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This website explains how Retirement has changed from how simple it was in the past and it may affect any of your current retirement plans as well as if you now have different expectations for your retirement. The 3 main ways you will be able to earn income during retirement with links to different articles explain how they work.  How you expect to spend your life during retirement changing the amount you need to save.

The main reason I chose this website is because it provides a good brief overview as well as being a good introductory website to retirement for what you should prepare for retirement as well as the other factors that may affect your retirement plan.

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Preparing for retirement

October 2021 - 15 min read

It might feel like you just started working, but retirement is no longer that hazy concept far off in the future.

It's really exciting as you get closer to starting one of the most rewarding chapters in your life, but it's perfectly normal to have some doubts and questions. Now's the time to re-evaluate your plan to make sure you're on the right track and make any adjustments you need to help you retire the way you want.

Retirement has changed

Before we get started, let's acknowledge that retirement is changing in Canada.

How you planned while building your retirement, might not be the retirement you're about to enter. Changes in your goals, lifestyle and markets need to be adjusted for as you enter the final years of investing and saving before retirement.

There's been a gradual shift away from the traditional idea of retiring for a few reasons:

Traditional family structures have changed

Additional costs with helping adult children or elderly parents

Review your plan

All of those factors affect your retirement plan, but we're also always evolving personally. As retirement becomes more real, what you wanted 10 or 20 years ago might not be what you want now.

There's nothing wrong with that, but you might need to adjust your plans because of it.

Don't forget to also factor in the unexpected. Your retirement may not always go according to plan, but being prepared financially can help you still get the most out of it.

The sooner you start having honest discussions with your family and financial advisor about what you want, the easier it will be to help ensure you can make your retirement dreams your reality.

Timing isn't everything... but it's important

The truth is, there's no perfect age to retire because there are so many factors that are unique to your situation.

But whether you've had it circled on the calendar for a decade or you're still not sure, thinking about it is an important step to help building out what your plan will look like.

Whether it's 55, 60, 65, 70 or somewhere in between, being prepared can help you get the most out of your retirement.

How much money do you need to retire?

Similar to when you should retire, there's no hard and fast rule on the dollar figure you need. It depends on factors like what you want to do, where you want to live and the lifestyle you want. It can help to think of what percentage of your income you want to replace when you retire.

Many experts recommend the "70% rule" when planning for retirement. This means that your retirement savings should replace 70% of your income per year. For example, if you earn $100,000 per year at retirement, you should budget for a retirement income of $70,000 per year, or roughly $5,833 a month before taxes.

It's also important to keep in mind the length of your retirement. You may need to plan for 20-30 years of retirement or more since we're living longer. So, when you're analyzing how long your savings will last, it's a good idea to overestimate on the length of your retirement to make sure you'll have enough.

The 3 pillars of retirement income

There are 3 main sources Canadians can use to draw a retirement income: government benefitsOpens in a new window , employer pensions and personal investments and savings. Let's take a look at each.

Government income

There are a few different government income options you may be eligible for depending on your financial circumstances, like Canada Pension Plan, Old Age Security and Guaranteed Income Supplement.

Work-related pensions

When you retire you may have a pension available to you.

Defined Contribution Pension Plan

Defined Benefit Pension Plan

Locked-in retirement account

Personal investments

Many of those investments you've been adding to for years can now be utilized in retirement, like RRSPs, Annuities and TFSAs.

Get the most out of your retirement savings

Having retirement income options is great, but how do you get the most out of them?

It's not as simple as just taking the money out of your investment and savings to spend. When you begin transitioning from saving to income there are important strategies to be aware of that can help you maximize your money and reduce the taxes you have to pay.

An advisor can help you get the most out of your savings.

Having retirement income options is great, but how do you get the most out of them?

You can continue to grow your money in retirement

Just because you're retired, doesn't mean you can't lay the groundwork to continue investing and building your portfolio. It's important to examine your retirement income and make sure you have enough set aside for investing and saving. By attempting to grow your money during retirement, you'll potentially put yourself in a better position to do all those exciting things you've been looking forward to for a long time.

Investing in something like a segregated fund policy that offers you guaranteed protection and the potential for growth could be a good option. You could also look at combining segregated funds with an income annuity to give you a regular source of income in retirement. These options can help protect your investment from market fluctuations.

Just because you're retired, doesn't mean you can't lay the groundwork to continue investing and building your portfolio.

Retirement doesn't mean you have to stop working

If you think you'll need additional retirement income, try turning one of your hobbies or passions into a job. Working during retirement might sound odd, but it's a great time to pursue interests you've always wanted to explore.

There's a good chance your career was largely focused on a 9-5 job to pay bills and put away money for your future, so now could be the time to turn your attention to a passion project or something you really enjoy.

Planning with your spouse

The old saying 'Two heads are better than one' can apply to retirement, too. It's important to discuss both of your visions for retirement so you're on the page and can plan together, which will help each of you get the most out of your retirement.

What are your retirement goals?

Should you retire at the same time?

What type of investments are good for couples?

Spend some time focusing on health and wellness

Finances are a very important part of retirement, but so is your health. Retirement is a great time to put more of a focus on your health and wellness. You might find that not getting up and going to work every day or potentially moving to a warmer climate may take less of a toll on your body. Obviously, you'll have to consider the financial aspect of making a move like that, but if it's going to be beneficial to your health it's something to consider.

You'll also have more free time to exercise or pick up an athletic hobby. Keeping active is always important and especially during your retirement years.

Enjoy the experience

While there may be a lot to take care of and finalize with your advisor as you prepare for retirement, don't lose sight of how exciting this time in your life should be. Take the time to evaluate what you want your retirement to be likeOpens in a new window . You're closing in on a new chapter that gives you an opportunity to put an emphasis on all the things in your life you may not have had time for during your working years. The life of a retiree can, and should, be everything you want it to be.

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How to properly prepare for your retirement

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October 2021 - 15 min read It might feel like you just started working, but retirement is no longer that hazy concept far off in the future. It's really exciting as you get closer to starting one of the most rewarding chapters in your life, but it's perfectly normal to have some doubts and questions.

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It's an website from the government of Canada it covers everything you need to know when your planning for retirement. Going over how much you may need to save including a Canadian retirement calculator how inflation may affect your living cost during retirement. Sources of income during retirement explaining how each one works in depth. Tax deductions you may have, you will need to look for it. Pensions, Annuities even housing options.

The main reason I chose this website is that it was made by the government of Canada and covers everything you may need to know when it comes to retirement whether your preparing for it or not.

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Information to help you plan for retirement, including how much money you might need, where your money may come from, creating a will, and estate planning.

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This website goes over what financial security is and the difference it has from financial freedom. It goes over how while financial security doesn't necessary mean you can buy anything you want, you have enough to pay for all of your expenses not needing to worry about whether or not you'll be able to meet your financial needs.  Financial security means your capable of occasional splurging on wants like a vacation and saving for anything you have planned for the future without worry.

While I did have a general idea of what financial security was I didn't know fully what exactly it was I also thought this would be a good website for other people on what financial security is.

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Most people think of financial security as having a large savings account, a healthy investment portfolio, and a comfortable retirement nest egg. However, financial security is about much more than just money-it's about feeling in control of your life and having the freedom to make choices about how to live it, regardless of your current circumstances.

Here's a closer look at what it means to have financial security and how you can experience it for yourself.

Definition and Examples of Financial Security

Financial security involves having enough money to comfortably cover your monthly expenses, recover from financial setbacks, and save for your future. It's also about having low financial stress and feeling in control of your money.

Alternate name: Financial well-being

Note

For example, Michael has a six-month emergency fund, no credit card debt, and is currently saving up to start his own business next year. When he gets an unexpected bill in the mail, he doesn't panic because he has enough to cover it. He feels calm and in charge of his finances, which is a good sign he's reached financial security.

How Financial Security Works

Financial security is a major contributing factor to your quality of life. When you have enough money to cover your current living expenses and to save for the future, a whole new world opens up.

You no longer panic when a financial setback happens.

You have enough money to splurge on "wants" (like a vacation or fancy dinner) without digging yourself deeper in debt.

You're able to take risks in your career and chase opportunities that make you happy (rather than doing what makes the most money).

But here's the catch: Having financial security requires you to be future-oriented. You have to make a financial plan to live below your means now, so you can buy yourself freedom, flexibility, and options later on.

Most important, financial security is a state of well-being. It's about feeling calm and in control of your money, rather than having a fancy job title or salary but still struggling with finances.

Example of Financial Security

Suppose Maria makes $50,000 a year. After monthly expenses, she still has 15% of her income left over. Financial security is important to her, so she uses this extra money to pay off debt, build an emergency fund, and save for future goals (like that two-week trip to Japan or a house by the beach).

Jack, on the other hand, makes $150,000 a year and can't figure out why he feels like he can never afford anything. He's constantly scraping by until his next paycheck, and his mounting pile of debt keeps him awake at night. He dreads the day his car gets a flat tire because that will be just one more thing he can't pay for.

In this situation, Maria has more financial security than Jack, even though her salary is one-third the size. Unlike Jack, she feels confident and in control because she has enough money to meet her current obligations and save for future ones. She also has peace of mind knowing she can handle the financial setbacks that come her way.

How To Get Financial Security

There are many factors that contribute to financial security, but these three are the most important:

Create a Monthly Savings Plan

The first step to financial security is creating a safety net that protects you from the unknown. Unexpected things are bound to happen, whether it's something bad like a flat tire or something good like a destination wedding.

Having a built-in fund to cover these expenses helps ensure your long-term goals don't get derailed when surprises happen.

Note

Pay Down Debt

It's difficult to build financial security when a huge chunk of your paycheck goes toward debt payments each month. So making a plan to pay off debt, especially the high-interest kind, can help set you up for success. Once you've paid off that debt, you use the extra money to build financial security.

Investing is a key part of building wealth, which makes it a critical component of financial security. Compound interest is a powerful force, and once it has time to get going, it can catapult you toward your financial goals.

However, many people shy away from investing because they think it's a form of gambling or that they need a ton of money to get started. Neither of these is true. Anyone can learn how to invest. If you need help, consider hiring a financial advisor.

Financial Security vs. Financial Freedom

You have enough money to cover all your expenses and save for your future.

You have enough cash and investments on hand to fund your ideal lifestyle-no matter how much it costs.

You must reach this step before you can reach financial freedom.

You can only reach this step after you're financially secure.

What's the difference between financial security and financial freedom? Put simply, you must reach financial security before you can reach financial freedom. They're like stepping stones on your journey to financial autonomy.

Financial security means you have safety nets in place to recover from financial setbacks, you're on track to reach your savings goals, and you feel more calm about your finances.

Financial freedom, on the other hand, means you're at a place where you can quit working for a salary and do whatever you want, whenever you want. You have enough cash and investments on hand to fund your ideal lifestyle and then some.

How Can You Tell if Someone Is Financially Secure?

Being financially secure has nothing to do with your education, salary, or credit score. Instead, it's about how good you are at managing what you've got.

Generally, someone who is financially secure exhibits these four characteristics:

1. They feel in control of their finances.

2. They can quickly recover from financial setbacks.

3. They're on track to achieve their financial goals.

4. They have the financial means to make their own choices and enjoy life.

Key Takeaways

Financial security is about having enough money to absorb financial shocks, reach your savings goals, and make choices that allow you to enjoy your life.

Financial security is important because it keeps financial stress to a minimum and helps you feel in control of your future.

Three common factors that contribute to financial security are being debt-free, having a savings plan, and investing.

Financial security is one of the first steps you must achieve on the path to financial freedom.

Want to read more content like this? Sign up for The Balance's newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!

The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

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Most people think of financial security as having a large savings account, a healthy investment portfolio, and a comfortable retirement nest egg. However, financial security is about much more than just money-it's about feeling in control of your life and having the freedom to make choices about how to live it, regardless of your current circumstances.

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This website explains polices which they believe will increase the amount of Canadian citizens that have financial security. Publishing a number of other articles that relate to financial security.

The Main reason I chose this website was because the majority of the other websites involving financial security just explained what it was while providing general solutions to getting financial security. This website on the other hand explains different policies that may help in increasing financial security even if they're just theory's.

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In 2019 Maytree began working with Prosper Canada and Common Good to promote three policy-ready ideas on financial security.
The evidence shows that financial insecurity is a widespread issue in Canada.

Estimates from the Canadian Payroll Association show that 44 per cent of Canadians are living paycheque to paycheque.

A 2017 survey by Ipsos Reid showed that 23 per cent of Canadian adults delayed buying groceries because they did not think they could afford them.

Almost 50 per cent of households lack savings to live for three months above the poverty threshold.

Financial insecurity puts individuals and families at greater risk of poverty. It leaves them struggling to respond to unexpected life challenges and inadequately prepared for more predictable life events such as retirement. This why Maytree is working with Prosper Canada and Common Good to promote three policy ready ideas on financial security that governments at all levels should consider.
Read a summary of each of the policy ideas:
Related

The Canada Saver's Credit: A proposal to build financial security for lower- and modest-income Canadians
This report, released by Maytree and Common Wealth, proposes a targeted policy intervention to help boost savings and build assets among lower- and modest-income Canadians.

Policy Options: How policy-makers can help Canadians build financial security
A look at three practical policy solutions to help Canadians buffer financial risks and build a secure financial foundation for today and the future.

Maytree Opinion: Let's make retirement planning and saving a reality for non-profit sector workers
There is a solution for non-profit sector workers and their employers who want to ensure that their staff can plan for retirement: the Common Good retirement plan.

TVO - The Agenda: The Reality of Retiring on Low Income
Elizabeth Mulholland, CEO of Prosper Canada and Common Good Steering Committee member, was on the Agenda to discuss the reality of retirement for Ontario's low-income earners.

Charity Village: An uncommonly good idea? A national retirement income plan for the nonprofit sector comes closer to fruition
Saving for retirement is one of the most important actions those in the workforce can take. The security of knowing a stable, monthly income awaits once one is into this new phase of life is worth every penny for one's peace of mind.

Flexforce workers serve business well, but how do they retire?
Globe and Mail article about how more Canadians work on contract and frequently change jobs and a significant portion of these "flexforce workers" face insecure retirement prospects. Common Wealth's Alex Mazer and Prosper Canada's Elizabeth Mulholland are quoted.

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In 2019 Maytree began working with Prosper Canada and Common Good to promote three policy-ready ideas on financial security. The evidence shows that financial insecurity is a widespread issue in Canada. Estimates from the Canadian Payroll Association show that 44 per cent of Canadians are living paycheque to paycheque.

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This video talks about different types of phases through retirement which the first phase which explains what we expect of retirement like a vacation not having to worry about work, deadlines and old routines.  The second talks about feeling lost without all of they're routines as well as purpose. The third talks about how you try to find that sense purpose in your life again. Phase 4 explains how you find things that give you a sense of accomplishment losing that sense of not having purpose by participating in things you care about.

I thought this was a good video to include because I've never seen any other websites or videos talking about what happens during retirement.

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The 4 phases of retirement | Dr. Riley Moynes | TEDxSurrey

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Video #2 EVERYTHING You Need To Know About Government Pensions - CPP, OAS, GIS | Retirement In Canada

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Video #2 EVERYTHING You Need To Know About Government Pensions - CPP, OAS, GIS | Retirement In Canada

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This video explains more in depth of how pensions work as well as the different pension programs. What is the CPP the criteria to apply for it, when to start as well as it's benefits. OAS has a big difference from CPP it is not affected by your career earning it's eligibility, when to start,  amounts and repayments.  GIS your eligibility, amount and allowance.

It's a good video which explains how pensions in Canada work in a way that's more digestible.

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EVERYTHING You Need To Know About Government Pensions - CPP, OAS, GIS | Retirement In Canada

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Video #3 Financial Security Vs Financial Freedom

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Video #3 Financial Security Vs Financial Freedom

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This video covers the difference from Financial security from financial freedom and financial independence. It explains the differences from Financial security from financial freedom and financial independence while giving simple examples that are easy to understand.

I chose this video because it may be easier for some people to understand than the websites.

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1.What did you learn about your topic that surprised you the most?

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1.What did you learn about your topic that surprised you the most?

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To me it was the video on retirement about the 4 phases during retirement everything else I did expect but nobody ever really talks about what happens during retirement other than a time when you can relax like your on vacation.

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2.Provide a real-life example of how this topic is relevant or interesting for you.

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2.Provide a real-life example of how this topic is relevant or interesting for you.

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Retirement isn't relevant to me now but financial security is being able to make all of your payments without worrying whether or not you'll be able to afford it.

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3.If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

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3.If you could pass on your knowledge to a family member or friend, what do you think is the most important thing to pass on?

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The information on retirement on how to prepare for it as well what to expect.

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My topic is on Retirement and financial security. You can expect to learn how to prepare for retirement as well as the different pensions and what financial security is.