Key Money Steps for Seniors: Retirement, Wills, and Power of Attorney
As we journey through life, the importance of planning our money for the future becomes ever more crucial. For seniors, a secure and stable future has many pathways to follow, but our top three are retirement planning, creating a will, and establishing a power of attorney. These measures not only provide peace of mind, but also protect your financial well-being and ensure your wishes are honoured.
Retirement Planning: Securing Your Golden Years
Retirement planning is about more than just saving money; it’s about creating a comfortable lifestyle for your golden years. You can start by thinking about what you want your retirement to look like. Do you see yourself travelling, spending time with family, or indulging in hobbies? Once you have a vision, estimate the amount of money you’ll need to support that lifestyle.
Many Canadians turn to Registered Retirement Savings Plans (RRSPs) as a cornerstone of their retirement strategy. RRSPs offer tax advantages that can help your savings grow more efficiently. The Government of Canada provides several resources to help seniors with retirement planning, including information on the Canada Pension Plan (CPP) and Old Age Security (OAS).
You can visit your bank, or speak with someone you trust that is knowledgeable in this area to help you decide the best path to take for saving for your retirement. Once you’re set up, make sure you review your plans every so often, so you can make adjustments to ensure your money stays aligned with your evolving financial situation and goals.
Creating a Will: Ensuring Your Wishes Are Honoured
A will is a vital legal document that outlines how your assets — such as property, money, and personal belongings — will be distributed after your death. It ensures that your wishes are carried out and can prevent potential disputes among your loved ones. To create a will, start by listing all your assets and deciding who will inherit them. While it’s advisable to seek legal assistance to ensure your will accurately reflects your intentions, it’s not strictly necessary. You will also need to choose an executor to manage your estate and carry out your final wishes.
Executor: Your Trusted Estate Manager
As mentioned above, an executor is responsible for carrying out the terms of your will. This role involves organizing your estate’s assets, paying any outstanding debts, and distributing the remaining assets to your beneficiaries. Choosing a reliable and capable executor is crucial to ensure your estate is managed effectively and according to your wishes.
Power of Attorney: Safeguarding Your Future
A power of attorney is a legal document that grants someone the authority to act on your behalf in financial or medical matters if you become incapacitated. This role is essential for managing your affairs when you’re unable to do so yourself. Select someone who is trustworthy, responsible, and capable of making decisions in your best interest.
Resources for Seniors
The Canadian government offers a wealth of resources to help seniors manage their finances and plan for the future. The Canadian Retirement Income Calculator can help you estimate your retirement income from various sources, including CPP and OAS. Additionally, the Service Canada website provides detailed information on benefits and services available to seniors.
Planning for retirement, creating a will, and establishing important roles like executor and power of attorney are crucial steps in securing a clear and stable future. These measures will provide peace of mind throughout your retirement and final years. If you haven’t already, take these steps to protect yourself, your money, and your loved ones.
