There is no ‘one size fits all’ when it comes to retirement planning as everyone’s financial situation and personal goals are different. But by determining and evaluating your future lifestyle you can properly prepare for your retirement.
Changes in Your Life That Will Affect Your Retirement
Over the years retirement has changed drastically; people cannot rely solely on work pensions as retirement income anymore, life expectancy is increasing, and non-traditional family structures are becoming more common.
Over time the cost of living will increase due to inflation and although we cannot predict what these changes will be your Advisor can help you create a plan to save and help maintain the same level of purchasing power in the future.
With a diversified portfolio you can combat inflation and periods of market volatility while lowering your overall risk. And by staying invested in your plan you will allow your money time to grow.
Set Retirement Goals
We know, it can be difficult to imagine what you want retirement to look like when it’s years away, but by setting retirement goals planning becomes a much easier task. Ask yourself questions like:
- When do you plan or want to retire? Delaying retirement allows you to have more time to build your nest egg, or maybe you’re eager to take on an early retirement. Both options are possible with the right planning but remember, the age of your retirement can affect your government pension and taxes.
- What are your dreams or plans for retirement life? Retirement may spark you to try a new hobby or travel around the country. Maybe you plan to take on the responsibility of babysitting your grandchildren. The options are endless but by narrowing down your future plans you can better prepare for what’s to come.
- What expenses could you have? As you hit this new stage of life you may spend less in your everyday cost – for example your home bills may be cheaper due to having a smaller house or kids moving out. But you may need to factor in new expenses that will come with your retirement hobbies or medical costs.
Make the Most of Retirement Savings
Once you have a plan started its now time to ensure you’re making the most of your savings. Manage your investments throughout the years and take advantage of different tax benefits from investment products like RRSPs and TFSAs. And as you get closer to retirement check in regularly with your Advisor to discuss things like when to start withdrawing from your RRSP and/or government pensions.
Retirement planning is thorough and considers many different aspects in your life but don’t overlook how exciting retirement will be once it arrives. Our expert Advisors are here to help guide you through every stage in your retirement planning, book an appointment today.
