We all want to retire from work with a peace of mind. However, that requires you to develop a
retirement planning process.
What is Retirement Planning Process?
Retirement planning process requires you to gather financial data, lifestyle information, and gain insight
into three main activities after retirement, leisure, volunteer work, and full or part-time paid
employment. Other questions you will need to answer during the retirement planning process include:
Determining the needs of income at the time of retirement
Identifying the time horizon and the time the person wants to retire from work
Figuring out the length of time the person needs their income
Looking at the present savings in the RRSP, TFSA, and non-registered funds
Determining the amount of money that the person needs to save each month to receive the
desired retirement income
We will help you answer these five questions to help you plan better for retirement.
Your Income Needs at the Time of Retirement
When you retire, you need to know how much money you will require to maintain a comfortable
lifestyle. You will need to determine the benchmarks. You will base the benchmarks on your pre-
retirement income. However, the benchmarks vary based on your income and age.
For instance, if you are 60 years old, you earn $65,000 each year, and your partner does not earn. You
should have five times the savings in your retirement fund, accumulating to $325,000. If you have less
than that in your retirement savings fund, you will not have enough money saved at the time of
Another example is if you are single with no one to support, you should have a lot more money saved, at
least 6.5 times the money you earn each year. A broker company with expertise in helping people
prepare for retirement can help you determine the income you require at the time of retirement.
The Time You Want to Retire from Work
You need to determine the best time for you to retire from work. To determine what the best age is for
you to retire, you need to look at the following factors:
Estimate the amount of money you spend each year, including periodic expenses
Add up all the sources of income you will receive after retirement, including the money you will
receive from the retirement funds you have established
You need to be realistic about the amount of money you can take out from your personal
savings and investments, if you have made any
If you have not reached retirement and think you need help, you can always go to a broker company,
providing guidance on the retirement planning process.
The Duration You Need Your Income during Retirement
You may live up to 30 years more after you retire. You need to ensure the money you receive from the
various income sources sustain you after retirement. In short, your money needs to last you as long as
you live. Since you cannot determine how long you will live after retirement, you can plan wisely on how
you will use the money you will receive after you retire.
For instance, the money you saved in the RRSP plan can pay for your home, food, and utility bills. The
money you receive from your work after retirement can go towards helping you maintain a comfortable
lifestyle, such as going on vacation. The assistance of a person who is an expert in this area can help you
determine how you should save and spend your money.
The Present Savings in the RRSP, TFSA, and Non-Registered Funds Most likely, you are part of one or more of these retirement funds. If you have yet to open one up, you should do it now. You can do it through a brokerage firm. If you have established one or more of them, a brokerage firm can look at the amount of money you have saved in them to determine how much more you would need to save for retirement.
The Amount of Money You Need to Save Each Month to Receive the Desired Income
You need to calculate all your expenses to determine the amount of money you need to save each
month to receive the desired income after retirement. When you go to a brokerage firm, they will look
at your spending to determine how much money you need to place in a savings account.
If you are not nearing the retirement age, it is important that you determine the amount of money you
need to live a good lifestyle after retirement. Start the retirement planning process now through a