Retirement living is a big adjustment for a lot of folks. You transition from a time in your life that’s been dedicated to working and building your career into a time where all you really have to do is sit back and watch the grass grow (although retirement can be a whole lot more fun than that)! You’ll experience some pretty big changes in this new stage in your life, one of the biggest being a change in your finances. As with anything, the best thing to do is prepare yourself ahead of time. Let’s look at some of the most significant financial changes you’ll face and explore how you can prepare to live your best life!
1. You’ll no longer receive a steady paycheque and if you sell your business you may not have dividends either.
This can be the biggest hurdle many people face. After all, you’ve received consistent income for all of your working years, so it’s no surprise that this can be a real adjustment. Without a regular income, you’ll have to find alternatives for managing your budget in retirement. Luckily, there are many tools available that your financial advisor has likely put in place for you throughout your working career like registered savings accounts and other investments, that will provide you on-going retirement income.
2. You may lose employer-provided health insurance.
If you’ve been part of an employer-supported health insurance plan during your working years, or have been a part of the benefits plan you provided your employees, you’ll need to find a private health insurance plan that suits your lifestyle in retirement. Many people worry about losing their health insurance plans, however, this is a great opportunity to find a new plan that is better suited to you as you age!
3. You’ll have a lot more free time!
I can assure you that having more free time is one of the biggest financial changes you’ll face. With extra time on your hands, many Canadians are tempted to fill that time by purchasing things like vacations, cars, you name it. I love when clients have big dreams and goals they want to achieve in retirement, but large purchases need to be considered carefully in comparison to your long-term retirement savings. Without an eye on your budget, it’s easy to spend your savings very quickly!
Your retirement should be fun! There’s no reason you can’t live the life you’ve always dreamed of. However, your finances will change drastically when you retire and in order to go after those big goals, you’ve got to be prepared. I encourage my clients to take a “deep dive” into their finances well ahead of time to create a solid investment strategy that works best for them. With these and many more, financial changes to consider, your best bet is to work with a professional financial advisor who knows you, your goals, and the tools available.
At Synergy Life Financial, our primary goal is to make your retirement the pinnacle of your work, your money and your life. Let’s get you set up to retire within 10 years without having to worry about the burden of a tight budget! Call Darryl Smith today at (705) 424-0562 to get started!