4 things your clients should know about their retirement

For years, we Canadians have been conditioned to think about retirement in terms of planning and saving. But it’s a new reality out there. Today, there are more factors to consider, and more products at our disposal. The 4 facts below can affect the way your clients prepare for the day they step away from work for good. Sharing these with them will not only serve to deepen your client/broker relationship; it will also demonstrate how you continue to have their best interests at heart.

Women need to save more for their retirement than men do. It’s a known fact that women live longer, so it makes sense that they will require more money for those extra years. Statistics show that on average, a woman aged 65 today will live to be 87, while a man of the same age can expect to live to be 84. Will your clients’ money last as long as they do?
The Canada Pension Plan and Old Age Benefits help. If you worked in Canada your whole life and retire at 65, you could qualify for up $16,600/year in CPP and Old Age Benefits each year. While that’s not enough to live on, it’s a nice little cushion to count on.
People are working longer. While the average retirement age in Canada has officially hit 65, people are no longer sitting on the sidelines and watching the world go by. Many people choose to stay engaged by continuing to work part time or even pursue a second, new career. As a whole, we are staying active and engaged longer while continuing to earn money. And that’s a good thing, because many Canadians will not have enough funds once they retire.
The average Canadian 55+ will have a $10k income gap yearly, when they retire. Living longer has created a financial shortfall, because many financial plans didn’t factor in this kind of longevity. Many other Canadians – about half of the population – don’t even have savings. Options like reverse mortgages are growing in popularity and can unlock up to 55% of the value of their home into tax-free cash.

Retirement is a stage many of us look forward to. By making your clients aware of where gaps in their nest eggs may occur, they can plan properly and look forward to enjoying their golden years without worrying about running short on finances.

SOURCES:

Statistics for how long people live:
https://www.theglobeandmail.com/investing/personal-finance/retirement/article-70-is-the-new-retirement-age-or-is-it/

Amount you can qualify for in CPP/Old Age Benefits:
www.moneysense.ca/save/retirement/10-things-they-wont-tell-you-about-retirement/