5 mistakes to avoid when planning your retirement

1. Underestimating the cost of living in retirement

Many people think they will spend less... but in reality, travel, leisure, healthcare, and inflation can quickly eat away at the budget. You need to plan broadly.

2. Not establishing a clear plan

Planning for retirement isn’t just about "putting money aside". You need to know how much to save, where to invest, when to withdraw, etc. A well-defined plan makes all the difference. For this, you can make an appointment with me.

3. Delaying savings

Time is your best ally. The earlier you start, the more your money works for you through compound interest. Starting late makes the goal much more difficult (but not impossible).

4. Ignoring the impact of taxes

Withdrawing funds from your registered accounts without a strategy can be expensive in taxes. Long-term tax planning can help you avoid nasty surprises.

5. Thinking that the government will cover everything

Government programs like the QPP (Quebec Pension Plan), OAS (Old Age Security), and GIS (Guaranteed Income Supplement) can provide a good boost... but they are not designed to completely replace your work income. To maintain a comfortable standard of living in retirement, you must absolutely plan for personal savings (RRSP, TFSA, etc.) and, if possible, sources of passive income.

Planning means keeping your freedom. 💡