If you’re a student or recent grad who has only recently got their first “real job”, planning for retirement may seem like something you don’t need to think about for a long time.
But, starting the planning process as soon as possible will benefit your future financial health. And chatting with a financial advisor from a credit union such as Christian Credit Union can help you determine the best way forward.
Christian Credit Union is the trusted financial institution that offers a biblical approach to financial services for every Christian in Alberta. Their advisors can help you, whether you are 25 or 55, to start planning for retirement.
“I always advise members to start saving as early as possible to take the financial burden off their future self and grow your money over time,” said Tina Sutton, Personal Banking Advisor/Mutual Funds Investment Specialist at Christian Credit Union. “Saving a little bit each month starting in your 20s is a lot easier than saving hundreds each month if you start in your 40s or 50s.”
Want to get started saving for retirement? Call Tina Sutton at Christian Credit Union today. Learn more about Christian Credit Union here.
Here are some tips on how to get started planning for retirement, even when retirement is a long way away:
Set retirement goals
How do you want your retirement to look? Do you want to stop working all together or stay on part-time into your 60s? Do you want to travel, spend time with family or learn something new? Beyond your desired lifestyle, consider factors such as housing, healthcare expenses, travel costs and hobbies or activities. Specific goals help you estimate how much money you’ll need to save.
Create a budget
Develop a realistic budget to track your income and expenses and align it to both your retirement goals and other financial goals. A budget that is regularly updated and reviewed can help you identify areas where you can save more and spend less and will help you stay out of unnecessary debt.
Make use of retirement savings products that may help you save on your taxes each year, as well as options offered by your employer, such as benefit matching programs. Contribute as much as you can afford based on your budget to benefit from compound interest over time.
Get financially literate
Learn about investments, including the risks and rewards of different products and strategies. A good place to start is using a retirement savings account such as Registered Retirement Savings Plans (RRSPs) to help you save, but also think about having a diversified investment portfolio to spread savings across various products such as stocks, bonds, mutual funds, GICs and more.
Look at insurance
For many, the biggest cost as you age can be healthcare expenses, especially if you stop working and no longer have access to employer health plans. You’ll want to be serious about potential medical costs, considering factors such as current health, pre-existing conditions and genetics or family history. Some insurance companies offer products to help pay for healthcare costs associated with aging such as critical illness, long-term care or other options and these may be lower cost if you sign-up before a certain age.
Manage long- and short-term plans
Although retirement planning is crucial, other financial goals such as saving for education, buying a house or the costs associated with starting a family will still need to be part of your budget and financial plan if these are important to you. The best strategy is to find a balance between long- and short-term saving.
Ready to start saving? Speak with Tina Sutton at Christian Credit Union or find an expert at your local credit union here to get the help you need today.