How to Make Your Retirement Income Last (Even If Markets Are Unpredictable)

You've worked hard, saved consistently, made positive financial decisions, and finally reached that long-awaited milestone... retirement.

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But now a new question creeps in: "How do I make sure my money lasts as long as I do?"

With rising costs, market ups and downs, and living longer, this question is more important than ever. The good news? With the right plan, you can enjoy retirement without constantly worrying about running out of money.

As a Financial Planner in Kamloops, here are a few key strategies I help clients use to make their retirement income go the distance -- no matter what the markets are doing.

1. Build a Reliable Income Foundation

   
   

Think of your retirement income like a three-legged stool -- it needs stability, growth, and flexibility.

This usually includes:

• Government benefits (CPP and OAS)

• Pension Income (if you have a pension)

• Investment Vehicles (RRSP, RRIF, LIF, TFSA, or Non-Registered)

The goal is to have a mix of guaranteed income sources (like pensions and government benefits) and market-based investments that can grow over time. That balance helps you cover everyday expenses while giving your portfolio room to keep up with inflation.

2. Create a Withdrawal Strategy

Randomly taking money out of different accounts can lead to unnecessary taxes and missed opportunities. A withdrawal plan helps you decide which accounts to draw from first and how much to take each year.

For example: In early retirement, you might draw more from your RRIF for travel and to enjoy life's adventures. Then later on, you can decrease this amount as necessary.

Your TFSA can provide flexible, tax-free income when markets dip, unexpected larger costs like a new vehicle, furnace, etc.

Your Non-Registered accounts may be ideal for shorter-term spending goals, or to top up your TFSA each year.

Working with a Kamloops retirement planner can help ensure every dollar you withdraw is working as efficiently as possible.

3. Keep a Cash Reserve

When markets are unpredictable, an income wedge designed in your portfolio is your best-friend. By keeping one to two years' worth of income needs in an income wedge fund, you can avoid selling investments at a loss when markets drop. It's like having a built-in buffer -- giving your investments time to recover while you continue to draw income comfortably.

4. Adjust for Inflation and Lifestyle

Inflation might be invisible month to month, but over time, it can quietly eat away at your purchasing power. That's why your investment plan should include a growth component -- even in retirement.

A diversified portfolio that includes quality equities and fixed income can help your money grow faster than inflation, while still keeping risk in check.

Tip: your spending patterns will change over time -- typically higher early on (travel, home upgrades) and tapering later. A Financial Planner can help adjust your income plan as your lifestyle changes.

5. Review Your Plan Regularly

Markets change. Tax laws change. Life changes.

Scheduling an annual review with your Financial Advisor in Kamloops ensures your plan stays aligned with your goals -- and gives you confidence no matter what's happening in the economy.

You can't control the market -- but you can control your plan.

If you're nearing retirement and want to make sure your income will last, it might be time to chat with a financial planner in Kamloops who can tailor a strategy to you.