The need for financial security planning in retirement
Financial security planning doesn’t end once retirement starts; it shifts from accumulating capital to preserving capital and how to make the most of that accumulated capital.
The largest generation ever in Canada’s history is on the cusp of retirement, and those aged 55 or older hold the vast majority of investible assets. The number of Canadians who turn 60 will increase annually for the next 20 years, and the average investible assets of each new retiree are quite large compared with younger clients.
According to the Life Insurance Marketing and Research Association (LIMRA) study in 2012 titled Ready, set, retire? Not so fast!, pre-retirees within one to four years of retirement need a formal written plan for managing their retirement finances – only 11 per cent have one.
If you don’t already have a financial security plan or trusted financial security advisor to help, here are some reasons why you should.
One contact, one plan makes things simpler
Planning retirement income is a complex process, and there is no one-size-fits-all solution. Consolidating your accumulated assets with one financial security advisor who can help you transition into retirement with a balanced portfolio, that will generate both income and growth, makes so much sense and can greatly simplify your financial situation. To achieve this, a financial security advisor will need to assess all the elements of your retirement nest egg, including Canada Pension Plan/Quebec Pension Plan, Old Age Security, company pension (if applicable), registered and non-registered assets.
A strong relationship is based on trust
In retirement, more than ever, you need someone with specialized training and experience, who is skilled in the retirement planning process, who takes the time to understand your retirement needs, who identifies potential pitfalls and how to avoid them and who can suggest ways to help ensure you won’t outlive your money.