Retirement. You’ve worked hard enough. Slaved away hours and jobs you’ve liked and disliked, volunteered to advance, studied to get ahead and constantly tried to ‘work with the team’ in the name of productivity and efficiency. And for the reward that someday, at the end of the line, you can finally produce an income on your time, doing what you want. You’ve earned it, right?
And then reality sets in. I was having dinner with a friend of mine this week, whose mother recently has turned 65. She applied for her CPP (Canada Pension Plan) to have what money was entitled to her to begin being paid out each month. The result? She now receives 365.00 a month from the government of Canada. Let that resonate for a second.
Let’s consider someone that forgot to save, or lived pay check to pay check, and assume their are people, not just some but many, living on less than 100.00 each week in Canada. In Canada. While, you might ask, perhaps this person has a company pension plan? Forget it. Having worked in the banking sector, like many private industry jobs, leave you with no post-job financial assistance, saving for the future is up to you and you alone. And in general, unless you have the same job as your grandfather, your most likely in the same case.
If the prospect of living off a government pension when you get older hasn’t motivated you to open up an RRSP yet, let it at least motivate you to re-look at your spending on a regular basis and make sure it is in check. Take accountability for your own finances and don’t fall victim to being a victim of the system. You’ll find much more freedom and flexibility in your ability to make choices in your life, and will find imminent satisfaction in your growing (albeit slowly) savings or investment account balance!
To do this week:
1. Call your financial advisor. Make your relationship with this individual better than it has been. They have so much knowledge that does not get used that you can benefit from immensely and immediately.
2. Buy someone a personal finance book for Christmas. Living Thin by Antonia Magee is my suggestion for the ladies, The Wealthy Barber for the men.
3. Report back on how you did!