Early Retirement - When could you retire?

Aug 07, 2018 | Rachel Hammell


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It all starts with a plan. With a proper financial plan, you can coordinate all facets of your wealth and lifestyle into one seamless strategy that leaves no stone unturned. When could you retire?

When we look to our future, there are so many possibilities for retirement. When could it all start? When you are planning your own retirement, and thinking about when you could start it, there are a number of things to keep in mind.

Tax planning

It is important to know what options you have for tax planning. The Canadian Income Tax system uses graduated tax rates (click for my blog post). Strategies like income-splitting or maximizing your RRSP contributions in your working years, or starting your RIF early can help you reduce your overall taxable burden. Everyone’s circumstances are different, and tax planning strategies should be discussed with a certified tax professional.

Maximizing savings

There is an old expression, “pay yourself first.” This means that before you start to spend your money, put some into your savings for your use later. There are many ways to save for retirement, including through non-registered savings, Tax Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs). There are pros and cons to each savings strategy and it is important to consider each within your unique situation with the advice of an investment professional.

Government benefits

There are a number of provincial and federal benefits for seniors in Canada. The most common are the Canadian Pension Plan (CPP) and Old Age Security (OAS). When planning for retirement you can request an estimate of your CPP earnings. You may wish to take CPP starting at age 60 or delay CPP and/or OAS payments up until the age of 70. Again, the right answer of when to start government benefits depends on your unique situation and should be discussed with your advisor as part of your overall retirement plan.

It all starts with a plan. With a proper financial plan, you can coordinate all facets of your wealth and lifestyle into one seamless strategy that leaves no stone unturned. When could you retire? For more information or to start your plan please contact our office.