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Even if you’re a few years or decades away, here are some practical retirement tips for Canadians to keep in mind when considering leaving the workforce.
Saving for retirement is a challenge for millions of people throughout Canada. In a day and age where many people are living paycheck-to-paycheck and have a high cost of living, sometimes saving for retirement gets “put on the back burner.”
More challenging than saving for retirement for many people can be actually transitioning to retirement. The lifestyle people live in retirement is often different from what they did during their working years. However, unlike what many people think, retirement does not mean sitting around all day and doing absolutely nothing. It means simply transitioning to a new phase of life.
The following are 3 practical tips to help Canadians as they transition into the retirement phases of their lives:
Understand the Transition
Many people have a hard time with the changes that come to their lives after they are no longer working full-time. Many people found themselves lost and confused with little to do and a lot of time on their hands. Consider taking up a hobby or another passion that you wish you had time to pursue in your younger years. Now is the opportune time to do it when you have time to spare. Consider working on your model train or model car collection or picking up your favorite sport again. Having something to occupy the extra time and new freedom you found can help make the transition easier.
Lay out your basic finances and understand how your finances will impact your lifestyle when you retire. Whether you will have to adjust your lifestyle to live on a lower income or want to downsize your home or move, knowing what parts of the puzzle must fall into place will help you live within your means. Working with a professional who understands retirement and can help you plan accordingly can give you additional perspective on how to conserve your financial resources to last your entire retirement, which is key understanding that you will be OK even if you live well into older age.
Retirement Doesn’t Mean Doing Nothing
Many people think that once they retire, they sit around and wait for something interesting to happen, but that’s far from the truth. People who are retired can remain busy and active in their local communities well into their older years. Many people choose to continue working part-time at a less-stressful (more flexible) job. Others volunteer their time to anything from working with children to feeding the hungry to volunteering a local hospital or animal shelter or even a senior home to get out, get active, and give back to their community. The options are endless, so be creative, and don’t be afraid to continue doing the things you love well into the future.
These are 3 perfect ways to jumpstart your planning for retirement. It’s important to understand that your life is not ending when your day job and working career do, it’s just a new phase of life that you can live and enjoy just like you enjoyed your working years.