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Making the assumption that you are prepared for retirement or that you will figure everything out when the time comes is a dangerous gamble far too many Canadian are taking. You are about as likely to smoothly glide through retirement without a plan as you are to win the lotto 6/49 jackpot – which we don’t recommend you plan on as your retirement strategy either.

Below are 5 common misconstrued perceptions people develop about retirement planning.

1. I can always keep working.
Maybe, but maybe not. Many retirees are actually leaving the job force earlier than expected with the most common reasons being to cope with health issues or a disability, or to care for a spouse or other family member. Sure some people continue to work into their 70’s or 80’s, but that continuing income is not something you can count on.

2. In retirement I will be able to sit back, relax and enjoy life.
Unfortunately, health is the most pressing issues for retirees. A few decades ago retirement was much simpler – people did not live as long and there was less to plan for. Nowadays, many individuals are spending the same amount of time, if not more, in retirement than they did in their working years. The reality of facing increased health and long-term care costs is often a neglected subject and can take away from the activities you really want to enjoy in your “golden years”.

3. My pension and government benefits will provide me with a comfortable retirement.
For many retirees, CPP and OAS alone, even if you collect the maximum amounts, is not enough to live off of. Retirement is no different than any other part of your life; things come up. House renovations, unexpected health care bills, vehicle breakdowns – sometimes you need or want more cash but in order to receive this income flexibility, you will have to fund it with your own savings.

4. I will move in retirement.
Many people envision that when the kids are gone and they start to ease into retirement, they will move into a condo or downsize to a quaint little bungalow but the reality is, seniors do not want to relocate in retirement. Moving is expensive, your family home holds cherished memories, you may be in proximity to your children and grandchildren, you have developed a social network – these are just some of the reasons to stay put. This includes another popular belief that retirees will give up home ownership to rent and live off the equity they built up over the years – statistically that’s not happening either.

5. I will finally have time to do all of the things I wanted to do when I was working.
Don’t just assume you will be able to keep yourself busy. Many retirees, especially men who held corporate positions, overlook the fact that their days no longer follow a precise schedule and it can be hard to adjust to the lack of structure. Have an idea of what your ideal day in retirement looks like. Try to plan a whole week down to the hour of activities and you may realize how hard it is to fill the days. Find hobbies you enjoy and join clubs to stay active and social.

Contact us to be sure you're on track to live your retirement dream.