Retirement planning advice: Introduction
As part of the credit counselling process, many people start asking for retirement planning advice. When I ask, do you have a retirement plan? people start talking to me about how they will need to grow their savings and investments. Retirement planning is so much more than that. What your retirement ultimately looks like is largely dependent on your healthy lifestyle plan.
Retirement planning advice: You can’t go from full throttle to neutral
You’re most likely used to working at least a 40 hours a week. And, at the end of the rainbow is retirement – no more alarm clocks, no fighting rush hour traffic or an overcrowded public transport system, no more brown bag lunches… Now you can reclaim at least 40 hours a week in addition to the hours that you spent commuting; but what will you do with those hours?
Retirement planning advice: The key to a happy retirement is having a healthy lifestyle plan
People that retire are very prone to depression, particularly men, whose sense of identity is closely tied to work. A 2013 study from the Institute of Economic Affairs that says retirement increases the chance of suffering from clinical depression by about 40%.
Men also have the highest rates of suicide worldwide, according to the World Health Organization. It’s not the job or the money that men miss so much in retirement, but the socialization and self-esteem that work brings, says Ken LeClair, co-chairman of the Canadian Coalition on Seniors Mental Health (CCSMH) and professor of psychiatry at Queen’s University in Kingston.
Retirement planning advice: Retirement is a huge adjustment
Retirement is a huge adjustment and like all stages of life, requires a plan. The key to a happy retirement is having a lifestyle plan. Do you have hobbies and interests? Volunteer work? Learning new things? Meaningful friendships? Travel? Lifestyle planning should ideally start 5 – 10 years before retirement starts so that you’ll be prepared for the transition.
Retirement planning advice: Start saving early on for your healthy lifestyle plan in retirement so as not to have to make tough financial adjustments
The likelihood is that once you retire there is going to be a significant change in your income. Most retirees can’t continue to live the same lifestyle as when they worked full time. The reality is that you’re going to have to make some financial adjustments that may involve downsizing your residence, driving a more economical car, traveling less.
However people generally want to do more in retirement. They have put off their travel and hobbies because they lacked one of the most precious resources – time. Many retirees start off by doing more now that they have the time. There is only one problem; they never saved properly during their working years to have the money to turn their dreams into reality in retirement.
Retirement planning advice: What to do if you have too much debt in retirement?
Unfortunately many retirees are taking on debt they can’t afford by using credit that they can’t repay to support their lifestyles. This is a recipe for disaster and the sooner you seek professional help the better.
A professional trustee can help. Although your particular situation may seem catastrophic, Ira Smith Trustee & Receiver Inc. can get you back on track Starting Over, Starting Now with sound advice and the right action plan. Give us a call today so we can help you start on your healthy lifestyle plan.