Everyone will retire at some point, but how you imagine your retirement is as distinct and individual as you are.
Manish Kaushal, Associate Vice President Wealth & Steinbach Retail, suggests that all retirement preparation should start with a plan, and the first step is to put your goals in writing. “If you set a goal on the horizon, you can make a plan to achieve it. The sooner you start putting it down in writing, the earlier you can begin to plan and assess how to meet your retirement goals,” says Kaushal.
Your home: Stay or sell?
Your home is the largest and most valuable investment you’ll make. As you get closer to retirement, is it best to stay in your home, downsize, divest, or invest elsewhere? It all depends. Trends show that more people are downsizing and investing in a vacation property elsewhere or merely using their freedom from home maintenance to spend their on travel. It’s a good idea to start thinking about your home’s value five to seven years before retiring, as this will have a substantial impact on meeting your retirement goals.
The changing landscape of retirement
One in five Canadians, 65 years or older are working, and of these, 30 percent work full-time*. If this describes you, then you’re a member of the labour force’s fastest-growing segment. It’s a necessity for some, while others can’t imagine a life without work. Keep in mind that financial considerations are only one part of the stress of retirement. You also want to consider the emotional impact of retirement after a life spent working, and create a plan to keep yourself engaged and motivated.
Things to consider when planning for retirement:
Write down your goals: You can’t adjust your plan if you don’t have one. Writing your goals down is an important first step to achieving them.
Be honest: Take an honest look at your goals and evaluate if they are realistic for your timeline and needs.
Think how you want to live: Set a budget and try it on for size. This exercise can help you get used to living on a fixed budget and assist in evaluating if the goals you’ve set are realistic.
Consider your health: If you’re concerned about your physical health in the future, then you should re-evaluate your plan based on this reality.
Plan if travel is part of your goals: You may want to look at travelling earlier in your retirement, as your health could be a factor, leading to increased insurance costs when you travel.
Find the balance: It’s important to have a plan for later, but live life today. That’s why having an expert in your corner to advise and guide you to a well-balanced retirement is part of great planning.
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