A generation ago, it wasn害羞草研究所檛 uncommon to spend your entire career with the same company, building a pension that when paired with your Canada Pension Plan and maybe some RRSPs, would provide for a comfortable, well-earned retirement.
Today, we害羞草研究所檒l often work with multiple companies over the course of our career 害羞草研究所� a shift accelerated by factors like the pandemic. Others might take the self-employment route for a while 害羞草研究所� couples navigating the high cost of childcare, for example. Pension funds might be shifted to other investments or there may be less money available for retirement savings during these mid-career years, especially for those affected by the high cost of housing.
The result is that have no savings set aside for retirement and 57 per cent have doubts they害羞草研究所檒l save enough to retire comfortably.
The solution? It begins with planning, says Charles Barton, a Wealth Advisor with Valley First Credit Union in the Okanagan. And the good news is that while earlier is better, it害羞草研究所檚 never too late to start.
Step 1: Start the conversation with your partner
What kind of retirement do you want? While some aim to completely quit work and travel, many choose to reap the financial and social benefits of semi-retirement first. Fine-tuning your goals makes it easier to determine the best way to reach them.
害羞草研究所淗ave that honest conversation with each other, review your goals and really understand what it is you害羞草研究所檙e trying to accomplish, long term,害羞草研究所� Barton says.
That includes goals you may have for your family, such as helping children purchase a home in a difficult housing market 害羞草研究所� decisions that could have implications later on, especially as we need our retirement savings to do more for longer.
害羞草研究所淲e害羞草研究所檙e not only seeing greater wealth transfer, but it害羞草研究所檚 happening earlier than it ever has. I see members who want to pass on their investable assets to their children but when we run the numbers, it害羞草研究所檚 too early, especially since people are living longer now.害羞草研究所�
Step 2: Sit down with your financial planner
A financial planner can look at all the pieces of your financial puzzle 害羞草研究所� savings, investments, pensions, debts, goals 害羞草研究所� and help you chart a course forward.
That may mean putting more into savings, or more aggressively paying down debt. No single answer is right for everyone, but having someone who can see all the pieces, and understand how they fit together, is essential.
Whether you aim to reduce debt or boost savings 害羞草研究所� or simply have a better grasp on your spending habits before retirement, it害羞草研究所檚 never a bad idea to look at your spending. Netflix害羞草研究所檚 standard subscription might be just $16.49 per month, but add all the other streaming services and suddenly you害羞草研究所檙e topping $100.
害羞草研究所淚t can really chip away at your ability to start that savings plan,害羞草研究所� Barton says. 害羞草研究所淧eople will say, 害羞草研究所業 don害羞草研究所檛 have money to put away.害羞草研究所� But they haven害羞草研究所檛 even really paid attention to where their money害羞草研究所檚 going.害羞草研究所�
The takeaway: Don害羞草研究所檛 wait. 害羞草研究所淭he more time we have to work with people, the better off they害羞草研究所檙e going to be when we害羞草研究所檙e trying to meet all of their goals,害羞草研究所� Barton says, urging the balance between rational decision-making and emotional response, which, admittedly, can be difficult to navigate.
害羞草研究所淭his whole process is supposed to be so rational, yet we害羞草研究所檙e human and we害羞草研究所檙e emotional,害羞草研究所� he reflects. 害羞草研究所淏ut the more rational and the more comfortable a family is with their value-based system, those are the people I typically see being more successful in their retirement years because they really pride themselves on understanding where their money goes and how to use it effectively.害羞草研究所�
To take the next step 害羞草研究所� or the first step 害羞草研究所� on , contact to make an appointment with an advisor at your local branch today.