How to Have a Relaxing Retirement
Predicting the future and how retirement help
Thinking about retirement before it arrives is actually a really great idea. While seeking the advice of an expert like a retirement planner can be helpful, there are a few things you should begin thinking about at this point and just continue to seek information from professional investors until the time comes.
Deciding early what your wants and priorities will be in your golden years will determine the steps you need to take for success now. Will travel be more important to you than having a house big enough for the whole family to visit? Will you want to live simply and not have several cars and a large house? Of course, realistic desires will change over the years, but having a game plan as soon as possible is a great idea.
What are your liabilities, income, and expenses?
These will be considered when planning your retirement. You need to identify how much money you will need and where it will have to come from.
It is important to identify all possible sources of income that could be available to you on the day you retire. Those could include pensions, RRSPs, savings accounts, bank accounts, and your home. Remember that the Canadian Pension Plan (CPP) will not be enough alone to sustain you in retirement and would only amount to $20,000 annually or around $1,300.
If you think you’ve done everything right, life can bring surprises.
DID YOU KNOW…
About 20% of retirees are found to be still paying for mortgages, while 66% are carrying credit card debt.
Mapping out your relaxing retirement – how much do you need?
Had to retire early due to a health issue
We should all be prepared for the unexpected to happen in our lives. If we aren’t fortunate enough to enjoy a long working life for whatever reason, it’s nice that the government offers disability pensions nowadays as a safety net. However, it may not be enough. When illness strikes an adult, even minor ones can lead to being unable to work or can prevent you from continuing with your current job at all like having heart problems, and so on. Either way, you should make sure to add an additional layer of security and financial protection by taking part in an investment plan geared toward retirement savings at an early stage of your career so you don’t have to worry about less than ideal circumstances affecting how you live out the remainder of your days!
Still had unsecured debt
If you are not aware of your credit card balances, you just might carry that debt into retirement where you weren’t counting on it still being an expense. It might not have even been a frivolous vacation or an out-of-control spending habit but as time passes, the longer you keep a credit card open, the more companies will throw at you, so it is best to pay off your balances every month for as long as possible.
Still owed on a house and/or investment properties
If you’ve never experienced it before, retirement might seem like a distant thing that you only consider when discussing your retirement plans with your financial adviser. However, here at {company name}, we advise that even if you have already retired or are planning to retire soon, the subject still needs addressing. For example: an investment property can be a good way of increasing your income without having to work more hours in the future – but remember that this property will need managing in order to continue producing an income for years to come.
Spent more money before retiring or after retiring than you should have
People, especially freelancers and self-starters, get excited at the prospect of not having to go to work. That is when some of them decide they’ve earned a little fun and buy the latest cars, expensive vacations, even buying vacation homes. But those decisions can cost you dearly! Stick to your retirement plan so your retirement can actually pay off for you.
Source: When the Future Becomes the Present – Dominion Lending Centres
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