There's so much more to retirement than an RRSP - and I don't mean financially.
"You may not know how much money you will want or need for your retirement until you have decided on the kind of life you want in retirement," say Ron and Lois Richardson, North Shore-based co-authors of Creating a Happy Retirement: A workbook for creating the life you want (Self-Counsel Press, $14.95).
"Many other issues - our physical, emotional and psychological health - are related to a happy retirement and need to be a part of everyone's plans."
The Richardsons mention several examples of people who had a sad - or very short - retirement because they couldn't adjust to their new situation after a very full work life. I can also remember newly retired clients who were clinically depressed because they could no longer find any meaning to life; several died shortly after retiring.
Whether you are 21 (and I once had an assistant who, at the age of 21, was indeed already planning for her retirement) or 61 (or even if you have already retired), a small amount of planning can make a big difference.
The Richardsons say you should look back at your life so far to gain insights into who you are and what's important to you.
The book poses questions for discussion with a partner/family (or with yourself or a counsellor if you are single) to help you plan for a rewarding retirement. Even if you answer only one of the questions you will be better off. For example: n To what extent is your work central to your identity? n What are you doing to improve or maintain relationships with family and friends? n When should you retire? Is semi-retirement an option? n Where will you live? Develop a timeline of when you expect key events to occur. And be flexible to deal with the inevitable changes.
Use the current annual focus on RRSPs and retirement to motivate you to do some retirement planning. The non-financial payoff could last a lifetime.
Mike Grenby is a columnist and independent personal financial advisor; he'll answer questions in this column as space allows but cannot reply personally: [email protected].
