Will your pension plan fulfill your retirement needs?

Even if you’re fortunate enough to have a pension, you need to think about your financial security when you retire and make sure you have enough income to meet your needs.

It’s important to understand what type of pension plan you have when you begin to plan for your retirement. Some plans offer a fixed monthly payment while others need to be converted into periodic payments upon retirement. Whatever plan you have, make sure all your sources of retirement income will last a lifetime.

When you are creating a retirement plan, take time to consider these questions:

• How much do I need?
• The amount you will need to save will depend on what you want to do when you retire. Do you plan to stay at home? Do you plan to travel? Have you paid off your mortgage?
• How long do I need it for?
• When thinking about retirement it’s important to plot a time horizon. Think about how long you expect to live. It’s important you don’t underestimate your life span; you don’t want to run out of money early.
• What are my sources of income?
• If you’ve contributed to the Canadian Pension Plan (CPP) over your working career you are entitled to receive those benefits. You could also be eligible for other government benefits, including Old Age Security (OAS) and Guaranteed Income Supplement (GIS).

Don’t forget to include Registered Retirement Savings Plans (RRSPs) or other investments you might have that will supplement your income.