Retirement planning in uncertain times

In today’s rapidly shifting economic landscape, planning for retirement has become more complex than ever. With fluctuating markets, rapidly evolving policies from the United States, and an unpredictable global economy, it can be difficult to figure out what your next move should be. 

The good news is, with careful planning and informed decision-making, you can still set yourself up for success in retirement. Here are some suggestions for weathering the financial storm we find ourselves in:

• Start with a clear plan
  Retirement planning begins with understanding your financial goals. Start by calculating how much money you'll need to maintain your desired lifestyle during retirement. You can find retirement calculators online, but nothing beats a consultation with a licensed financial advisor like the experts at Access Credit Union.
• Diversify your investments
  Diversification is key to reducing risk in volatile times. Instead of relying solely on one type of asset, such as stocks or real estate, consider a balanced mix of investments. Exchange-traded funds (ETFs), bonds, and Guaranteed Investment Certificates (GICs) are options that can provide stability alongside growth potential. Do not let yourself be caught off guard by going all in on a single investment.
• Go hard on tax-free accounts
  Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs) are some of the best tools out there for retirement saving. TFSA accounts are incredible tools allowing you to save your money – and keep it too! There are limits to how much you can deposit annually, but all withdrawals from a TFSA are tax-free. RRSPs are tax-deductible, helping you save money by reducing your taxable income when working. The only part to keep in mind is that withdrawals are considered taxable income, so be sure to talk to an expert about what you should do, and in what order.
• Stay informed on government benefits
  Familiarize yourself with programs like the Canada Pension Plan (CPP) and Old Age Security (OAS). Understanding how these benefits work and when to claim them is crucial. Delaying CPP withdrawals, for instance, can result in higher payouts later, which might be advantageous depending on your financial situation.
• Prioritize emergency savings
  A robust emergency fund can act as a much-needed financial cushion during uncertain times. If possible, aim to save three to six months’ worth of living expenses in a readily accessible account. One day it might be the difference-maker. 

If you have questions about retirement savings options, we'd be happy to help you. Book an appointment online or visit your local branch to discuss your options.