Now is the time to start planning!

All too often people entering retirement do not place enough emphasis on personal planning to ensure they maximize their opportunities. So take the time now — at an early stage in your planning process — to think about the choices you have about how you would like to spend your time during retirement.

There are two components to retirement income planning: Personal Planning and Financial Planning.

  1. Personal planning is important because it is the determining factor of your satisfaction with your retirement lifestyle.
  2. Financial planning is crucial because it identifies your sources of income and expenses, and establishes your retirement budget, based on your personal plan.
Personal planning in a nutshell.

Do you want to travel around the world? Volunteer and give back to your community? Take up that hobby you were always interested in, but never had the time to start? Go back to school? Start your own business? Buy property in a warmer climate and spend the winter months there?

These, and many other lifestyle questions are all important factors to consider when planning your retirement. Your choices will drive the financial circumstances that must be met in order to achieve the kind of retirement you want.

Where financial planning fits in.

Will you have adequate funds to provide the kind of retirement lifestyle you envision? Remember your income will likely come from three general sources: government benefits & pensions, employer savings and pensions, and your personal savings.

Your retirement will be more enjoyable if your income is structured to fit your lifestyle choices and if you have developed a retirement plan to protect the assets you have worked hard to acquire.

The road to retirement readiness in four steps:
  1. Determine if you can afford the retirement you want, when you want, by completing a full Financial Plan that will model your retirement income over your expected lifespan.
  2. Depending on the identification of any shortfalls (or surpluses), review & analyze various retirement income strategies to make up shortfalls or to enhance retirement spending.
  3. “Stress Test” your plan by reviewing & comparing retirement income options under various scenarios such as longer lifespan, lower returns, working longer or less, varying income withdrawal rates, estate goals, etc.
  4. Develop an action plan to deal with gaps or to secure your plan.
Interested in learning more? Check our Retirement Readiness blog posts: