The average retirement age in Canada is 65. You can however start claiming CPP (Canada Pension Plan) from the age of 60 but the longer you stay in work the higher the monthly pension payout will be. There is no benefit to staying at work past the age of 70 though as the money value doesn’t rise after this age. 

It is important you prepare for retirement the best you can. You can do several things to ensure you are comfortable in your golden years. 

Start Early 

To ensure you have a wonderful retirement why not think about putting money away from a young age. It isn’t very common for young folk to think about their retirement but the sooner you start putting money away each month the quicker the money will build. You will also only need to put away a smaller amount as you have longer to pay money in. whereas if you were to start saving from the age of 50 for example you would need to pay a lot more for less time. 

You could speak to professionals about ways to secure your future with quality wealth advisors.

Budget Cuts

In order to save you need to have money left over each month to put away. If you are overspending in your life then this won’t happen and you will struggle later on in your retirement years. If you take a look at what you are spending your money on and see if there are places you can cut spending then this will ensure you are then putting the leftover money away for your retirement fund. 

Savings Account

Having a savings account means that money can be transferred whenever you wish. It can automatically go over into your savings account from your wages so you don’t have to worry about spending it before you have saved. Be careful with how much you put into a savings account, sometimes there is a maximum amount you can add in or withdraw at any given time. Check with your bank before you decide to save this way. 

Private Pension

Usually, through your job you will have a pension scheme, this takes money from your wages each month and saves in a pension pot until you can withdraw it at retirement age. This gives you the chance to have more than just the standard CPP payment. 

If you are self-employed you will not get the same benefits as a person employed within a company. If this is the case then you should look into a private pension. This is a pension that you pay into yourself usually by direct debit or standing order direct from your bank. Private pensions work the same way as normal pensions, you pay in, and then when you get to 60/70 you can withdraw from it.

Pay Off Debts

Finally, you want to avoid going into retirement age with your debts hanging over your head as you may not have the money to pay them off. Get these sorted before you get to 60, if needed consult the help of debt advisors for affordable ways you can pay your debt off.