Save yourself from Retirement Poverty! 1

Save More.  You may think you need X dollars but there are always unexpected expenses, so save more. Most of us do not think about financial matters from a long-term perspective we do not estimate how much money we will need for retirement, or if we do, we vastly underestimate how much we will need. If you save more than you can either spend more or give more to your heirs. Saving more is a win/win situation.

Accept that you will probably live longer than you expect. I had a man tell me the other day that he had lived the average lifespan of a man (78) and he was ready to go. I told him that the average life span for a man in Canada now is in the low 80’s. We are expected to manage our own retirement funds. Many of us plan for the average life expectancy, not realizing that this means that half of the people will live longer. The big risk for women is that they will outlive savings.

Education is a good thing. So, learn about various sources of retirement income. Many of us misunderstand what our primary sources of income will be in retirement. Social Security in the US and Canada Pension in Canada are the most important source of income for many people, but before retirement, we tend to vastly underestimate their importance.

Learn how to manage your retirement savings plan. Due to a number of factors, many of us are now responsible for managing our own investments. Most of us  lack basic financial knowledge but we need to become experts about work benefits, so we can have a worry-free retirement.

Look for good advice. Good advice is not your friend or a member of your family. You have to pay for good advice. Unfortunately, a significant portion of us, do not seek the help of a qualified professional. We rely on our friends and family for advice.