Retirement is the time to take advantage of all the things you struggled to fit into your hectic work life, such as travel, relaxation, hobbies, and quality time with loved ones. While many of us are aware of the importance of diligent saving over the course of our working years, it’s possible to make poor financial decisions for your retirement. If you avoid these 5 retirement roadblocks, this exciting period of your life will more likely live up to your expectations in the future.

1. Being without a retirement plan

You make plans when you go on vacation. Without one, you won’t know how you’ll get there, where you’ll stay, or how much it will cost. It’s the same in retirement: Without a solid plan, you’re leaving a lot to chance.

The choices you make will have an impact on how you’ll live in retirement, but more importantly, they’ll help you determine how much money you’ll need to save for retirement and how much of your earnings you can spend while you’re still working. On a lighter note, the only thing that should be left to chance is winning a lottery ticket, so discuss your plans with your partner and make an appointment to see your financial advisor so you can work out the details together.

2. Saving Late

Although it’s possible to put off saving for retirement, there are a few good reasons to begin saving now even if you have a long way to go:

• The sooner you begin, the more interest your savings will eventually generate for you. It is worthwhile to maximize this interest because it will help to supplement your retirement income.
• Starting early will help you avoid feeling the pinch as your savings will be dispersed throughout your career rather than concentrated at the end. Less lifestyle sacrifices must be made while still having money left over from each paycheck to put toward savings.

Additional tips for wise retirement saving are provided below:

Participate in financial counselling

According to studies, investors who work with an advisor experience better financial outcomes than those who don’t. As you get closer to retirement, your advisor will also assist you in changing your investments to reflect your risk tolerance.

Other things you could do include:

• Increase your savings when you receive a raise.
• Make sure that your retirement savings are automatically deducted from your paycheck so that you won’t need to remember to transfer the money.

“I don’t earn enough to put money aside.”

This is a challenging one because you could become overburdened by the mere act of paying monthly bills. Budgeting is the most effective way to make savings.

Make a list of your expenses and set a goal to spend $50 less per week on things like food, gas, entertainment, or other costs. Also, think about getting a part-time job or finding another source of income.

This requires commitment and discipline, which aren’t always enjoyable or simple. But over time, even a small amount of saving adds up.

3. Not Prepared for Emergencies

There is never a perfect time for an emergency, but preparing for one can make the situation much easier on your finances and mental state. If you don’t have enough money saved for retirement, you might need to use your retirement savings to pay for that major roof repair. What’s worse? Withdrawing funds from an investment or RRSP entails additional costs in the form of fees or higher taxes. To avoid this, save money in an asset that can be quickly liquidated, like a redeemable term deposit.

Severe illness can also deplete your hard-earned savings. Health insurance can help by giving you and your family financial support while you’re recovering, preventing your retirement savings plan from being derailed.

4. Choosing Not to Use Your Insurance Options

Life insurance should be a part of your financial planning at every stage of adulthood, especially if you have dependents. Having life insurance in place can give your family a safety net for any unpaid debts you may leave behind, such as mortgage payments or credit card bills, and it can help ensure that your final expenses will be covered.

5. Bad debt

Not preparing for your retirement may stress you when the time comes. It means you will work hard for life and won’t be able to have a relaxing time with your family or grandchildren. The earlier you start planning for it, the better. How about when you have multiple debts? You are not the first person to be worried about this. This is why at EmpireOne Credit, we have debt experts who will help you out so you don’t miss out on your future. We offer free, friendly and non-judgemental consultations.

Call us Today 

If you’re worried and sick of the multiple debts you’re managing, you’re not alone. We are here to assist you in getting rid of those debts. You can reduce your debt by up to 80%, and interest will stop immediately. To speak with one of our debt experts, call us on (416) 900-2324 to schedule a free consultation. Being debt-free feels good!