Even if you love your job and your life right now, most people dream about what life will be like when they retire. For some, that dream includes travel. Lots of travel. For others, it’s a house in the county where they can enjoy everything nature has to offer right at home. Whatever your dream retirement looks like, one thing is the same for everyone – you’ll need to fund that dream. How much will you need? And, where will the money come from? Those are questions that you can begin to answer today.
It all adds up
Retirement experts recommend that you aim to replace 50 to 70 per cent of your income in retirement to maintain a similar living standard.1 For most Canadians, this income replacement will come from a combination of these sources: savings in their RRSPs, TFSAs or other investments, CPP/QPP, and possibly a pension from your place of employment. It is important to note, however, that for a variety of reasons, many people are not meeting that savings goal.1 Are you one of those people?
The savings bucket
While about 68% of Canadians are putting some money away for their retirement, this same group is worried that they may not be saving enough, according to a recent Scotiabank Retirement Survey.2 Are you saving enough to have the retirement you’re dreaming about? If not, there is something you can do right now to help build your nest egg for the future!
The pension bucket
Are you one of the lucky 37% of Canadians who will enjoy the financial benefits of an employee-sponsored pension plan when you retire? That would be a nice little boost to your retirement income, wouldn’t it? Or would it? These days even a company-sponsored pension plan may not be guaranteed, so it’s important that you take the lead in securing your own sources of retirement income.3
You’ve paid into it your whole working life and now it’s time to reap the benefits! But CPP/QPP was designed to replace approximately 25% of your earnings from employment during your retirement years. And it has a maximum. Not exactly enough to fund all those travel dreams!
You can help built that retirement nest egg today
Now that you know your savings, CPP/QPP and pension income may not be enough to fund the retirement of your dreams, you may want to consider a universal life (UL) insurance policy as an additional way to help protect what you have today, while supplementing a more comfortable tomorrow. Your financial advisor can help you understand how a UL policy can provide you with a potential source of supplemental retirement income and how Living Benefits,4 an additional, no-cost benefit included with an ivari UL policy, can significantly add to your peace-of-mind when you are older.
References and Notes
- Under the Income Tax Act (Canada) and at the date of publication of this website, the receipt of Living Benefits is not currently taxable. ivari does not guarantee nor is it responsible for the tax treatment applicable to this policy feature. Please consult your legal or tax advisor for an opinion on this matter in relation to your particular circumstances.
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This material may contain information obtained from third-party sources. While reasonable efforts have been made at the time of publication to ensure that the contents of this material have been derived from reliable and accurate sources, including third party sources, ivari provides the information “AS IS” and ivari does not warrant the accuracy, completeness, usefulness, or timeliness of the information contained herein.
- Personal finance and saving