Retirement Planning Vancouver | Exposing The Top 3 Retirement Myths
It’s no wonder that there are so many surrounding retirement myths, says retirement planning Vancouver expert, Thomas Chan. Talking about money is still taboo for many, and finances continue to be one of the top reasons why Canadians divorce.
The problem with that, is by not talking about money, many Canadians are left completely unprepared for retirement. That is why the retirement planning Vancouver team of Thomas Chan CCK Financial is so passionate about helping Canadians learn the truth, so they can have a better retirement.
The CCP is not enough
One of the most common myths that Canadians believe when it comes to retirement, is that their Canadian Pension Plan will pay them what they need to survive when they retire. The Canada Pension Plan, also known as CPP, is a taxable monthly benefit that some Canadians will get when they retire. Not only do people mistakenly believe that they will automatically get CPP when they retire. But they also believe it will replace their entire income, but neither scenario is true, according to Chan.
In fact, the CPP only replaces about a third of your income when you retire. And to receive this benefit, you must qualify for it. While qualifying is relatively easy, you must be at least 60 years old. And you also must have contributed into the CPP at one time in your life , either through pay cheque at a Canadian job, or if you received credits from a former partner at the end of your relationship.
Be sure you can qualify
After that, according to retirement planning Vancouver expert Thomas Chan, you have to apply for the benefit, as it is not automatic. People who qualify need to apply in advance so that they will start receiving the benefit the month after your last pay cheque once your retirement begins. Once people know their CPP will not completely replace their income when they retire, they can start making better plans for what they need to save for the future.
Retirement Planning Vancouver | The Best Time To Start Saving Is Now
Another common myth about retirement that causes people to either not save enough money, says retirement planning Vancouver expert Thomas Chan. Or to put off starting their retirement planning too late, is that they have more time in the future to save money. Whether this is a firmly held believe, or just a way that Canadians reassure themselves that there will be time later, as they worry about more immediate money concerns.
Financial issues such as saving up for a down payment on a home, paying a mortgage. Putting kids through school and saving for their post secondary education, and even just paying the bills, has enough Canadians stretched to their limit. They feel as though they can’t afford to save for retirement, and when they’ve purchased their home, or when their kids are done school, they will have more money and can start saving for retirement then. But by then, it’s too late, and they are behind in saving what they need.
The Right Financial Planner Is Vital
However, by sitting down with a financial advisor, like the expert team at Thomas Chan CCK Financial. People can learn that by saving even a small amount of money early on, can equal more money in the long run than saving larger sums later. People don’t know what they don’t know, says retirement planning Vancouver authority, Thomas Chan.
By meeting with us, they can at least get the benefit of learning the facts. Once they’re ready to start saving, we can find the best product for their needs, age, and how much they can save, and then adjust as needed. If you would like to meet with the experts yourself, Thomas and his team are waiting for your call. Pick up the phone, or send an email, and know that knowledge is power. Find your power today.
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