Tips on having a successful retirement

November 3, 2015

If you're concerned that your retirement cheque might not be large enough to support your needs, it's a good idea to examine what your options are. Fortunately, there are steps you can take to minimize the effect on your current and future lifestyle.

Tips on having a successful retirement

1. Examine your biggest expenses

While there are many people who claim to save a lot of money with coupon shopping strategies, most people can slash their expenses quicker by evaluating the largest expenditures on the monthly budget. For most people, this is the cost of housing and the cost of transportation.

You may rent or own a big house and drive an expensive car without thinking twice about it. While you were working, you didn't have to worry about the size of those payments. But once you start living on 70% of your income or less, it might be time to cut back.

Downsizing your home and your car may seem drastic, but you'll appreciate not having to go without your daily conveniences, such as watching the telly or buying a cup of coffee. Another good thing about smaller homes and cars is that they're less expensive to keep up. You'll automatically reduce taxes, the cost of utilities and the cost of repairs as well. Another option may be to look at a reverse mortgage.

2. Look for additional income sources

For most people, it's easier to make extra money than to find ways to live on less. Having to cut back on things you enjoy might make you crabby and irritable. On the other hand, finding a part-time job could actually be fun. The great thing about looking for income sources is that you don't have to limit yourself.

You can do contract work, part-time work, or anything that strikes your fancy. You don't have to do the same thing you did for a living before you retired. On the other hand, your old company might like hiring you on a part-time or contract basis. If you take your time, you may find something you really enjoy doing.

3. Consider your financial options

By the time you retire, it will be too late to put more towards your retirement savings. But you could cash in on your home, buy a small condo and purchase an annuity with the difference. Instead of retiring now, you may choose to delay retirement to increase your pension.

Of course, you can continue working and start receiving your Canada Pension Plan benefits alongside. Another strategy is to delay receiving benefits in order to get more money each month later on. Finally, if you are age 65 and older, you may be eligible for Old Age Security.

When it comes to the financial aspect of retirement, it's a good idea to do your research and seek advice from financial experts, too. The sooner you can implement a solution, the sooner you can enjoy the fact that you are retired.

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