subject: Still Young? Then Save! [print this page] Still Young? Then Save! Still Young? Then Save!
Many seniors haven't been able to save enough money to secure their retirement dreams. The recent crash had a major impact, as many found their investments shrinking. It also holds true that many canadians didn't invest in an occupational pension plan. Causing heavy dependence on the Canada Pension Plan (CPP) and Old Age Security (OAS). This was not enough to secure a bright future for many canadians. As this left many to postpone their retirement and work longer.
The impact of fewer savings caused CPP costs to rise for workers. This means CPP tax is increasing. More support is given to seniors through the tax system. Shifting a heavier burden on workers. With this, we are also finding an increase in the baby boomer population, combined with the effect of low fertility rates. Both of these two effects combined is detrimental to CPP costs. More citizens require CPP support, while less workers are there to support seniors. Therefore, the ratio of senior citizens to every worker is increasing.
Much can be learned from this situation. Young people especially have to be aware. The odds are against the younger generation. Many students will leave school paying off their loans. There will be added pressure to find financial support and shelter. Long term plans have to be considered, it is never to early to start planning for retirement. With more time taken out, chasing early retirement becomes easier. Risks can be taken at a young age and mistakes can be afforded, since there is more time to recover. Smart investment choices will lead to a better future.
It is important to save money. This will protect individuals from emergencies. Daily events such as a job loss or a car crash can throw anyone off track. Causing financial worry and added pressure. It is recommended to clear debt immediately. To pay off loans. This is done by consistently devoting a certain percentage of income to eliminate debt. Investments are meant to grow, and so is debt. Before even considering investments, its important to pay off all loans to creditors. Develop a system and execute it appropriately. This will lead to new saving opportunities. This could result in new investments with the potential to grow. This growth is much more effective over a longer period of time. Thus a younger person will benefit more due to accumulated interest. This is why investing at a younger age is encouraged. More freedom, with many more opportunities.
To get free help on planning yourself out of debt, or to save for your future, shoot me an email: basim.m@gmail.com
Written by Basim Mirza
http://www.basim.ca
Sources Used
Bob Proctor. You Were Born Rich. Life Success. Arizona.
Suze Orman. 9 Steps to Financial Freedom. Three Rivers Press. New York.
