A Woman’s Guide to Retirement Planning
A lot of women don’t realize that it will cost them much more than men to live out their golden years in the same comfort. It may not seem fair but it’s an eternal truth we financial advisors know well.
Charles de Kovachich: Investment Advisor
Multiple reasons exist for this. For one, countless studies show that women generally live longer than men. Consequently, women's retirement often lasts much longer. Also, advances in modern medicine, combined with the fact that more attention is paid to health and nutrition nowadays, have allowed life expectancies to reach new heights. In other words, we're no longer talking about 10 or 15-year retirements but ones that may last as long as 40 years!
The most recent instalment of the National Bank Retirement Index is very revealing about Canadian men and women's perspectives concerning retirement. The Index shows that compared to women, men are more confident of their level of knowledge regarding the financial aspects of retirement.
So how do we change this? Women must become proactive in the process of financial planning and saving. As a woman, you should plan early and start saving more in order to ensure a financially secure retirement. Here are some tips to get started:
- Start saving as soon as possible. The earlier you start, the more time you will have to see your savings potentially grow.
- Contribute regularly to an RRSP. A systematic investment program will allow you to take small steps towards saving on a regular basis.
- Diversify your investments. Meet your financial advisor so that together you can choose investments that fit your investor profile, which considers your retirement needs, objectives and current personal situation.
- Pay attention to your investments. Tracking your investments will only take a few minutes each month. It's definitely time well spent when you consider that it's your future and your money at stake.
- Keep your financial advisor updated. When your personal situation changes, notify your advisor so that your retirement plan can be adjusted accordingly.
Remember that planning will increase your chances of living out a successful retirement. But if this task seems mountainous, count on the guidance of your advisor: he has all the tools to help you on your path to success.
Charles de Kovachich
National Bank Financial