Planning For A Tailor-Made Retirement!

Planning a tailor-made Retirement Plan!

As you open the front door on your way to work you couldn't help but notice your retired neighbor happily walking her dog and you get a sense of envy she is only 48!

Its true that this stage of our lives may be as long or even longer than our careers depending how soon we consider it!

There is no age limit that actually says we have to retire at a certain age, this depends on how financially secure and stable we are to let our money work for us while being able to live the same lifestyle everyday when we had that job.

You may want to consider some of these tips to help you plan a tailor-made retirement plan and just imagine the freedom!

Looking at what Really Matters: Identifying your goals.

Are you dreaming of walking on the beach, practicing yoga, travelling to the Pacific Islands… Yes, they are plans. The fact remains this is not enough to fill your retirement days!

You have to visualize your future more specifically. To do so, ask yourself:

• What do you envision your daily activities, interests and hobbies will be?
• Is anyone close to you planning to take their retirement at the same time? Will you have company for some activities?
• How much energy do you expect to have at that time to perform certain tasks (e.g., shovel your driveway, garden, watch grandkids, etc.)?
• Will it be more convenient to stay in the country or downtown? Do you think the suburbs will suit your needs if you decide to drop the rush hour drive?
• What would be your reasons for getting out of bed in the morning, your main sources of motivation?

There is no right or wrong way to retire its really up to us to identify what works best for us

Have a fun session to brainstorm and think of all the ways you can enjoy life!

Review them every year and ask yourself if your vision has evolved. We all change over time so it’s important to be flexible.?

Consider the three phases of retirement

Life expectancy has increased dramatically over the past decades we can now expect to live an average of 80 years!

Retirement can be broken down into three phases. Consider each phase in your planning as they all come with varying expenses.

The active?period

At this point you have a larger variety of choices if you wish and schedule a variety of activities based on what you want to do. These hobbies and plans can cost money or not. Make a note of them in your reflection.

Concrete cases: 2 retirements, 2 distinct

The slowdown

As you get further into retirement, your state of health will determine your daily choices. You may have to move if your living space no longer suits your needs. This has to be considered in your planning.

The advanced?phase

At this point you may be more limited and that will result in fewer costs. However, if you have limited mobility, you may need daily help. This will undoubtedly put a dent in your budget.

You will have to consider the cost of renting in a seniors’ residence. The amount of money you need to budget will depend on your future health status and will vary depending on what you are looking to do. Consider these expenses in your future financial projections.

Planning your retirement budget

You will be able to better establish the budget you will need once your vision of retirement is clearer.

They say for example that the financial goal to achieve is to earn 70% of your working income. Take this with a grain of salt. The amount you need will instead depend on:

• your plans and values
• age you begin your retirement
• average salary during your career
• debts (mortgage, loans, etc.) that you have to pay off, or not
• target lifestyle
• your intention to work occasionally (as a freelancer, etc.), or not
• how inflation affects your standard of living

Would you like to provide occasional financial assistance to your children or grandchildren? This is another factor to consider.

Ask the professionals to run the?numbers

Financial Professionals will play an important support role. They can crunch your retirement numbers quite accurately.

To do this, they base their calculations on:

• your current (RESP, TFSA, etc.) and expected savings
• your investment profile
• pension funds, if applicable
• provincial and federal programs
• your marital status (for tax saving strategies)

Do you get enough return on your investments? Is there a gap between your retirement dreams and future earnings? They could clarify the age at which you can request your pension funds and how to withdraw your investments to pay less taxes.

To better meet your goals, the specialist you speak with will help you create a plan, a strategy to bring you closer to your ideal retirement and maintain your standard of living for as long as possible.

Self Care and Self Preservation is Key”

Retirement planning involves more than just the money. To make the most of this chapter in your life, get to know yourself better and better — and take care of yourself as well.

You know what they say: eat healthy and keep active every day… The most important thing is to make a resolution and follow it up by taking action. Best to do it now to put all the chances on your side for a rosy future. Healthy aging can help ward off or lessen the severity of chronic disease or disability.

In closing, here are some ways to help yourself now and in the future.

• Get regular physical activity?(e.g.: walking, swimming, gardening…)
• A Canadian health study found that 67% of seniors who get regular physical activity at least three times a week are in good health, compared to 36% of those who are rarely active. In the event of illness, the fact of being active promotes recovery.
• Work on flexibility and strength
• Getting some regular weekly exercise can help prevent falls, a common occurrence among seniors that often leads to chronic pain and loss of mobility.
• Eat well
• This is key to maintaining vitality and preventing weight gain. Eating enough fruit and vegetables every day is one of the most effective ways to stay healthy.

Remember that rising to meet these challenges of planning your progressive retirement, eyes set on a few goals at a time. You’re doing it for you, for your quality of life (current and future), and also for the people who care and will care about you.

All this together can really reshape your retirement experience for the better!

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