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Will You Need to Work Past 65?

work past 65

Will You Need to Work Past 65?

Imagine working into retirement because you thought you had to because you didn’t have enough money to retire with. That would be very unfortunate. But what if you were still working in retirement because you didn’t know that you were financially able to stop? This would be even more unfortunate.

A recent retirement study showed that most Canadians are planning to work past 65 because they need to “earn enough money.” Is it because people think that they need to keep working and have never had the conversation to determine exactly where they are at financially? The same study showed that people who worked with a financial advisor were the most likely to retire on time and were more confident with their retirement savings.

In order to have enough money through retirement, 70% of Canadians are planning to work past 65.

Why is this trend happening? Why are some people working longer than they need to? One of the reasons is, these people may not be getting professional advice. We see proof of this in many ways:

  • There is a decline is the use of financial advisors
  • Insurance ownership is the lowest it’s been in 30 years
  • Only 7% of Canadians have a formal written financial plan
  • Around 25% of households are not on track to have enough retirement income to maintain their standard of living

So, why aren’t people taking advantage of the knowledge of financial advisors?  There are a number of thoughts on this, but, I would suggest that the two biggest reasons are:

  1. A lack of understanding of what advisors can do and the value of their advice
  2. A lack of trust in financial advisors

There are many different types of “advisors,” each with varying levels of experience and education. There are insurance advisors, investment advisors, financial advisors, wealth advisors, estate planning advisors, financial planners and a combination of all of the above. Advisors are professionals that assist you in achieving your personal financial goals. You want an advisor who will listen to your financial needs and help you determine your best options. A professional advisor may also work with other professionals such as accountants or lawyers to ensure there is consistency and expertise in your financial plan.

Advisors are sometimes viewed as salesman. And guess what, some are. There are good and bad in any line of professionals. Your job as a consumer is to research and interview your advisor. You should be looking for an advisor who does a full history of your financial circumstances including everything from your investments and debts to your dreams and goals. They should offer unbiased expert advice and open your eyes up to tips and strategies you might not have been aware of. Advisors are not just for people that have money or people who are already strong with their finances.

The biggest thing when working towards retirement is having an advisor working with you to guide you to achieve your goals. If you are working part-time in retirement, it should be because you choose to, not because you have to.

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