How to make long-term financial goals

Retirement is different for every person, but there’s one thing we all have in common: It could last a long time. If you’re working today, you may want to  consider planning to support yourself for two or even three decades after ending your career. This can be a big challenge, especially since life expectancies are continuing to grow.

But you don’t have to take on the burden of planning alone. According to a recent Manulife survey, workers with an advisor were more likely to report very good finances and have a formal retirement plan than those without an advisor. A financial professional can help you adjust your goals and actions with life changes, including having a child, moving, and more.

1 Craft a personalized plan

There are countless articles, books, and videos debating how much money to save for retirement. In reality, it greatly depends on how you want to spend your time. Obviously plans for worldwide travel will need a bigger budget than volunteering locally. Each person will also have different obligations such as debt, financial support for family, or a mortgage. Sitting down with a financial advisor can help you understand your unique path toward retirement and the amount you need to save and invest to get there.

2 Consider your complete financial situation

The idea of saving for retirement is common, but putting money aside is only part of a complete plan. Investing is a big piece of funding your retirement, but most Canadians say they don’t really understand investing. Likewise, calculating government benefits like CPP/QPP can also be confusing. If you have questions about retirement income, paying taxes in retirement, and other money matters, consider seeking assistance. These details could change your current financial plan.

3 Regularly monitor your progress and make adjustments

Perhaps you set a goal to save a certain amount each month but find yourself struggling with unexpected expenses like car repairs or braces for one of your kids. On the other hand, you might change jobs or get a promotion. Regardless, the amount you set aside for retirement won’t be the same every year. Your circumstances will change so it’s important to check in with your financial advisor on your retirement goals to make sure you’re on track.

4 Find guidance and advice  

Money can be complicated. How does the market affect your retirement account? What’s an RRSP? It can be hard to understand financial concepts and how they affect your savings. An advisor can help explain complex topics in simple, practical terms so you can set goals with confidence and take the steps you need to achieve them. Seeing the big picture can also help make it easier to stick with your objectives, even when times get tough.

How to get started with financial planning

If you’re not sure where you stand with your retirement savings or are worried about putting money aside while handling your regular day-to-day bills, you’re not alone. Money matters can be confusing and a bit intimidating. Consider sitting down with a financial professional who can help you figure out a financial goal for retirement and take practical, realistic steps to get there.