Planning Your Golden Years:

A Retirement Guide

Get Together

Couples who have been at odds with their financial goals, or who haven’t talked about money before retirement, may find things strained when their regular paycheques end. Because most people have to make financial and lifestyle adjustments during retirement It’s important for couples to start talking about their differences, as well as their shared goals. Many churches and local community centers also sponsor workshops about couples and money.

Eliminate Credit Card Debt

If you have unsecured credit card debt, make it a priority to pay it off before you retire. Paying off high-interest credit card debt on a fixed income can sometimes be especially stressful. The high interest rates associated with credit cards can add-up, especially on a fixed income. If you have five or six credit cards now, keep one or two with the lowest interest rates and pay off the others before you retire.

Decide Where You Want to Live

If you are planning to move after you retire, look into the cost of living for that area. If you are interested in a retirement community, check to see if living there will help or harm your ability to cut back on health care, food or utility expenses. If you are looking into moving to a new province or town, it could be worthwhile to see if there are tax advantages for senior citizens. Learning the financial details of where you would like to live will help you budget your retirement savings more accurately.

Your library should carry several books to help you in your search for a place to settle, such as Retire in Style: 60 Outstanding Places Across the U.S.A. and Canada by Warren Bland. If you type in Best Places to Retire Canada in a search engine on the Internet, you’ll find a number of web sites with information.

The next step is to try some of them on for size. If you think retirement in a foreign country is for you, can you take some vacation time to check it out? Just be sure to spend some time with others who have actually retired to that area, or you’ll get an unrealistic view. Vacation is different than day-to-day living.

Take Care of Yourself

According to a study conducted by the Canadian government titled “Canadian Seniors, A Dynamic Force,” 37% of Canadians, age 85 and older, live in an institution. According to Statistics Canada one in ten Canadians will need some type of long term care by the age of 55 and three in ten by the age of 65. (www.fpsccanada.org). People are living longer which is wonderful, but expensive. In the event that you are need of long-term care, did you know that you, not the government, are responsible for the cost? If you reside in a hospital for 45 days or more and you do not require active care, you are considered to be receiving long-term care. (www.fpsccanada.org) and assisted living facilities typically cost anywhere from $2500 to $6000 per month.

Although saving for retirement is typically focused on what you are going to enjoy in your later years, be sure to focus part of your finances on the unexpected as well. Talk to your financial planner about ways to set aside a fund to cover long–term care and medical expenses. Better safe than sorry.

Planning for retirement can be overwhelming, but the earlier one starts the easier it becomes.

Start simple. Your first step is to invest in your good health. Research shows that regular exercise, a healthy diet, strong community ties, and activities to keep the mind active make it possible to enjoy retirement. The sooner you begin to really take care of yourself, the better, and small changes can make a big difference.