|
Essential tips for mature workers |
|
|
|
Retirement Planning:
For several years now, studies have shown that the Canadian labour force is shrinking. In fact, some conclude that we're now in a crisis situation. As a result, many older workers who would otherwise be retired have chosen to keep working. For some, it offers new challenges and a way to stay vital and sharp. But for others, it's a chance to ensure that they have considered all their financial needs for a successful retirement.
"Retired people today are living longer, more dynamic lives. So it's important to make sure that you've planned your retirement accordingly," said Michael Aziz, regional vice president of sales investment products at Desjardins Financial Security. "Today, mature
workers are often working well into their 80s. This provides them with a great opportunity to solidify their retirement plans, ensuring that their transition is financially sound."
Three easy steps
Retirement tends to span up to 30 years for the average retiree. These easy steps will help mature workers prepare for the next phase in their lives.
1) Estate planning: This ensures that your children and grandchildren receive a solid inheritance that isn't whittled away by after-death taxes.
2) Fine tune your retirement income strategy: At the age of 71, your RSP account must be collapsed into a RRIF or Registered Retirement Income Fund. The goal at this time should be to protect your assets while maintaining some flexibility. Take time to consider the different products available and select the one that best suits your needs.
3) Worry-free retirement funds: Consider investing in a guaranteed minimum withdrawal benefit (GMWB) product. It is an investment that offers capital growth and safety, while providing guaranteed withdrawals regardless of how the market performs. Contract holders may choose to withdraw seven per cent of their initial investment over 15 years. If the market is doing well, they have the option to increase the number of years they receive payments, or they can collapse their account. GMWB products are RIF eligible.
"People are now living longer, which can mean that retirement can last 20 to 30 years," said Aziz. "By implementing these essential strategies, they will find that their transition into retirement will be built on a solid financial foundation. And this truly is the secret to a happy and prosperous future."(NC)
-
|
