| When planning ahead for retirement most of us look | | | | community that has provisions for an acceptable level |
| to our financial needs and go to financial planners and | | | | of health care. If you plan on living in your summer |
| in most cases have planned ahead financially for | | | | cottage which you have winterized consider the |
| some time with investment plans. As retirement | | | | health care factor carefully. |
| looms closer we know we will have to live on a | | | | Now you have planned to sell your home and create |
| lower income than we are used to. In Canada and | | | | that financial cushion. It is also important to have a |
| The United States of America we are fortunate that | | | | newer vehicle paid for by your retirement date so |
| we have the Canada Pension Plan as well as Old Age | | | | you may need to acquire such a vehicle a few years |
| Security and in the U.S. we have Social Security. | | | | in advance to have it paid off in time. |
| These pensions do give us a basic income but in | | | | Make sure you have no credit card debt and after |
| most cases it is not enough to maintain an acceptable | | | | retirement do not put any amount on your credit |
| standard of living. In Canada the Old Age Security | | | | card that you can not clear by the end of the month |
| offers a supplement to provide you with income up | | | | when payment is due. If you must use credit for an |
| to the poverty level. Be aware that supplements | | | | unexpected expense a line of credit on your bank |
| from government are reduced by investment | | | | account has lower interest rates than do credit cards. |
| interest you may receive after retirement. Also to | | | | But of course this is why you have your financial |
| qualify for a supplement you must have lived on a | | | | cushion to take care of these unexpected expenses. |
| lower income for one income tax reporting year. | | | | You will be glad you downsized. Most of us cannot |
| Then the supplement is considered and provided you | | | | afford to remain in our pre-retirement homes. Saving |
| are over 65 years of age and qualify you will then | | | | via real estate is one of your best investment |
| receive those extra dollars on a monthly basis. Or | | | | opportunities to acquire retirement cushions. |
| you may obtain the supplement immediately by | | | | When looking for a retirement home consider moving |
| contacting the appropriate government office and | | | | to a senior's community such as a 45 plus restricted |
| give them the total of your projected income from | | | | age requirement. Some choose mobile or modular |
| your retirement date. Failing to notify them will delay | | | | home parks, some choose townhouse complexes |
| your supplement until after you have filed a lower | | | | and some prefer the individual rancher concept. If |
| year of income on your tax form. If you take early | | | | any of these are in your plans then be aware that |
| retirement there are many benefits you will have to | | | | the size of your dog may restrict your choice. Most |
| wait for until you become of age. | | | | of these communities insist your dog be under 18 |
| There are steps that you can take in advance of | | | | inches in height. It varies but small is the key word |
| retirement that will reduce your need for the income | | | | here. So 5 years before retirement do not acquire a |
| you have been living on while employed. If you have | | | | large dog unless you know you will not find yourself |
| managed to pay off your mortgage and own your | | | | in this predicament. |
| own home you may want to consider downsizing. It | | | | One last point, remember is be sure to set your |
| is difficult to leave the home you have worked so | | | | retirement date for the last day of the month. Do |
| hard to own but it can provide you with a retirement | | | | not finish out a week if it leads you into the next |
| cushion. | | | | month or you will have to wait an extra month for |
| In searching for a home to downsize to consider | | | | your government pension to begin. And don't forget |
| moving to a smaller community where housing costs | | | | to contact your government pension plan and give |
| are not as high as larger cities. In most cases you can | | | | them your retirement date 6 months to a year in |
| find a retirement community within 100 kilometers or | | | | advance. It takes time to process your pension so |
| 80 miles from where you now reside. Look for a | | | | they will be as prepared as you are! |