Advisor.ca | 5 Risks to Retirement Income
In a recent speech at the Canadian Institute of Financial Planners annual conference in Ottawa, Peter Drake, vice president, Retirement and Economic Research, Fidelity Investments Canada ULC called attention to the new retirement realities facing Canada’s baby boomer generation and highlighted the importance of taking account of the five key risks to retirement income as part of the retirement planning process.
Drake emphasized that the conventional wisdom about retirement planning needs to be adapted to suit the new environment faced by today’s Canadians who are retired or about to retire. He pointed out that financial advisors can play a crucial role in helping Canadians understand that their retirement planning choices must not only reflect the longer lives we are now living and the volatility of capital markets, but also changes to Canada’s retirement income system.
“Financial advisors and investors will need to work closer than ever before to identify the level of risk that is acceptable to the individual investor, while managing the sometimes conflicting goals of adequate pre-retirement income replacement, capital preservation and long-term growth,” said Drake. “A retirement income plan that addresses the five key risks to retirement income can considerably improve the financial well-being of Canadians in retirement.”