How to weather the transition from saving to spending in retirement

Create a retirement plan that will adapt as the financial winds change

You’ve worked hard to save for retirement – prioritizing your goals along the way. You’re tiptoeing towards retirement and you’ve earned your “me time” – now, create a plan for how you’ll spend it.

Approaching retirement after years of hard work can be an exciting time, but it can also trigger feelings of uncertainty about how sunny your financial forecast may be. How long you’ll live is an important factor that impacts how long your money needs to last. The fact is, Canadians are living longer than before, which means you’ll likely need more to be able to support your retirement dreams.

Make the most out of your retirement by working with an advisor.

As you begin to shift your mindset from saving to spending, you may be asking yourself, “Am I going to be OK?” You’re not alone. It can be difficult to envision exactly how you would like the next 20, 30 or even 40 years to look – and creating a plan to support your vision can seem daunting. Don’t fret – I can help.

It’s important to have a retirement income strategy that sets the stage for a long and fulfilling retirement. Part of Retirement Incomecreating a plan that works for you involves setting realistic expectations about your saving and spending habits. Working with me will help you stay focused on the things that matter, rather than the checks and balances of financing your retirement.

Remember, tomorrow can be sunny – and it can come sooner than you think

Do you think your spending will decrease in retirement? Canadians need to be wary of that assumption because spending actually stays more or less the same – and may even increase. To help position you for a bright future, you can take the following steps as you move closer to retirement.

Three to five years before retirement

  • Estimate how much guaranteed income you’ll receive from the government and your employers.
  • Estimate your living expenses and lifestyle needs.
  • Review your investment portfolio with me to find out if you are on the right financial track toward your retirement goals.

One year before retirement

  • Verify eligibility and amounts of retirement income from all sources.
  • Review estate planning.
  • Work with me to put the finishing touches on your customized retirement program.

Six months out

  • Update your beneficiary information.
  • Apply for government benefits.
  • Apply for retirement income from your workplace plan.

Stop asking, “Will I be OK?” Make the most out of your retirement by working with an advisor who can help you better understand and manage your potential sources of income. I can help you develop a retirement strategy that can help set you up for fair weather, while also providing you with a financial umbrella – just in case the wind shifts.

Your guaranteed paycheque in retirement

After spending years working, you’re now closer to retirement and might be thinking about what that means to you. For most people, retirement is a time of mixed emotions. Along with the excitement of entering this new phase of life comes the nervousness stemming from the absence of a paycheque or steady income. As you approach retirement, you could be asking yourself:

  • What will my spending look like in retirement?Guaranteed Retirement Income
  • Will my money last?
  • Do I need to worry about interest rates?
  • How will market fluctuations affect my finances?

Do you have a plan in place for addressing these concerns? What if there was a way to help you feel confident about your finances in retirement?

Challenges in retirement

It is well-documented that Canadians are living longer. Statistics show retirees now need to plan for as long as 20 to 30 years in retirement1. This makes it critical to secure a part of your nest egg in a way that can provide you with guaranteed income – similar to a paycheque – for the rest of your life.

Income annuities – a steady paycheque throughout your retirement

Fortunately, there is a way for you to receive guaranteed income for life – with an income annuity. Securing a part of your retirement nest egg with an income annuity can help you cover most of your basic living expenses throughout retirement. Then the other portion of your money can be invested in funds that have the potential to grow.

Income annuities – other perspectives

Not only are annuities a great way to receive a steady income throughout retirement, there are other factors that make income annuities even more attractive in retirement. They provide excellent value even in low interest rate environments, provide a predictable income regardless of whether markets are up or down and can also help with estate transfer.

Watch this animated video about how income annuities can be your personal paycheque in retirement.

To find out more about how annuities work, exclusive annuity features and options and how income annuities may fit into your plans for retirement, speak to me.

1Issues related to increasing the “retirement age”, Canadian Institute of Actuaries, 2013. http://www.cia-ica.ca/docs/default-source/2013/213038e.pdf