Looking forward to your retirement? Of course you are, who wouldn’t be? As you draw closer to “living the good life” you may be wondering if your retirement savings are enough. Don’t worry, you’re not alone. With life expectancies continuing to climb, paired with the rising cost of living, retirement cash flow planning should be a top concern for Canadians. So, how can you make the most out of your savings well into your retired years?
1. Source of Retirement Income
I’ve said it before but it’s worth saying again: Don’t put all your eggs in one basket. For example, many people bank on getting a substantial profit when they sell their business and/or family home and hope that will be enough to fund their retirement income needs. However, if you rely on only one strategy to solve your need for retirement cash flow you may be in for a surprise if it proves difficult trying to sell your business or family home for the price you were hoping to get.
For those who were self-employed they may have opted out of paying into Canada Pension Plan or kept their personal income to the minimum their CPP income may not be as high as they had hoped, which may cause them to take additional risks in their investment portfolios to make up any income shortfalls, this puts undue pressure on how you live and enjoy your retirement if there planning shortfalls or prolonged downturns in the market.
All financial markets (including real estate) can be unpredictable, so it’s important to have an understanding of how much of your retirement income needs will be met by sources of income such as Government and Corporate pensions, rental income, royalties and income from your investment portfolios.
2. Keep earning an income
You don’t have to stop working full time when you retire. You can work as a consultant, or consider part-time or casual employment. In fact, retirement might be the perfect time to pursue that job or money-making hobby that wasn’t feasible during your career!
3. Make a plan
Quite possibly the most important part of making your retirement work is creating a realistic plan. This is where working with a financial advisor comes in handy. Together, you can build a retirement cash flow plan that starts now and prepares you for the financial freedom you deserve. Your plan could also include a business succession strategy, as well as to set financial goals and milestones.
Making the most out of your retirement comes down to being prepared and starting a plan well in advance. The more money you’ve invested in your working years, the more flexible your budget will be. Set yourself up for success and connect with Synergy Life Financial. Darryl Smith will work with you to create a financial plan that ensures you can live your best life well into retirement! Call 705-434-0562 or email info@synergylife.ca. Together, we will build a plan that sets you up for retirement within 10 years. If you’d like to get started now, why not have a look at this helpful “financial snapshot” tool here?