How to set retirement goals

Having clear retirement objectives can help you save for the future. Here’s how to set achievable goals for this chapter in your life.

Budget for retirement
Do you know how you want to spend your retirement? While certain expenses will disappear, others will increase. Having an idea of what you want your lifestyle to look like will help you determine how much money you’ll need to live on each year when you’re retired.

Estimate the length of your retirement
Once you know how much you plan to spend annually, you’ll need to estimate the number of years you’ll spend in retirement. This will help you determine when you can retire. The current life expectancy in Canada is approximately 80 years for men and 84 years for women. If you retire at age 65, you can expect to live another 15 to 19 years on average.

Determine how much you need to save
It’s recommended that you set aside at least 10 percent of your net annual income for retirement. This amount will vary depending on your age when you start saving, the rate of return on your investments, and your retirement budget.

If you’re struggling to achieve your goals, don’t hesitate to consult a financial adviser. A professional can help you come up with a winning strategy to achieve your objectives.