Baby Boomers – Is Your Pension Plan Really Going to be Enough?

With a rapidly aging demographic in Canada, preparations for your financial future should be a no-brainer. But, like everything else, some things take a backseat to current needs, and unfortunately it seems as though retirement savings is one of those things. Too many people see their pension plan as an appropriate financial tool that will provide for them in the future – but with so many different financial retirement products out there, it is questionable as to whether that pension plan is really enough to support you.

Recent census data has shown that, in Canada, the number of people over age 65 has grown exponentially – which should not come as a surprise to anyone – and that these boomers will quickly outnumber those who are under 15. More surprising though is the fact that, even though the life expectancy rate has risen significantly over the last few decades, many people planning for retirement rely solely on a pension plan without looking at the other retirement products that will undoubtedly protect them in the future.

Since the life expectancy rate has risen, it is essential to recognize that most of us are likely to live well past the 65 mark – meaning that money put aside for retirement is going to have to stretch pretty far. So what retirement products are out there that you can take advantage of to supplement your pension plan? There are many.

The two main categories of retirement products are retirement savings plans and investments – although the two can often work in tandem. Putting away some money on a monthly basis, into a registered retirement savings plan for example, means that you are making a significant contribution to your retirement income. Investments are also an important retirement product option to consider outside of your pension plan as taking some risks can mean big rewards. Even if you are a bit nervous about the risk, working with a financial expert can help lower the risk and help you maintain a sound financial investment profile for retirement.

These statistics are not just important for boomers or those looking to retire in the next few years. Since it is clear that income from your pension plan is not likely to sustain you for the years following retirement, why not start early and build up as much savings as possible. There are various retirement products offered out there that it is not difficult for members of generation x and y to begin a smart retirement savings plan to prepare for the future. Being smart about it now means not having to worry about it down the road.

If you have been working and contributing to a pension plan for most of your adult life, you will have access to some money to support yourself – but is that pension plan enough? Not likely. Investing in the various retirement products available out there is so important, and in order to ease the stress of growing older, supplementing your pension plan funds is critical – and easy!

To find out more about how to supplement your pension plan and to learn about all of the different retirement products and options available to you, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.