Traditionally, financial planners have suggested that people need about 70% of their pre-retirement income to maintain their lifestyle after their working years have ended. But times are changing. A careful review of your retirement plan may show that the traditional rule of thumb does not apply to your retirement dream.

Busy retirees

For one thing, the concept of retirement is changing. Many of today’s and tomorrow’s retirees want to use their increased leisure time to do more rather than less.

You may want to get involved in an expensive hobby that you had no time for while you were working. You might take an interest in collecting, whether it’s antique furniture or vintage motorcycles. More leisure time means more opportunities for cultural events such as plays and concerts, as well as a busier schedule of social activities. Travel is a far more important part of retirement than it was a generation ago.

For some people, giving up one line of work means starting another. Many retirees enjoy turning their hobbies into paying propositions. Some even use their newfound time to start up a business.

All these activities may require a substantial amount of money.

A personalized approach

The key to building the resources you need to fund your retirement plans is not to follow a one-size-fits-all formula. Your budget needs to reflect your lifestyle goals and your current circumstances.

An investment professional can help you plan for a retirement that reflects the way you want to live. Call Servus at 187SERVUSCU (1.877.378.8728) and make an appointment with one of our wealth advisors.

Servus Wealth Strategies Ltd. is a subsidiary of Servus Credit Union Ltd. offering financial planning, life insurance and investments. The information
contained in this article is provided as a general source of information and should not be considered personal tax advice or investment advice.