An older couple hike across a rise with mountains in the distance.
Are you thinking about retirement? Do you have a solid plan in place?
If you don’t, you might find the wisdom shared with 24-year-old Business Insider reporter Noah Sheidlower in his article, “What I learned from 200 retirees,” interesting.
After reading through 4,500 responses to a retirement survey and interviewing 200 retirees, the Gen Z writer learned a lot about what not to do while saving for retirement. While Scheidlower spoke to Americans specifically, it’s safe to say much of this could apply to Canadian retirees too.
Here are the biggest regrets these retirees mentioned, and what you can do now to avoid the same fate.
Saving for retirement during the early years of your working life is hard, especially if you don’t come from wealth. Paying off college loans on an entry-level salary might not allow you any extra money to put away — but the earlier you start investing, the more you benefit from compound interest.
Sheidlower spoke to 64-year-old Kevin Foster, who emphasized the importance of putting some money away as soon as you start earning, even if it’s just a few dollars.
“I told [my grandson], ‘I don’t care how much you put away, you’ve got to put something away.’”
According to a BMO survey, 76% of Canadians are worried they will not have enough money in retirement because of rising prices. Considering you need somewhere between seven and 13 times your annual income to retire comfortably, the sooner you start investing, the easier it will be to reach that milestone.
If you want to start investing for retirement now — but find it all a bit confusing —there are money management platforms out there that can help you stay on track.
Another retiree reflected on keeping money in low-yield accounts for too long:
“After one woman told me she was too safe with her investments, I took most of my money from savings accounts and decided to plow it into the market,” Sheidlower shared.
When time is on your side, the smartest investment strategy is often to focus on equities and avoid keeping much money beyond your emergency fund sitting in a savings account.
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