Planning for Your Retirement
As you approach the milestone birthday of 55, retirement suddenly comes into view on the horizon. But what’s past it? It’s difficult to know if you aren’t certain about your long-term financial situation.
At Regan Schiller & Associates, we believe that your retirement plan should keep pace with your life. We’ve created a six-item checklist to help you gain a clear vision of your goals and retirement objectives. We manage these items for clients on a regular basis, updating financial strategies and making adjustments whenever necessary. You can do the same as retirement approaches.
1. Set Goals
Setting realistic goals for retirement is a balancing act between what is realistic and what you desire. If owning a yacht isn’t likely, perhaps taking a trip on a yacht twice a year is achievable.
If you have already set retirement goals, revisit them. Everything from your income to your relationships can change over time, and what you planned for ten years ago might not feel like a fit anymore. Once you have an idea of the lifestyle you want to live, you’ll be able to assess how your goals fit into your financial future.
2. Assess Your Current Savings
Whether or not you qualify for pensions, most people will rely heavily on savings in retirement. As you turn 55, you’ll want to compare your savings rates to your goals. Are you on target for achieving your goals? If not, it might be time to adjust your expenditures so you can contribute larger sums or make more frequent contributions.
3. Research Your Retirement Living Costs
Your living costs are an important part of your retirement budget, whether you spend a few thousand a month or tens of thousands each month on expenses. Do you have a clear plan or objective when it comes to where and how you will live? Using your current expenses as a measuring stick, try to create a retirement budget that includes all of your regular living expenses. Your plans don’t need to be set in stone but keep in mind that the closer you approach retirement, the harder it will be to shift your financial planning dramatically.
4. Research Your Health Care Costs
When you retire, your health care costs will likely shift due to changing medical coverage and potential changes to your needs. Check with your financial planner or critical illness and disability advisor to learn about changes to your policies.
Whether or not you have insurance policies in place, creating a health care savings fund to cushion against unpredictable health events is a wise choice. Whether it’s an unexpected procedure, medical treatments, or an increase in medication costs, extra funds earmarked for medical expenses can be vital when illness or injury occurs unexpectedly.
5. Research Your Pension
The amount of pension you receive will depend on your contributions and your age. In Canada, the standard age to collect a pension is 65. If you qualify, you can begin claiming your Canada Pension Plan as early as age 60, but you’ll receive a reduced monthly benefit. If you wait until age 70, you’ll receive an increased monthly benefit. The maximum monthly payment from the Canada Pension Plan is reached at the age of 70. If you have a pension coming from elsewhere, you’ll need to research those separately, as they may have different rules and payouts. Understanding your eligible earnings will help you determine what you will need additionally in savings and investments to cover your expenses.
6. Check Your Investments
Once you’ve assessed your savings, projected your retirement costs, and analyzed your pension, you’ll want to revisit your investment options. If you have investments in risky stocks, it might be time to convert some of those into a more stable investment, such as bonds. The faster your retirement date approaches, the more you’ll want to protect your investments from unpredictable dips in the economy.
Find a Trusted Financial Advisor
Although it seems like there is a lot to do and consider before retirement, a simpler path to a clear financial picture starts with a financial advisor. Here at Regan Schiller & Associates, this checklist encompasses all of the services we provide for clients on a regular basis. This takes all of the work (and guesswork) out of your financial plan.
Finding a financial advisor near you that you are comfortable with and trust can help provide you with assurance and expert advice. A financial advisor or wealth management expert can help you make the right investments for your plan and inform you of options you might not even realize exist. It’s never too late to get expert advice from a professional, and no matter how much planning you have done, it’s likely that you have many questions about how to improve your long-term financial plan.
Set yourself up for retirement success by scheduling an appointment with Regan Schiller & Associates. Our wealth management team can help you create a clear plan to reach your retirement goals.
Written and published by Regan Schiller & Associates as a general source of information only. Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice. Seek advice on your specific circumstances from a member of Regan Schiller & Associates.
