While you’ve likely spent your working years focused on saving for retirement, you may not have given much thought to how you’ll manage your money once you get there. When it comes to making your money last, there are many factors to consider: your health, age, hobbies, interests – just to name a few. You may not have enough money to do everything you want in retirement, but there are ways to make the most of what you have.

Managing your assets during retirement

Now that protection of your assets is key, you may need to shift from higher-risk investments to lower-risk vehicles, or even to ones that produce a guaranteed rate of return. Reallocation of your portfolio

depends on a number of factors including how long you plan to stay in retirement, your estimated retirement income, and how much liquidity you need. Your Altamira Advisor can work with you to determine the best asset allocation for your investment needs.

Managing your income stream

Your income stream during your retirement years will likely come from many sources, including government benefits such as CPP (for Quebec residents, the Régime des rentes du Québec) and OAS, pension income, RRIF income, and investment income.

Managing cash flow

Now that you’re no longer earning a traditional paycheque, managing your cash flow is an important component of your financial plan. Once you create a budget to determine your disposable income, you’ll have a better handle on the type of lifestyle you can afford.

Converting your RRSP into an income stream

Now that you’ve reached retirement, that RRSP nest egg you worked so hard to create has changed its focus. It’s no longer a savings vehicle – it’s now a key source of income.

Identifying Retirement Income and Expenses

The first step in answering the question, “Will I have enough?”, is to determine your income sources and expected retirement expenses. Second, take an inventory of your retirement savings. To start, take a pen and paper and list the following:

Your sources of monthly income (government, employer, and personal savings), less estimated taxes.
Your fixed monthly expenses, such as mortgage/rent, property taxes, condo fees, utilities, groceries, transportation, insurance premiums, etc. Don’t forget to include an allowance for healthcare and medical costs which are likely to increase during your retirement years.
Your discretionary expenses such as travel, clothing, gifts, etc.
Your savings including RRSPs, locked-in accounts, and other investments.
Estimate your life expectancy based on your current health and family history.

Subtract your total estimated retirement expenses from your total expected net income. Any gaps in funding will need to be made up from your current savings which, depending on your life expectancy, may or may not be sufficient. Your Altamira Advisor can help you determine if your income will be sufficient to fund your retirement expenses by preparing a retirement projection.