Did you know ?
9 financial mistakes to avoid in retirement
Here are 9 common mistakes to avoid so you can fully enjoy this stage of your life.
1. Living without a budget
Managing your finances without a budget is like walking blindfolded. If you want to know whether your retirement income will be enough, you need to track what’s coming in and going out.
2. Withdrawing from an RRSP or other investments without a withdrawal plan
To make sure your money lasts for life, you have to consider tax rates, your age, your expenses, and more.
3. Applying for government pensions without proper analysis
Sometimes, it’s worth delaying your application. If you draw from your TFSA or RRSP first, you could lock in a higher pension for life.
4. Going 100% conservative at the start of retirement
A good portfolio is diversified, with a long-term view. Many retirees focus too much on safety early on, but you will probably need to lean on your investments until you’re 80 or 85.
5. Overlooking tax planning
Paying less tax means more money in your pocket to enjoy the retirement of your dreams. A solid tax plan can turn your savings into real peace of mind.
6. Skipping insurance
Over time, your needs change, including insurance. And there are many types of insurance to navigate. Work with financial advisors who can help you understand your coverage and assess your needs.
7. Overlooking estate planning
Dying without a will leaves your loved ones with legal and financial headaches. Spare them the trouble by planning a will.
8. Underestimating debt repayment
Debt in retirement isn’t ideal, but it happens. Luckily, there are ways to take back control of your finances.
9. Trusting the wrong people
Get advice from licensed professionals with proper credentials (e.g. from the Autorité des marchés financiers(This hyperlink will open in a new tab) who can analyze your situation thoroughly and help you create a personalized plan.
*Beneva designates Beneva Inc., Financial Services Firm.
