There are 5 main steps to plan for your retirement:

1) Determine the income you will need at your retirement. It is estimated that a person who wants to retire at 65 without changing her standards of living will require about 70% of her average gross earnings for the last three years.

2) Decide at what age you want to retire. The Quebec Pension Plan is available as early as age 60. The OAS will only take effect at 65. The fact of retiring at 55 or 65 years may therefore result in a difference of several thousand dollars.

3) Determine sources of income on which you can count: Federal and Provincial pension funds, RRSPs. A website calculator board allows you to calculate the approximate amount which you are entitled to retirement.

4) If there is a difference between the results of step 1 and step 3, compare your expected income with your estimated needs.

5) Determine your savings needs. A negative result in step 4 shows a shortfall to maintain your standard of living when you'll be old.

If you're not sure about how to calculate your income, I suggest you to contact a representative at your financial institution or a person in charge of the retirement plan at work. For more information you may visit Quebec pension website at www.rrq.gouv.qc.ca or Canadian pension plan website at www.hrsdc.gc.ca.

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