Page 17 - Newcom

CHANGING RETIREMENT LANDSCAPE
In past decades, advisors typically split the retirement planning cycle into three parts, says Dan Anders, CFP and TEP at Raymond James Financial Planning in Vancouver. These were:
1 Estate creation: Up to age 30 or 40, clients built wealth through working, buying homes, saving and investing.
2 Estate preservation: Between their 40s and 60s, they focused on debt repayment, buying insurance and maximizing registered plans. By this stage, children had often moved on to school and their own marriages.
3 Estate succession: Clients would enter this phase as early as their 60s and 70s, since low-risk, high-return investments, such as bonds, had set them up for com- fortable retirements.
But times are changing. These phases have been
overlapping for a few decades, adds Anders, given people are starting families later, saving less and getting lower returns. Now, clients in their late 30s to 50s are creating estates, while those in their 50s to 70s are preserving their estates and even working longer. That means people aren’t moving to the succession phase until they’re be- tween ages 70 and 100.
Also, many are entering a fourth phase between their late 80s and 100s, which involves draining their estates due to health-related or long-term care costs.
to 95, I don’t know anyone who isn’t in need of care, either through home care or within a facility.”
So when he’s running plans to 100 years old, he mentions the need for this product.
In Canada, the cost of long-term care per year var-
ies based on where clients live and their incomes and, for couples, whether both spouses are receiving care (see “Cost of long-term care,” page 16). In B.C., Alberta, Saskatchewan and Ontario, couples can bene t from income splitting if only one spouse requires long-term care.
Still, without insurance to cover the cost, clients will
be left with little disposable income and will deplete any savings they have left to cover extra expenses. For example, Canadians over age 65 pay an average of $5,391 a year on out-of-pocket medical costs, according to a BMO Wealth Institute survey.
Another thing to warn clients about, says Buttigieg, is overspending. It’s common for retirees to spend more in the rst ve to 10 years of retirement, since they’re healthier and tend to travel more.
If people don’t settle into a consistent spending pattern after that, use data and graphs to show them they’re in danger of running out of money long before they die. They should expect to spend more at the beginning and end of retirement, he adds, so make sure they have enough money to achieve this even if they live to 100. AE
Appointment Notices
KERRY MADDOCKS
Advisor Group is pleased to welcome Kerry Maddocks to the team in the role of Associate Publisher. Reporting to the Group Publisher, Kerry will provide oversight, guidance and direction on daily operations with a dedicated focus on driving and building a strategic vision for our print, custom, and digital platforms.
Kerry joined Rogers in 2006 and has since worked in various publishing divisions including healthcare, pensions and bene ts and institutional and retail nance. She has held various positions including roles as managing editor, account manager and general manager of conferences and events. She is a Graduate of McMaster University.
ASHLEIGH UPSHAW
Advisor Group is pleased to welcome Ashleigh Upshaw to the team in the role of Sales Coordinator. In her new role, Ashleigh will provide support to the sales and editorial teams.
Ashleigh graduated with honours in 2010 from Durham College with an Advanced Diploma in Public Relations, where she accumulated a great deal of experience in writing, event planning, and fundraising. She also wrote and designed pages for the school’s alumni magazine, which was distributed to over 20,000 people.
Prior to joining the Publishing team, Ashleigh worked at the Rogers Call Centre in Pickering, Ontario as a Customer Service and Sales Consultant.
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