Retirement is stressful and a big decision.
So, it is very important that you don’t make other big decisions close to the
day you actually retire. Planning everything for retirement may not always
work, as you may not think rationally in the months leading up to it. So, don’t
make choices while worried or distracted and start planning, if you can, at
least five years before you retire.

With a five-year horizon prior to
retirement, you can acquire a solid grasp of whether your intended Lifestyle is
sustainable, assess any impending financial obligations you will carry into
retirement, and anticipate other anticipated adjustments that could impact your
cost of living. During this pre-retirement phase, pay attention to your savings
and investment portfolios. While the management of financial risk is an ongoing
concern, this time frame warrants increased caution in safeguarding the
Security and performance of your financial assets. In addition, list possible lifestyle changes you’ll encounter at retirement. Consider things like Travel, part-time work, health expenses or Downsizing to a new home.

A general concern among many seniors is the
prospect of outliving their financial resources. While a lengthy and healthy
life is a blessing, there is concern about running out of funds and imposing
financial burdens on loved ones. While such scenarios are not unheard of, they
are not normal.

It is wise to prepare an action plan as you
start the five-year stretch.

1.  Conduct a realistic analysis of
your retirement needs and engage in a dialogue with your partner and financial
advisor.

2.  Calculate projected annual
expenditures based on your current budget.

3.  Some experts recommend setting
aside between 70% to 80% of your present income.

a.   Factor in government retirement
income, such as the Old Age Security Pension and Canada Pension, available to
Canadian citizens. These sources could yield approximately $1500 to $1800 per
month, contingent on individual circumstances.

b.   Verification of your specific
amounts can be obtained from Revenue Canada.

4.  Calculate planned expenses
against anticipated retirement income.

5.  Estimate life expectancy and
consider asset protection against prolonged illnesses.

6.  If your projected expenses
exceed available income, you may need to make changes. If your expenses are too
high or your income is too low, you may have to make some changes.

Starting your retirement is a major life
milestone and while many plan for the financial aspects most do not plan for
the use of their time. There’s no doubt that for many of us, a dream retirement
involves plenty of time spent relaxing and spending quality time with friends
and family. Maybe you are one of the few who already has a clear plan of what
retirement looks like, or perhaps you’re in the majority who are looking for ideas.

One of the ideas that people who are
planning talk about is Travel. They believe that as a retiree, they can enjoy
flexibility when it comes to travelling. This is true to some extent but if you
want to travel with family who are younger and work, your flexibility is
limited to their schedule. There are many types of holidays, but in my experience,
and also talking to other people, we do not suddenly change how they travel. If,
for example, you did not go on adventure and activity holidays you will not
start when you retire.

There is an advantage of having no limits
on your vacation time, you can now travel to far-flung international
destinations like Europe, South America, Australia, or New Zealand for longer times
so, of course, you see everything there is to enjoy while you’re there.

Travelling is wonderful but most
importantly most of those who travel extensively do so for about the first five
to seven years of retirement, and then slow down.

Once your wanderlust has been taken care
of, then maybe you’re ready to continue a lifelong passion or try something
new, such as:

a)   
Baking

b)   
Walking

c)   
Learning a new language

d)   
Dancing

e)   
Gardening and/or growing your
own produce.

f)    
Reading

g)   
Birdwatching

h)   
Learning a musical instrument

i)     Continue learning. 

Originally Published on https://boomersnotsenior.blogspot.com/

Royce Shook Blogger

I served as a teacher, a teacher on Call, a Department Head, a District Curriculum, Specialist, a Program Coordinator, and a Provincial Curriculum Coordinator over a forty year career. In addition, I was the Department Head for Curriculum and Instruction, as well as a professor both online and in person at the University of Phoenix (Canada) from 2000-2010.

I also worked with Special Needs students. I gave workshops on curriculum development and staff training before I fully retired