Balanced retirement needs planning

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This article was published 15/02/2024 (951 days ago), so information in it may no longer be current.

Embarking on the retirement journey entails financial planning and cultivating a holistic and enriching lifestyle.

Sound financial planning, mental and physical health, engagement in social networks and the pursuit of personal interests, experts say, become paramount in planning a balanced retirement.

Sunrise Credit Union wealth management director Sapandeep Singh said Wednesday that financial planning, estate planning and life planning are key to retirement, noting determining the retirement timeline and calculating monthly and annual budgets are essential components.

Utilizing planning calculators, he said, assists in determining the amount individuals should set aside for retirement based on the budget, as well as estimating the longevity of the retirement funds.

“Ensuring a comprehensive estate plan involves having a will, designating an executor, and identifying life insurance beneficiaries,” he told the Sun in an email. “Building a road map to achieve one’s dream retirement involves defining activities and assessing feasibility.”

A range of retirement solutions, he said, cater to the diverse needs of individuals seeking a fitting retirement. These include tax-efficient savings, the conversion of savings into regular income during retirement and the availability of short-term savings accounts. These investment solutions play a crucial role in securing one’s financial future.

Singh highlighted two common challenges in retirement planning — uncertainty about the required savings and where to invest.

“Sunrise Credit Union addresses these challenges by leveraging a team of professionals with diverse expertise,” he said. “These experts provide tailored advice, guiding individuals through the intricacies of retirement planning.”

Navigating the complexities of retirement planning, financial adviser Garth Duncan said, requires a strategic approach, as the current obstacles in retirement investment stem from the fact that numerous Canadians are contending with reduced disposable income.

Wages for most individuals, he said, have not matched inflation rates, leading to considerably higher mortgage renewal payments, often ranging from an additional $500 to $2,000 or more per month.

“Many Canadians have less disposable income than they did a couple of years ago,” Duncan told the Sun. “It makes sense for people to invest in the Tax-Free Saving Account or the First Home Savings Account. Only for people that have maxed out these two options would it make sense to use the RRSP.”

A primary emphasis, Duncan said, is the importance of settling debts before initiating retirement savings, particularly given the current elevated interest rates. He cautions against incurring debt for non-essential consumer goods, such as financing a new vehicle.

“Financing a new vehicle may not be wise if they can choose a more economical option like repairing the vehicle they have or buying a used vehicle.”

Edward Jones senior strategist Julie Petrera said approaching retirement planning requires recognizing its diverse nature, understanding the available options and considering their immediate and long-term benefits and restrictions.

“Retirement planning is not a one-size-fits-all approach,” Petrera said. “Given the multitude of factors influencing various account types and individual situations, collaborating with a trusted adviser is essential. Such collaboration can reshape Canadians’ perspectives on financial matters and their approach to retirement planning.”

As one’s needs and goals are constantly changing, “it’s crucial not to put a plan on autopilot and instead evolve investing strategies to address those changes,” she said.

Like Duncan, she said there is a need for evolving investment strategies, adding that investment options like RRSP, TFSA or FHSA are worth considering.

Financial analyst Femi Afolabi agrees financial planning remains a crucial aspect of retirement, but says there is a need to go beyond the numbers.

“While financial security is paramount, retirees are increasingly recognizing the importance of a well-rounded lifestyle,” Afolabi told the Sun. “This includes activities that promote mental and physical health, engagement in social networks and the pursuit of personal interests.”

To live a balanced life, “everyone should endeavour to engage in activities that can help their growth, mentally, physically, psychologically, spiritually, emotionally and financially.”

Retirement communities and organizations are responding to this shift by offering a range of programs and services that cater to the diverse needs of retirees.

From fitness classes to live entertainment and educational workshops, Rotary Villas executive director Jody Kehler said these initiatives are designed to foster a sense of community and purpose for seniors in the facility.

“Rotary Villas offers various services such as housekeeping, meals, recreation, transportation and more,” Kehler said. “The community is designed to support seniors by making life easier and safer while helping maintain their independence.”

On prioritizing overall well-being, she said, “our staff are always available to answer your questions, but it is more than that — the residents are here for each other, too. You gain an entire support system when you move into this amazing community.”

To serve more retirees in the community, Rotary Villas is expanding. “We are building an addition of 48 suites designed with seniors’ needs in mind.”

Brandon Seniors for Seniors Co-op also has diverse programs and services designed to enhance the well-being and engagement of community members.

Among these offerings are wellness clinics and services such as foot care, hairdressing, massage and meal programs like “Dinner is Served” and “Out to Lunch.” That commitment extends to essential services like Victoria Lifeline, lockboxes and Emergency Response Information Kits.

In the realm of education, executive director Eleysha Klaassen said the co-op offers diverse programs such as Technology Access for Seniors, informative workshop sessions, engaging demonstrations and access to a comprehensive resource library.

To promote an active and vibrant community, she said, “we organize recreational activities including exercise classes, yoga sessions, and various interest clubs such as cribbage, bridge, clogging, songbirds, carvers, Mahjong, line dancing, stitch ’n’ chat, computer club and a men’s club.”

These offerings, she added, collectively reflect the group’s commitment to creating a dynamic and supportive environment that caters to the diverse needs and interests of its members.

“Seniors for Seniors is a wonderful, inclusive place for retirees to stay active and create or maintain social connections,” Klaassen told the Sun. “Many of our members say coming here is like a home away from home. Some of them come just to sit and visit, as it gives them a sense of belonging.”

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