5 steps to a financially secure retirement

5 steps to a financially secure retirement

You may have heard a financial advisor say that “it’s never too early to think about retirement”. There are many ways to prepare financially for retirement, but they all begging with planning well before your retirement years approach. Planning for your retirement early ensures that you have the financial freedom to not only cover your expenses but to enjoy yourself. A well-thought-out plan will reduce the stress and anxiety that can come with dealing with finances after retirement.

Below we share 5 ways that can help you prepare financially for your retirement today!

1. Save a Portion of Every Pay Cheque

Ideally, you should be trying to save anywhere from 10% to 15% of your gross pay. There are numerous approaches to savings and retirement contributions depending on your employer. We recommend you discuss your options with a financial advisor, as they will be better able to provide you with a deeper understanding of how to save money for your retirement.

2. Manage Expenses

One of the best ways to prepare financially for retirement is by managing your expenses. Keeping track of how you spend your money and building a monthly budget can help you prevent unnecessary expenses. Don’t overlook budgeting for unexpected emergencies as well.

3. Investment

Investing part of your money can contribute to a financially secure retirement. We encourage you to discuss this with a financial advisor before making any decisions on this topic. Investments aren’t risk-free, so you need to know both the strengths and weaknesses of this activity. Stocks, bonds, mutual funds, or real estate can turn out to be an excellent opportunity to boost your savings. 

4. Set a Tentative Retirement Date

To help you prepare financially for retirement, choose an estimated retirement date. This date is not set in stone and can be delayed or moved up depending on your situation at the time. Having a retirement date in mind will help with your calculations and understanding how much money you will need to put aside annually to be able to live an enjoyable retirement.  

5. Have a Plan to Pay Off Your Debts

Paying off all your debts, including your mortgage before you reach the age of retirement means that you will be able to spend your savings on your day-to-day activities versus paying off loans. The additional expense associated with debt repayment can take a toll on your retirement savings. A financial advisor can help you put a plan together to ensure that your mortgage and other loans are all clear by the time you retire, while still being able to save for retirement.  

These are some of the ways you can prepare financially for retirement. Keep in mind that a personalized retirement plan is good to have as it will ensure you can live the retirement life you envisioned and will help make your retirement transition stress-free. If you have any questions about your retirement plan or if you are looking to start planning for your retirement, AWealth Management can help, call us today to schedule a risk-free consultation, 416-666-7264.