Value of advice takes on added importance with two-thirds of Canadians wanting to be more informed about the logistics of retirement
TORONTO - November 13, 2019 - Mackenzie Investments today released the results of a study that shows that there is a significant opportunity for Canada’s financial advisors to help Canadians better understand the details involved in making the transition to retirement.
According to the study, conducted by Pollara Strategic Insights for Mackenzie:
- Sixty-one per cent of Canadians (47 per cent of Boomers) want to know more about what is involved in making the transition to retirement;
- Less than a quarter are very familiar with how the Canada Pension Plan works, when and how to convert their RRSPs to RRIFs, and how they’ll be taxed in retirement; and
- Fifty-three per cent (67 per cent of Boomers) feel confident that they will be able to manage their investments during their retirement years.
Further, 72 per cent of respondents (74 per cent of Boomers) feel that there is opportunity to put more emphasis on helping people better understand all the components of successful retirement planning, beyond simply saving.
“Canadians in general, and Boomers in particular, are seeking advice on the details involved in making the successful transition to retirement,” said Carol Bezaire, Vice-President, Tax, Estate & Strategic Philanthropy, Mackenzie Investments. “This provides Canada’s financial advisors with a tremendous opportunity. As people approach retirement it’s clear that there’s more of a premium put on the value of advice as areas like tax and estate planning and optimizing investments during retirement take on added importance.”
“It’s a particularly important time for Canada’s Boomers. Not only are they having to learn a whole new set of rules as they approach retirement but many are also managing the complexity of inheriting significant sums as the world goes through the largest transfer of wealth in history. An advisor can play an important role in helping clients successfully stickhandle this critical life stage. ”
Ms. Bezaire concluded by noting that Mackenzie Investments has programs in place to provide advisors with the insights and support they require to help clients successfully navigate their retirement years and highlighted four areas they should focus on when working with clients who are approaching retirement:
- Sources of income: work with the client to identify all potential sources of income.
- Lifestyle: what kind of life does the client want to lead in retirement?
- Cash: how much will the client require on a monthly basis to sustain their retirement lifestyle?
- Taxes: How can tax savings be maximized?