As retirement nears, clients are often so excited to spread their wings that they sometimes forget how spending money on travel and luxury items, for example, impacts their long-term savings. The key is to help them create a Retirement Savings Policy Statement (RSPS), a detailed summary of savings guidelines and how to measure retirement life choices. Doing this earlier in their working years helps increase the likelihood that they will have the necessary funds for retirement.
The RSPS takes into account current savings and a lifelong approach to increase saving for the future. It requires a client to be realistic about goals and plans in case something changes, such as an unexpected illness or family crisis.