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How much do I need to retire?

Tips to Help You Know Where You Stand

Even if you've been saving for years, it's only natural to wonder if you’ll have enough to enjoy the retirement you want. Here are some tips that can help you know for sure.

Create a Budget and Try Living on It

One practical way to know whether you have enough saved is to create a retirement budget and try living within it. Doing this before you retire will help you know whether your savings can deliver the lifestyle you want, and give you time to make adjustments to your plan (or your expectations) before you retire.

If you do practise living out your budget and discover that you're not ready to quit working just yet, you can decide to work a few extra years—or look for ways to accelerate your savings.

Not sure where to start? An RBC Financial Planner can help you estimate the budget you’ll need and make a plan. You can also use the Retirement Budget Calculator to do a rough estimate.

Consolidate Your Savings and Investments (or at Least Your View of Them)

If you have accounts at various financial institutions, consolidating into one plan can make it easier to maintain the right mix of investments, know how you’re doing and reduce the fees you pay.

You can transfer Registered Retirement Savings Plan (RRSP) assets tax-free between RRSP accounts—and the same goes for Tax-Free Savings Accounts (TFSAs).

Another option is to use a service such as MyAdvisor at RBC. It’s a unique solution that lets you access unlimited advice from a live advisor and see your savings and investments in one place—even accounts you hold at other financial institutions!

See how MyAdvisor can help you get ready for retirement.

If You Don’t Have Enough…Make Saving Your #1 Financial Priority

As long as you’re earning an income from work, you have time to continue building your savings. Here are a few tactics that can help you save faster:

  • Invest early in the year versus with a lump sum at year-end. The earlier in the year you invest your money, the sooner it can start growing.
  • Max out your RRSP contribution if you aren’t already. This helps your money work as effectively as possible and reduces your income tax bill now.
  • Consider other tax-smart investment options such as a TFSA. Try the TFSA Calculator now to see how quickly your money can grow.
  • Pay yourself first—no matter what. This is important whether you have many years left to save or are getting close to retirement.

Tip: Save the easy way with a regular, automatic savings plan for your RRSP and/or TFSA. It’s the best way to pay yourself first and increase your opportunity for returns.

Do Yourself a Favor—Talk to an Advisor

If you have investments or other financial concerns that keep you up at night—or even if you just want to double-check your numbers, an RBC Financial Planner can help you get a clearer picture of where you stand and what you need to do to help reach your goals.

What to Check Out Next

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How to Create a Steady Income in Retirement

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RBC Financial Planning is a business name used by Royal Mutual Funds Inc. (RMFI). Financial planning services and investment advice are provided by RMFI. RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.
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