Income for Retirement: Keeping the Dreams Within Reach

No matter what stage of your life you are at, whether it be just starting out, settling into your dream career, or on the verge of retirement, you need to make sure that your financial planning ensures your income for retirement. Not only should you be asking “how much money do I need to retire,” but also, “how can I save that money?” It is always smart to be ready for anything. 

With proper retirement planning, you can be sure that your income for retirement will allow you to relax and enjoy your time off. Whether you are planning to take that relaxing cruise down the Mediterranean every February, stopping off in Monte Carlo for a few nights, or just want to be sure that you can provide for your family while still keeping up your regular social life around town, you have to make sure that the funds necessary to maintain these lifestyles are available.

In order to answer the question how much money do I need to retire, there are many things to consider when you start planning your income for retirement. Your age, any dependents, and what kind of lifestyle you want to have are all factors that will influence the amount of money you put away each month or the types of strategies you adopt in order to secure income for retirement.

One of the smartest ways to ensure your income for retirement is through an annuity. By purchasing an annuity, you are basically securing guaranteed income on retirement. How? By making set monthly payments, you are guaranteed a lump sum payout when you retire. This means that you are continually putting away extra money each month, and once you can finally give up that day job you have access to those funds to use whichever way you want – whether it be the Italian Coast or your own backyard.

In answer to how much money do I need to retire, let us say this: everyone is different, but the choices that you make during your retirement planning will greatly impact your ability to relax during retirement and ensure that you have access to the funds that will allow you to keep doing what you enjoy. 

Are you asking yourself how much money do I need to retire? Solve the riddle that so many struggle with the easy way – speak to your insurance broker about guaranteed income on retirement annuities.

Take a look outside. Chances are this is not the type of weather that you will always want to enjoy over the long Canadian winter months. Keep those dreams of yearly snowbird trips alive by planning smart for your income for retirement.

For more information on how to answer the question “how much money do I need to retire,” or to start planning your income for retirement, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

New CPP Rules – Do You Really Want Your Future to Depend on the Government?

Retirement planning is so important because things change overtime and there is no guarantee what type of government benefits will be available to you once you finally reach the age of retirement. The younger you are the wider that gap and planning for retirement at a younger age is less expensive and gives you more time to ensure that you are prepared and financially stable once you are ready to retire. 

Just this year some good news was reported about Canada Pension Plan benefits. As of this year, you no longer have to stop working to draw CPP. You can simultaneously receive and accrue CPP benefits between the ages of 60 and 70, which means you have increased potential to improve your retirement finances. 

Beginning January 1 of this year, you can continue to work while collecting CPP benefits. The old rules stipulating that you had to stop working to collect early CPP benefits no longer apply.

If you’re between 60 and 65, employee and employer contributions to CPP will still be required. However, if you work between the ages of 65 and 70, contributions will be optional. If you want to continue to contribute to CPP as an employee, your employer must also continue to contribute.

For residents of Quebec, similar rules apply under the Quebec Pension Plan (QPP). QPP allows for “phased” retirement between the ages of 60 and 65. To collect QPP before age 65, your estimated employment earnings for the first 12 months during which a pension is paid must not exceed $12,075 in 2011 (other conditions apply). You will continue to contribute to the plan, which will provide you with a retirement pension supplement the following year.

While the new CPP changes mean good news for people coming up to retirement, does that guarantee that CPP coverage will exist at all once 20, 30 and 40 somethings are coming up to retirement?

In recent weeks, news outlets including the London Community News reported protests that took place at MP’s offices around the province. These protest occurred because while there have been some positive reforms to CPP, the Harper Government recently announced plans to increase the retirement age from 65 to 67 and cut Old Age Security (OAS) benefits.

Because we contribute taxes to coverage’s that the government may provide today does not guarantee that they will be there tomorrow. Even when you look at the monthly income one receives on CPP and OAS now, it is barely enough to survive. The best thing a family can do is work with their insurance provider to come up with an insurance strategy that deals with both what will happen if you die but also what will happen if you end up living a long, long life. There is insurance available that can provide income, protects income, provides long term care, protects you against critical illness and more so it is very important if you want to guarantee comfort in life and in retirement that you start planning and preparing now.

For more information about the new CPP and OAS rules or to discuss your long term financial planning please call IFCG at 416-849-1653 or visit www.wecoveryou.ca

Retirement Planning in Canada - How to Talk to Your Parents About Their Retirement Plans

At some point, you’ll need to have “the talk” with your parents about their finances and their financial future. Retirement planning in Canada is the only way for them to keep their financial future on a solid foundation and for you to prepare yourself to provide the help they might need as they grow older.

Helping your parents make a retirement plan is about their needs, not yours, and retirement planning is not always an easy discussion to have. Parents may see your attempt to discuss their retirement plans as an intrusion - especially in families where talking about money is taboo. They may even fear that you’re trying to take control of their money. But it’s important because one or both of your parents may become ill or incapacitated and unable to manage their finances in the future.

In addition, the health care in Ontario leaves much to be desired and so if your parents want to retire in comfort, a strong retirement plan will be key. Retirement planning in Canada could consider their life insurance needs, long term care planning, critical illness coverage and more. It all depends on your parent’s health, financial circumstances and future desires.

They should be aware that without thoughtful planning, how they are cared for at that time could be entirely out of their control. It’s about their needs, their comfort and how they want to be cared for.

Don’t wait for a crisis. Talking to your parents and planning ahead for their retirement will help make sure their wishes are carried out, and potentially eliminate squabbles among family members if your parent’s wishes aren’t clear.

Retirement planning in Canada is really important and helping your parents see the benefits when making their retirement plans can make the conversation much easier.

You can avoid problems and alleviate worries concerning their retirement planning by showing your parents the benefits of sharing their financial information. Let them know that it will be easier for you to help them in the future if you have the information now. Stress that it’s important for them and their family, financially and emotionally. Some discussion points when discussing retirement planning in Canada include:

• Do your parents have up-to-date wills? If so, where are they kept?

• Do they each have powers of attorney (both for property and health care)?

• Who are the executors in their wills, and has this decision been reviewed lately?

• Will they have enough funds to continue living comfortably? To plan, they need to provide details of assets, liabilities, income and expenses, and details of financial accounts — or at least where accounts are held. As well, contact information for financial and legal advisors is necessary.

Don’t be afraid to seek expert advice. We can prepare you for a talk with your parents about finances. And if it will help, we can be part of the discussion. For more information about retirement planning in Canada and helping your parents make their retirement plans contact Gary Mandel by calling (416) 849-1653 or by visiting www.wecoveryou.ca