Considerations for Health and a comfortable retirement
You’ve just retired. Now what?
I ask this with all appropriate gravity. Retirement is arguably the most rewarding stage of life. You’ve worked your whole life for this moment, and you have likely been anticipating it for a long time. You’ve passed the torch to the next generation, and what were once diversions and hobbies can now become your passions.
Still, there are some things you’ll need to know as you leave the rat race behind.
As you retire, your group health coverage is likely coming to an end. With a fixed income on the horizon, you’ll want to budget for health insurance and life insurance.
Health insurance offers you peace of mind, covers you where your provincial health insurance doesn’t, and bridges the gap in the case of future government health-care reassessments. (Click here for a general snapshot on what the government covers in retirement.)
Your group life insurance has possibly run its course, as well. Whether you want to leave a little nest egg for your spouse, or help cover your grandchildren’s education, there are plenty of options out there to cover yourself and your family.
And since you’ll likely be doing a little more jet-setting, especially during those long Canadian winter months, travel insurance is well worth the effort for the protection it provides — whether it’s unexpected medical emergencies, missed flight connections, or logistical snafus.
Consider part-time work
Many retirees have found — somewhat ironically, after awaiting this day for years — that they don’t want to fully retire.
You may choose to take a part-time job at this stage of your life. A lot of retirees have found true happiness doing work they love on a part-time basis. And it won’t hurt your portfolio, either; a $15,000-a-year, part-time job for 15 years, for example, will supplement your retirement income to the tune of $225,000.
The million-dollar question
Do you really need a million dollars to retire comfortably?
The question has been batted around plenty, but I would answer it this way — it all depends on the individual, and the lifestyle you expect in retirement.
Keep in mind that some of those more onerous expenses through life, such as mortgage payments and saving for the kids’ education, are probably no longer relevant. Keep in mind that you’ll probably pay considerably less in income tax, since you’re also earning less. Also keep in mind that a frequent flyer will need a bigger retirement cushion than a homebody.
There is plenty to think about, as you enter your golden years, and that’s why I’m here as your dedicated and experienced financial advisor — to help you chart the most prudent path toward financial freedom.