Financial planning for Canadian seniors isn’t just smart strategy, it’s crucial to your overall well-being. When you’re not busy stressing over where money is coming from (and all the places it has to go: Family, senior care, rising interest rates), you free up energy for more healthy—and fun!—ways to spend your time. Financial planning can feel like a daunting task, however. Which is why we’ve rounded up some tips for you to get started in this department and create financial security so you can get busy living a life you love, instead!
Tips to Creating Financial Security
- Optimize your retirement income with a solid financial plan, which includes speaking with a certified financial planner. Someone who can look at your portfolio and customize solutions for your financial future by taking into consideration your particular investments, pension plan, taxes, estate planning, and government benefits. Shop around for a reputable financial planner, as it’s important to feel comfortable with the person who’s helping you manage your money.
- Never underestimate the power of a budget. Take into consideration all current and future income sources, your assets and investments, living expenses, and taxes. From there, create a monthly budget that will help give you a visual of what you realistically need to live off of. Keep in mind, these costs will evolve as you age so plan to have money set aside for retirement living, long-term care, and possible health care costs. Try these budgeting apps to find a method that works for you.
- Income splitting and other ways to reduce your taxable income. Consider splitting your pension income and RRSP contributions with your partner to lower your taxable income. Many seniors are also eligible for tax credits. The RBC Wealth Management Checklist for Seniors has more information on these strategies, as well as ways to minimize income tax when planning to withdraw from your RRSPs, Tax-Free Savings Accounts, and other savings.
- Estate planning. From budgeting for your retirement living costs (including care costs as well as lifestyle, because both are important to your overall wellbeing!) to deciding on whether inheritances will be gifted now or later (there are benefits to both), creating a livable strategy that focuses on your health and wellbeing can help give you peace of mind over your future. Knowing you’ve got a plan—and revising it regularly, because as we know, life changes constantly!—is half the battle.
- Downsizing. This often comes with emotional side effects; leaving the home your family created together can feel impossible. But it’s also a smart strategy as we age. Unloading the clutter can even feel good! Plus deciding where you’re going to retire to can be an exciting next adventure. Find our retirement downsizing tips here and try our affordability calculator here to find out just how affordable a Verve Senior Living residence can be.
They say to start to saving your future as soon as possible, but the other thing to remember is, it’s never too late to start! Pro Tip: Consider savings deposits like a bill payment every month, and your future self will thank you.
