
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We will regularly follow up on your plan, based on how your situation changes, to ensure it continues to meet your goals.
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We value your opinion
If you have questions or comments, or would like a second opinion on your portfolio and investments, please get in touch. It’s completely free with no commitment.