Your Retirement Plan Was Built on Assumptions. Are They Still True?
Presented by Darren Devine, CFP®, CLU®, Financial Planner, Sun Life and President of Devine and Associates Financial Services Inc.
Every retirement plan starts with assumptions.
When you retire. What you will spend. Where you will live. How long your money may need to last.
But life has a habit of changing the assumptions.
So here's a question worth asking:
Does your retirement plan still reflect the life you're actually planning to live?
Hello, and welcome to Money Monday, where we help simplify your financial journey.
I'm Darren Devine, Financial Planner with Sun Life and President of Devine & Associates. I’ve been helping families across Ontario plan, protect, and enjoy their retirement income for over 20 years.
A retirement plan isn't something you build once and put on a shelf.
Because even if the plan hasn't changed...
you probably have.
So today, let's look at a few of the assumptions worth revisiting.
1. WHEN YOU WILL RETIRE
Maybe you originally planned to retire at 65.
But now you're thinking 62 sounds pretty good.
Or maybe you enjoy working and want to stay longer.
Even a few years can change the picture—because your retirement date affects when employment income stops, when other income may begin, and how many years your savings may need to support you.
2. WHAT RETIREMENT WILL ACTUALLY COST
We make assumptions about spending too.
Then retirement gets closer and the lifestyle becomes more real.
Maybe travel has become more important.
Maybe you're planning to downsize.
Or perhaps housing, groceries, insurance and everyday expenses simply cost more than you anticipated.
Inflation doesn't just change prices.
Over time, it can change the amount of income your retirement lifestyle requires.
3. WHO ELSE YOU'RE PLANNING FOR
Your retirement plan might not only be about you.
Maybe you're helping adult children.
Supporting an aging parent.
Helping with grandchildren.
Or you've decided leaving an inheritance is more—or less—important than it once was.
Those are life decisions.
But they can also become financial planning decisions.
4. HOW LONG YOU MAY NEED THE PLAN
And then there's one of the hardest assumptions to make:
longevity.
None of us knows exactly how long retirement will last.
But a retirement beginning in your early 60s could potentially need to provide income for 30 years or more.
That's why planning isn't simply about getting to retirement.
It's also about planning for the decades that could come after it.
Now, none of this automatically means you need to change your retirement plan.
It means it's worth checking whether the assumptions underneath it are still true.
Because a good plan should evolve as your life does.
That's one of the reasons we meet with our clients regularly—to talk about what's changed, what's coming next, and whether the plan still reflects what's important to them.
So before another year gets away from you, ask yourself:
Does the retirement you're planning for today look like the retirement you originally planned for?
If the answer has changed, it may be time for a conversation.
Thanks for tuning into Money Monday. Don’t forget to like and comment for more episodes filled with tips to help make your financial journey a breeze. Until next time, I'm Darren Devine, and you can always talk to us today at DevineAndAssociates.ca!
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