Who doesn't love a good checklist?

We use them for our daily chores, work tasks and even personal uses. They can help us better plan and envision the end goal for whatever project or milestone we’re working towards. When it comes to retirement planning, having a checklist is equally as beneficial. It'll help you translate your vision into reality. Although not exhaustive, here are some of the many things to think about including on your checklist when planning for retirement.

Imagine your life in retirement

Every project begins with a vision. Take some time to envision what kind of life you want in retirement. It could be travelling and visiting places you never had the chance to in the past, starting a new business or maybe just staying close to home, spending more time with family and volunteering in your local community. Whatever your vision may be, knowing what life in retirement looks like will help you figure out how much money you'll need to actualize it.

Take stock of your retirement income sources

When you venture into the next chapter of your life, you’ll need to know where your income is coming from. Start here by listing all the income streams you'll have in retirement, how much each source provides, and how long each source is able to provide income during your retirement. This will help you get a better sense of what your finances are going to look like in retirement. In Canada, some of the more common streams are government savings programs, personal savings, and workplace pensions.

Estimate your retirement expenses

Now you've determined your likely retirement income sources, the next step is to identify the types of expenses you’ll have. Doing so will let you compare your estimated income sources and expenses – you can evaluate from there if anything needs to be adjusted. Some expenses might include health care, housing, living expenses (utilities, phone, internet bills, etc.) and leisure. Always double back to this list as you get closer to retirement to adjust and make any new updates as they change.

Get your financial and legal documents in order

Although not limited to retirement planning, it is important and practical to have your financial and legal documents updated and kept in a safe and accessible place. Estate planning is crucial in ensuring your loved ones stay taken care of after you're gone. It also gives you peace of mind as you embark on a new chapter of your life. Begin by getting professional advice from a financial advisor or lawyer, so you have all the information to make the best decisions.

Pick a retirement date

We know this seems like an obvious step, but it's the most important one because it’s where you get to celebrate! This helps anchor your retirement goals and gives you a target to work towards. It doesn't necessarily have to be narrowed down to a fixed date. Even an approximation will be very helpful in steering you in the right direction. You might choose to retire at a specific time, or you might want to wait until your pension reaches the right amount. Either way you’ll be prepared.

Whether just around the corner or years way, getting a head start on your retirement planning is always advised. A pre-retirement checklist that includes the above will not only help you better prepare for this incoming life stage but also help distill any anxiety that comes with this new adventure. And the good news is as a member of the CAAT Plan you are already way ahead in your planning with a secure lifetime pension – yay!