As more boomers near retirement, it’s important to help them adjust to lifestyle and financial changes. Many of these clients are used to working and saving — they’ll now have to decide what to do with their free time, while forgoing their usual paycheques.
Associate managing editor Suzanne Sharma has written several articles to help these clients. The first task is to figure out the true cost of retirement. Many experts are favouring a new 3% rule, instead of the historical 4%.
Also, discuss decumulation strategies based on each client’s goals. And update them on how Budget 2015 changed RRIF withdrawal rates.
Meanwhile, some of your clients may be single and elderly. These clients have different financial challenges compared to couples — they actually have to save more because their per-capita cost of living is higher. You’ll also have to know how to spot signs of PoA or elder abuse.
If you have clients who want to purchase property and retire down south, make sure they’ve worked out the math. With the falling loonie and rising U.S. home prices, it may be more than they can afford.
Finally, some boomers may want to set up trusts for kids or provide financial support. But the key is to ensure clients provide for themselves first, especially since they’re likely to live longer than previous generations, and will need the funds.