It doesn’t seem to take long before what is commonly called the golden years arrive. Technically these are you retirement years. These are the ones where you no longer have to get up every morning and head off to work. Now is the time for those lazy days of fishing or golf, or perhaps a few trips each year. While this all sounds great, if the money to participate in these activities isn’t readily available then these years really aren’t so golden.
It is important to plan ahead for retirement, but you really need to know what this planning should entail and what steps do you have to take now to make your retirement financially comfortable.
Many times people think that they will have their Canada Pension Plan and Old Age Security to rely on so really they are set for those future years. They won’t have the employment expenses to deal with so they won’t need as much money. While this is true it also depends on the financial situation at the time of retirement. If one still has a mortgage on their house, or heavy credit card debt then these are still going to exist with the same payments, but with less money coming in to pay them with. T his is a trap that many seniors fall into.
Aside from the government pensions it may be worth looking at investing in a private pension plan as well. When you are looking for employment in your younger years it is important to look at the additional benefits a Company may be offering and a pension plan should be one that should be part of your decision making to work for that company. This could be beneficial especially if it is a Company that you plan on staying with for many years.
Aside from this there are the registered retirement savings plans that you should really consider. If you are leaving a Company you may be receiving a lump sum payment or severance pay. Instead of using this money for now you may want to consider some type of investment where you will reap the benefits in your retirement years.
Next time you are meeting with your Toronto accountant ask them what they suggest you do to help make your retirement years a little more financial secure.
