1. Accumulate Sufficient Savings & Investments – In order to retire, you’ll need enough income to last the rest of your life. Most of us do not have a pension, so you’ll need to set enough aside and invest wisely. Aim to have enough savings so conservative investing will provide you with a monthly income you can live on. Diversify your investments, so if one loses value, you will have others picking up the slack.
2. Factor in Inflation and Taxes – Keep inflation and taxes in mind when considering how much money you’ll need for retirement. The long term average rate of inflation is between 2-4% per year. That means your money will lose 2-4% of its value every year on average. In order to simply keep up with inflation, you’ll need to make at least that much with your investments. Taxes will erode purchasing power as well. Make sure you have a tax-efficient tax strategy to maximize income and minimize tax.
3. Get Out of Debt – Before you retire, try to pay off your debt. This will dramatically decrease your monthly expenses, increase your cash flow, and give you more peace of mind.
4. Trim Your Expenses –The lower your expenses are, the easier your retirement will be. Think if you really need to spend on an item before you do. What other areas can you reduce spending and save money, leaving you more for enjoyment on things that really matter to you.
5. Review Health Care Coverage and Insurance – It’s likely you’ll need medical care at some point during your retirement, and even covered healthcare, the costs add up quick! Not everything is covered by public healthcare. Make sure you either have sufficient monthly income or insurance to cover everything not covered, including dental, physio, glasses, and long term care costs.
6. Consider Retirement Timing – While, early retirement may be attractive, consider if you can make it work. Maybe you can transition to part-time for a few years before fully retiring. If you already have the savings to retire, more retirement income should be balanced with quality of life. Money doesn’t make you happy and you never know when your time will be up, so it is important to enjoy your life while you can.
7. Develop Hobbies – Work takes up the majority of our pre-retirement time. When you finally retire, you may be surprised how much free time you actually have. Many retirees find themselves with too much time on their hands and a lack of routine boring and end up wanting to go back to work. Before you retire, think about what you’ll do when you don’t have to go to work each day. Do you already have hobbies you’d like to pursue? Is there anything you always wished you could try? It’s never too late. Part-time work is always an option. Volunteering is another terrific and gratifying way to spend your time.

You never know what the future holds, so enjoy yourself while you can, keeping in mind what is truly important to you and what you value, whether that be family, friends, time, health.

f you need assistance please contact me for a complimentary 30-minute discussion and cash flow consultation. It’s never too late to start!