7 tips to plan a smarter retirement

This cheat sheet on retirement planning tips is part of our series on the basics of personal finance as part of Financial Literacy Month. On Friday, MoneySense will have a special Facebook Live testing other magazine editors on their money sense. Tune in live at 3 p.m. on our Facebook page to watch us put them to the test. Follow us and participate if you think you know your stuff.

1. Face the facts

Saving for retirement is always a challenge. But a number of factors have added up in recent years that make it even tougher on those entering or preparing to enter retirement. Jonathan Chevreau, Retired Money columnist for MoneySense, says the strength and predictability of defined benefit pensions (which pay out until death based on your earnings) is disappearing, as corporate plans move to defined contribution pensions (which build wealth based on employee and corporate contributions but do not pay out based on guaranteed formulas). That’s hard enough, Chevreau argues, but where “financial oppression” really takes hold is that retirees are stuck with bond yields that are sitting close to zero, which means nest eggs stop growing as fast and have to be drawn down a lot faster than they were for past generations.

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