Post Retirement Planning – Have You Saved Enough?
As you approach retirement, it’s natural to start thinking about whether you have saved enough to support yourself in your golden years. Post-retirement planning is crucial in ensuring financial security and peace of mind during this phase of life. The key question that arises is: have you saved enough?
Saving for retirement is a topic that requires careful consideration and proactive action. It’s important to assess your current savings, investment strategies, and projected expenses to determine if you are on track to meet your retirement goals.
How Much Should You Have Saved for Retirement?
One of the most common questions people have when it comes to retirement is, “How much should I save for retirement?” While there isn’t a one-size-fits-all answer, it’s essential to establish a solid financial foundation to ensure a comfortable and secure retirement.
The amount of money you should have saved for retirement depends on various factors such as your desired lifestyle, expected expenses, and anticipated retirement age. However, it is often suggested that you should aim to replace 70-80% of your pre-retirement income to maintain a similar standard of living.
To determine how much you need to save, consider factors like your current age, expected retirement age, life expectancy, and any additional sources of income such as pensions or social security. It’s also crucial to account for inflation and potential healthcare costs in your calculations.
Saving for retirement requires discipline and consistency. Starting early allows you to take advantage of compounding income over time. Even if you’re starting late, it’s never too late to begin saving for your future.
What Do You Do if You Find Yourself Short on Savings?
Finding yourself short on savings for retirement can be daunting, but it’s important not to lose hope. With careful planning and proactive steps, you can still take control of your financial future and work towards a comfortable retirement.
The first step is to assess your current financial situation. Take a close look at your income, expenses, and any existing retirement savings you may have. This will give you a clear understanding of where you stand and help you identify areas where you can adjust.
Next, create a realistic budget that prioritizes saving for retirement. Look for where you can cut back on non-essential expenses and redirect those funds toward your essential expenses.
Additionally, taking advantage of CPP and any company pensions and of your RRSP or other savings accounts is also crucial. Maximize your CPP, company pension plan and RRSP contributions and save as much as you can in other accounts, especially if there are matching programs offered by your employer. These contributions often come with tax benefits and can significantly boost your savings over time.
Lastly, consider adjusting your expectations for retirement lifestyle if necessary. While having ample savings for all desired activities during retirement is ideal, being flexible and making necessary compromises can still lead to an enjoyable post-work life.
Increase Your Retirement Income
You could increase your retirement income by taking on additional work but you can also explore alternative sources of income such as investing in real estate or dividend-paying investments.
Investing in dividend-paying stocks can provide a steady flow of cash in the form of income. This income can either be withdrawn and used for daily expenses or it can be reinvested and help to further grow your savings. Working with a financial professional can help you achieve this hands-off approach to increasing your retirement income by constructing an appropriate portfolio comprised of dividend-paying stocks to meet your investment objectives, goals and time horizon.
Grow Your Retirement Savings with Bloom Investment Counsel, Inc.
Remember that it’s never too late to start saving for retirement or make changes to improve your current situation. By taking proactive steps today, even if you find yourself short on savings, you can still work towards securing a financially stable future during the golden years of life.
Established in 1985, Bloom Investment Counsel, Inc. is a Toronto-based independent, privately-owned boutique investment management firm with experience in managing more than $2.5B in assets over the years.
For over 25 years, we have specialized in one thing and strive to be the best at it—investing in income-generating investments, specifically dividend-paying stocks, which can help you generate income, if needed, and growth from investing in the stock market.
We provide actively managed, customized Canadian and U.S. dividend-paying portfolios for wealthy individuals, family offices, foundations, corporations, institutions, and trusts.
If you are looking for a personal investment management service to help you save for retirement, let’s talk. Call us at +1-416-861-9941 or email us at info@bloominvestmentcounsel.com
This content is provided for general informational purposes only and does not constitute financial, investment, tax, legal or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this content should consult with his or her financial partner or advisor.