Is your retirement plan built for a longer life?

An ideal retirement finds the right balance between enjoying life and making sure your money lasts your lifetime. And, as Canadians live longer, we’re hearing more about longevity risk. It's a way of asking, “Will you have enough money to last for your lifetime?"

Why longevity risk may impact your retirement. 

It’s simple: We are living longer than ever. And while this is a positive, without proper planning, we may outlive our savings. 

How a longer lifespan impacts your retirement savings. 

Today, those retiring at age 65 have an average life expectancy of 85 years – which means your savings need to last for 20 years or more. 

Longevity stats also show that 50 per cent of us will live longer than 85. Plus, for a healthy couple aged 65, there’s a 70 per cent chance that at least one will live to age 90 or longer.

Knowing these stats drives home the need to create a financial retirement plan supporting a longer lifespan for you and your spouse/partner. 

Budget for long-term care and medical expenses. 

Longevity risk also includes other expenses you may incur in your 80s and 90s. If remaining at home is your goal, the Canadian Medical Association benchmarks a moderate level of required care to be about 22 hours per week. However, about a third of Canadians over 85 live in long-term care so depending on your health, you'll need to build these expenses into your plan. 

Ensure a secure and comfortable retirement that protects your savings. 

There’s no way of knowing how much money we need since we're all different, but it's better to have a plan where you have too much than too little. Consider a variety of scenarios that take into account your lifestyle and the finances needed to support your plan.

Where can I turn for help? 

Our team is here to help. We offer educational workshops and one-on-one consultations with our Retirement Information Consultants (RICs). Combined with decades of financial planning experience, our RICs are here to serve your best interests. Plus, they will walk you through PEPP's retirement options, including our newest option – Lifetime Pension. Watch for more information on Lifetime Pension in the coming months.

>> Booking a free consultation is easy – just call us at 1-306-787-3170 or email us at: ric@plannera.ca.