The key to overcoming financial challenges is to have a written financial plan, writes Peter Watson.
There are reasons why many people feel uneasy about retirement.
This can apply to those who are currently retired and those who worry that they should be financially self-sufficient when their time comes to retire.
We should start by realizing that retirement is likely the most significant financial adjustment of our entire lives. One month you get a pay cheque and then suddenly it stops.
Now you must manage your finances for the rest of your life, which is difficult because you do not know how long you will live. Your journey through retirement will take courage and that for some is in short supply.
Your confidence might be shaken because of world events. We live in uncertainty. Wars, tariffs and geopolitical instability. Perhaps you still have debt as your retirement years are approaching.
Your debt might be because of your children’s post-secondary education costs, or perhaps you are helping them financially to buy their house. And in some cases, it is a result of you struggling to maintain your lifestyle and falling short of your savings targets.
Remember how delighted you were over the last many years with rock bottom interest rates encouraging you to borrow money. Borrowing was easy; paying the loan off is now a struggle.
This article is not meant to be about “doom and gloom.” However, it does reflect the current day thinking of many. Almost 60 per cent of working Canadians think they will never be able to retire. This information is from a recent survey done by Healthcare of Ontario Pension Plan.
For many, it is time to pay closer attention to your family finances. And regardless of your situation, financial objectives or circumstances. You need to plan.
Create a written financial plan. Be specific about your financial objectives and have a strategy that is regularly monitored. We wish you success.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com
