Living in Retirement

Five Financial Principles

4 Tips for Retirement Living:

1. Control Spending – this could be the single biggest step in making sure that you never outlive your money.

Have an emergency fund

An emergency fund helps to reduce the financial stress that accompanies unexpected events.  It’s a good idea to include regular savings in your budget until you have saved enough to cover three to six months of living expenses in case of an illness or an emergency.

Determine your budget

Budgeting helps you maintain a spending plan for your money. It’s a way to ensure you have enough money for the things you need and the things you want to save for. Following a budget or spending plan will also help you to manage debt.

  • Identify fixed monthly expenses
  • Watch your daily flexible expenses.
  • Use a budgeting method to help you stay on track i.e. envelope or jar method for cash

2. Understand Government Benefits

The following Canadian sponsored retirement programs are in place to help supplement your retirement income when the time comes.

OAS

The Old Age Security benefit (OAS) is available for all Canadian residents at age 65. Since 2016, the maximum monthly OAS benefit is $570.52. In addition, the lowest-income seniors can receive the OAS Guaranteed Income Supplement (GIS), which maxes out at an additional $773.60 per month.

CPP

The Canadian Pension Plan (CPP) is only applicable to Canadians who have made contributions and is determined based on how long and how much you have contributed to it. The rate which someone can receive will vary person-to-person, however, the monthly average in 2016 was $629.33.

3. Have an Estate Plan

Wills & Power of Attorney

A Last Will and Testament and Power of Attorney will protect your estate. Your Will is all about passing along property and keepsakes to the next generation – allowing you to leave a lasting legacy. Without a Will, you may miss out on the opportunity to designate your assets to benefit others in the following ways:

  • Leave a lasting legacy gift to your favourite church, ministry or charity
  • Help grandchildren, nieces and nephews with their education or a down payment on their first home
  • Donate an “In Memory” gift from yourself or your spouse to your local hospital or church
  • Create a scholarship fund in your name
  • Leave a cherished possession to someone who will really appreciate it
Making a Will
Write it all down
  • Identify the possessions and assets you want distributed.
  • Decide who receives what (your beneficiaries).
  • Choose a guardian for your children (if they are minors).
  • Decide an Executor to administer your estate.
Hire a lawyer
  • A simple Will can cost as little as $300 for legal fees.
  • A complex Will can range from $700–$2,000 for legal fees.
  • A do-it-yourself Will kit may seem like the way to go but if it’s not done properly, it can be contested in court.
Keep it current
  • Revisit your Will every few years with your lawyer.
  • Change your Will if your family has grown or if your assets have changed.
  • Review provincial laws because they may change every few years.

4. Take Care of Your Health with These 5 Tips

  1. Keep your mind sharp – read, do puzzles, socialize and keep learning. You could even learn a foreign language or start playing that instrument you’ve always wanted to master. These things will help to keep your brain sharp in retirement.
  2. Eat well – You will probably have more time to cook and enjoy food. Eating a varied and balanced diet, which includes different types of foods gives you all the nutrients you require. A healthy diet in retirement is good for your heart and your bone health.
  3. Exercise – retirees who lead an active lifestyle can have fun getting or staying fit in facilities with pools, tennis courts, walking and biking paths and more. Consider joining a gym and talking to a personal trainer who will customize an exercise program just for you.
  4. Sleep – it’s important to get enough sleep and to rest your body and your mind. Sleep plays an important role in our physical health by allowing the body to be refreshed so you can think clearly and function optimally during the day.
  5. Look after mental and emotional health – Mental and emotional health includes having positive feelings, a zest for life, and a sense of meaning and purpose. Making mental health a priority in our everyday lives can improve mood, self-esteem and help us build stronger relationships with others.

By taking care of your body you can feel good and enjoy a happier retirement.

We can help you put a strategy in place so you can retire with confidence. Speak with a FaithLife Financial Representative today to get started.

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