Ask the Money Lady,
Hi Money Lady,
I’m getting a bit anxious about retirement. It’s still relatively far away (7 years) but it seems like it’s just around the corner. My partner and I have been saving up, but I feel like there are things that we have yet to address. Any tips on what we should be focusing on in the next few years?
Michel, everyone worries when they are nearing their hard stop to working and wondering if they have enough money to retire. Being financial comfortable is definitely important to a lasting retirement, but it is not the only thing. The most happy and healthy retirees these days are those Canadians that keep themselves busy and active. I know it has been hard to do with COVID, but as we slowly return to a new normal – ask yourself, how do you plan to make your retirement the best it can be?
Do you plan to learn new things, take up a hobby, go back to school, volunteer or continue working part-time? What is your social circle like? Do you have supportive and rewarding relationships with friends and family?
When you retire, you initially feel a sense of loss as you reorient yourself, and then adapt to your new situation. Essentially it is like the next chapter of your life, with the most important non-financial aspects being that you embrace it with a positive attitude or mindset towards being busy, active and independent. Preparing for this next chapter requires a plan and the resources to find the best solution that works. Transitioning into retirement with confidence means you have answered these five important questions and have a “Personal Plan” to understand your cash flow requirements.
- Who do you picture yourself with in retirement?
- What do you see yourself doing in retirement?
- Where do you plan on living when you retire?
- How will your health impact your retirement?
- Do you have enough money if you survive to age 95 or even 100?
Michel, why not seek the advice of a professional finance coach to ensure you will have sufficient resources available to cover both day-to-day expenses and the funding for larger goals. Remember that retirement does not have to be the end of your working life. Continuing to work at a less demanding job or even part-time into retirement can help to fill the financial void once retirement starts. It may even provide other important aspects to one’s retirement such as social connections and mental stimulation. Discuss your situation with your advisor so that they can work with you to create a plan that meets your individual goals.
Good Luck and Best Wishes,
Written by Christine Ibbotson, Author of “How to Retire Debt Free and Wealthy” Follow on Facebook & Instagram