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 car:eer 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)
* Individuals who are age 65 and over and the head of a household.
Source: Family Income, Census Families 1995, Statistics Canada