Don’t let these myths derail your retirement plans
Myth: Never carry debt into retirement
While it’s wise to avoid having “bad” debt in retirement (such as high-interest credit card balances), “good” debt, such as a home equity line of credit, can be a useful financial tool in retirement.
Myth: Cost of living is lower in retirement
This all depends on the kind of retirement you want. Many financial advisors recommend having 80% of your working income in retirement, or more if you plan on an active retirement involving travel.
Myth: RRSPs are a complete retirement plan
While RRSPs are a tax-efficient way of investing for retirement, real retirement plans also include income sources such as CPP/QPP, OAS, TFSAs and company pensions.
Myth: $1 million is enough for retirement
The amount that any investor will need when they retire can vary greatly, depending on when they hope to retire, the type of retirement they’re planning for and other expected income.
What you should expect from a true retirement plan
A real retirement plan focuses on how much you’ll need in retirement and considers all retirement income sources, how to manage debt, your legacy and tax efficiencies. Discover the priorities for your stage in retirement planning:
Retirement planning challenges and strategies
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