RETIREMENT

>  It's never too early to start planning.

The sooner you begin to think and plan for your retirement, the better off and more comfortable you will be when it finally comes time. There are many things to consider as you approach retirement. What type of lifestyle do you hope to have? Do you want to do lots of traveling? Do you want to sell your home and move? By answering a few questions and making a few considerations to the type of lifestyle you are looking to have, you can begin to make solid financial decisions towards your goals. Saugeen Community Credit Union is there to help you realize a successful and comfortable retirement by helping you design a savings plan for your specific needs. Below you will find a few things to consider when making plans for your retirement.

Define your retirement lifestyle.

Will you continue to work and live your current lifestyle? Or do you dream of traveling the world? Give some thought of how you would like to spend your retirement lifestyle so you have a clear idea on how high to set your goals. 

Choose your target retirement date.

At what age will you retire? Do you want early retirement?

Assess the financial risks of retirement.

Before you can put a realistic retirement plan in place, understand the five financial risks that can impact your retirement:

-A longer lifespan requires savings to last longer
-Inflation’s effect on the future purchasing power of today’s dollars
-An overly conservative asset allocation that may put you at risk for not being able to outpace inflation
-A withdrawal rate that depletes assets too quickly
-Rising health care expenses

Consider which risks you may be most susceptible to.

Determine potential gaps in your savings strategy.

Estimate your income and expenses according to the number of years you expect to live off your savings.

Learn about the retirement process.

Start to familiarize yourself with the general process of transitioning into retirement.

Acquaint yourself with the components of a successful retirement income plan (e.g., budget, asset allocation strategy, withdrawal strategy) and what makes them successful.

Know what actions need to be taken for a successful retirement, and what resources are available to provide support and guidance.

Review your retirement benefits.

Get to understand which benefits you will continue to receive in retirement from your employer, and any government pensions you are entitled to receive. Familiarize yourself with how they will work. Consult with your employer to get answers to any outstanding questions. Be sure to factor in your spouse’s benefits as well, where applicable.

Create a retirement budget.

Plan your retirement fundamentals, including a detailed plan of your estimated expenses. These plans will determine your lifestyle, so be sure to include inflation costs in your retirement budget. If the lifestyle you want will cost more than you expect, you may need to consider working part-time during retirement, reducing expenses, or setting your retirement date further down the road to meet your goals.

Contact Saugeen Community Credit Union to begin planning your financial retirement strategy. It is never to early to start planning for tomorrow.