Retiring from TELUS Health
How to prepare for retirement
Prepare a retirement budget
The best way to determine what your expenses before and after retirement is to draw up a budget. You can find a retirement budget worksheet in the Retirement Income Calculator under “Help me” in the top right corner.
Here are a few potential expenses to consider when building your budget:
Financial support to your children or other family members
Unexpected or unavoidable expenses such as future renovations, replacing electrical appliances or car repairs etc.
Social activities
Travel
Health care costs
We encourage you to go over your budget with a financial advisor.
Take advantage of TELUS Health’s Employee Assistance Program (EAP)!
You can talk to a professional who can help you prepare for the mental and social aspects of retirement. Contact the EAP by visiting internalefap.morneaushepell.com.
Think through the psychological and social implications of retirement
These aspects are just as important to consider as financial elements. Ask yourself:
Am I mentally ready for retirement?
Having a job helps to define your social status, as well as your aspirations and self-esteem. When you retire, the routine you’ve been following for years will be gone. For some people, part-time work can be a way to ease into this phase of life.
What will I do when I’m retired?
Retirement can take many forms. How do you envision yours? Think about how you will maintain a social network and engage in meaningful activities.
It can be helpful to plan a “transition period” for the first few months. Think about what you are interested in and the activities that you have always wanted to do. Plan to spend time with your friends and do the activities you enjoy. Also, think about trying new hobbies. It’s a time of possibilities!
Your DC account balance
Options for your DC Account Balance
When you retire, you will receive your account balance as a lump sum. While there are a number of options, there are two main paths:
With this option, you transfer the entire value of your DC account balance to a locked-in retirement savings vehicle such as a Life Income Fund (LIF), Locked-in Retirement Account (LIRA) or something similar.
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Pros |
You draw down funds from the account each month, while the balance stays invested and continues earning interest. Keep in mind that investment returns can be positive or negative. You can change the amount that you draw down within the legal minimum and maximum limits. Speak with your financial advisor for information about these limits. |
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Cons |
There is a limited amount of money in the account and you may have to ensure that the funds last for your lifetime. You will also remain exposed to investment risk and will need to continue making investment decisions. |
The TELUS Health Universal Plan is a complete and flexible group investment solution specially designed to receive the amount you have accumulated for retirement under former employers’ plans. For more details, visit the Universal Plan Web site.
You can purchase an annuity from a life insurance company. An annuity is a contract where the insurance company pays you a set monthly income for life. If you have a spouse at retirement, you have the option to purchase a joint and survivor annuity where your spouse would receive a fixed monthly income after your death.
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Pros |
You receive a fixed monthly income for life. |
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Cons |
There’s no opportunity to benefit from continued investment returns. Plus, a portion of your account balance also goes towards the annuity purchase fee charged by the life insurance company. Inflation may also affect the purchasing power of your monthly income over time. |
The path you choose is a personal and important decision. We highly recommend meeting with a financial advisor to discuss the options before making a choice. Keep in mind that you don’t need to choose just one of these options – you can choose a combination.
