For some people retirement is a goal; for others it is a milestone; and yet for others it is a state of mind. The reality is that few North Americans are ready for retirement. Financial issues, wellness issues, and perhaps, most of all lifestyle issues. What do you want your retirement to be like? It is likely that you would want the pandemic to be over, but what else after that?
Here are 7 simple, we think, questions to get you thinking about what your retirement will be like:
1. What kind of lifestyle do I want?
- Do you want to stay in your current home or downsize?
- Will you want to move to a bigger city or someplace warmer?
- Do you want to travel more?
- Perhaps you want to start a second career or even a business?
- Maybe you want some part time work – with less stress?
- Perhaps you want to give back by doing community serves or volunteer work?
2. What will my lifestyle cost me?
- Do you have pensions to cover the cost?
- Will you augment your pensions with part time work?
- Do you have savings to cover to cover your costs?
- Do you have investments – business, stocks, insurance, and/or real estate – that produce income for you?
- Are you ready to be using allocated capital as well as income?
- Do you have a contingency reserve for unexpected happenings?
3. How far will my savings go to cover my expenses?
- Less than half of all workers say they’ve ever tried to calculate how much money they will need to save to live comfortably in retirement. Have you?
- Do you have back up plans?
4. Do I need an estate and tax plan?
- Taxes don’t disappear when you stop working. In fact, your tax bill can take a big bite out of your retirement income. Have you planned for it?
- How about your assets and liabilities?
- Have you thought about your property whether locally or abroad?
- And one of the most vexing questions, is what to do with your business assets?
5. Do I need a living will?
- Health care coverage for you in retirement, is not such a big deal in Canada, but not everything that you need is necessarily covered. Are you ready?
- How about your wellness plans? Walking, riding, gyms, swimming, memberships – they will help keep you active and healthy, have you planned for them?
- What happens if something happens do you have your medical proxies and “powers of attorneys” in place? Most will need them. Yet few are ready.
6. Is my debt manageable?
- Zero debt is best is a general rule.
- Is some debt, okay? You should pay off any high-interest debts that aren’t tax-deductible first, such as credit card debt, but if some debt is part of your plan, that can work too.
- For instance, a mortgage to tide you over may be okay…after all, you earned it!
7. Am I ready emotionally ready to retire?
- Ask yourself what you will do once you retire. If you don’t know — and most people don’t — you might have a problem. Start thinking and jotting down ideas.
- Few people still have the traditional view of retirement of doing little more than playing shuffleboard all day. In fact, a recent survey showed only around 22% of people surveyed say they plan to stop working entirely in retirement.
- You need to figure out before you retire whether you want to continue working in some capacity. Continuing to work is easier than stopping entirely and then restarting.
Just Think about this….
Cross border activities, international holdings, multi – language affairs, and fluid family situations, have all contributed to a more difficult path to mapping out retirement plans. It takes work and careful thought.
Consider meeting with a trusted advisor to help you determine a viable action plan for retirement. Knowing how to retire will allow you to look forward to retirement. Even if you decide to keep working
