Boomers – dreams and re­al­i­ties about re­tire­ment

The McLeod River Post - - Viewpoint -

Spe­cial to the Post

%oomers are of­ten op­ti­mists ± but, ac­cord­ing to a re­cent sur­vey , they can also be un­re­al­is­tic about their health and the state of their fi­nances in re­tire­ment.

The sur­vey found that 97 per cent of re­spon­dents de­scribed their cur­rent health level as good, very good, or ex­cel­lent and 86 per cent ex­pect to re­tire in good health ± and yet, the sur­vey re­vealed that 61 per cent of em­ploy­ees over age 50 ac­tu­ally suf­fer from one or more chronic health con­di­tions. The most com­mon con­di­tions were hy­per­ten­sion, arthri­tis, high choles­terol, di­a­betes and men­tal health prob­lems such as de­pres­sion or anx­i­ety.

Where fi­nances are con­cerned, more than a third of sur­vey re­spon­dents re­ported that they save 10 per cent or less of their cur­rent salary for re­tire­ment yet, in re­tire­ment, they plan to with­draw a yearly av­er­age of 15 per cent from their sav­ings ± or more than four times the typ­i­cally rec­om­mended rate of with­drawal.

The main take-aways from this sur­vey are ob­vi­ous

‡ 0any %oomers may need to be more re­al­is­tic about their health and the es­ca­lat­ing health­care costs they are likely to face in re­tire­ment.

‡ 0any should save more for re­tire­ment.

‡ And, in re­tire­ment, they must have a sound fi­nan­cial plan that al­lows them to pur­sue the life­style they want while en­sur­ing their fi­nan­cial re­sources will last for all their re­tire­ment years.

%oomers are rapidly head­ing to­ward (or are al­ready in) re­tire­ment ± but it’s never too late to plan for a se­cure fi­nan­cial fu­ture. Here are a few tips for do­ing so that ap­ply to %oomers and, equally, to work­ing Cana­di­ans of any age. ‡ %egin sav­ing as early as pos­si­ble ± and save reg­u­larly. ‡ Avoid bad debt that doesn’t gen­er­ate in­come or in­crease your net worth.

‡ ,nvest in­tel­li­gently ± es­pe­cially in reg­is­tered re­tire­ment sav­ings plans (RRS3s) and tax-free sav­ings ac­counts (T)SAs).

‡ %e sure that you have ad­e­quate in­sur­ance cov­er­age for any health med­i­cal chal­lenges that may arise ± es­pe­cially dis­abil­ity, crit­i­cal ill­ness and long-term care in­sur­ance. .eep in mind that health­care costs gen­er­ally in­crease with age.

‡ Have a plan that in­cludes a re­al­is­tic bud­get for your re­tire­ment years, cou­pled with a re­al­is­tic with­drawal strat­egy. 0ain­tain an emer­gency fund to deal with any sur­prises (health and oth­er­wise). %e sure your plan in­cludes a pro­vi­sion for in­fla­tion.

And, most im­por­tantly, get ad­vice. <our pro­fes­sional ad­vi­sor can pro­vide the ex­per­tise and re­al­is­tic as­sess­ment you need to create and im­ple­ment a fi­nan­cial plan that will work for you, re­gard­less of your age, for a life­time.

http in­sur­ance-Mour­nal. ca ar­ti­cle boomers-un­ableto-dis­tin­guish-be­tween­re­tire­ment-re­al­ity-and-fan­tasy

This col­umn, writ­ten and pub­lished by In­vestors Group Fi­nan­cial Ser­vices Inc. (in Québec – a Fi­nan­cial Ser­vices Firm), and In­vestors Group Se­cu­ri­ties Inc. (in Québec, a firm in Fi­nan­cial Plan­ning) presents gen­eral in­for­ma­tion only and is not a so­lic­i­ta­tion to buy or sell any in­vest­ments. Con­tact your own ad­vi­sor for spe­cific ad­vice about your cir­cum­stances. For more in­for­ma­tion on this topic please con­tact your In­vestors Group Con­sul­tant.

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