Thursday, 3 October 2013

10 Dos and Don'ts for your Retirement savings


The Federal Government wants to raise CPP contributions in order to make pension payments more lucrative when you retire. That means the maximum CPP contribution would rise to $4,681.20 a year from $2,356.20 starting in 2016. And the maximum annual benefit would increase to $23,400 from $12,150.

There is a lot you can still do to help you in your golden years. Here are some dos and don'ts for your retirement savings.

Do save 10% of your net income (that’s what you get after taxes).

Don’t expect the government will take care of you in your golden years.

Do expect to spend 80% or more in retirement of what you did in your working years.

Don’t let your financial adviser tell you your retirement savings are OK.

Do learn to invest your money and learn how it is working for you.

Don’t wait to save for your retirement – start now.

Do put money in your RRSP before you child’s RESP

Don’t feel bad about the last point.

Do assume your retirement will be expensive.

Don’t stress just start planning.

2 comments:

  1. Too late, worked for room and board most of my working life, then struggled through disability and part-time, casual, maternity leave filler inner, free lance etc. Now at 72 looking forward to starting a new job on Monday. Most of the women I know in my decade are working. At check-outs, doing food sampling displays, delivering flyers, barista-ing, stocking shelves. We all have university degrees, and had children, and no health coverage for our ailments. The truth about retirement is not golden, and it's not about that 15 percent or so you are referring to, who are male, or living off the avails of a male's wages. By that I don't mean they earnedf it, just that they worked all their lives for a woman's wage, or none. Look around at the retirement centres: women. So please start talking about how those who get to old age can manage to prepare for it, instead of telling those few who can afford an investment counseller and don't come for their retirement advice to a blog.

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