Some of our readers who are not yet retired have been asking questions on our Facebook page. Planning for retirement (pre-retirement) seems to be the key issue and people are looking for more tips and information that could help them plan for the day when their work/job ends. And, as successful retirees know, retirement doesn’t just happen, it takes work and planning, and not necessarily in that order. It also encompasses a multitude of other criteria as well.
7 Key Topics
We’ve tried to be diligent on those two particular issues while still maintaining a site that explores our seven key topics; subjects we feel are important to our readership and cover much more than simply the financial logistics that retirees will encounter.
Everything Retirement tries to help retirees not only understand their financial challenges, but to also learn how to engage in new lifestyle habits, ensure they enjoy maximum wellness/health, broaden and nurture their relationships, have fun, pursue recreational activities and deal with post work issues.
10 Pre-retirement Questions & Answers to Consider
At what age do I plan to retire? Do I have a specific age in mind?
65 is the classic age but often people retire at anywhere from 55 to 60 as well. And for some, they never “retire” no matter what their age. Entering retirement, if it’s not mandatory, is entirely dependent not only on your retirement income sources but also your personal goals.
After I retire, what do I see myself doing?
Start to plan at least five to 10 years leading up to retirement if you can. Focus on what you envision your retirement years to look like.
How will I finance my retirement lifestyle?
Regardless of your retirement plans, you need to know how much income you expect to receive from your pension if you’re entitled to one, any government pension plan benefits (OAS, CPP etc.), and your retirement/investment account assets. While some people retire for good, others plan to work part-time or pursue another career.
Where do I want to retire?
An affordable cost of living is very important when deciding where and how to retire. Add to that, things like good climate, closeness to family, security and accessibility are just a few concerns to think about.
How will I pay for long-term care should it not be covered by Canada’s healthcare system in retirement?
One third of all retirees will need some form of long-term care service in their lifetime. For a comprehensive look at the statistics in a report conducted in 2017, visit this link.
Am I carrying debt?
You need put a plan in motion before your retirement to pay off high interest debt. If you’re already retired and are burdened with debt, work with your Credit Union financial advisor to come up with a plan to pay it off. Most retirees agree that this is the key to a happy and successful retirement. Holding a mortgage is often seen as less of a concern.
What benefits can I get from tax/retirement pre-planning?
If you haven’t already got a financial advisor, then while you’re still working is a good time to grow a relationship with one. If you’re already retired, it’s never too late to seek sound financial planning advice either. Contact one of our Credit Union partners (Coastal Community or Interior Savings) to arrange a meeting and set your retirement plan in motion.
Is my estate plan up to date?
If you don’t have an estate plan, now is the time to create one for greater peace of mind in retirement. And it needs to address both financial and medical issues as you age. If you have an existing estate plan, review it with your lawyer a year or so before you retire to ensure all beneficiaries are correct and that your medical and financial Powers of Attorney are up to date.
Should I consider selling assets?
If you’re approaching retirement, and your retirement savings won’t support the retirement lifestyle you desire, you may be able to bolster your savings by selling a valuable asset such as a second home/cottage. Example: If owning a property is adding to the amount you’ll need to withdraw annually from your retirement account(s) to the point where ownership is verging on the unaffordable, maybe consider selling it. Use the sale proceeds to top up retirement savings, pay down debt or reinvest to supplement your nest egg.
What’s my next retirement planning step?
Meet with your financial advisor on a regular basis to ensure you’re on the right path to fulfilling your retirement goals and lifestyle dreams. Together you can adjust your plan accordingly. By keeping key retirement dates in mind, the two of you can re-evaluate your strategy if necessary before the big day.
Informed retirement experts agree that, due to increased longevity, retirements can last a staggering 30 years. Some experts are starting to predict that retirement can extend to 40 years. Think about it. We’re talking about a length of time that’s equal to the working life preceding it.
As we work to build insight about the retirement issues we all face, we’re expanding our sources of insight and knowledge as comprehensively as we can. This link will take you to an important research project we’re all committed to – designed, in part at least, to help us help you. Please take a few moments to review and complete the survey.