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Common Roadblocks in Retirement Planning

Common Roadblocks in Retirement Planning,

It is never too early to start planning for retirement, but thinking about the future while navigating the present can seem daunting, so we'd like to help. A chartered professional accountant in Surrey would provide retirement planning and other financial services that can help you navigate your plan. Over the course of our many years in business, many retirement planning specialists in Surrey have witnessed some common retirement planning roadblocks that they'd like to help you avoid on your journey through life.

Five Retirement Planning Roadblocks

  1. Lack of Plans. It's nearly impossible to follow a plan that doesn't exist. So if you haven't thought about the steps you need to take in order to help you live comfortably in your retirement years, now is the time. If you don't know where to start, find a chartered professional accountant who specializes in retirement planning services and then reach out for support. You don't have to figure it all out on your own.
  2. Significant Debt. Heading into retirement is not the time to start adding significant debts to your household. If you still have many years before you stop working for good, take the opportunity now to calculate how feasible it is to pay off large debts (mortgages, lines of credit) prior to retirement. If your anticipated retirement date is soon approaching, take stock of the debt you are still carrying and think about ways to pay it down as much as possible before your income takes a hit upon retirement. Think about possibly downsizing your home to lighten your debt load and free up savings.
  3. Not Contributing to Your RRSP Regularly. The sooner you start contributing to an RRSP, the more time your savings have to grow tax-free. While it may seem difficult to make your maximum contribution every year, breaking it down into regular, smaller contributions is a great way for savings to add up without your pocketbook feeling the hit.Retired couple playing jenga during retirement
  4. Neglecting to Think About Retirement Goals. Once your professional life is over are you planning to finally live a jet-set lifestyle and spend your days travelling the world? Or are you aiming for a quiet life, perhaps with a small post-retirement hobby that adds a few dollars to your pockets every month? Think about how you live your life now and how you would like to live your life in retirement. This will help determine how much you need to save in order to achieve your retirement goals. Speak with an advisor - they'll be able to tell you if you're on the right track.
  5. Lack of Adjustments as Retirement Approaches. If you are getting an early start to retirement planning, a little investment risk will probably pay off in higher returns, but if you're getting a later start or the date of your retirement is approaching sooner than later, it's a good idea to use a lower risk investment strategy.

Have questions? A Surrey CPA is here to help. Planning for a successful retirement isn't something that most people do completely on their own. In Surrey, BC, many Chartered Professional Accountants can help you plan how you will fund your retirement and help you achieve your financial goals.

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August 31st 2023