Are your retirement expectations aligned with reality?

Personal expectations can sometimes differ from reality.

For example, the hotel room you booked online didn’t match the pictures from the website. Or the New Year’s Eve party fell short of the revelry you anticipated.

Most of us have experienced such shortfalls or ones similar. Make sure your retirement doesn’t get added to the list.

Being prepared for retirement helps to align reality with your expectations so you can enjoy a comfortable lifestyle after you’ve finished working.

Create a retirement checklist

Enjoying the prime years of your life all the while paying off debts and saving money for the future can be a tricky tightrope to navigate.

A few things to consider before you knock on retirement’s door:

• Update your budget. Chances are your spending habits and expenses during retirement will take on a different look that reflect your lifestyle change.
• Consider where you'll live when you retire and how much it will cost.
• Money management. At some point, you may become mentally or physically unable to manage your own finances.
• Make or update your will. This is a good way to make sure your wishes are honoured after death.

In planning for retirement, become familiar with how much your pension will pay. Review your most recent statement if retirement is a few years away, or give us a call for an estimate if you are within one year of retirement.

Also, consider your retirement income sources, too.

Know your sources

An employer-sponsored pension is only one source of retirement income.

Government benefits, like Old Age Security (OAS) and Canada Pension Plan (CPP), are another source of retirement income. Did you know the age at which you apply for these programs can affect how much you receive?

You also can defer these programs and later receive a greater payment.

Attend our PREPARE workshop and we'll help you better understand your sources of retirement income.

An additional source of income is personal savings like RRSPs or TFSAs. Contributions to an RRSP also are tax-deductible, giving you a chance to save money now while you also save for the future.

Of course, you always have the option to work during retirement. If you choose this option, consider what might happen to your pension if you continue to be employed. Depending on your age, you may still contribute to CPP and therefore, increase your retirement income.