| By :
Molly Wider
If you're of the younger generation but are still around the age where the thought of starting to save those retirement funds are stashed away in the back of your mind, you may be surprised to know many retirees are retiring in the red. Years spent enjoying well-earned lavish vacations, purchasing expensive items (bags and shoes, ladies - cars and watches, men), drinking fine wines and indulging in restaurants are eating away at potential retirement money. Living outside ones means seems common practice for many people. With so much rotating credit available, many of us simply are not saving for the golden years. The recent recession had people reciting 'Freedom 85', which unfortunately, probably has a ring of truth to it. While many of us know retirement is inevitable, falling somewhere between death and taxes, the mental concept to just work longer seems to be common one. With people living longer and generally being healthier, it can make sense to consider this an option. However, we have to admit how unpredictable life can be. An unforeseen health issue or accident can instantly eliminate any of those longer working intentions. Suddenly even Freedom 85 is unobtainable. An unexpected health issue forces many people into early retirement. Even if you're lucky enough to have a generous pension, the payout will be reduced because of early retirement, which will most likely end up being less than your previously earned salary. According to Statistics Canada, more and more Canadians continue to grow their debt loads. The Bank of Canada says the average person has accumulated $36,000 in bills. They blame this on credit card addicted young people, but older Canadians are still piling up debt as well. The Credit Counselling Society noted 14% of their clients are over 56, saying this category of clients has almost doubled in the past ten years. If you're about to start saving for retirement, here are a few tips: The first thing you need to do is reduce risk. Real estate and stocks don't necessarily provide the benefits they once did due to surging markets. People need to realize conditions change and markets around the world have been falling. Scaling back is also a key to retirement success. If you're not the type to live outside your means, then living on 50% to 70% of your pre-retirement income won't be a problem. There are things you can do now to help yourself later. If you own debt and traditional banks are no longer an option, consider applying for a secured private loan. This may help put your finances in order so saving for retirement won't be such a red-hot issue.
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