Imagine this: you've worked hard your entire life to support yourself and your family, you've invested your money wisely, and now you have the opportunity to spend your retirement at your leisure, whether that's driving fairways by day and sipping red wine on patios at night, or even running a small business to keep you busy.
Sounds like a dream, doesn't it?
But what if you're one of 43% of Canadians who, according to a recent survey[1] conducted on behalf of TD, are not confident they will be able to retire when they initially planned?
The survey found that a lack of confidence is a major issue when it comes to saving for retirement. Nearly 4 in 10 Canadians (39%) are not confident they know when to contribute to a Tax-Free Savings Account (TFSA) versus a Registered Retirement Savings Plan (RRSP), which can both be key vehicles for retirement savings.
This is especially true when you're a couple saving for retirement together, because each person has their own contribution limits, and there are savings vehicles like spousal RSPs that can make things more complicated to know the best way to save for retirement.
The good news is that it's never too late to thinking about the future – and TD Personal Bankers have solutions to offer.
"As a couple, it's important to understand how each individual's saving and investing decisions contribute to the joint retirement goal that you have," said Pat Giles, Vice President Saving and Investing Journey at TD.
"A TD Personal Banker can outline for you the best combination of savings habits as well as plan types—such as RRSPs, TFSAs, and more—that will keep you on track for the retirement you want as a couple."
"Finances don't need to be stressful, especially when you're thinking long-term for a milestone like retirement. Working with a TD Personal Banker can alleviate some of the anxiousness and stress of RSP season and give you confidence in meeting your longer-term goals."
Here are some pieces of advice that can help get you and your significant other plan for retirement in Canada:
Start now: No matter the time of year, review your finances and re-confirm your goals with your spouse, especially if you're approaching RSP contribution season (the deadline for 2023 contributions is February 29, 2024). Regardless of your investment plan, being comfortable with your savings approach – and discussing it with your spouse – can help you achieve your desired retirement lifestyle.
Get advice: It always helps to have someone in your corner to help you assess what would best suit your needs when it comes to retirement planning. Talk to a TD Personal Banker or Wealth Advisor together to help you evaluate how best to achieve your goals and regularly revisit your retirement plan to help stay on track.
Consider your options: There are many ways to save for retirement. Many Canadians are likely to finance their retirement with a combination of RRSPs, work pensions, and other means of supplementary income. Depending on your goals, you also have options such as TFSAs or other investment accounts.
Don't spend it all in one place: Retirement can mean travel and leisure for many couples, but it's important to look at how much you're thinking of spending – and where – early in your retirement plan to help make sure you don’t negatively impact the future of your investments.
Think about where to save: Talk to your spouse and try to agree on how much to contribute each month. Figuring out where to find those contributions is vital to helping to reach your retirement goals together. For example, eating out less or making your daily coffee at home may help you save more each month.
Set regular contributions: Help yourself work towards becoming retirement ready with TD Automated Savings tools, which can help you automatically help you save or invest in TD Mutual Funds at regular intervals.