For many of us, retirement is the goal; the light at the end of the tunnel. Once you get there, however, you may find that retirement is less a destination than it is the start of a new journey. That’s why preparing for retirement is so important. One challenge many retirees encounter is having to manage a new financial situation but not knowing how.
Living on a fixed income can be a difficult adjustment
It can be a tough transition for people, especially early in retirement. Here are some questions you can ask yourself that may help you adjust:
- How big is my emergency fund?
- Do I know what all my expenses are?
- What benefits have I applied for, and have I missed any I might be eligible for?
- Would I be able to recognize if I’m being defrauded or financially abused?
- When was the last time I reviewed my insurance coverage?
It’s never too late to start learning
There are free resources and courses available that can help you learn more about managing your money in retirement. For example, Money Matters is a free financial literacy program for adult learners with resources, online courses and community workshops. There’s research from the Social Research and Demonstration Corporation which suggests that having more financial confidence can actually lead to better outcomes in areas like day-to-day money management and debt.
Fraud is a real concern in retirement
Unfortunately, many fraudsters target seniors in particular. One thing scammers are counting on is creating a feeling of uncertainty, urgency and fear. Becoming more comfortable and confident with your finances can be a defence against that. By learning about your rights, as well as what your bank will or won’t ask you, you can be better prepared to protect yourself.
Whether you’re already retired or looking forward to it, accessing resources to boost your financial literacy can make a big difference in how you enjoy your golden years. Learn more and find free resources at abcmoneymatters.ca.
– News Canada