How Canadians are squandering retirement savings

Many Canadians are saving enough for retirement, but are at risk of improperly managing those savings, says a new report released by RBC Wealth Management. That’s because too few are creating long-term financial plans prior to retiring.

According to a separate RBC poll, as many as 28% of Canadians fail to create plans before retiring, and 19% of retirees still don’t have adequate plans in place.

Further, many Canadians don’t know that such plans should include more than savings goals, says the report. So, make sure clients know you’re taking into account how changes in the market can impact portfolio returns, as well as how their future plans or health issues can affect their desired lifestyles and spending targets.

Read: Educate clients about retirement income

And, even if your clients are confident in their plans, revisit their goals and expectations regularly. You can check whether they spend less in retirement than they thought they would and whether they’d like to adjust their investment approaches (consider that the RBC poll finds 91% of retirees are optimistic about the amount of money they have, versus only 79% of those nearing retirement).

Fianlly, many people think that retirement income should come from three areas: government income sources; employer retirement plans or pensions; and personal savings. But you can help clients save on taxes and understand how to access home equity, if needed.

Read:

Time to reform pensions, say actuaries

Canadians worried about finances

Millenials ignoring retirement saving