Did your retirement plans change during the pandemic? Whether your earnings were impacted or you have different priorities, if you are like many Canadians, your retirement goals are different today than they were in 2019.
In a 2021 financial industry survey, more than half of the respondents claimed they are now rethinking where they want to live and how much they want to save to feel secure. Nearly two-thirds of working-age Canadians said they want to live at home when retired rather than moving to a retirement facility, and one-third have decided to delay retirement because of the pandemic.
If you have a different vision for the future or if your circumstances changed, it’s time to update your retirement plan. Use these tips to get started.
Realign your plan to fit your new goals
Sit down and determine what your new goals and priorities are. How will these changes impact how much you need for retirement? Will you need to push back retirement to reach these new goals? If you’re not sure how to determine the details, our experienced financial advisors can help you create a revamped financial plan.
Find ways to supplement your retirement income
A CIBC poll found that over half of Canadians weren’t able to contribute to their retirement since the pandemic hit. If you fell behind, now is the time to look for ways to increase your available income during retirement.
You can do this by continuing to work part-time during retirement. Another option is to downsize to a smaller property and use the extra money as retirement savings. You can also consider converting extra living space, such as a basement, attic, or garage, into a rental property so you can bring in rental income.
Review your asset allocation
If you still have a few years before retirement, you may want to adjust your asset allocation. For example, if you plan on stopping working earlier so you have more years to enjoy life, you may want to move some of your money from stocks to short-term bond funds or other more liquid assets.
Talk to a professional
These retirement planning tips can help you create a practical financial plan for the new normal.
There’s no question the pandemic has brought on a lot of disruption, which may have you worried about your future. Get in touch with us today and we'll help you craft a revised plan that gives you peace of mind.