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Most Canadians generally factor in longevity risk, inflation, long-term care costs, and taxes when preparing for retirement. Although defined pension plans and government benefits are lifetime incomes, you still need to save more to live comfortably in retirement.
However, you don’t need to be manic about neutralizing the potential risks in the sunset years. If you do, the result is often over-saving. Saving too little is risky, but should you overdo do it in pursuit of a seven-figure nest egg?
There must be a balancing point
Retirement planning is a serious undertaking. Avoid procrastinating as it could lead to your inability to save. If you live it up at the moment and spend as if there’s no tomorrow, you put yourself in a precarious situation.