7 questions to ask yourself as you approach retirement

Director, Advisory Services, Savings Market, Flexifonds, François Lincourt, answers questions about retirement.

By Fonds de solidarité FTQ

You are a few years away from retirement and a lot of questions go unanswered because people are afraid to ask them or because you don’t know where to turn for proper answers. François Lincourt, Director, Advisory Services, Savings Market, Flexifonds, answers 7 of the most-often asked questions about retirement.

François Lincourt, Director, Advisory Services, Savings Market, Flexifonds

François Lincourt, Director, Advisory Services, Savings Market, Flexifonds

01At what age should I review my retirement goals? And where do I start?

You've been saving for retirement for several years now. Around the age of 50 is the ideal time to see where your accounts stand and have a few more years to readjust your savings.

A word of advice: be wise! Look at how much you have accumulated in your RRSPs, and take a look at all the sources of income to which you will be entitled during your retirement, such as your pension fund, income from a rental building, government plans, etc.

02How do I calculate the eligible amounts for the QPP?

If at all possible, it’s best if you try to avoid collecting you pension at age 60 because you will only get 64% of what is owed to you. To get the full amount, or 100%, you need to file for your pension at age 65. In effect, you earn 0.6% monthly until you turn 65. The government therefore guarantees you a return of 7.2% on the amount owed to you until your 65th birthday.

If you wait until age 70, the percentage increases considerably up to about 8%. That’s a great return you can’t get anywhere else on the market!

As for Old Age Security, you can’t start collecting at age 60, but only at age 65. If you wait until 70, it will be even higher.

03During my retirement for which tax credits will I be eligible?

To name just a few, according to the tax rules in force on January 1, 2020, there’s the Pension Income Tax Credit, the tax credit for people who are 65 and for people who are 70; as well as the Tax Credit for Home Support For Seniors. Moreover, the latter can be worth a lot and many people fail to use 100% of it. It’s for people who are still living in their homes and 30% of their living expenses are tax deductible.

Cleaning services, gardening services, and more. Keep all your receipts as you may be asked for them when you file your taxes.

04Who can help me review my financial planning for retirement?

A financial planner should definitely be able to answer all your questions, for instance: Do i need to save more? How much will that be monthly to live on knowing that I will need between 60% and 80% of your current gross income?

The advisor will also make sure that you’ve made a will [in french]Attention, this link will open a new tab. and a protection mandate in case of incapacityAttention, this link will open a new tab.. If you haven't yet attended to these documents, don't worry, you can address them with a notary anytime.

05If I realize too late that I haven’t put enough aside, what are my options?

After retiring, you may wish to discuss with a financial planner the possibility of supplemental income to enhance your savings. More and more people have taken to working part-time in retirement to enhance their savings. Sharing your experience will certainly be rewarding, but you will still have to plan on certain expenses: clothing, computer, travel, etc. Some retirees are also opting for a simpler lifestyle: they swap the house for condominium living and sell the second car.

06What will my basic level of income be when I retire?

If you work all your active life, you will be entitled to certain amounts thanks to the government, but you will be taxed on this amount.

07If I spent a part of my life outside Quebec or Canada will I be penalized?

To benefit from Old Age SecurityAttention, this link will open a new tab. and Canada Pension PlanAttention, this link will open a new tab. payments, you will need to have resided at least 10 years in Canada after age 18. When you retire, according to the number of years you spent in Canada, you’ll be eligible for a partial or full pension.

To sum up, we hope these answers will be useful to you in your retirement planning. Getting informed about the major considerations and the things you need to do to retire is not only important, it’s a smart thing to do.

The FlexiFonds offering is the logical extension of your Fonds experience

It's possible to stay invested in the Fonds family with the FlexiFonds offering. It offers Fonds savers a variety of savings vehicles and products tailored to various investor profiles and savings goals.


About FlexiFonds de solidarité FTQ
FlexiFonds de solidarité FTQ Inc. is a wholly-owned subsidiary of the Fonds de solidarité FTQ. FlexiFonds de solidarité FTQ Inc. acts as the principal distributor of the funds' units and is a mutual fund dealer registered with the Autorité des marchés financiers.

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