Retirement Planning: How Much Will I Need? Part 3 and 4

Part 3: Company Pension Plans and Benefits

Now it’s time to review your company pension plan and benefits. Company plans are as varied as the companies that offer them. Become familiar with your company’s plan. See what it offers and how it can add to your other retirement income sources.

At the same time, ask about the continuance of your company life insurance, medical, health, and dental benefits when you retire. Finally, if you have worked in another country (e.g..United Kingdom), check with that country’s pension authorities to determine your eligibility for a government pension.

Part 4: Savings Plans, Retirement Accounts, and Other Assets

Determine what you have in savings, your RRSP’s or 401(k), and locked-in retirement accounts (LIRAs). List all income from non-registered investments as well. Be sure to look at interest from personal savings accounts and interest, dividends, and/or redemptions from GICs, mutual funds, stocks, and bonds. Don’t forget the conversion of home equity, income from business assets and real estate, and the liquidation of personal assets.

Once you’ve listed all these assets, calculate your net worth using the net worth statement form below. Your net worth is the difference between what you own (assets) and what you owe (liabilities). It gives you a snapshot of your financial health at a specific point in time. Completing a Net Worth Statement annually will help you assess your progress toward achieving your financial goals.

Net Worth Statement Worksheet

  1.  Liquid assets

Cash on hand $__________

Checking accounts $__________

Savings accounts  $__________

      GICs & T-Bills $ __________

      Cash value of insurance policies $ __________

      Money market mutual funds $ __________

      Other liquid assets (i.e. monies owed to you) $ __________

      Subtotal $ __________

  • Long term assets

Mutual funds (non-money market) $ __________

Stocks  $ __________

RRSPs/RRIFs/RESPs $ __________

Company pension plan  $ __________

Subtotal $__________

  • Property assets

Principal residence $ __________

Vacation property $ __________

Other real estate $ __________

Vehicles $ __________

Jewelry/art/collectibles/insurance/cash value $ __________

Other property assets $ __________

Subtotal $ __________

      Liabilities

      Mortgage (principle residence) $ __________

      Other mortgages $ __________

      Personal line of credit $ __________

      Auto loans $ __________

      RRSP loans $ __________

      Investment loans $ __________

      Credit cards $ __________

      Other loans $ __________

      Subtotal $ __________

Total Assets $ __________

  • Total Liabilities $ __________

=    Your Net Worth $ __________