Now is the time to make sure you have everything you need to easily transition into retirement.
No matter your age, any time is the right time to make sure you have everything you need to easily transition into retirement.
This includes budgeting your income and expenses, topping off any RRSP contributions, and working out a strategy for living off the income you have set aside.
To make sure you can retire when and how you want, follow these steps, and before you know it, you’ll be sailing off into the retirement sunset.
When preparing for retirement, one of the first things you can do is review your portfolio and evaluate how much you have saved so far. Look at your investments and determine if you need to save more and what the next course of action will be. You may also want to review your investment plan – with or without an advisor – and perhaps choose to invest in other options.
The next step in preparing for retirement is making a budget of your monthly expenses. Make sure you budget everything, including housing expenses, car payments, food, clothing, and any additional expenses such as a monthly gym membership and entertainment costs or travel plans. This will help you prepare for living on a fixed income. And if you’re a beginner at budgeting, we have the perfect post for you!
Once your budget is in place, take the time to create an income plan. This can include your employee pension, Canadian Pension Plan, Old Age Security payments, and RRSPs. Once this is prepared, consider when you will start receiving these payments, the amount you will receive each month, and then compare this against your retirement expenses.
Finally, before you retire, you’ll want to review your insurance coverage and health benefits. Ask yourself how you will pay for things such as dental visits, prescriptions, and other health expenses—both known and unexpected. Consider reviewing your life and disability insurance coverage or extending your current coverage beyond retirement, if this is something your employer offers.
Questions? Get in touch with a Wealth Advisor today to discuss your retirement strategy!