Will You Have Enough Money to Retire?

People who have a great Pension through their work are now choosing to retire at 55 instead of working longer to age 65. If the average man now lives to age 82 and the average women to age 85 then the retirement income will have to last for 25-30 years or longer. Only a small percentage of retirees have saved money or planned for healthcare expenses in retirement. Do you have enough saved to cover future health expenses? Most serious illnesses do occur at later ages in retirement and their retirement income may not be enough to cover a serious critical illness and income may have to be used up faster.

Do you need help to create a retirement plan? If you are self employed, a contract employee or work for a small business there is the likelihood that there is no pension plan available. It is left to the self employed, contract worker and small business owner to save on their own for retirement or end up with a minimal amount from CPP and OAS. Hardly enough to live on! What will Canada Pension and Old Age Security be like in 10, 15 or 20 years times? If you are 60 years old are you currently taking your CPP to help supplement your current income?

How can you stretch your retirement funds? Unfortunately there are many stats that indicate people are not putting enough money away in RRSP’s or Tax free savings account for their retirement. In today’s environment how does one save for retirement and make sure the savings is earning a decent interest rate? Current retirement savings are not earning as much as you will need. If you have your money in a GIC today are you earning less than the cost of inflation?

What are your assets worth? How many people think their home as their biggest asset will provide the retirement funds they need? Most people we speak to say they are likely to use their homes for future income. There are 2 ways the home will provide the income required – either by selling and downsizing or renting or if staying in your existing home renewing the mortgage. If you are self employed your home is mortgaged to cover your business.

Will the sale of your business bring the required retirement income? Most entrepreneurs and small business would be shocked at the low valuation of their business and what it is worth when it is sold. Unless you are intentionally building a business that will be able to be sold instead of just creating a job for yourself you may end up with nothing to sell!

If you don’t know the answers to these questions or need help to answer them, give CARAHS Protection a call 1-866-366-2930 and we would be happy to sit down and discuss these issues with you and help you get the answers. Monica Olenroot

CARAHS Co-Founder

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