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How to plan for your retirement in Quebec today

It is never too early to start thinking about how to plan for retirement in Quebec. As a healthcare professional, there are many career opportunities. You can work in a variety of practice settings in both the private and public sectors. But always remember to plan ahead. The earlier you begin, the better. It’s a life project that requires consideration. In order to develop a retirement plan, you might need a financial advisor to help you.

Retirement now lasts longer, since our life expectancy has increased over time. It is therefore essential to prepare well for this stage of your life to ensure smooth career continuity as much as possible. Here’s how to plan for retiring and enjoying life while doing so.

This article is here to provide you with additional information and in no way to replace the advice that a financial planning professional might give you.

When should you start planning your retirement

Most people don’t think about their retirement plan or don’t think about it early enough. Make sure you don’t make the same mistake. Retirement should, in most cases, be prepared for as soon as you begin working. But if it’s not your case, it’s not too late. Good financial planning will help you find a retirement savings plan that suits your personal needs and family responsibilities.

Set a specific retirement age

At what age do you desire to retire? 50, 55, 60, 65 or 70? The financial consequences will vary depending on when you stop working. Will your mortgage be paid off by then? Will the children have left home already? Will you still be responsible for paying for their education? Will you be staying  in an apartment? What will your health be like? How much private or government benefits will you be entitled to at this age?

Answering these questions will help you to identify your retirement needs and to choose the right time to stop working.

Assess the income you will need in retirement

What will your financial needs be in retirement?  According to financial advisors, a retired person needs 70% of their average gross annual income from their last three years of full-time work to be able to maintain their standard of living. This is called the replacement rate.

For example, if your annual salary during this period is $65,000, you will need $45,500. However, keep in mind that this rule does not apply to all situations. It greatly depends on how you intend to spend your retirement years and the rising cost of living.

You could use the SimulR tool from Retraite Québec to calculate how much you need to save for your retirement and then, share the results with your financial planner.

Choose your investment strategy

When it comes to investing, it’s important not to put all your eggs in one basket. There are several options available for you for saving money and benefit from your pension plan:

Registered investments: 

  • Registered Retirement Savings Plan (RRSP);
  • Tax-Free Savings Account (TFSA);
  • Voluntary Retirement Savings Plan (RSP).

Non-registered investments: There are several types of non-registered investments, including real estate investments.

Your personal savings strategy will be influenced by your personal and professional goals, whether you work in the private or public sector. In all cases, it is vital to have a retirement plan. A good financial adviser will help you find the best investment strategy to help you save and still enjoy life.

Save with rigour

Now that your needs, the different investment strategies and the age at which you plan to retire have been defined, all you need is to take action. A plan is useless if it is not implemented. Discipline and organisation are essentiel for you to achieve your goals and maintain your lifestyle.

Retiring is a life project for which you must begin planning now. Like everyone else, you want to be able to keep doing what you love: travelling, spoiling your loved ones, and simply living your life to the fullest. So don’t hesitate to call on a financial advisor for health professionals to help you plan the retirement income of your dreams.

Don’t forget to download the guide on financial strategy for nurses that we have prepared for you.

DOWNLOAD OUR GUIDE ON BALANCE, WELL-BEING, AND WORK IN HEALTHCARE

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