retirement planning guide

Transcription

1 retirement planning guide

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3 table of contents retirement planning... 4 personality... 5 skills interests values relationships recreation finances & economy summary & resources references

4 retirement planning It s coming the phase of life you have likely been dreaming about since you first started your career. Retirement! Up until this point, you have likely had some general ideas of what you wanted your retirement to look like, but you may not have put any solid plans in place. What do you want to do with your time? Who do you want to spend your time with? How much money will your plans require? This retirement planning program has been designed to help you answer some of these questions by exploring the following topics: 1. Personality who are you? What is most important to you in your life? How can you make sure that your activities and your retirement plan are most in line with your personality? 2. Skills what skills have you accumulated in your toolbox? Which ones do you most enjoy using? Are there ways that you can apply these skills even once you have left the workplace, such as volunteering, taking part in a committee, or even starting your own business? 3. Interests what do you like to do? Up until now, your working life has taken up roughly 1/3 of your day, maybe even more. That s a lot of time that you ll be freeing up once you leave the work force. What are some of the activities that you would like to fill this time? 4. Values what is important for you to have in your life? How can you make sure that your retirement lifestyle meets your values just as well, or better, than your working lifestyle? 5. Relationships who do you like to spend time with? Relationships are an important part of all of our lives, for some of us more than others. Since we tend to spend a fair amount of our time at work, your workplace relationships may fulfill many of your social needs. When you retire, who will make up your social support network family, friends, members of your community, or some combination of these? 6. Recreation what do you like to do for fun? You may already have a number of recreational pursuits that you plan to make a more important part of your life, but you may also find yourself wanting to pick up some new activities. What are some of the activities you d like to include in your retirement lifestyle? 7. Finances & Economy what is your retirement budget going to look like? You may not be able to answer this question for sure until you are there, but this tool may help you to understand what expenses are going to increase, which will decrease, and how your retirement income will help you meet these expenses. There is no such thing as a perfect retirement, but there is a perfect retirement for you. This guide will help you answer some of the questions you might have to help you find out what that looks like and how to make it happen. 4

5 personality First off is personality understanding who you are. This exercise may just confirm a number of things you already know about yourself, but it might also provide some valuable insights about who you are that can be helpful in planning your life after work. For each of the questions in the list below, please select the answer which best describes you. At the end of the exercise, we will help you tally your scores to identify your personality type. 1. At a party do you: a) Socialize with many people, including those who are new to you b) Socialize with a few people, preferring ones you have met before 2. Do you describe yourself as: a) Realistic b) Philosophical 3. Are you more interested in: a) Facts b) Similes 4. Do you place more emphasis on: a) Being fair minded b) Being kind hearted 5. Do you tend to be more: a) Unemotional b) Sympathetic 6. Do you prefer to work: a) With a deadline in mind b) With fluid timelines and schedules 7. When making decisions, are you: a) Fairly careful b) Somewhat impulsive 8. In a social setting, do you: a) Stay late, getting more energized as the event goes on b) Leave early, finding the experience more draining 9. Do you believe that you are more: a) Sensible b) Reflective 10. Are you more compelled by: a) Hard data or facts b) Complex ideas 11. Do you find it easier to be: a) Fair b) Nice 12. When you meet someone new are you: a) Distant and detached b) Engaging and friendly 5

6 personality 13. Do you tend to be more: a) Punctual b) Leisurely 14. Does it bother you more to have things: a) Incomplete b) Complete 15. Among friends, do you find that you: a) Keep up-to-date on what is happening b) Fall behind on news 16. Are you more interested by: a) Specifics b) Concepts 17. Do you prefer authors who: a) Say what they mean b) Use analogies to illustrate their point 18. Is your natural style to be more: a) Impartial b) Compassionate 19. When decision making, are you more likely to be: a) Impersonal b) Emotional 20. Do you prefer to: a) Get things settled b) Keep your options open 21. Are you more: a) Quick to agree to a time b) Hesitant to agree to a time 22. When you call someone on the phone, do you: a) Improvise b) Rehearse what you d like to say 23. Do you believe that facts: a) Stand alone b) Need interpretation 24. Do you prefer working with: a) Practical data b) Abstract ideas 25. Do you find that you are more: a) Cool headed b) Warm hearted 26. Would you rather be known as: a) More just than merciful b) More merciful than just 6

7 personality 27. Are you more comfortable: a) Planning timelines b) Postponing 28. Do you prefer to make: a) Written agreements b) Handshake agreements 29. When in social situations, do you: a) Initiate conversations b) Wait for someone to talk to you 30. Do you believe that traditional common sense is: a) Fairly trustworthy b) Misleading 31. Would you say that children need to be more: a) Practical b) Imaginative 32. Would others characterize you as: a) Tough minded b) Tender hearted 33. Is your tendency to be more: a) Firm b) Gentle 34. Are you more likely to keep things: a) Planned b) Open-ended 35. Do you place more importance on things being: a) Defined That s just the way it is. b) Variable It depends 36. Do you find interactions with others to be: a) Stimulating b) Overwhelming 37. Do you find yourself to be more: a) Practical b) Theoretical 38. Which of the two ideas is more attractive to you: a) Perception what is b) Conception of what could be 39. Which do you find more satisfying: a) To discuss an issue thoroughly b) To arrive at agreement on an issue 40. Which guides you more in making decisions: a) Your head b) Your heart 7

8 personality 41. Are you more comfortable working on a: a) Contract b) Casual basis 42. Do you prefer for things to be: a) Neat and orderly b) Optional 43. Do you prefer to have: a) Many friends with shorter interactions b) Fewer friends with longer interactions 44. Would you prefer to have: a) Substantial information b) Credible assumptions 45. Do your interests lie in: a) Production b) Research 46. Do you find you are more comfortable being: a) Objective b) Personal 47. Do you value being: a) Unwavering b) Devoted 48. Are you more comfortable with: a) Final statements b) Tentative statements 49. Are you more comfortable: a) After a decision has been made b) Before a decision has been made 50. Do you: a) Find it easy to speak with people you do not know b) Have difficulty making conversation with people you do not know 51. Are you usually more interested in: a) A particular situation b) A general case 52. Do you feel more: a) Practical b) Innovative 53. Which of the two do you find more appealing: a) Logic and reason b) Feelings and emotions 54. Do you find yourself to be more: a) Fair b) Sympathetic 8

9 personality 55. Do you believe it is preferable to: a) Plan out all the details b) Just let things happen 56. Do you have a tendency to: a) Get things decided b) Put off making a decision 57. When the phone rings, do you: a) Rush to get to it first b) Hope someone else will answer first 58. Do you prefer to have a: a) Strong sense of reality b) Good imagination 59. Do you find yourself more interested in: a) Fundamentals b) Implications 60. In when making a decision, do you tend to be more: a) Neutral b) Charitable 61. Do you think of yourself as: a) Clear headed b) Good natured 62. Are you more likely to: a) Schedule your plans b) Be spontaneous 63. Would others describe you as: a) Preferring routine b) Go with the flow 64. Do you tend to be: a) Approachable b) Reserved 65. Which of the following is more fun for you: a) Hands-on work b) Blue-sky dreaming 66. What type of writing do you prefer: a) Literal b) Figurative 67. Would you say that you are: a) Unbiased b) Compassionate 68. Do you feel that it is more important to be: a) Just b) Lenient 9

10 personality 69. Are you more likely to: a) Make a snap judgment b) Delay making judgment 70. Is your tendency to be more: a) Deliberate b) Spontaneous Record your responses to each question in the table below and total the number of responses for each number (1-8). Please note that there are two columns for numbers 3-8, so please add together your totals for both columns to reach your final score. a b a b a b a b a b a b a b a 4a 3b 4b 5a 6a 5b 6b 7a 8a 7b 8b 3a 4a 5a 6a 7a 8a E I S N T F J P Adapted from Please Understand Me by David Keirsey and Marilyn Bates, Prometheus Nemesis Book Company, Del Mar, CA, For each of the four pairs (E/I, S/N, T/F and J/P), determine which score is higher to determine your personality preference. If you have a tie, you may designate an X for this characteristic and review the description for both options. On the following pages, you will find a description of each of these personality preferences as well as how they relate to your retirement planning. When you combine the four letters together (i.e., ISTP) this is your personality type. A number of resources exist to help you learn more about what this means for you and your lifestyle. Here are some examples: Keirsey.com Do What You Are by Paul Tieger and Barbara Barron-Tieger Please Understand Me by David Keirsey and Marilyn Bates 10

11 personality Here are the descriptions for each of the factors that make up your personality type. These explanations will help you better your approach to life and leisure pursuits. Extraversion Like interactive environments Impatient with long projects Develop ideas through discussion Like group and team activities Breadth of interests - variety What You See Is What You Get Sensing Gather information via the five senses Concerned with present realities Proceed step-by-step or piece-by-piece Enjoy applying perfected skills Prefer routine with minor improvements Practical Precise Literal Trust experience Accounting and Mechanics See the Trees - Detail Thinking Decide by objective, impersonal analysis Detached and firm-minded Head Focus on task and objectives Competitive Like thought-provoking environments Judging Scheduled Structured Decide quickly in the desire for closure Enjoy finishing tasks Plan Like to control and regulate events Introversion Like quiet, private space for concentration Comfortable with long-term projects Develop ideas alone through reflection Like to work alone, occasionally in groups Depth of interests - similarity Still Waters Run Deep INtuitive Gather information via the sixth sense Concerned with future possibilities Proceed in burst of energy Enjoy the challenge of learning Prefer change, sometimes radical Innovative General Figurative Trust inspiration Science and Computers See the Forest - Big Picture Feeling Decide by impact on people/values Involved and amicable Heart Focus on people and harmony Cooperative Enjoy jobs where they can help Perceiving Spontaneous Like flexibility Always attuned to incoming information Enjoy starting tasks Adapt Like to experience and understand events The following page will offer you a more specific look at the activities that people of your personality type are most likely to find rewarding. 11

12 personality Personality type theorists believe that although there are sixteen different combinations, given the four scales discussed on the previous page, there are four main groups - or temperaments - which have similar fundamental motivations. In the table below, we will explore the general interests for each temperament, as well as some specific interests for each type. In some of the personality types listed below, some work-related interests are provided as you may prefer to continue working or volunteering in these activities after retirement. SJ Guardians Finding Membership and Belonging These individuals find it important to belong to a group and to make positive contributions to their community. ESTJ Tend to seek leadership positions; enjoy using technical skills; may be interested in running their own business. ISTJ Accurate and precise; enjoy business, civil service or professional activities. ESFJ Provide for the welfare of others; have welldeveloped social skills; may enjoy participating in health care or business. ISFJ Keep things running smoothly; often work behind the scenes; enjoy health care, education and social service activities. NT Rationals Finding Knowledge and Competence These individuals are strong visionaries, with the passion and ability to make that vision come to pass. ENTJ Strong leadership tendencies; driven towards reaching goals; analytical abilities; may enjoy project management or financial planning. INTJ Focused on an internal vision; good problem solvers; enjoy intellectual puzzles, research and engineering. ENTP Enjoy bouncing ideas off of other people; prefer activities that involve new ideas and contact with others; drawn to politics, marketing, public relations. INTP Store large amounts of information and have strong analytical capabilities; drawn to interests such as medicine, law, financial analysis. May be drawn to express themselves creatively. SP Artisans Finding Freedom and Action These individuals are often independent, preferring a life of action and freedom. ESTP Prefers action-oriented lifestyles, as well as business, such as finance or sales. May enjoy adventure-based activities and travel. ISTP Fast hand-eye coordination and analytical skills; some possible interests include computer programming, sports, accounting. ESFP Enjoy conversations with others; charismatic; may be drawn to sales, sports or entertainment-related activities. ISFP Driven by values and aesthetics; may find them in medical, social services or education-related activities; some express artistic talents; others choose service activities. NF Idealists Finding Meaning and Unique Identity These individuals are driven by seeking the greater good and living in alignment with their values. They seek to have a life of meaning and to help others. ENFJ Good at building relationships; drawn to education, social services, training, counselling or clergy. Need to connect with others and make a difference. INFJ More private, but still value making a difference; may be interested in education, religion, social work, or in the arts. ENFP A natural confidant, this type excels as a mediator, teacher, counsellor or reporter. Want to experience the whole of life and may change interests or activities more often than other types. INFP Driven to express their own unique vision of the world through music, art, entertainment or dance. Can also find reward in education, counselling or helping roles. Adapted from Keirsey.com Finding Your Passion or What Makes a Job Right for You?,

13 skills In the following list, check off the skills you have and enjoy using. Circle the skills that you would like to develop. working with people skills speaking listening leading others interviewing consulting selling training counseling teaching supervising organizing motivating advising coordinating delegating entertaining negotiating translating working with things skills repairing assembling operating heavy equipment designing working with animals using office equipment preparing/working with food driving operating machinery constructing building maintaining equipment programming working with tools using office related software sketching keyboarding using specialized software (i.e., accounting, design) drafting surveying troubleshooting working with information skills planning forecasting developing databases testing evaluating solving problems sorting researching working with spreadsheets editing calculating creating policies filing computing classifying analyzing reporting budgeting accounting presenting Adapted from TypeFocus Careers, Many of these skills are ones that you likely use in your current job. Once you retire, you may not be using these skills in a work-related capacity, but you may find that you would like to put them to good use elsewhere. Consider what sorts of activities might allow you to do this: Volunteer positions Holding an executive position on a committee (i.e., Secretary, Treasurer, etc.) Starting your own business Coaching/teaching others to help them develop these skills 13

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15 interests This questionnaire will help you identify your Holland Code, which is a set of three interest categories that are most appealing to you. Although this information is often considered from a career perspective, it relates to your post-career phase of life as well. Knowing your interests can help you identify activities that you might find most satisfying. Please check off the following activities that are most of interest to you (as many as you like): R S farming/gardening auto mechanics carpentry building things fixing electrical appliances driving a truck studying foreign culture community service teaching children helping people making new friends belonging to a club I E math astronomy physics doing puzzles building working models doing experiments socializing at a party working on a sales campaign buying materials for a store selling a product being with leaders giving speeches A C being in a play drawing or painting learning a foreign language going to concerts creative writing playing an instrument word processing (on computer) using a cash register typing reports following a budget keeping detailed reports filing letters and reports Add up the number of checkmarks in each letter category. The three top categories will make up your Holland Code (i.e., SEA). your code: *If you find that you have a tie and that none of the interest groups stands out as particularly strong, this simply means that you have a wide variety of interests. You may find that activities from a number of groups appeal to you. 15

16 interests Here are some descriptions of the different interest categories as well as some possible activities that may be of interest. Please note that these lists only include a selection of options to get you started in thinking about your retirement plans it is not intended as an exclusive list. R - realistic These individuals tend to be physically strong, athletic and well coordinated. They enjoy building or repairing things, working with machines and being outdoors. woodworking gardening/farming crafting restoring classic cars S - social These individuals tend to be good communicators, understanding and helpful. They enjoy working with others, particularly being able to make a positive impact. volunteering organizing fundraising activities teaching/coaching hosting exchange students I - investigative These individuals are scientific, curious, introspective and analytical. They enjoy building on their expertise, working independently to advance intellectual ideas. taking college or university courses computer programming designing electronics leading a children s science camp E - enterprising These individuals thrive on challenge, competition and leadership. They enjoy persuading others, meeting new contacts and achieving personal and business goals. run for political office start a business join the executive of a community organization executive coaching A - artistic These individuals are often expressive, innovative, and sensitive. They enjoy creative interests, trying new things and expressing themselves through their artistic creations. photography scrapbooking writing painting C - conventional These individuals prefer organized, calm environments with routine tasks. They enjoy being able to find practical, efficient solutions to problems and having a stable, secure environment. take on a secretary or treasurer position bookkeeping offer personal organization services work or volunteer at a museum/library Adapted from "21 st Century Skills: Holland s Code Descriptions, Centre for Learning, Leadership and Technology (n.d.). If you would like more information on your Holland Code and what types of activities you might enjoy, try searching the Internet for Holland Code and typing in your results. You may be surprised at the variety of activities you find! 16

17 values Just as it s important to understand your personality and your approach to life when it comes to planning your retirement, it s also important to consider your values what is most important to you in your life? This will help you ensure that your post-retirement lifestyle is as fulfilling as possible. In the table below are some examples of values that you may find important, with some examples of activities that might help you meet these values in your retirement and a space for you to record your own ideas: Value Priority Example Activities Your Ideas Family Achievement Teamwork Leadership Recreation/Leisure Social Creativity Service Independence Learning Babysitting grandchildren, summer family vacations, living with/near family Completing craft projects, entering competitions, continuing learning Taking part in a committee or fundraising efforts, leading a youth activity group, joining clubs or service organizations Taking on an executive position in a committee, running for public office, leading or coordinating volunteer organization Outdoor activities (i.e., hiking, kayaking, sailing), travel, learning new hobbies/activities Visiting with friends, joining social clubs, volunteering, spearheading an event or committee Crafts (i.e., scrapbooking, knitting, painting), writing, dancing, joining a choir, playing an instrument Joining a service organization, volunteering, starting a charitable group, mission work Solitary pursuits, reading, travel, writing Taking courses through Continuing Education or a local college/university, learning a new hobby or skill, teaching others in an area of expertise Which of these values are most important to you? What other values are important to you in your life? Are there activities that can help you meet more than one of these values at the same time? 17

18 relationships Once you have left the workforce, the companionship of coworkers and workplace friends will be a less impactful part of your social interactions. If social interaction is an important part of your life (particularly for extroverts - see the personality exercise), you will need to determine other means of social interaction to maintain your connection to others in your community. family Many retired persons place an increased focus on spending time with their family. This is particularly common when children and grandchildren live close by. For those of you who do not have family close by, consider whether you would like to relocate to be closer to any of your family members. If so, what else will this involve from a social and financial perspective? Is there any planning that you need to do to make this happen? For those of you who are close to your family, what do you hope these interactions will look like? Is there any planning that you need to do to make this happen? friends Friends are also a key part of your retirement plan. Who are the people you most enjoy spending time with? What sort of activities do you do together? Might these activities change over time as your health, or the health of your friend, is impacted? In the event that you are planning on relocating on your retirement, do you have an established social network in your new community? If not, do you have some ideas that will help you to build connections with others? This might include activities that you enjoy, clubs that you are a part of, or volunteer activities that are meaningful to you. community Being part of a workplace not only fulfills social needs, it also helps you to feel more connected to a larger purpose. Making a meaningful contribution to your community may fulfill a similar purpose once you have left the workplace. Are there any organizations or causes that are meaningful to you that will help you feel a part of a common goal? What are some ways that you can get involved? 18

19 recreation The average work week consists of five days a week, eight hours a day. When you retire, this time is no longer dedicated to your work, but is available to a number of other activities of your choosing. It can help smooth your transition to retirement to consider what these activities are in advance. Consider that you are not limited to the activities that you already enjoy retirement is a great opportunity to pick up new skills and hobbies as well. Offered below are a few lists of leisure activities for you to consider. Check off the activities that are of interest to you, including the ones you may not be as familiar with: sports golf skiing swimming hobbies auto repair landscaping playing cards playing a musical instrument cultural activities museums art galleries symphonies education learning a new skill post-secondary education hiking running cycling singing sailing camping/rv ing scrapbooking knitting/crochet opera science centres ballet horseback riding walking dancing woodworking travelling nature walks painting reading sporting events If you have identified any activities in the above lists that you would be interested in learning more about, try the following resources: Your local parks and recreation department Your library The internet Post-secondary institutions Some of the things you can consider next include: How much time will I spend on these activities? Is there any equipment that I will need to have? What will that cost? Will this activity be impacted by changing health or physical abilities? By identifying the types of activities you would like to pursue in your retirement, you will be better able to plan for the time and financial resources that may be required. 19

20 finances & economy One of the biggest considerations for those who are planning for their retirement is their finances: How much money do I need to have saved prior to retirement? What sort of investments should I keep my money in once I retire for the best balance of results and security? What will my lifestyle cost? Are there any changes that I can make to save money in some areas so that other activities can be pursued? On a larger economic scale, it is also valuable to consider factors such as inflation and financial performance of investments, as this will also impact your quality of life in retirement. Ultimately, the best answer to these questions is to consult a financial planner. This person will be able to take your retirement plans and help you figure out what this will require in terms of money. However, there are some questions you can answer before you consult a financial planner to expedite this conversation: How much do I currently make? How much of this do I currently spend? What expenses will be reduced after I retire (e.g., second vehicle and fuel, clothing, savings for retirement, taxes, mortgage)? What expenses may increase after I retire (i.e., travel, leisure activities, health care)? Given these changes, how much do I think I may need each month for my desired lifestyle? Service Canada s Retirement Planning website also has a Canadian Retirement Income Tool to help you estimate your post-retirement income level: If you take part in the OFG group RRSP program with Sunlife, visit for some tools and calculators that are available to help you plan your retirement financial needs. In addition, many financial institutions offer retirement planning information on their websites to help you plan your post-retirement financial needs. Please find on the following page a high level budget worksheet to help you identify your current and proposed incomes and expenses, to support your planning process. Please note that this does not take the place of working with a financial planner they will have the best ability to support you in your planning. 20

21 finances & economy Current Budget Income Proposed Retirement Budget Income Employment Income Pension Income Investment/Interest Income Investment/Interest Income Other Income Other Income Total Income Expenses Total Income Expenses Housing (Rent/Mortgage) Housing (Rent/Mortgage) Food Food Transportation Transportation Utilities Utilities Medical Expenses Medical Expenses Travel/Vacation Travel/Vacation Gifts Gifts Clothing Clothing Personal Care Personal Care Entertainment Entertainment Savings Savings Total Expenses Net Income/Loss (Total Income Total Expenses) Total Expenses Net Income/Loss (Total Income Total Expenses) To ensure a stress-free retirement, it is important to begin your financial planning early. Keep in mind that your financial needs will change throughout your retirement as your energy levels and health change. Check out the following books and article for more information on the different stages of your retirement and how that may impact your financial planning: The Prosperous Retirement: Guide to the New Reality" by Michael Stein Be ready for the 3 stages of retirement by Walter Updegrave - The New Stages of Retirement: Go-Go, Slow-Go, and No-Go by Cathy Belteau

22 summary & resources Until you make the move into your retirement, it is difficult to know exactly what this phase of your life will be like. However, taking the time to make some plans in advance will help you craft a fulfilling and rewarding retirement. Other resources you may find helpful include: Retirement Planning: Factors Associated with Retirement Success and Enjoyment (article): html?cat=12 Service Canada: Retirement Planning (website): Sunlife has a number of helpful resources, including: my money at a glance newsletters, featuring financial guidance: brighter life newsletters, some of which are focused on retirement related questions: my retirement café, an interactive website offering tools to help you envision your retirement and develop a plan to make it happen: Gail Vaz-Oxlade s Never Too Late and The Retirement Answer Book offer helpful, Canadian-based advice on how to address some of the financial questions associated with retirement planning. These tools and resources will help you continue to fine-tune your vision for your retirement, so that you can make this phase of your life the best it can be. We wish you the best in your retirement wherever it may take you! 22

23 references Centre for Learning, Leadership and Technology (n.d). "21st Century Skills: Holland s Code Descriptions. Retrieved from: June 3, Keirsey, David & Bates, Marilyn (1978). Please Understand Me. Prometheus Nemesis Book Company, Del Mar, CA, pp Keirsey.com (2011). Finding Your Passion or What Makes a Job Right for You? Retrieved from: June 3, TypeFocus Careers (2010). Retrieved from: September 30,