Retirement Planning can be an onerous task if you approach as something irrelevant and “due tomorrow”. The problem with that mindset is ‘time keeps on slipping into the future’. Taking action today with your own retirement planning in North York, Toronto or Hamilton will pay big dividends later on.
Canada’s retirees today are mostly doing okay, however if you are in your 50’s and 60’s today, you have something bigger to deal with. (It’s even scarier for the people in their 20s, 30s and 40s, but it all just means they need to save more and start saving and retirement planning with their first pay cheque). Low interest rates for longer, combined with longer life expectancies and a decline in Canada’s pension contributing work force by 2020 mean you need to be extra-certain about your retirement plan. Those who fail to map out their retirement income are sure to find shortfalls and you don’t want that do you?
In the last couple of years, McKinsey and Company have done some research on retirement planning and the retirement readiness of Canadians. What they found is that most people are relatively prepared for retirement based on today’s costs. Where most people fall short is in their understanding of how rising costs for health care and retiree benefits combined with a labor force that is shrinking.