5 great tools for planning your retirement

For a few weeks now, I’ve been stressing the importance of saving early for retirement. I hope the idea is making headway. Now it’s time for you to take the next step and start planning. Below are 5 key tools to help you build a financial plan for retirement.

1. Your Statement of Participation and statement of benefits 
These statements show you the contributions you made to a retirement savings plan along with the amounts you could receive when you retire. Whether it’s the Statement of Participation under the Québec Pension Plan or the statement from your pension plan, be sure to read them carefully.

2. Calculation tools 
Retraite Québec offers 3 tools to take the worry out of planning. If you’re 45 or over, CompuPension is the right one for you. It lets you simulate your retirement income to get a pretty accurate picture of your financial situation in retirement. The tool uses the information in your file under the Québec Pension plan to evaluate the amount you could receive under public and private plans and from your personal savings. So that we can authenticate your identity, you need to know your clicSÉQUR user ID or create a clicSÉQUR account. This also lets you use all our online services.

If CompuPension is more tool than you need, try its little brother, SimulR. This tool, which anyone can use, takes only 5 minutes of your time and provides a simpler way to simulate your retirement income. While it doesn’t provide as comprehensive a picture as CompuPension, it does consider amounts under public and private plans and from your personal savings. It’s designed to tell you whether your financial planning is on the right track. You don’t need a clicSÉQUR ID to use SimulR.

Are you a member of a public-sector pension plan? Use the Pension Estimator to estimate the amount of the pension you’ll receive on the date you plan to retire.

3. RRSP and VRSP calculators 
Interactive tools provide a great demonstration of why you should save early. They also help you understand what retirement income your investments in a registered retirement savings plan (RRSP) or voluntary retirement savings plan (VRSP) will provide.

You can find calculators everywhere online, but some are better than others. For RRSPs, try this calculator from Question Retraite (French only), and for VRSPs, try our VRSP Calculator.

4. The Web 
Once you’ve finished reading this, look online! The Web is full of articles, videos and blogs that provide basic financial planning advice. It’s always a good idea to consult as many sources as possible. Just make sure those sources are objective.

Allow me to make a few suggestions. The Web sites of Question Retraite and flash RetirementQuébec compile information from a number of public and private sector partners. In addition to retirement information, the Autorité des marchés financiers (AMF) Web site provides information on investments, insurance and more. The AMF also provides online financial advice directed at youth. Lastly, the Web site of the Institut québécois de planification financière provides a range of information, including how to find a financial planner.

5. A financial planner 
No, you can’t pack a planner in your suitcase or consult a planner online. However, a financial planner is probably your best resource for planning your retirement. This professional will help you determine the best savings strategies based on your investor profile. And no online tool can replace such personalized advice.

There is one caveat: your financial planner must hold a diploma from the Institut québécois de planification financière. Also check with the Autorité des marchés financiers (AMF) to verify that the planner is authorized to practise.

And if you know about any other useful tools, feel free to share them with us!