6 Retirement Risks - Do You Know Them?

Quality Retirement Planning, Calgary

Are You Retirement-Ready?

Retirement poses a lot of questions....

Will my money last my whole life?

How do I generate enough income from my retirement nest egg?

How can I pass on an inheritance to my children?

No one wants a nest with no eggs! Many Canadian's retirement dreams quickly turn into sleepless nights as they worry about outliving their money. If you are 65 years old you have a 50% chance of reaching your 90th birthday. In fact, StatsCan projects that by 2040 there will be more than 80,000 people in Canada over the age of 100.

You have questions and you need answers. Here are 6 of the biggest risks to consider as you prepare a plan.

What are the 6 big risks to your Retirement?

1.) Longevity Risk - Outliving your money. Half of 65 years olds will live into their 90's. This means that your retirement income plan needs to last for 30 years or more.

2.) Inflation Risk - Your money buys less. The Bank of Canada aims to keep inflation around 2%, but there is no guarantee of that target. Health care inflation is higher.

3.) Market Risk - Losing money due to market performance. Volatility is a huge risk to generating retirement income. If you have to take money out of your investments when the markets are down, you have less money to work with to build your investment fund back to a sustainable level.

4.) Health Risks - Changing health needs over time. Advances in medicine mean that people are living longer but not necessarily healthier. With living longer comes increasing healthcare costs. 

5.) Mortality - An untimely death of a spouse or partner. It isn't a whole lot cheaper for one person to live than two. However, the death of a spouse or partner could mean a major hit to the household income being generated. The surviving spouse may not be entitled to the pension money that their partner had previously. There is no survivor benefit with the OAS pension and a possible 60% benefit from a deceased spouses CPP.

6.) Taxes - History has proven that taxes go nowhere but up. All over the world, we are seeing increasing taxes. There are fewer working people contributing to the tax base, which only means that taxes will go up. When you consider the aging population in Canada and costs associated with that, it will require more taxes from everyone. 

It is important to have a plan in place and not be taken by surprise by the changing retirement landscape. This plan needs to be updated on a regular basis, simply because your circumstances are always changing. At Langford Financial Inc. we specialize in helping our clients with a quality Retirement Plan that is individually customized to ensure more predictable outcomes.

Want to retire in the next few years? Find out why a Retirement Income Plan is necessary.

 

Your Retirement Income Specialists,

Willis & Nancy Langford

Would you benefit from a Retirement Readiness Assessment? Find Out Here


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Willis and Nancy are amazing. I am near retiring totally and they advised me what to do to help me be financially set. I was late in starting my financial plan but they helped me to see that I was going to be okay. 
They are so knowledgeable about what is going on in the world financially especially for retirement. They have the answers and are interested in you personally. 
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Catherine Moon
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