For many Halifax homeowners, retirement brings both excitement and uncertainty. One of the biggest concerns I hear from seniors is simple but powerful:
“What if I run out of money after I retire?”
It’s an understandable worry. Retirement means moving from years of earning an income to living off savings, pensions, and (for many) the proceeds from selling a family home. The good news? With the right estate planning strategies and downsizing decisions for Halifax seniors, you can secure peace of mind and ensure your money lasts as long as you do.
In this article, I’ll share highlights from my conversation with Fred Perry of Hub Financial, who has over 50 years of experience helping Canadians build secure retirement plans. Together, we explored investment options, risk management, and strategies to protect your income well into retirement.
Why Downsizing and Estate Planning Go Hand-in-Hand
For seniors in Halifax, selling the family home is often the first major step in retirement planning. Downsizing to a condo, apartment, or retirement community can:
- Free up equity from your home.
- Reduce monthly expenses.
- Create funds that can be invested to generate income for your retirement years.
But once you’ve unlocked that capital, the question becomes: Where should I put this money so it lasts? That’s where a tailored estate plan is essential.
Understanding Risk Tolerance
Fred emphasizes that every retirement plan is unique. The right approach depends on your:
- Comfort with risk (conservative, balanced, or growth-focused).
- Goals (steady income vs. rapid growth vs. tax savings).
- Personal circumstances (health, family support, lifestyle needs).
Financial advisors often use an investment profile questionnaire to determine whether you’re a conservative, balanced, or high-risk investor. This assessment helps shape your portfolio so you’re comfortable with the plan — and more likely to stick with it through ups and downs.
Investment Options for Seniors
Once risk tolerance is clear, there are several places Halifax seniors can put their money:
- RRSPs (Registered Retirement Savings Plans): Tax-deferred growth, later converted into retirement income.
- TFSAs (Tax-Free Savings Accounts): Flexible savings with tax-free withdrawals.
- Non-Registered Investments: Additional flexibility beyond government-registered plans.
- Stocks & Bonds: Traditional market options that balance risk and growth.
- Real Estate: Some seniors reinvest in income properties or downsize into equity-preserving housing.
The right mix depends on your comfort level, timeline, and goals.
The Role of Segregated Funds
One of the most interesting tools Fred highlighted is the segregated fund. Think of it as a cousin to the mutual fund, but with some important advantages for retirees:
- Principal Protection: After 10–15 years, your original investment is guaranteed — even if markets fluctuate.
- Creditor Protection: If you name a beneficiary, your assets are shielded from claims, lawsuits, or creditors.
- Estate Benefits: Funds pass directly to your beneficiary, often bypassing probate.
For seniors who worry about losing money in volatile markets or about protecting their legacy, segregated funds can offer peace of mind.
Annuities: Guaranteed Income for Life
Another tool that can make a big difference in retirement planning is the annuity. Simply put, an annuity provides a steady stream of income in exchange for a lump-sum investment.
There are two main types:
- Fixed-Term Annuities: Provide income for 10, 15, or 20 years.
- Lifetime Annuities: Provide guaranteed monthly payments for the rest of your life — even if you outlive the original investment.
As Fred notes, annuities are one of the only products that ensure you will never outlive your income. For seniors concerned about longevity risk, this can be a cornerstone of financial security.
Why One-on-One Planning Matters
While this article highlights key strategies, the most important takeaway is this: retirement and estate planning is personal. No two seniors have the same mix of assets, expenses, health considerations, or goals.
That’s why meeting with a financial advisor — and in many cases, a real estate professional — is the best way to build a retirement plan that truly fits your life. Downsizing, investments, and estate planning should all work together to create a sustainable, comfortable lifestyle.
Next Steps for Halifax Seniors
If you’re considering downsizing or estate planning, here are some resources to help you take the first step:
- Free Downsizing Report: Get 8 Easy Tips for Downsizing Your Home at https://8downsizingtips.com/
- Free Home Evaluation: Discover what your home is worth today at http://www.HalifaxHomeEvaluation.com
- Free Resources: https://roythomas.ca/resources/
You can also reach me directly:
📞 Roy Thomas, Realtor — 902-497-3031
Sutton Group Professional Realty
http://www.RoyThomas.ca
And if you’d like to connect with Fred Perry for financial advice, you can contact him at 902-989-1041 or [email protected].
Final Thoughts
Running out of money in retirement is one of the greatest fears seniors face — but with the right planning, it doesn’t have to happen. Downsizing your home, creating an investment plan tailored to your risk tolerance, and exploring tools like segregated funds and annuities can give you security and confidence in your retirement years.
