Retirement is not what it used to be in our parents’ time. Today, you can stop working before age 60 or 65, or retire gradually to fulfill a dream or start new projects. Regardless of your situation, your goals and your needs, anything is possible as long as you’re well prepared. What’s your dream scenario?
LL.M. Fisc., F. Pl., TEP
Practice Leader, Financial Planning and Taxation
Make a plan
We spend a lot of time planning a trip in order to have a worry-free vacation. We should put as much effort into planning our retirement to ensure that it will be enjoyable.
My retirement goals
What type of retirement are you looking forward to?
Life expectancy is increasing in Canada, as is the retirement period, which can be 30 years or longer, as the case may be. At what age will you retire? What will you do: live abroad, travel, continue to work part time? Will you have enough money to maintain your lifestyle? How will your family be impacted? Have you considered the tax aspects? These are just some of the points to consider when planning for this important stage of your life.
Your vision, your finances
Generally, to maintain the same lifestyle in retirement, you will need the equivalent of at least 70% of your average gross annual income during your last three years of work. However, to determine how much you will need to replace your gross income, you must first estimate your retirement expenses. Some will decrease, others increase.
It’s important to think about your future retirement and to establish at least one expenditure budget scenario. Sometimes it’s easier if you separate your fixed expenditures (electricity, heating, taxes) from your variable expenditures.
To get clear picture
When your scenario is established, your advisor can prepare a retirement income projection taking all factors into account:
- Risk tolerance
- QPP and OAS
- Insurance, etc.
This will give you a very clear picture of your situation and any adjustments that have to be made.
My action plan
To achieve the lifestyle of your dreams, and enjoy peace of mind, you need strategies tailored to your retirement scenarios. Don’t hesitate to consult our experts for advice.
Do you have realistic goals? Our specialists can help you determine the savings capacity required to achieve the lifestyle you want and to carry out your projects. You’ll need a personalized action plan to assess the feasibility of retirement (projection), and you may have to consider alternative scenarios, such as:
- raising your retirement age
- lowering your retirement income level
- saving more
- selling assets
Maximize your income
Once your financial planner has helped you assess your budget and given you a better idea of your sources of retirement income, you need a good strategy to maximize your income for retirement, while reducing the tax impact. A good habit is to review your investment portfolio with this in mind.
Creating more wealth for you and your loved ones
You worked hard throughout your professional life to accumulate substantial family wealth. Let us help you protect it with family pricing, so that you and your loved ones can fully enjoy it.
With Professionals’ Financial family pricing, you’ll enjoy valuable benefits, including:
- An attractive reduction on your management fees, which also applies to the investments of your spouse, your children and your grandchildren*
- The possibility of perpetuating this privilege, so that future generations of your family can benefit
- Consolidation and growth of your individual and family wealth
*Certain conditions apply.
For more details on this solution and to know if it is suitable for you, get in touch with one of our advisors.
Planning for the future
There are other important aspects to consider when you retire, particularly the steps to take to protect your wealth and prepare for its transfer. You want to make sure that your decisions will be respected and that your heirs will not be penalized. Key steps to take include:
- Estate planning
- Will preparation
- Protection mandate
- Tax optimization according to your situation by establishing a trust, selling or transferring assets, planned giving, etc.
Our will preparation assistance service and our team of experts can help you with these essential steps.
Have you made good progress in your plan?
Which steps have been completed?
Define my retirement goals
Prepare my budget expenditure scenario
Maximize my income
Build my family wealth
The next steps
Regardless of whether you are at the beginning or end of your career, the key is to be well prepared for your retirement. To avoid being caught short, get in touch with one of our advisors.
Beyond taxation, master this new stage of your life by participating in customized conferences organized each year by Professionals’ Financial. Register for a Retirement Planning Weekend, a series of dynamic workshops that deal with the realities of professionals and that focus on different aspects of retirement (psychological, social, taxation, investment, insurance, estate, etc.).
Our suggested readings
Learn more about retirement planning!