Be well prepared to enjoy his retirement

February 2, 2019

Bien se préparer pour mieux profiter de sa retraite

Photo: Unsplash

This text is part of a special booklet.

At the time of retirement, to maintain their way of life, a person should be able to count on approximately 70 % of the average gross annual income for its last three years of work. Widely distributed, that scale is, however, only an approximation. Depending on the habits of life of an individual, its projects and its financial situation, the income needed after the active life remains very variable.

Retirement Québec reminds us that ” what is essential for one may be considered a luxury for the other. Therefore, each should decide on the income that he will have by looking at the expression “be enough”, because the difference of appreciation in the matter is as great as when it comes to evaluating the price of a property and the value accorded to “. This year wins of course to be undertaken well before the age of retirement.

“Do not postpone for later what you can do now” really has any meaning with respect to financial planning. It is important to find answers to a set of questions during its active life and return to it regularly. “To take stock of its commitments and the family situation is an approach that is closer to the medical assessment : this is the best way to act in a preventive manner,” says Retired Quebec.

Here are some tools and information to help you assess your needs and make the right decisions for you.

A few financial planning tools

Easily accessible, these financial planning tools can serve as a starting point for any person wishing to undertake a process in order to prepare for retirement :

SimulRTool simplified interactive simulation of retirement income

SimulRetraitecustom Tool designed to obtain a complete picture of its financial situation in retirement, and to see the sources of possible income

Guide to financial planning for retirement a comprehensive Guide to download for the financial planning published by Question Retraite

Capsules information Flash Retirement Directory composed of a 52-capsules information on financial planning for retirement

Ensure that it is a graduate of the Institut québécois de planification financière (IQPF).

Check with the financial markets Authority if the person is authorised to exercise.

Other specialists can also be put to contribution in the field of personal finance. The capsule Flash Retirement Pension Quebec Choose the best consultant for you can see it more clearly.

“A good financial planner must learn to be familiar with the client and is able to establish with him a relationship of trust. It is also a person who has the ability to explain the financial concepts and who takes care to put the customer in contact with some specialists when needed, ” added Jean-Philippe Joncas and Louis Lepage, tax specialists in tax and estate planning at Industrial Alliance financial Group.

It may be wise to consult a financial planner to ensure a comfortable retirement. In addition to help each person clarify their needs for retirement, the planner proposes solutions, strategies, savings and disbursement in order to achieve the identified targets, taking into account the financial resources available, income taxes payable, etc

Ultimately, he proposes a plan of action which coordinates the implementation. It also proposes an action plan that it coordinates the application and its services are usually free since the fees are built in to the sale of products.

Are you single, married, common-law spouse, with or without children ? Are they still at home ? Are you part of a blended family ?

Do you support financially your parents ?

Are you self-employed ? Do you have a supplemental pension plan (pension fund)? Is this plan a defined benefit or defined contribution ?

What is the state of your income and expenses ? What is your current level of savings ?

How much are your savings in an RRSP and non-RRSP ?

Your mortgage is paid off ? Are you going to sell or renovate your home ?

How many vehicles do you have ?

Will return you to the studies ? Do you intend to travel ?

Will you take a partial or full retirement ? In how many years ?

Source : Pension Quebec

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