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If you are just entering retirement...
Successful retirees understand that the transition from work to retirement takes some adjustment. No matter how much planning has been done to prepare for the first day of retirement, the change in lifestyle is not always easy.
There are also some lifestyle adjustments that you might consider:
- It can be stressful if your work provided you with satisfaction and all of a sudden you are no longer actively involved. Successful retirees try to replace the positive things that work provided them. For example, workers who enjoyed "being needed" when they worked might consider volunteering activities in retirement. Other workers who defined themselves by their jobs might want to consider other ways in retirement that they can gain satisfaction; for example, some might participate on a board, or join a service club.
- Successful retirees say that the key to a happy retirement is to be healthy. One of the first things that new retirees should do is to create a regular physical exercise routine that can be sustained throughout retirement.
- Make sure to include your family in your plans. Let them know what you want to do in your retirement and how you want to maintain control of your new life.
- Take a new look at household responsibilities, and if need be, reassign household tasks.
One of the retirement issues that should not cause undue stress is your sense of financial comfort. Here are some things that you can do to make things easier financially when you leave your job:
- Use our Retirement Cash Flow Calculator to help you clarify your financial picture in retirement. This will help you categorize your expenses and give you a snapshot of your current picture and any gaps that might exist.
- Think of your retirement expenditures in terms of three money "pots" and then make a realistic assessment of what you might spend in each area monthly. The three areas where you will spend money in retirement are:
- Basic necessities such as food, clothing, shelter and transportation
- Entertainment expenses such as travel and dinners out
- Special event expenses such as gifts, unexpected healthcare costs, home maintenance costs etc.
- Avoid the temptation to make large expenditures in the first year of retirement. Many new retirees forget that they are now on a fixed income without the benefit of workplace bonuses or raises. Even if you feel that you are comfortable, a planning session with your RBC advisor can show you how you can layer your income in retirement to allow for the occasional extravagance.
- Take an inventory of all of your financial assets, and if possible, consolidate them at one institution. This will take some of the stress out of your monthly financial planning and make it easier for you to build an income plan in retirement.
- Your transition to retirement is a good time to review your will and to make sure that everything is updated.
Achieve your Retirement Goals
Together with an RBC advisor, you can begin to build a retirement plan that will help you to achieve your future, your way.
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