The retirement questions you should be asking

COVID-19 has some retiree hopefuls looking to get started on their next chapter. Here’s what to consider if you’re planning this move

Let’s face it, the world right now is unpredictable and uncertain. Given these unprecedented times, you might be asking yourself some important questions about your life’s next steps, including whether now is the time for retirement.

Lately at Coastal Community Credit Union, many of our conversations have involved listening closely to the concerns of retiree hopefuls so that we can provide the right advice and get them to where they want to be. If you’re entertaining a retirement that’s sooner rather than later, here are some of the hot topics our experts are fielding. They may be of help to you:

SHOULD I TOLERATE THE SAME LEVEL OF RISK?

Market fluctuations and abrupt interest rate changes have been a big part of the past several months. This has many pre- retirees evaluating how much investment risk they’re willing to take when they move to a fixed income situation. Make sure your investment mix matches your tolerance.

WHAT IF I DON’T HAVE ENOUGH SAVED TO RETIRE WHEN I WANT?

Start by getting an accurate picture of your retirement budget. An online income calculator will help determine how much monthly income you’ll receive from your savings, government benefits and any pensions. If you have a shortfall, try saving more, cutting spending or boosting your retirement income. Adding a part- time job or renting out part of your home in retirement are other possible solutions.

I HAVE SOME DEBT. WHAT SHOULD I DO?

It would be wise to pay down your debts, especially higher interest ones, while you’re still working. A rigorous debt repayment plan will help ensure your debt level doesn’t impact your retirement funds. Now is also a good time to consider trimming expenses, downsizing your residence, adjusting your lifestyle or consolidating credit card debt.

DO I NEED TO THINK ABOUT INSURANCE?

If the pandemic has shown us anything, it’s that planning for a variety of scenarios is key. That’s where the value of insurance comes in, as things can change as you get older. If you have fewer debts and dependents, you may not need as much life insurance. But if you have more health issues, you may want to look at critical illness or long- term care insurance.

As you plan, or readjust your plans, for retirement consider connecting with an expert for a fuller understanding on any of these important topics.

For more information visit our website at: cccu.ca