June 26, 2025
Planning for retirement can seem like a daunting task. Often times, people don’t know where to begin so they put it off, or they make a start but soon find they have more questions
than answers. What age should I retire? How much will I need over those years?
The first step towards answering those questions involves creating a budget for your retirement years to ensure you are financially prepared. Using your current budget as a reference, and factoring in the effects of inflation, is a sound starting point.
However, it’s important to bear in mind that your expenses in retirement will look different than they do now. While you may not have certain expenses — such as childcare related costs, or mortgage payments — you will need to account
for other expenses that you have likely not considered.
Housing and housekeeping
Many retirees bank on downsizing to simplify their home maintenance and free up capital, however, not all retirement condos or “lock-up-and-go” houses are lower-cost options. Certain fees associated with such properties — such as monthly
fees related to security, maintenance and amenities — can drive up costs. Be sure to research the kinds of properties you’d like to move into so as to be well-versed in all associated expenses. As you age, you will likely also need assistance
with certain tasks you don’t currently outsource. Consider budgeting for such services as house cleaning, garden maintenance and pet grooming so as to not overburden yourself.
Activities and entertainment
In retirement, you will have considerably more free time than you are accustomed to. And where work may have given you a sense of pride, purpose and community, you will need to look elsewhere to meet these needs. Consider what hobbies, club memberships, or volunteering activities you’d like to take up. This could be anything from gym membership or career mentorship to taking a creative class or volunteering at your local hospital or food bank. It is important to fill your time with pursuits that bring you joy and foster sound mental, emotional and physical health, and to budget accordingly.
Capital outlays
Beyond your day-to-day expenses, it is important to plan for those larger capital outlays that inevitably occur every year or so. Whether this be a surprise overseas trip for an important family occasion, the purchase of a new vehicle or laptop, or providing
family support in the occasion of a child’s wedding or home purchase, planning for these larger capital outlays will ensure you don’t “break” your budget.
Healthcare and elderly care
Healthcare expenses typically increase with age. If applicable, ensure you have adequate private medical insurance for your needs, and that you’re comfortably able to meet those higher premiums. Consider, too, additional medical costs to cover your
preferred choice of glasses, and hearing and mobility aids, as well as home modifications should accessibility become a challenge for you or your partner. It is also critical to consider potential long-term care needs, such as nursing or assisted
living. Such services are expensive, and to ensure you avoid burdening your loved ones, it is best to plan for the possibility of such an eventuality.
Estate planning and power of attorney
An estate plan outlines how your assets are to be distributed in the event of your death. Typically, this involves a will (stipulating who will inherit your money and property) and a power of attorney (granting a trusted person the authority to make decisions
on your behalf should you be unable to do so). Keeping important legal documents such as these up-to-date as your circumstances change is important. For this reason, it is advisable to budget for certain ad-hoc legal and advisory fees, too.
People with wealth beyond their spending needs may consider giving to family or charity early (instead of leaving their estate transfer until death). If this applies to you, consider how and when you would like to share your wealth. For some, experiencing
the firsthand benefits of sharing your wealth can be meaningful.
Seek expert advice
Planning for retirement is one of the most critical — and one of the most complex —undertakings you will make in your career. Creating a budget for retirement, covering everything from housing to healthcare, is a great first step in crafting a retirement plan. Seeking expert advice from independent professionals such as tax, accounting or legal experts will help you to adequately prepare for your retirement.
Once you have determined your needs and aspirations for those years, you will need to revisit your current savings plan and asset mix to ensure you’re able to make your retirement plan a reality. Much like an estate plan, an investment plan requires expert advice and monitoring to ensure you have peace of mind leading up to retirement and beyond. Our wealth advisors offer the specialized wealth management advice our high-net-worth clients need to meet their particular, complex needs: the need to balance wealth preservation and intergenerational wealth management with realizing their lifestyle goals and leaving a legacy.
Our investment planning tool helps clients pre-experience their future wealth by modeling different retirement scenarios (i.e. spending rates, retirement dates, income levels etc.) against a wide range of market outcomes. Our goal is to help you make informed decisions about your wealth and ensure you are well-positioned to approach your retirement years with confidence. To start a conversation with one of our expert wealth advisors, or to stay connected with CC&L Private Capital, complete our get in touch form on this page.