Most people don’t talk openly about Retirement until they’re
already well into their 50s or 60s. For a long time, I was one of them. Like
many others, I didn’t start seriously thinking about my own retirement until I
was in my 50s. Life was full, raising a Family, working, covering the
day-to-day bills, and retirement felt like something far away, something
“future me” would figure out.

Luckily, when I finally did take a hard look at my future, I had
a workplace retirement plan and was able to save into the six figures to
supplement it. That gave me a decent foundation. But let me be clear: I was
fortunate. Many people hit their 50s or 60s with very little savings, fear in
their gut, and no idea what to do next.

Even worse? When they go looking for help, they hit a wall.
Financial advice can be expensive, often limited to those with large
portfolios, and good guidance feels out of reach. This is a retirement blind
spot we don’t talk about nearly enough, and it’s long overdue that we fix it.

My goal of this series is to provide Canadians with
down-to-earth, practical information that helps you take control of your
Retirement Planning, no matter where you’re starting from. Whether you’re in
your 20s or your 60s, the best time to start is now. Really. The advice given
in these posts is based on my situation, and should not be taken as expert
advice. If you are planning for your retirement, talk to your advisor or
financial institution before taking any actions.

Why So Many of Us Delay Retirement Planning

If you haven’t started saving for retirement yet, you’re not
alone. In fact, surveys have shown that nearly half of Canadians don’t have a
formal retirement plan. Why?

• Life
  gets busy. Between raising kids, paying the mortgage, and
  dealing with unexpected expenses, it’s easy to let retirement planning
  slide.
• It
  feels overwhelming. There are so many acronyms, RRSPs, TFSAs,
  CPP, OAS, and it’s hard to know where to begin.
• We
  think there’s still time. In your 30s or 40s,
  retirement seems far away. In your 50s or 60s, it feels too late.

Here’s the truth as I see it: It’s never too early or too
late to start.

The Sooner You Start, the Easier It Gets

One of the most powerful concepts in saving is compound
interest, your Money earns interest, and then that interest earns interest
too. I found this out late in life. The earlier you start saving, even small
amounts, the more time your money has to grow.

Let’s say you start saving $200 a month at age 25. By the
time you’re 65, you could have over $300,000, depending on your
investment return. Wait until 45, and that total might be closer to $100,000.
That’s still a solid start, but more time equals more Growth.

Even if you feel behind, you can still make progress. Many
people ramp up their saving in their 50s and 60s when their expenses go down or
their income stabilizes. That’s what I did. I got focused, built a plan, and
stayed consistent.

What If You’re Starting Late?

If you’re in your 50s or 60s and just beginning, don’t panic.
Here are a few things you can do:

• Review
  what you already have. You might have workplace pensions, RRSPs,
  TFSAs, or even some equity in your home.
• Cut
  unnecessary expenses. Even small changes, like reducing
  subscriptions or eating out less, can free up money for saving. My wife
  and I only went out once a month once we started getting serious. A friend
  of mine and his wife, only went out for lunch or happy hour and they
  shared a meal. Little things add up.
• Make
  use of tax shelters. RRSPs and TFSAs can still offer
  advantages, especially if you’re in a higher income bracket now than you
  expect to be in retirement.
• Set
  specific goals. Retirement isn’t just a number, it’s a
  Lifestyle. What do you want yours to look like?

Your First Action Step

If you’re just starting, here’s a simple three-step plan:

1.   Open a TFSA
or RRSP if you don’t already have one (more on this in Posts 2 and 3).

2.   Start with
any amount, even $25 a week adds up over time. If you are a Tim
Hortons or a Starbucks regular, cutting back to twice a week may save you the
$25, to start your plan.

3.   Automate
it.
Set up automatic transfers so saving becomes a habit, not a chore. I did that
and it made my ability to save,  a lot
easier.

These baby steps can snowball. Once you start seeing your
savings grow, it becomes easier to stay motivated.

You Don’t Need to Be Rich to Retire Well

Too often, the retirement industry focuses on people with big
portfolios and high incomes. But the majority of Canadians are working with
modest means, trying to balance competing priorities.

That’s why  over the next few posts I will focus on what everyday people can
do:

·       
How to choose between TFSAs and RRSPs

·       
When to apply for government benefits like CPP and
OAS

·       
What to know about Health benefits in retirement

·       
Where to go for affordable or even free advice

·       
What housing options make sense for you

Don’t Wait for the “Perfect” Time

Waiting until you earn more, spend less, or “have time” won’t
make retirement planning easier. Taking one step, today, is what moves you
forward.

I started in my 50s. You can start now.

Helpful Link: Get Smarter
About Money – Retirement Planning

In the next post, I will break down Tax-Free Savings Accounts
(TFSAs), one of the most flexible tools for saving, whether you’re 25 or
65.

Until then, take a deep breath, remind yourself that you’re not
behind, you’re just getting started, and you’re not alone.

Originally Published on https://boomersnotsenior.blogspot.com/

Royce Shook Blogger

I served as a teacher, a teacher on Call, a Department Head, a District Curriculum, Specialist, a Program Coordinator, and a Provincial Curriculum Coordinator over a forty year career. In addition, I was the Department Head for Curriculum and Instruction, as well as a professor both online and in person at the University of Phoenix (Canada) from 2000-2010.

I also worked with Special Needs students. I gave workshops on curriculum development and staff training before I fully retired