Retired? Realize your plans!

Happy day, you're finally retired! Whether you're the type to throw yourself into projects or to hold back on enjoying yourself because of money concerns, the most important thing is to be realistic and to think ahead about your retirement plans to make sure everything goes smoothly!

So you've retired, and you've established a budget that lets you maintain your lifestyle and continue to engage in your daily activities besides work. With the help of an advisor, you've mapped out your day-to-day expenses taking a load off your mind. Until now, everything's been going swimmingly.

Now's the time for those special projects and plans. You'd like to travel, or maybe study art at university, or just relax at an Eastern Townships campground, but how much will it cost you? And what about any unforeseen costs?

Huguette, 65, has been retired for a few months, as has her husband. They wisely budgeted for retirement. Just the same, they were not protected from an unexpected issue. "My husband won a $2000 travel coupon last year," she says. "We were excited to be going to see the Arc de Triomphe, the Louvre and to eat at the Café de Flore. However, what we didn't know was the trip was going to cost us $2000 more than we thought."

Get organized

The key to success in avoiding unpleasant surprises is to be well prepared whenever you have a project in mind. For instance, if you'd like to travel like Huguette and her husband and you don't want any surprises, here is some good advice so you're better prepared.

1. Determine your budget (your financial planner can help.)
2. Figure out your destination.
3. Calculate all supplementary expenses (food, leisure activities, travel, gifts, etc.).
4. Ask for advice (from fellow travellers or people close to you) or do your own research (rainy season, hurricane season, high season).
5. Determine your destination and trip dates.
6. Get armed with travel insurance. You can buy it any time before your plane takes off; however, it's best to take care of it well in advance. Insurance costs money, so check to see if your credit card or personal insurance offers some coverage when you travel.
7. Travel with all your medication in your carry-on bag and make sure to keep the list with you. Your pharmacist can provide you with a list upon request.
8. Dream right up until the moment you leave!

Managing the unforeseeable

Sometimes, of course, nasty surprises throw a damper on things, for example, health problems might arise, as was the case with Mario, 67, retired for 2 years, whose wife fell ill: "Unfortunately, we didn't think we would be facing illness so soon," he explains. "My wife's treatments are expensive and are not fully covered. She's kept her spirits up, though." In fact, while the cost of healthcare itself is free, the cost of medication, the choice of hospital room and home services still need to be paid for.

Marielle, 71, retired for 8 years, had to face another unforeseen occurrence: "My son got into financial trouble and he came to live with us while he took some time to get back on his feet."

Rest assured that the goal of these examples is merely to encourage you to build an emergency fund. Even in retirement, having a bit of a cushion is very important for your retirement budget.

Think about solutions

It's normal to spend more at the start of retirement. Take advantage of your money to spoil yourself a little. After all, you worked hard so that you could realize your goals. It might happen that nothing untoward affects your retirement and that your plans are all smooth sailing. Take the time to enjoy it.

Occasionally, the scenario can be less rosy. But don't let that worry you. You can use your retirement savings to finance your plans. Some people might even opt to sell off an asset.

Wayne, 72, retired for 5 years, chose the latter option: "My wife wanted to take glass blowing classes," he says. "We had to find a way to pay for the courses she loved without dipping into our savings. So we looked at the cost of the car and found it was way too expensive for what we needed it for. So we traded it in for a small, used economy model. Thanks to this minor adjustment, my wife cuts a fine figure when she goes off to her class."

More and more retirees are deciding to work part-time. If passing on your expertise makes you happy, it's also a great way to earn a little money to spend on those special projects for days when you're not working.

There are several online services with job listings for people 50 and older.

Here are a few:

• Retired job
• Midi-quarante

The most important thing to remember is, for every unexpected event, there's a solution. Enjoy your retirement and consider maintaining an emergency fund. If your special projects cost a bit more than expected, get into solution mode. If at any time you feel stressed or overwhelmed, go see your financial planner right away. He or she will be able to guide you in your budgeting. One important thing: don't forget that, after all, retirement is a time to relax and have some fun.

The FlexiFonds offering: retirement savings solutions

Are you looking to maximize or consolidate your retirement savings? The Fonds de solidarité FTQ has launched the FlexiFonds offering to meet your needs and support you throughout your retirement. Better yet, with these new products, you can continue to support Québec's economy! The FlexiFonds offering is the logical extension of your Fonds experience.

LEARN MORE ABOUT THE FLEXIFONDS OFFERING 

About FlexiFonds de solidarité FTQ
FlexiFonds de solidarité FTQ Inc. is a wholly-owned subsidiary of the Fonds de solidarité FTQ. FlexiFonds de solidarité FTQ Inc. acts as the principal distributor of the funds' units and is a mutual fund dealer registered with the Autorité des marchés financiers.