Prepare for a stress-free retirement

Don’t blink! Whether you’re just starting your career, or you’re a seasoned professional, retirement is closer than you think. Did you know that maintaining a comfortable standard of living after you retire means replacing about 70 percent of your annual income? Achieving that kind of income requires more than strategic investing, it means planning for the unexpected.

Follow our formula for a stress-free retirement.

Set your retirement goals now – the sooner, the better

Many adults create unnecessary headaches by assuming they have plenty of time. Yes, the plan you make today probably won’t look the same in 20, 30, or even 50 years, but by starting early, you can create a flexible strategy to meet your objectives regardless of what life throws at you.

In setting your goals, consider these questions:

• How will inflation impact my savings?
• What are my spending habits and how will they evolve?
• What is my life expectancy? How long will I need my retirement savings to last?

Determine how much you will receive from the Canada Pension Plan upon retirement

You can do this through the tools that available online from Service Canada. Factor this number into your goals, but don’t rely too heavily on it.

Expect the unexpected

Sudden illness, critical health issues, or disability can drastically change your financial situation - both during your career and once you have retired. Keep in mind any current health issues that may worsen as you age, as well as your family history. “Health issues account for 60 percent of early retirements, with unforeseen circumstances derailing long-term plans. There are ways to safeguard against this and they all start with insurance,” says Rob Stier, the marketing and product distribution manager at Western Life Assurance. “Different policies support disability and critical illness - and they fall outside typical plans. You should talk to your insurance advisor to see which one is right for you. The younger you are when deciding on a policy, the better for cost reduction and flexibility.”

Arm yourself with the right plan, and you can retire on your own terms - no matter what your future has in store.