• We’re living longer
• Traditional family structures have changed
• There are additional costs with helping adult children or elderly parents

Review your plan

We’re always evolving as people. As your retirement gets closer, you may realize you need to adjust your plans because what you wanted 10 or 20 years ago isn’t what you want now.

Don’t forget to factor in the unexpected. Your retirement may not always go according to plan, but if you’re financially prepared, you could still get the most out of it.

Timing isn’t everything…but it’s important

There’s no perfect age to retire because everyone’s situation is unique. Thinking about your retirement date is an important step to building your plan.

How much money do you need to retire?

There’s a good chance your career was largely focused on a 9 to 5 job to pay bills and put away money for your future, so now could be the time to turn your attention to a passion project or something you really enjoy.

Similar to when you should retire, there’s no hard and fast rule on the dollar figure you need. It depends on what you want to do, where you want to live and the lifestyle you want. It can help to think of what percentage of your income you want to replace when you retire.

Many experts recommend the "70% rule” when planning for retirement. This means that your retirement savings should replace 70% of your income per year. For example, if you earn $100,000 per year at retirement, you should budget for a retirement income of $70,000 per year, or roughly $5,833 a month before taxes.

You should also keep in mind how long your retirement could be. You may need to plan for 20 to 30 years of retirement or more. So, when you’re analyzing how long your savings will last, it’s a good idea to overestimate how long you expect your retirement will be to make sure you’ll have enough.

If you set a retirement goal on My Canada Life at Work^TM, you can easily track your progress towards achieving it.

Let’s look at your retirement income options

There are three main sources Canadians can use to draw a retirement income: government benefits, employer pensions and personal investments and savings.

Government income

Depending on your financial circumstances you may be eligible for a few different government income options, like Canada Pension Plan, Old Age Security and Guaranteed Income Supplement.

Work-related pensions

You may have a pension through your employer.. The type of plan you have will influence how you receive your income from it.

• Defined contribution pension plan
• Defined benefit pension plan
• Locked-in retirement account

Personal investments

In retirement, you can draw from the investments you’ve been adding to for years , like RRSPs, annuities and TFSAs.

Get the most out of your retirement savings

Having retirement income options is great, but how do you get the most out of them?

It’s not as simple as just taking the money out of your investment and savings to spend. There arestrategies that can help you maximize your money and reduce the taxes you have to pay when you begin to transition from saving to income.

• When to withdraw from an RRSP
• Tax-efficient withdrawal strategies
• Converting your RRSP into a RRIF
• RRIF withdrawal rules and rates
• When you can unlock a LIRA

You can continue to grow your money in retirement

When you’re retired, you can continue to invest and build your portfolio. By attempting to grow your money during retirement, you could be in a better position to do the exciting things you’ve been looking forward to.

To help protect your investment from market fluctuations, you could consider options like:

• Investing in something like a segregated fund policy that offers you guaranteed protection and the potential for growth
• Combining segregated funds with an income annuity to give you a regular source of income in retirement

You can keep working if you want to

If you think you’ll need additional retirement income, try turning one of your hobbies or passions into a job. Working during retirement might sound odd, but it’s a chance to pursue interests you’ve always wanted to explore.

Consider your retirement budget

As you transition into retirement, your income and expenses will change.

It’s important to create a new budget for your expenses using your estimated monthly income total in retirement. Some expenses that could go up in retirement are:

• Utilities
• Travel
• Healthcare
• Entertainment

On the other hand, some expenses will get easier to manage during retirement. Areas where you may be able to save:

• Transportation
• Income taxes

When budgeting, consider your monthly and yearly budget. How much income do you need to have in a year to have the retirement you want? What are your monthly expenses? Can you cover them each month?

Remember to make room in your budget for putting some money into your investments and savings.

Plan with your spouse

You and your spouse should discuss both of your visions for retirement so you’re on the same page and can plan together. Ask yourselves:

• What are your retirement goals?
• Should you retire at the same time?
• What type of investments are good for couples?
• Have you looked into estate planning?

Spend time focusing on well-being

Finances are a very important part of retirement, but so is your health. Retirement is a great time to put more of a focus on your health and wellness. You might find that not getting up and going to work every day or potentially moving to a warmer climate may take less of a toll on your body. Obviously, you’ll have to consider the financial aspect of making a move like that, but if it’s going to be beneficial to your health it’s something to consider.

You may be concerned about medical costs not covered by government health plan. Canada Life’s Freedom to Choose™ health and dental insurance may fit your needs. You’re able to choose the plan that works best for you. Get a quote today.

Enjoy the experience

While there may be a lot to take care of as you prepare for retirement, don’t lose sight of how exciting this time in your life should be. You’re closing in on an opportunity to put an emphasis on all the things in your life you may not have had time for during your working years. The life of a retiree can – and should – be everything you want it to be.

Next steps

Planning for your retirement and making your plans a reality may seem like a lot, but you don’t need to do it alone. Your financial advisor can help you review your plan and recommend adjustments to help you create a plan that works for you and your unique retirement goals.

Don’t have an advisor? As a myHorizons member, you have access to a Canada Life health and wealth consultant Call 1-800-737-8595, Monday to Friday from 8 a.m. to 6 p.m. ET or book an appointment and they’ll call you.