Creating 5 Yr Action Plan For Retirement

Start with your current financial situation, specifically pay attention to how you can start to maximize your income and begin to reduce your expenses. For a lot of people, planning for retirement normally starts about five years ahead of schedule.

Below is a helpful guide on areas that you should focus on. [It is important to note that this is to give you an idea only and should not be the only checklist used].

Five Years to Retirement Date

  • a] Meet with your pension provider and make sure to discuss the following:
    • a. Review you current pension plan account holdings.
    • b. Consolidate any other pension plans into one account.
    • c. Discuss the current rules and regulations regarding accessing your pension at retirement.
    • d. Determine the benefits of making additional voluntary contributions if needed.
  • b] Review your bank account[s], if you have multiples do you really need them all?
  • c] Review your investment account[s]; review the asset allocations and make sure the investment allocations match your time horizon.
  • d] Review your insurance policies [i.e. life, home, car], do they reflect current values?
  • e] Update your will or visit a lawyer and have a will created and filed.
  • f] Update your beneficiaries on anything that has a listed beneficiary i.e. life insurance, pensions etc.
  • g] If you still owe anything; mortgage, car loan, credit cards – time to pay those off.
  • h] Look at your cash flow. Can you decrease your expenses and increase your savings?
  • i] Determine where your retirement income is going to come from?
    • a. Pension
    • b. Rental collection
    • c. Social insurance
    • d. Investments

Two Years to Retirement Date

  • a] Review your risk allocation on your pension plan and start lowering the risk level.
  • b] Crunch numbers for retirement income vs. retirement expenses to ensure positive cash flow.
  • c] Consolidate your bank accounts to make sure you are streamlined.
  • d] Start consolidating your investment accounts to ensure a clear investment strategy.
  • e] If retiring overseas; make plans for your first initial trip to look at potential retirement locations.
  • f] All debt should be paid off with no further intention of borrowing.
  • g] Renovations to your house should be completed.
  • h] Review your current cash flow and determine changes you will make at retirement.
  • i] Determine options for long term care needs.

6 Months to Retirement

  • a] Request information on the various pension options upon retirement.
  • b] Obtain information on individual health insurance from local providers.
  • c] Request a copy of your Bermuda Social Insurance monthly benefits plan.
  • d] Adjust any immediate insurance needs.
  • e] Finalize annual or monthly retirement cash flow options.
  • f] Finalise retirement budget for expenses.
  • g] Review investment allocations for positive cash flow options.
  • h] If retiring abroad make decisions on accommodations – renting vs. ownership.
  • i] Enquire about long term care especially regarding the cost of treatment locally or abroad.

Retirement Day

  • a] Create your retirement folder with all your financial and insurance information.
  • b] Ensure you have a clear understanding of your retirement budget.
  • c] Plan for your retirement trip.
  • d] Have a retirement dinner with your family and friends to celebrate the next chapter.
  • e] If moving abroad, start packing.

– Carla Seely is the Vice President of Pension, Life and Investments at Freisenbruch-Meyer, if you would like any further details please contact or call 441 297 8686