Canadian lifespans are increasing and living into your late 70s is now a possibility. That means special attention needs to be given to financial choices made well in advance of retirement to address debt problems. If multiple debt problems exist then debt consolidation may be a wise step. To this end a reality check is in order involving some important questions involving retirement savings.
What’s the story today on financing retirement?
Many young adults today face the challenge of choosing between buying a house or saving for retirement. It would be nice to do both, but that’s not easy when you’re up against paying back student loans, credit card loans, and any other loans while looking for work in a weak job market. These are the kinds of debts that can be addressed with help from Credit Canada. Debt consolidation involves combining one of more debt into one with a lower interest rate which makes paying debts down faster a lot easier.
The conventional wisdom is to save for a house first then put money away for retirement. But housing is expensiveand prices continue to climb. As well cheap debt on housing will not go on forever. At some point interest rates are going to rise. For many, after paying household expenses there won’t be a lot of opportunity for significant investment in tax-free savings accounts, registered retirement savings plans, and other investment tools. We have multiple debts as Canadians when we need multiple savings plans.
The simple truth is young adults and families are going to have to put more effort into monthly budgeting for increased personal savings if they are to put a roof over their heads and build nest eggs. This could involve major lifestyle changes. Close consideration of spending in relation to all of life’s non-essentials could be the name of the retirement savings’ game.
What’s the financial outlook for those beyond retirement age?
Generally these days there’s a lot of conversation about working beyond retirement. That’s not only because people are living so much longer than 65 and want to stay active, it also has to do with the very real need for an income that makes for decent retirement living. The facts show that many Canadians have not planned for a retirement income sufficient to meet even minimum lifestyle wants beyond 65.
What’s the big picture on creating security for retirement?
Retirement can be addressed in advance by working longer, investing more aggressively, lowering lifestyle expectations, and of course through saving. Every Canadian today must plan to implement some or all of these measures with the understanding that saving more is always the best option. It simply offers the most freedom for you to do as you please. If you have multiple debts Credit Canada can help with debt consolidation or a debt management plan. Its all part of our non profit credit counselling service for Canadians.