Embedded Files
Entering retirement can be a particularly jarring experience for seniors, and not only because they’re leaving behind the familiar world of work. For the change also requires a shift in one’s financial orientation — from savings accumulation to decumulation.
Entering retirement can be a particularly jarring experience for seniors, and not only because they’re leaving behind the familiar world of work. For the change also requires a shift in one’s financial orientation — from savings accumulation to decumulation.
Above all, the transition brings into focus one overriding goal: how best to “pensionize” a nest egg so that your money outlasts you, and not the other way around.
Above all, the transition brings into focus one overriding goal: how best to “pensionize” a nest egg so that your money outlasts you, and not the other way around.
Among the more 78 million baby boomers in or near retirement, the oldest of whom are now over age 70, retirement income planning has thus become an urgent priority. That’s true, too, for the thousands of agents and advisors who serve these boomers — a demographic group now in possession of lion’s share of the nation’s wealth.
Among the more 78 million baby boomers in or near retirement, the oldest of whom are now over age 70, retirement income planning has thus become an urgent priority. That’s true, too, for the thousands of agents and advisors who serve these boomers — a demographic group now in possession of lion’s share of the nation’s wealth.
“Canadians age 55-plus own almost 70 percent of all investable assets in the country,” says Jafor Iqbal, an assistant vice president at LIMRA Secure Retirement Institute. “That's a huge concentration of money. So naturally, advisors have changed their focus in recent years to incorporate retirement income planning in their practices.”
“Canadians age 55-plus own almost 70 percent of all investable assets in the country,” says Jafor Iqbal, an assistant vice president at LIMRA Secure Retirement Institute. “That's a huge concentration of money. So naturally, advisors have changed their focus in recent years to incorporate retirement income planning in their practices.”
In tandem with this shift, insurance and financial professionals are looking to a range of solutions that can best secure senior clients’ post-retirement objectives. Among the main aims are preservation of principal, guaranteed income for life and healthy returns on invested capital.
In tandem with this shift, insurance and financial professionals are looking to a range of solutions that can best secure senior clients’ post-retirement objectives. Among the main aims are preservation of principal, guaranteed income for life and healthy returns on invested capital.
There’s also this not-insignificant one: tax-favoured treatment of retirement assets. This can have a potentially huge impact, not only on the quality of life in retirement, but also on money available to fund a retiree’s legacy planning objectives.
There’s also this not-insignificant one: tax-favoured treatment of retirement assets. This can have a potentially huge impact, not only on the quality of life in retirement, but also on money available to fund a retiree’s legacy planning objectives.
Among the main aims are preservation of principal, guaranteed income for life and healthy returns on invested capital.
Among the main aims are preservation of principal, guaranteed income for life and healthy returns on invested capital.
From innovative fixed indexed and fee-based annuities to hybrid combo solutions, today’s retirees have a growing list of products to choose from.
From innovative fixed indexed and fee-based annuities to hybrid combo solutions, today’s retirees have a growing list of products to choose from.
Experts caution against rushing into a strategy for funding retirement through loans, whether via a reverse mortgage or cash value life policy.
Experts caution against rushing into a strategy for funding retirement through loans, whether via a reverse mortgage or cash value life policy.
What am I earning?
What am I earning?
The prevailing interest rate also must be considered when investing in interest-sensitive fixed income vehicles that can provide a guaranteed retirement income stream. These include savings accounts, bonds, certificates of deposit, money market funds and fixed annuities and of course the productive guaranteed investment fund. Of these, only the last 2 can assure retirement income for life, security which is a top priority of seniors, as recent research indicates. However the guaranteed investment fund seems to always outperform the annuity products and has greater flexibility when used with a (RIF) Retirement Income Fund.
The prevailing interest rate also must be considered when investing in interest-sensitive fixed income vehicles that can provide a guaranteed retirement income stream. These include savings accounts, bonds, certificates of deposit, money market funds and fixed annuities and of course the productive guaranteed investment fund. Of these, only the last 2 can assure retirement income for life, security which is a top priority of seniors, as recent research indicates. However the guaranteed investment fund seems to always outperform the annuity products and has greater flexibility when used with a (RIF) Retirement Income Fund.
“Almost two-thirds of annuity sales are for guaranteed lifetime income products,” says LIMRA’s Iqbal. “And one-third of the buyers are ages 65 and older.”
“Almost two-thirds of annuity sales are for guaranteed lifetime income products,” says LIMRA’s Iqbal. “And one-third of the buyers are ages 65 and older.”
Many of these retirees are looking not only to pensionize their nest eggs, but also secure a larger monthly income stream than available through other fixed income vehicles. A R.I.F. kick-started later in retirement (e.g., at age 67 or 70)
Many of these retirees are looking not only to pensionize their nest eggs, but also secure a larger monthly income stream than available through other fixed income vehicles. A R.I.F. kick-started later in retirement (e.g., at age 67 or 70)
Need more details? Contact us
Need more details? Contact us
We are here to assist.
We are here to assist.
"Wealth Management"
"Wealth Management"
Contact us by phone or email
Contact us by phone or email
Ph 306 292-3734 TF: 1-877-888-9403
Ph 306 292-3734 TF: 1-877-888-9403
Google Sites
Report abuse