Retirement Planning Vancouver | Debunking 3 Retirement Myths
All too often, people do not do enough retirement planning Vancouver. Because of common myths that they believe. It ends up with Canadians not starting early enough. Or not saving enough for their ultimate retirement.
Canadians need to have a more realistic picture. Of how much they need to save. In order to have a comfortable lifestyle after they retire. And even though they think they can save more in the future. Saving smaller bits now, is a much better plan.
One of the first myths that Canadians need to stop believing in. According to Thomas Chan, is that they do not need to save for retirement now. People often are worried about more immediate problems.
Such as paying credit card bills, paying for their mortgage. Even saving up for down payment on a home. Or saving up to put their children through postsecondary education.
They think that they only have a small amount of money now. And when they are older, the have more money. This is not great retirement planning Vancouver. Because even though they may have more money when they are older.
If a person starts saving money when they are twenty-five years old. In order to have a million dollars when they are sixty. The only need to put away. Three hundred dollars a month. However, if they start saving when they are forty years old.
They will have to put down thousand dollars a month. Which can be difficult, with children, mortgage and car payments. As well as a more expensive lifestyle, that people tend to have as they age. Therefore, that is the first retirement myths to stop believing in.
The second retirement myth that Thomas Chan encourages people to stop believing in. Is that they count on Social Security. Will be able to pay for what they need during their retirement.
The problem with this type of retirement planning Vancouver, is that people think. That there Canadian pension plan. Or their old age security will cover all of the payments. That they need to make during retirement.
This is not true, and in fact, the Canadian government has recently come on record. And said that CPP, or OAS is only designed to cover. About of the third of a retired persons expenses. Which means a retired person needs to come up with.
67% of their expenses, for retirement. Therefore, it is poor retirement planning Vancouver. To expect Canada pension or old age security to cover all of their expenses. As well, as the Canadian pension or old age security becomes more strained.
As more people retire, people should not count on this money, to cover all of their expenses. Take matters into their own hands, and cover all of the expenses that they need. And count on Social Security to supplement the income that they do have.
If people would like help with their retirement planning, Thomas Chan and his team. Will be more than happy to help people out. Together plan, and take actionable steps now.
Retirement planning Vancouver | Bunting These Five Retirement Myths
There are many myths that people believe in that causes their retirement planning Vancouver. To be put into jeopardy. If people truly want to be able to have no worries. At least financially when they retire, there are things that they need to understand.
One of the most common myths that people should not believe. Is that they will be able to fund their retirement. Through an inheritance, usually from one of their parents. Even if people do not think that they are going to have money when their parents die.
Many children often believe that their parents. Are going to leave them their house, and this is poor retirement planning. The reason why this is not a good idea to count on. Is because currently, many parents are underestimating.
How much money they also need for retirement. And therefore, cut into their savings the longer they live past their retirement age. They often have to remortgage their home. In order to cover their expenses because they have not saved enough.
Therefore, when they pass away. People are not going to have the income in the home. That they believe they are going to have. Rather than counting on an inheritance. Thomas Chan encourages people to take their retirement planning Vancouver into their own hands.
The second myth that people should stop believing and according to Thomas Chan. Is they are going to be able to use the equity in their home during retirement. Therefore, they do not need to worry about saving as much money.
While many people are able to use the equity in their home during retirement. The reason why this is a poor idea, is because it first of all counts on the housing market increasing. Which is not always going to happen. As on average, there is a recession every 4 to 6 years.
If there is a recession, and people need to use the equity in their home before they retire. They are not going to have that money, to supplement their retirement. As well, if there is a recession while someone retires.
They are not going to be able to get the equity that they expect from their home. Leaving them with very little money for their retirement. Much better retirement planning Vancouver is to save money now.
And not count on the equity in their home. Besides, Thomas Chan says most older people. Do not want to have to move out of their home when they retire. And this retirement planning Vancouver requires people.
To move out of their home, in order to cash in on this cost. There are many ways that people can plan for their retirement much more effectively. Giving them the finances that they need.
To live a lifestyle that they desire. If people would like more help with their retirement planning. All they need to do is contact Thomas Chan and his team, for a consultation and peace of mind.