The last 10 years before retirement are critical! Technically, they should be your highest-earning years and lowest family costs, unless you still have children at home.
In an article found in Investopedia, “a 2019 GOBankingRates.com study found that 64% of workers surveyed had less than $10,000 saved toward retirement. Worse yet, nearly 40% of workers surveyed age 55 and older reported no retirement savings. Some of the folks in that group may have a pension to rely on, but most are financially unprepared to exit the workforce.”
This has been a very controversial discussion for the last decade: “Should I collect my CPP before I retire or, more specifically, as soon as I turn 60?”
There are two main camps on this subject. Planners who say absolutely, and those who say wait till the very last moment. Let’s shed some light on this subject.
CPP and Social Security were designed to make sure that people will have funds to survive and live on after they retire. In Canada, it was instituted in 1952, and in the States, in 1935, Roosevelt created Social Security.
One of the unfortunate things about growing older is that health care cost rise exponentially. Thankfully in Canada we have an excellent health care system and in the US, once you reach 65 you are eligible for Medicare. Although both a good programs they do not cover everything. This coupled with the fact that people are living longer and the healthcare systems were developed many years ago, health care is an area that really needs to be looked at and well planned for.