The Most Common Question I Hear from Canadians 50+ — Retirement-Income Advice is Much Needed

There is a huge disconnect right now between many in the financial-advice business and their clients.

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As I travel speaking over the last few years, by far—by far!— The most common question I hear from Canadians 50 and up is this: “How do I plan out the best way to create my retirement income?” They want to know, “How do I optimize my after-tax cash flow in retirement? Where do I draw from first? My RRSP? My TFSA?

My non-registered account? When should I start taking CPP, OAS? Does that decision affect other questions? How do I safeguard against the risk of living a really, really long time? Are annuities worth a look? Can I do all this and still hit my goals for what I want to leave to my kids and grandkids?” Et cetera, et cetera.

Some advisors are doing a truly wonderful job answering these questions. Using advanced software, their experience and strong communication skills, they are developing a very sensible, thorough approach. And I see very few advisors doing a bad job here. Extremely infrequently do I see advice where I go, “What the heck?”

But you know what I do see a ton of? No advice. Or almost no advice. Clients are being left to figure this out on their own way too often. And frankly, most don’t have a clue how to do it. Not ideal. Bluntly, not appropriate with the fees many clients are paying. The industry needs to smarten up here.

Companies need to make sure their advisors are well equipped to perform this VERY important service. If firms/advisors don’t get on top of this, a new breed of retirement-income-planning specialists mixed with technology will come in and fill the gap. Clients need solid advice here and they deserve it. Let’s make sure they’re getting it!