While investing and saving in an RRSP is an essential part of retirement planning, the survey found the majority of Canadians haven’t thought beyond it.
“Investing in an RRSP is an important piece of the retirement puzzle. But it’s not the entire puzzle. Canadians need to think more holistically about their finances in retirement. For example, according to our survey, many Canadians haven’t really considered how much they’ll need on a monthly basis to fund their retirement,” says Damon Murchison, President and Chief Executive Officer of IG Wealth Management. “Interestingly, the results also showed that 57% of couples have yet to discuss their retirement plans with each other, which is significant.”
Looking at the big picture to develop a comprehensive retirement plan can be daunting for the average person, but that’s why a good financial advisor is so important, explains Murchison.
“Through the survey, we found that a third of Canadians use a financial advisor to help them with their retirement planning. That number jumps to 53% among those who are already retired. This tells us that retirees are more likely to seek advice to ensure their financial plans remain on track. Retirement planning doesn’t end when the client retires. There’s a lot more to consider.”
Some of these considerations include: How do you want to live in your retirement? Do you want to financially help your children or have money to leave them? Do you want to be able to stay in your home, to travel, to support a charity? How much insurance will you need? What are your various sources of income? How will you be taxed?
“If you don’t have that financial plan in place, if you don’t have that road map, how do you know if you are going to have enough? How can you ensure that you’re enjoying life to its fullest without the fear you will run out of money? These are the questions that can be answered with the advice of a financial advisor,” says Murchison.
“People often mistakenly believe that if they max out their RRSP contributions, that’s a complete investment plan and they’ll be set for retirement. But there’s a lot more to it,” Murchison continues. “Clients need to map out what their ideal retirement lifestyle will look like and then work with a financial advisor to put a plan in place to achieve it.”
Whether you’re beginning to plan for your retirement, already in the process of planning, or even approaching retirement, IG Wealth Management advisors will work with you to ensure you’re on the right track to meet your financial goals.
Find out more by visiting https://www.ig.ca/en/retirement-planning.