Fresh approach to retirement realities
Things are different today. Many of us think this as we read the headlines, or we see how our own world has changed in just a few years, including our work and personal realities.
This new uncertainty also affects our thoughts of retiring, since the prospect of a comfortable retirement like past generations achieved seems less clear.
You can manage this change by taking a fresh approach to set or revise your goals, and perform a “springtime review” of your retirement plan.
“Spring retirement planning?” you might say, since we’re conditioned to the hectic mid-winter RRSP season. But that’s the point: The old way was to make a rushed retirement contribution before the February deadline, or do nothing, since it was too hard to invest in a crunch.
I’d suggest a new approach: Since we’re almost through tax season, declare May as your time to get your retirement on track. It’s a spring cleanup for your money, except it’s easier than cleaning house, and more rewarding.
To get started: Think positive and take charge Don’t let retirement uncertainty or market volatility beat you. Instead of avoiding the reality, take control and determine what you can do. Gather the facts Collect your savings and investment documents, including RRSP slips from various financial institutions and pension statements from employers. You may see investments or outstanding decisions that need attention.
Set goals and create a plan Sit down with a financial advisor to talk about your goals and develop a plan, including investments that match your risk comfort level. You can begin picturing how and when you’d like to retire and consider any challenges in the way.
Update your plan If you already have a plan, double check that it still matches your priorities. You may need to fine-tune investments or get a second opinion from a financial advisor to see if you are on track.
Increase your savings Review your budget to find extra cash or make an automatic monthly contribution to a savings plan. The money will accumulate without you missing it, and you won’t have to scrape together an RRSP contribution in February.
See you in six months Once you’ve reviewed your investments, created or updated your retirement savings plan with a qualified financial advisor, and boosted your yearround savings, mark your calendar for a quick review of your progress in six months and again next spring.