Home > Uncategorized > Post-Retirement Income Replacement Requires Careful Planning, By Ted Wernham, President, Wernham Wealth Management

Post-Retirement Income Replacement Requires Careful Planning, By Ted Wernham, President, Wernham Wealth Management

Most financial advisors recommend that people should strive to maintain their post-retirement income with at least 70 percent of the income they earned during their working years. This calculation takes into consideration such pre-retirement expenses as national and provincial incomes taxes and transportation and clothing costs related to career requirements. In addition, the 70 percent figure reflects an expectation that many working people will have paid the lion’s share of such expensive ventures as their children’s education.

While 70 percent of pre-retirement income may be sufficient for some people, others prefer to prepare for additional expenses such as travel, relocation, and other activities. In addition, many people planning for retirement incorporate such aspirations as helping their grandchildren pay for college into their retirement strategies.

To ensure that you have enough post-retirement income to meet your needs, meet with an experienced wealth manager or financial planner to discuss your immediate and long-term income goals. Consider all of your existing post-retirement income sources, such as any pension payments and federal payments as well as those of your spouse; determine how much you will have to supplement this amount in order to reach your monthly or yearly cash flow objectives.

About the author: With nearly 40 years of experience as a financial professional, Ted Wernham helps clients develop strategies for savings, investments, and tax considerations. Based in Ontario, Canada, he reaches a wide audience in his weekly radio talk show, Building Wealth. Mr. Wernham is designated as an Elder Planning Counselor and a Chartered Financial Services Broker.

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