Retirement Planning – Be Future Ready! Contrary to popular belief, retirement planning should begin as soon as you start working. However, even if you are middle-aged or older, it’s never too late to start taking control of this important planning. 2020 is a sobering reminder of how unsettling not being prepared can feel. While we cannot prepare for everything life throws at us, there is much that is in our control. Retirement planning is a good example. Here are some simple, yet important, questions to think about now as you plan for your retirement: What is your retirement vision? Have you set goals? What will you do with your new freedom? Have you thought of short-term or long-term goals? Do you have a dream list? If you want to semi-retire, what part-time work makes sense for you? How much extra income would you like, or need, to make?What post-retirement responsibilities will you have? Will you be supporting children, aging parents, or other family members? Now for the elephant in the room: “How much money will you need?” Consider your current lifestyle. What are your ACTUAL expenses monthly and annually? If you’re uncertain, start tracking them now – you may be surprised.When budgeting, don’t forget the details – everything from vacations, to car purchases, to clothing.Factor in inflation. 2020 is a good example of how prices rise each year.Scope out big family events – upcoming weddings, anniversaries, etc.Plan for unexpected costs, such as dental work, home and car repair, etc.How is your present health? How long do you expect to live? What will be your sources of income? Consider whether you will be eligible for CPP, OAS, or employer-sponsored pension.Review your existing investment portfolio such as RRSP/RRIF, TFSA, non-registered investment accounts and personal savings. Maximize savings now by investing early to take advantage of compound earnings.If you are a business owner, how long will you be able to draw salaries or dividends from your corporation? Tax planning questions How can you minimize taxes during your retirement? Are your investments and other sources of income structured in the most tax-efficient manner?Do you understand the differences between an RRSP, RRIF and TFSA, as well as their tax treatment in retirement?When should you apply for benefits under CPP and OAS? Keep in mind, the age you start to receive CPP benefits will impact the amount of payment you will receive.Are there specialized tax credits or tax planning available upon retirement? For example, depending on your situation, you may be able to share CPP and split pension income with your spouse. Wondering where to start, or how to move forward? Feeling confused is totally understandable! During this COVID crisis investment portfolios were severely impacted, but then bounced back strongly. Many who had plans to retire may have decided to postpone their plan, while others were forced into retirement due to layoffs. Other Canadians are simply not ready because of large debts, or insufficient savings. Even Canadians who have been diligent savers simply don’t know where to begin when it comes to retirement planning. Have no fear – SYC is here! We have been providing retirement planning services for years. So if your goal is to be “future ready”, don’t delay! Call one of our team members and take the first step.