Financial Planning in Retirement: Adapting to Change

May 21, 2018

Financial Planning in Retirement: Adapting to Change

How much money do I actually need in retirement? How much of my current lifestyle can I maintain in retirement? What changes do I need to make in order to align my life with my financial situation? The answers are not the same for everyone. Lifestyle and expectations vary from person to person; there is no one-size-fits-all kind of financial solution.

The idea of retirement has changed dramatically over the past couple of decades. Security in retirement is an important financial goal for most of the people. Once you reach retirement, considerate financial planning will help ensure that you have the capital to meet your retirement expectations and that your wealth will last as long as you need it. There are certain steps you can take to secure a happy, well-funded retirement.

Cash flow needs

Your cash flow will come from what you have accumulated during your working years. When planning for retirement, start with analyzing your cash flow needs and sources of income. Some of your basic expenses such as food and housing are likely to remain the same. However, you can develop the tendency of spending more on travel and leisure. Some retired people like to spend time with family and friends instead of traveling. Generating income from your retirement assets as tax-efficiently as possible and making your savings last should be your priorities.

Adapting to change

In retirement, most people are likely to experience relatively stable sources of income and changing income needs. If you or your spouse is dealing with health issues, for instance, it will considerably increase your expenses. Moving from a large family home to a smaller home can generate a sizeable capital gain. You can also gain exemption from tax depending on income tax rules. Financial gains obtained as a result of downsizing can represent an important asset that you can invest to generate valuable income for many years. It all depends how quickly and effectively you adapt according to your financial circumstances.

Prepare and update your estate plan

It is very important to have a relevant Will and power of attorney at every stage of your life. Careful estate planning will allow you to transfer your assets to your beneficiaries in a tax-efficient manner. Powers of attorney for personal care and property will help ensure that your assets are managed appropriately and you get the care you deserve in case you become unable to make critical decisions yourself. Therefore, it is important to review estate plan and powers of attorney periodically to ensure that these documents accurately reflect your current circumstances.

It is recommended to consult a competent financial advisor who could help you prepare a better financial plan for your retirement. Guidance from a financial advisor or tax professional will effectively streamline your financial affairs.

How we can help

Kewcorp Financial is a financial planning company in Edmonton that helps you secure your financial future. From estate planning to locating investment opportunities, we use our financial knowledge and experience to resolve your financial issues: wealth transfer, insurance, tax planning, investment, asset management and protection. If you have any question in your mind, feel free to call us and get immediate assistance from one of our financial planners!


Jim Kew

Financial Planner
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Scott Kew

Financial Planner
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