THUNDER BAY – MONEY – When planning for retirement, most people worry about not having enough retirement income and don’t think enough about where they would spend the money they do have. While most would figure that spending would be reduced, truth is spending has not fallen in tandem with income. Up to 85% of retirees have some regret about not preparing more to the lifestyle they’d like during retirement.
Expectations & Realities
Expectation: Income would be reduced during retirement.
Reality: Almost 70% say their income has fallen, with almost 20% of those saying it has fallen by more than half.
Expectation: Spending would be less during retirement.
Reality: One in three people say their spending is the same or more than it was pre-retirement and those, whose spending did fall, didn’t fall by much.
Expectation: I expected to generate income from my retirement plan.
Reality: One in three will earn what they expected, while another third will earn less than they expected.
Expectation: I prepared enough for my retirement.
Reality: 85% of retirees feel like they did not plan enough when they did get to that stage in their life.
Retirement Action Plan
Don’t rush into retirement if you don’t feel like you’re ready. Most people have an age in their mind, but some would say it’s a feeling they get when they know they’re ready. Try not to rely on just one source of income as it’s better to spread out your income to avoid and lessen any risks that may arise. It’s also important to be realistic about what you want for retirement. When you know want you want, it’s much easier to plan for it.
The Bottom Line
Make a plan early and stick with it. If you haven’t started saving yet, start small and go bigger from there. Starting with even a small amount every paycheque can go a long way. If you should have any other questions planning your retirement, I invite you to contact me at through my contact information below.
If you would like to sign up for my free monthly investment newsletter, feel free to email me at email@example.com with your name and email.
Anthony M. Talarico
Financial Security & Investment Representative
W: (807)343-4788 ext. 4248 C: 807-472-6092