Are you saving for tomorrow or mañana?
Have you ever heard someone say ‘mañana’ before? If it’s your plumber saying it you are in for a few days with a leaky toilet. And if your date says they call you ‘mañana’ it might be time to move on. So, what does it mean? It’s a Spanish word for tomorrow that really means sometime in the unspecified future.
Mañana is when we’ll clean the garage. Mañana is when we’ll get in touch with long lost friends. And manana is when we believe we’ll start saving for retirement.
But mañana often turns into weeks, months, even years.
According to the BlackRock 2015 Canadian Global Investor Pulse Survey, respondents said they expect an annual income of $46,900 for a retirement that’s anticipated to last 25 years. However, most have only saved just over $70,000 (barely enough to cover 18 months of expenses).
So why do we procrastinate saving for such an important part of our life?
Firstly, many people think setting up a retirement plan is time consuming and involves a great deal of paperwork, but if you’ve just done your taxes, chances are you probably have most of the information you need on hand.
Others believe they will be tasked with making important and ongoing investment decisions, unaware that there are plans like Open Access. Instead of requiring you to become an investment expert we ask you to focus on 15 easy to complete questions. Our registered portfolio managers take care of the rest, an intense and rigorous process we’ve perfected over the years. This involves analyzing your responses to ensure you are placed in a portfolio that best meets your circumstance and risk profile as well as actively making investment decisions on your behalf.
Finally, there are those that believe they can wait until they get a raise, the kids are done school, or they sell their home. As reasonable as those circumstance are, they come at the price of missing out on the investment gains that come with a longer investment term.
How soon is too soon to start saving? And ultimately, how late is too late?
The answer, to both of those questions is ‘never’. It is never too early or too late to start. With your employer retirement plan in place, you can get a kick start on your retirement savings. Call Open Access customer service at 1 866 625 4777 (ext. 2) today, and don’t wait for mañana.