Building Toward Retirement
You've been investing for a while now but, things may have changed since you set your investment plan. You may have changed jobs or you may have experienced changes in your family. Now is a good time to check in with a CIBC advisor to make sure your retirement plan is on track. Use our financial tools and our advisors' expertise to help ensure your strategy will assist you in achieving your goals.
How much will I need?
As a rule of thumb, you will need 70 percent to 80 percent of your current income to maintain a similar lifestyle after you retire. If your annual salary is $50,000, you may need $35,000 to $40,000 a year in retirement to continue your existing lifestyle.
The amount you'll need also depends on your living expenses and how you'll spend your time. Ask yourself these questions:
- How many years do I have until retirement?
- What do I want to do in retirement?
- When will I receive Canada Pension Plan (CPP)/Quebec Pension Plan (QPP) benefits and how much will I get?
- Will I have other income (e.g., a pension plan, a part-time job, inheritance or the sale of my house)?
Monitor and adjust your plan on an ongoing basis
You and your CIBC advisor will regularly review your progress, making sure your plan is on track. Your advisor will revisit some of your retirement goals to ensure your plan stays up-to-date with any changes in your life or your retirement priorities. Your advisor may need to:
- Adjust your investment mix so it becomes more conservative as you approach retirement
- Consolidate investments to ensure you have the appropriate investment mix, reduce ongoing fees and give you a full picture of your investments
- Help you consider all the options if your employer offers you an early retirement package
- Develop a plan to convert your investments into a tax-efficient cash flow at retirement
These regular reviews also help us ensure that you are taking full advantage of any new opportunities that become available.
Are you on track? The CIBC Retirement Calculator will help you find out if your current and planned RRSP contributions will meet your retirement income goals.