Good retirement planning is a cornerstone of long-term financial health.
Advice on planning for retirement often boils down to the same simple rule: start yesterday.
While this is certainly great advice to follow, there is much more to planning for your retirement than simply being an early bird. Retirement planning involves and influences any number of financial decisions you make during your working years, not least of which are decisions relating to your pension 鈥� assuming you鈥檙e among the estimated 40 per cent of British Columbians lucky enough to have one.
Q: I have a pension through my employer. Do I still need to save?
Short answer? Yes. Pensions, though fantastic when you have them, aren鈥檛 something you can necessarily depend on, as they can be subject to unexpected changes by your employer or, in a worse-case scenario, even become insolvent.
When opting into a pension, it鈥檚 also important to know what it is you鈥檙e getting into.
For example, do you ultimately want a set amount of monthly income from your pension plan, or would you prefer a more flexible option?
Do you want the option of naming a beneficiary other than your spouse, such as your children or a charitable organization? How many years of service will you need in order to avoid having a reduced pension? What happens if you change jobs?
Remember, pensions are not one-size-fits-all, and finding out the details will help you make the most of your options.
For more tips on planning for your retirement, go to vancity.com/tchealthchallenge.
Vancity
