With its "Freedom 55" ad, London Life made age the most important factor when it came to retirement.
Oh, how things have changed in recent years. We talk less and less about the age of retirement (except for our politicians), but about the concept of retirement. What is retirement today and what kind of retirement do people envision?
What is retirement?
Bye Bye Boss: Many people will be able to retire by suddenly cutting their employment ties. But for many it's a whole other thing. I invite you to read this excellent article from the Journal Le bel Âge which sums it up as follows: "Retirement is meaningless if it's just for fun. We must continue to learn, to realize our potential and to be useful to society.
Our society requires us to live at 100 miles per hour. Do you think you'll be able to drop to zero in retirement? Some retirees go back to work to fight boredom, but others because of lack of money, I agree.
Retirement is not just about age anymore! What will I do with my time and will I have enough money?
Assessing your financial needs in retirement.
A thorny question if ever there was one.
Take a blank piece of paper and divide it into two vertical columns. On the left: How much does it cost me today for...clothes, food, etc.? In the right column, how much will it cost me in retirement? Don't forget the extras (travel...). Do the same thing for income and estimate your annual deficit that you will have to make up from your retirement fund.
Simplistic, you may ask? Perhaps. But when it comes to your dream retirement, you're the expert!
Let's talk about it together!
TFSA or RRSP
This is another question that is increasingly debated by the experts. If your taxable income (earned income minus basic exemptions) is under $50,000, your tax refund will be around 35% for every dollar invested in an RRSP. When the time comes to withdraw money from your RRIF at retirement, you will be taxed on both the capital invested and its growth.
The money in a TFSA is not tax deductible, we agree, but neither the capital nor the growth of the capital will increase your withdrawals or affect your Old Age Security pension or your Guaranteed Minimum Income.
RRSPs and TFSAs should be part of your retirement strategy, regardless of your income level.
Let's talk about it together!
Disability insurance
You're 35, 40, 50 years old and we have a retirement strategy that allows you to plan for a happy retirement without sacrificing the present. What happens to that plan if you become disabled and unable to work for an extended period of time? For many experts, disability insurance is as important a financial strategy as life insurance.
Let's talk about it together!
When it comes to my retirement, I'm no longer talking about Freedom 55, but Freedom!