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Checklist – Finding retirement income

Check List Check List

Here’s a list of steps clients can take to stretch retirement incomes. Go over each option if clients are worried they won’t meet post-work financial needs.

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Checklist – Finding retirement income

Cut extra expenses – Take second look at your budget. If you’re overspending on luxuries such as entertainment and travelling, consider scaling back and re-evaluating your goals. Also, discuss how to build a drawdown plan with your advisor.

Downsize/move into a rent-controlled apartment – By downsizing, you’ll save money on mortgage payments and taxes, as well as on maintenance. However, you may need to figure out which items should be sold or put in storage. Also consider the pros and cons of renting and downsizing.

Invest in a GIC ladder – GICs with longer terms to maturity offer higher interest rates, but they also keep you locked in at current rates. Choosing a laddered product means maturity dates can be staggered.

Invest in a life annuity – Life annuities are insurance products that provide set income payouts (amounts are based on factors such as age, gender and interest rates) until you die. There are several different types, including inflation-indexed products and those allowing funds to be paid to a beneficiary spouse if you die. When converting RRSPs to RRIFs or annuities, consider all options.

Go back to work –You can opt to go back to work, even part-time, to supplement your income.

Courtesy of Advisor.ca © 2018 Transcontinental Media G.P. These materials are for reference and guidelines only. You are responsible for the advice you give your clients.
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