If you are close to retirement, you may be asking yourself if you are ready to step away from your career. When we meet with clients or prospective clients nearing retirement, they often have some apprehension.

They are worried they don’t have quite enough money, or they wonder how they will spend their days. In either case, there are simple solutions to help set yourself up for long-term success after your career ends.

How much money do I need to retire?

This is a question we get all the time; the simple answer is, “it depends.” Of course, this is not a very satisfying response to a near existential question, so instead, we encourage everyone to ask the question, “How much income do I need to maintain my lifestyle in retirement?”

This question often has a simple answer. If you are contemplating retirement, then that means your expenses are covered by your employment income — so we can start there. Take a look at your recent bank and credit card statements and try to organize your expenses into three groups: things you know will continue after retirement, things you know will not continue after retirement and things that may or may not continue.

Most of your expenses will likely linger after you finish working, but there are a handful you can cross off your list for the future — things like parking at work and purchasing office attire. Expenses that might also fluctuate include vehicle maintenance, fuel costs, reduced travel expenses (by avoiding peak travel times) and monthly savings. Once you’ve assessed your income and identified the amount necessary to sustain your lifestyle, you can create a clear plan to replace that income through various retirement sources. This could include your private pension, Canada Pension Plan and Old Age Security, investment income and the principal from your investments.

The Kozak Financial Group can help you transition into retirement

It is all well and good that you have enough projected income to cover your expenses, but you may already be asking, “what about unexpected expenses?” or, “how do I manage my taxes through all of this?” Luckily, the expertise of a wealth advisor can help. There is a lot more to retirement planning than just saving up the money and spending it in retirement.

Typically, we encourage our clients to complete a financial plan when they are initiating the transition to retirement. A financial plan gives you a relatively clear road map for how your income will change over the coming years, how your net worth will fluctuate and how to plan accordingly for the future.

Your financial plan should reflect the life you want to live in retirement — considering factors such as travel, family events and your retirement residence. These considerations are all unique to each client and we build them into your financial road map. With our help, many clients have made a peaceful and satisfying transition from working to retirement by focusing not on how much money they have saved up, but instead on the income streams they will be generating. The plan they have in place will also help ensure they are managing their wealth in a tax efficient manner and receiving the guidance and advice needed to navigate unexpected events.

Focusing on income is what helps make our clients successful in retirement. The Kozak Financial Group is invested in our clients’ success — today and in the future. As a result, we have helped countless individuals successfully transition from work life to retirement. Navigating around common pitfalls and working around the fluctuations of the markets means that our clients experience a retirement focused on lifestyle, rather than dollars and cents.