How much should I save? Will I have enough for retirement? How should I invest my money?
These questions will become increasingly important, as we get closer to retirement.
Company pensions make it possible to save in an effective manner, but you need to understand
how to invest your money and how much to contribute to live comfortably for the rest of your life.
Deciding on the lifestyle you wish to have during retirement is the most important step of this process.
Everything you will do to carry out your action plan will go toward achieving the financial goals required to live the retirement lifestyle you want.
Experts in financial planning believe that you will need 70% to 90% of your pre-retirement income during retirement in order to maintain your lifestyle.
This is because during retirement your living expenses may be lower: the mortgage is often paid, children have completed their education and left the home
and there are no longer work-related expenses.
However, you will need to factor in the impact of inflation and health related expenses which may increase over time.
If you are married, both partners should complete the Retirement Planner in order to reflect total household income.
Below is a list of some of the documents that may be useful in helping you complete the Retirement Planner. In many cases, using approximations should be adequate for the purpose of completing the retirement planner.
- Annual employment earnings
- Recent financial statements of all investments earmarked for retirement
- Statement of employer defined benefit pension plan (if applicable)
- Pension statement (if applicable)