Planning for a financially secure retirement
nowadays is one of the most important challenges
facing Canadians. This is largely due to the
uncertainty of today's Pension Plan. Many
people are making several career moves during
their working lifetime and choosing to retire
early. People are living longer, which means
a longer retirement span; therefore it is
important to take responsibility for funding
your retirement and relying less on the governments.
A financial advisor can play an important
role in helping a client establish his retirement
goals. Retirement planning involves determining
which strategies satisfy individual needs.
With proper planning, your retirement fund
should provide enough money to last through
your retirement years and leave some money
to your dependents. Inadequate planning may
lead to a smaller retirement fund that will
not provide enough money to last through your
retirement years much less for your dependents.
Careful planning can help you have the retirement
you want, preferably at one of the higher
income brackets of the graph below. About
43% of Canadian seniors* have incomes under
$30,000, 63% have incomes under $40,000 and
75% have incomes under $50,000.
Percentage Distribution of Canadian Seniors
*
By Income Bracket (in $1,000's)
* Individuals who are age 65 and over and
the head of a household.
Source: Family Income, Census Families
1995, Statistics Canada
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Retirement Planning