Retirement Planning: Will the Canada Pension Plan Reforms Derail Your Retirement Plans?
For the majority of people, change is anything from uncomfortable to downright scary. If you are nearing retirement age, you probably have mixed feelings about retirement planning. While you are excited about having more time for hobbies, travel, and sleeping in whenever you want, you may also be wondering if you will have the money to last throughout those golden years. Even if you have had a carefully orchestrated retirement plan all along, you may be feeling unsure about how the CPP (Canada Pension Plan) reforms could affect you. There are mixed opinions about the changes it presents, but you should know that for the most part, retirees are feeling positive.
In order to be more at ease, it is helpful to understand why there was a need for reform in the first place. The Globe and Mail has an interesting article that well explains about the middle-income retirement gap and what the major changes to expand the CPP are.
It is helpful to keep in mind that you can expect some changes after retirement that you may not have considered. First and foremost, statistics show that retirees generally spend less in retirement. When you consider the many costs attributed with your job – dry cleaning, transportation, restaurant lunches, business meeting expenses, etc. – you’ll understand that retirement is cheaper in the long run. Getting away from the stresses of the workplace often results in feeling healthier, too, so that saves on medical costs.
Whether you already have a retirement savings plan in place and need to have it reviewed to see if the CPP reforms could affect it, or need to get started with a plan, you’ll find the assistance you need at BlueRock Wealth Management. Working with one of our financial planners to discuss retirement planning will give you the confidence that you will have the cash flow you need to do the things you want to do once you retire. The CPP reforms won’t derail your retirement plans when you instead use them to your advantage, so let’s get securing your future today!