Did you know Mother's Day is more than 100 years old? That's right, 107 to be exact and this special occasion is celebrated all around the world. While Mother's Day traditions and customs vary, everyone knows how important it is to honour moms for everything they do. If you’re a mother or celebrating with your mother, we hope you enjoy your special day.
But there is a Mother’s Day gift you can give to yourself – taking control of your financial life. Consider the following questions:
How long might your retirement last?
In general, women live longer than men — and the longer you live, the longer your retirement savings must last.
Start by looking at your current spending. This can help you develop a realistic estimate of your expected spending in retirement. Then review your potential sources of income. Any expenses not covered by outside sources, such as Canada Pension Plan/Québec Pension Plan (CPP/QPP) or Old Age Security (OAS), will need to come from your personal savings and investments.
How will you pay for health care and medical expenses?
Many people assume they will spend less in retirement. However, health care expenses can rise as you age. In addition, women can spend more than men on health care over their lifetimes simply because they have a longer life expectancy.
Is leaving a financial legacy one of your goals?
If a financial legacy is one of your primary goals, you really have two distinct “pools” of funds: those to be used to pay for your retirement or other goals, and those designated for your financial legacy. Since these pools have different purposes, their investment allocation may differ as well.
These are just a few questions to consider as you develop your retirement income strategy. But having a strategy — and reviewing it regularly — can help you turn your vision for retirement into reality for many Mother’s Days to come.
Your Edward Jones advisor can work with you to develop a strategy tailored to your needs and goals.