Planning your retirement

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It matters whom you partner with when it comes to your financial future. And there’s no better partner than a Sun Life advisor. Our advisors can help you not just plan for your dream retirement, but can also help make the dream come true. They can also help to ensure that the legacy you leave behind will be remembered for generations.

Build your retirement savings

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Video: How can you build your wealth?

Watch time: 2 minutes 07 seconds

Here are three steps to make it easier for you.

There are many products… ideas… and strategies about how to build your wealth. Simply put, here are three steps to make it easier for you:

1. Understand your financial situation.

You’ll want to have a clear picture of your finances. This will help you decide what’s right for you.

Take the example of a couple with a substantial mortgage, two leased cars, no investments, and an unclear picture of their finances.

They could start saving for retirement by investing only in RRSPs. That might be right for some. But without understanding their current situation, it may be wrong for them.

Like this couple, you need to know where you’re starting from, before deciding what’s right for you.

2. Set your financial goals.

Knowing what your goals are will help you reach them.

Take for example, a family saving for education for their two kids. One child wants to study from home… and the other wants to move away to go to medical school. The costs for each child’s education are very different.

Another financial goal is saving for retirement. You’ll need to decide when you’d like to retire. It’s also important to consider how long you may spend in retirement.

Take… for example… a 65-year-old man with a million dollars in retirement savings. Let’s use the conventional rule where he’ll take 4 per cent of his savings per year in retirement. Will he have enough to last as long as he lives? Factoring in inflation… he may run out of money.

Good advice can help this family… the retiree… and you reach your goals.

3. Get personalized advice from an advisor.

You may need some help. An advisor can work with you to create a personalized plan… which includes:

  • building your wealth with savings and investments…
  • and protecting your legacy with insurance.

You can check in with your advisor to make adjustments and track your progress towards achieving financial security.

For more tips and tools, visit sunlife.ca.

More resources

Retirement Savings Calculator

Find out how much you will need to save for retirement and if you're on track to meet your retirement savings goal.

TFSA or RRSP: When to use one over the other

When deciding whether to save in an RRSP or a TFSA, the choice is basically to pay the tax now, or pay it later. But there’s more to consider.

How much does it cost to retire in Canada?

f you’re saving for retirement, it’s likely in a registered retirement savings plan (RRSP) or employee pension plan. But are you saving enough? Start with 10 questions to find out.

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Video: What is an RRSP?

Watch time: 1 minute 23 seconds

In this “Simply Put” video, learn the basics about RRSPs – and how an RRSP can help you save for retirement.

What is an RRSP?

Simply put, a Registered Retirement Savings Plan, or RRSP, is a type of savings account that helps Canadians save for their retirement.

How does an RRSP work?

You can hold a variety of investments in your RRSP, like:

Any contributions or growth within your RRSP help you defer taxable income. This means you can defer taxes this year when you contribute, and defer taxes on any investment growth, until you choose to access the funds. For most, withdrawing from your RRSP at a later point in life means paying less tax.

Think of it this way: you’ll probably be in a lower tax bracket when you’re retired in your 60s or 70s. So you’ll be paying less tax when you withdraw from your RRSP at that age.

What’s your RRSP contribution limit?

Your yearly contribution limit is 18% of your earned income, plus unused room from earlier years. Any money you put into an RRSP, up to the limit, reduces your taxable income for that year.

Your RRSP contribution limit is calculated each year and will appear on the Notice of Assessment you receive after filing your taxes.

For more tips and tools, visit sunlife.ca.