Retirement, as we all know and look forward to, is the point in a persons life where they stop employment completely. For most retirees, this point will be at around age 65, which is when they become eligible to receive pension benefits and financial assistance from the government. Retirement is a relatively new concept, first introduced in Germany in 1889.
Before this time, a lack of pension arrangements, as well as lower life expectancy, meant that most people would continue working right up until death. The most important thing to remember for when it comes time to hang it up is that a retiree is dependent upon a fixed income. With regards to the CPP, or the Canadian Pension Plan, you make payments into your pension over the course of your working history which contribute to the amount you’ll be eligible to receive come retirement.
No matter what point you’re at in your life, it’s always a good idea to start saving for retirement now. Whatever amount you can put away helps to supplement the income you receive from pension plans, allowing you to afford more comforts and luxury than you would if you were relying solely on fixed income. While it can be difficult to figure out exactly how much to put away to ensure a comfortable retirement, it is possible. You can plan for what kind of standard of living you want to have when the time comes, and calculate what kind of sum would be required to make that possible.
If you’re looking for advice or information in or around Victoria BC, retirement advisors can be an especially helpful source of knowledge. View our member offers below for more information.