Looking at retirement

Start planning your retirement today

Early career Have a savings plan and start putting money aside for retirement. The earlier you begin to save, the more financially secure you will be in retirement.

Start planning what you want to do during your retirement – will you pursue a hobby, travel, volunteer or work part-time. This will help you with your planning.

Example: Paul is in mid-career and he wants to pursue his hobby of woodworking when he retires. His daughter has just bought a house and he plans to help her with some renovations. Paul’s desired monthly retirement income in today’s dollars is $3,210 per month, approximately 70 per cent of what he currently earns. Paul expects to receive the following retirement income.

Yearly gross income before retirement
= $55,000 ($4,583 per month)

Planned retirement income (70% of current income)
= $38,500 ($3,210 per month)

Canada Post pension plan / other pension plans CPP OAS Personal savings

$1,600* per month

$986* per month

$545* per month

$79* per month

Paul will need to save approximately $14,000* in today’s dollars to receive $79* per month starting at age 65.

*These numbers are used for illustration purposes only and are based on the maximum benefits for 2012 for the CPP and OAS.

Late-career Fine tune your financial preparations so you can achieve your lifestyle plan. Begin to enjoy the activities you have planned for a smooth transition to retirement.

Financial and retirement planning facts

Recent reports suggest that nearly a third of young Canadians have not saved any money for retirement, even though many say they want to leave the workforce before age 60. The reality is that Canadians are living longer and spending more time in retirement.

Your retirement income can come from three sources

  • Your Canada Post pension plan
  • Other pension plans in which you participated
  • Canada Pension Plan/Quebec pension plan (CPP/QPP)
  • Old Age Security (OAS)
  • Guaranteed Income Supplement (GIS)
  • Registered Retirement Savings Plan (RRSP)
  • Tax-Free Savings Account (TFSA)
  • Equity in home
  • Non-registered investments and savings

5 steps to build your retirement

Step 1 Familiarize yourself with your DC pension, the Sun Life member website and all the resources available to you.
Step 2 Set realistic goals. Refer to tools like the Sun Life Retirement planner. The planner helps you determine how much you need to save now to provide you with your desired income level at retirement. To access this tool, visit mysunlife.ca > Resource Centre > my money tools > Retirement planner.
Step 3 Develop your plan. For help, refer to the my Investments guide and the Investment risk profiler. You may also wish to discuss your investment options with a personal financial advisor. You are responsible for any costs associated with seeking such advice. If you don’t have a financial advisor, the Employee Assistance Program (EAP) can help you.
Step 4 Contribute and save as early you can. Maximize your contributions to ensure that you take advantage of Canada Post’s matching contributions. Consider complementing your pension savings with the Voluntary Savings Plan (VSP).
Step 5 Review your investment choices regularly.