Setting an objective is one of the encouraging steps to have an ideal picture of retirement. According to Statistics Canada, Summer 2016 perspective and the Labor Force study, 49% of Canadians hope to retire before the age of 60. The objectives should be specific, measurable and reasonable. For example:
- When to plan for retirement?
- How does one want to spend on post-retirement?
- Are they looking forward to pursuit new hobbies?
- Are they looking for part-time or contract work after retirement?
- How much are they going to spend now?
- How much need to save for retirement?
- Where they want to live after retirement?
- Do they want to travel or plan to go for a long vacation?
- What’s their current financial situation?
- Determine the expected income from employer-sponsored pension plans, Canada Pension Plan, Old Age Security program?
The financial object includes things like a new car, a new home, extended vacation, and self-sufficient funds for a luxurious retirement. In addition, objectives need to be based on the current lifestyle and what changes to need to be made to gain the desired retirement. To have control over financial savings, one needs to avoid excessive debt, bankruptcy affects of a stock market crash or a lengthy illness. Regular monitoring of funds is an essential step of preparation for retirement by highlighting the major risk that lies ahead. The longer the time spent in retirement, the harder it becomes to be certain about the adequacy of the assets. The purpose is too explicit the retirement objective and secures retirement saving from an economic downturn or a stock market crash. Retirement planning needs to be monitored through the investment phase, accumulation phase, and withdrawal phase. It’s not just about the amount and duration of contribution, it’s about reaching the goal point under normal circumstances or under emergencies like a windfall gain like the share of family property, you can use the single premium option of the above plan. Retirement planning is always a healthy way of pooling in the funds, to cover any long-term care, economic conditions will require persistence update of financial knowledge and the new change in legal implications. Most of the time people get satisfied once they decided investment, but they forget that longer-term investment horizons need regular updates every three to five years. Even if the investments are performing as expected, exploit every angle to minimize the financial risk. While monitoring the retirement plan, keep this is in mind that the moment one achieved immediate or short-term financial goals, the next goal priority will come into focus and so on the process does not end. Assess the financial decisions including account statements, deviation in net income, inflation and Stock Exchange, etc.
|Personal risks||Healthcare risks||Public policy risks||Financial risks|
|Marital status||Medical bills||Higher taxes||Inflation|
|Longevity||Caregivers||Reduced benefits from Medicare||Fluctuating interest rates|
|Employment issues||Care||Pension plans||Stock market|
|Kids higher education||Emergency||Vesting age|