Almost everyone dreams of the day they can retire. Just imagine no more alarm clocks, no more battling traffic and no more having to please the boss. It all sounds great but could these retirement years bring a different kind of problem for the new pensioners?
Could the attention now be turned to how to make sure there is enough income to cover just the basic costs of living, and any thoughts of doing some sight seeing at least out of the country may no longer even be considered.
This is often a reality for new retirees and possibly because it has been the perception that retirees in Canada in general have it pretty good. Recent studies have indicated that Canada doesn’t score so well for pensions for senior amongst the developed countries. Plus it is being suggested that the tax free savings accounts are not a great retirement solution and are more beneficial to the wealthy,
So why is the government so reluctant to enhance the CPP? The argument is that by raising the costs for businesses in this area would cause a great loss in jobs and this would damage the already fragile economy even further.
There is no doubt that the young couples of today have got to look much further into the future and not just assume it’s a long way off. It can be difficult for young struggling families of today to even attempt to focus on future problems when they are having enough problems coping with the problems of today.
One of the safest steps to take for the here in now is debt control. This may be the one saving grace for the future. By not having to deal with paying down debt for many years to come it can raise the possibility of being able to save for the retirement years. It really comes down to what is the generation of today prepared to sacrifice now for a more stable future in their retirement years?
When the opportunity does arise for investment then the challenge becomes making the right choice. New investors are faced with the dilemma of whether they should choose a low risk investment that will present a lower return, or go with a high risk type and risk losing it all?
One thing is for certain and that is when it comes to managing finances it is so not an easy job. This is why more average people are now turning to financial planning professionals and accountants to guide them.
