How to Prepare Yourself for Retirement

Many Canadians plan to retire one day while having no plan in place. Without taking action and creating a plan most will not have the retirement they hope for. Its time to start making progress towards retirement before it is too late to change.

Retirement Regret

TD Bank surveyed over 1,100 people and the result was that over three-quarters regret not preparing for retirement earlier. A growing number of Canadians not only do not have corporate pension plans, but they are increasingly left to their own devices to determine how much they’ll need in retirement and they are not getting the support they need. And so we retire unprepared and wish we never retired in the first place.

We all know that the time of spending one’s entire career with one firm has ended, and with this nomadic career lifestyle comes the responsibility to take care of oneself. But our ability to plan for our future is hampered by a lack of education, support and utopian visions of retirement – margaritas on the beach, sailing, golfing – which are implanted in our brains from the retirement commercials the big banks are bombarding us with.

Mis-aligned Purpose

Meanwhile, those companies which do offer pension plans are focusing on funding down-the-road pension plan goals, which is good, but their employees are focusing on how they are going to pay the rent. If I’m struggling to support my family now, how much time do I spend thinking about how I’m going to support my family in 15 or 20 years? And so there is a lack of attention paid on retirement planning by employees.

TD’s Jennifer Diplock wisely suggests companies provide resources and programs to support and educate employees about their future retirement. Help employees understand the realities of retirement (health, inflation, etc.), the true cost of retirement, help them plan for retirement. Whether the company has a pension plan in place or not, provide support for their workers to help them face a brighter retirement later and less stress now.

But until that day comes when others have our backs, we’re on our own. It’s up to us individually to educate ourselves on the true nature of retirement, develop a clear and realistic plan, and stick to it. Check out several strategies on paying off your mortgage sooner to retire earlier as well.

FEBRUARY 20, 2019/BY THE SMITH MANOEUVRE

Find out more

As mortgage broker’s we are on your team. Our job is to understand your needs, plans and wants in order to understand your mortgage needs. We then look at a number of lenders to find the best products and solutions for you.

During our time in the industry we have learned a number of tips and tricks to help you save money and to pay of your mortgage faster.

If you have any questions or would like a customized mortgage plan let us know!

More Posts

Racecar

Real Estate Investing, The Need For Speed

The “failure fallacy” cripples many investors and encourages growth until financial collapse. This sense of “failure” can be overcome by understanding the three phases of real estate investing and understanding the fundamentals of a great investment property.

ChessPieces

Optimizing the Smith Manoeuvre

A look at some of the strategies to optimize the Smith Manoeuvre and how you can benefit from the strategy without magnifying your investment risk.

Two Heads Emotion and Logic

Should you stay variable or go fixed?

Instead of losing sleep over interest rates move forward with a sense of clarity. A deep dive into the decision between fixed and variable rates. We look at how many increases it would take for variable rates to break even with fixed rates.

How to Prepare Yourself for Retirement header

Are Biweekly Mortgage Payments Better?

Biweekly payments can pay off your mortgage over 4 years faster and save you tens of thousands in interest. Imagine not having a mortgage payment… could you retire sooner? Travel? Pay for your family to go to university?

Mortgage free man on the beach

How to be Mortgage Free Sooner

Learn several strategies on how to become mortgage free sooner and save thousands of dollars in interest. Pay off your mortgage sooner and retire faster.