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Retirement community living: how to create a budget

Have you recently moved into a seniors’ residence, or do you plan to make the transition in the near future? If so, creating a budget will help you avoid unpleasant surprises, enable you to treat yourself on occasion, and ensure financial security during this chapter of your life. Here’s how to do it.

IDENTIFY YOUR SOURCES OF INCOME

To determine how much money you’ll have available each month, add up your various sources of income. These may include:

• A registered pension plan (RPP)

• Canada pension plan (CPP) payments

• An old age security (OAS) pension

• A registered retirement savings plan (RRSP)

• A tax-free savings account (TFSA)

CALCULATE YOUR MONTHLY EXPENSES

Start with the price of housing at your seniors’ residence, which may include the costs for heating, electricity, and meals. The amount might also cover expenses for nursing care, television, leisure activities and more. Additionally, list any monthly expenses that aren’t included in your rent like laundry services, parking, and haircuts.

GIVE YOURSELF SOME LEEWAY

Once you’ve determined how much money you’ll have left each month after paying for your various expenses, remember to set your remaining income aside in a savings account. This way, if your rent increases or you have an unexpected expense (car repair, new medication, etc.), you can cover the cost without experiencing financial hardship.

If you’re having trouble creating a budget, don’t hesitate to speak with a financial adviser or ask a staff member at your residence for help