by Natalie Grignon
More and more baby boomers are asking that question as they head toward retirement. The rule of thumb is that you will need about 70% of your pre-retirement income. But today retirement is measured in decades, not years. So the biggest cash flow drain for many retirees may not be an extravagant lifestyle but their own healthy longevity.
WILL I BE READY?
- Six out of ten Canadians feel they have not saved enough to comfortably retire.*
- Almost 60 percent of those near retirement (55-64 years of age), and a little over 40 percent of those aged 65+ feel they have not put enough money aside.*
*“Majority of Canadians Feel They Can’t Afford to Retire,” Conference Board of Canada, October 2014.
Achieving financial independence and enjoying a comfortable retirement depends on your ability to set money aside today for tomorrow – while establishing a sound and disciplined program to ensure that your investments grow. When managed properly, the tax-sheltered advantage of a Registered Retirement Savings Plan can result in growth superior to that of a non-registered account.
The maximum contribution limit for 2017 is $26,010. However, if you did not use all of your RRSP deduction limit for the years 1991-2016, you can carry forward unused contributions to 2017. Therefore, your RRSP deduction limit for 2017 may be more than $26,010.
Deadline for 2017 contributions is March 1, 2018.
You may contact Ms. Grignon today for a complimentary review of your retirement plan.
Associate Wealth Manager
Raymond James Ltd.