Having a plan and being in control of your finances in retirement is just as important as being in control of your health. A report from the RBC Your Future by Design Retirement Research Centre in collaboration with the University of Waterloo, advises Canadians to learn how to manage their physical and financial capital in retirement.
The RBC report entitled Retire well – take control of your health and wealth indicates that 60% of older adults are inactive. Furthermore, the report notes that many Canadians are allowing their physical capabilities to decline at a higher rate than what is attributable to the result of aging.
Financially, the many demands of life can often make it difficult to save and invest money over the long term. While Canadians may be tempted to ignore the details and deal with retirement financial challenges as they arise, a successful retirement can be unlocked by taking a few simple steps to determine, in advance, if your current financial capital is adequate.
“The key to a successful retirement isn’t about setting a plan in motion; it’s about building a plan that is dynamic and holistic so as your life changes and your health changes, your financial plan evolves and preserves your money in a way that fits your lifestyle,” says Lee Anne Davies, head, retirement strategies, with RBC. “Much like physical health, action must be taken to maintain strength, endurance, and flexibility in one’s financial health. It is the combination of control over one’s health and finances that leads to a balanced retirement.”
Once you’ve set your plan in motion to gain control over your health and wealth, RBC suggests Canadians should follow these steps to stay on track.
Write down your plan: Writing down your physical and financial goals helps you clarify them and gives you something to work towards.
Assess your progress: On a quarterly, semi-annual or annual basis, step back and see whether you have achieved the goals that you set for yourself.
Make modifications, as needed: A plan is flexible and can evolve as your needs change.
“There are three major aspects of your physical health that deteriorate with age — your strength, endurance and flexibility,” said Dr. James Rush, professor and chair, Department of Kinesiology, University of Waterloo. “Declines in these areas lead to loss of quality of life and disability that start to increase with aging. You can significantly slow down the decline in each of these factors by taking control of your lifestyle.”