Retirement Income

Any retirement income strategy must address our individual needs and concerns.

Our retirement income objectives typically include, a need for a good return, some form of income guarantee for life, a capital guarantee, a need to handle product complexity, income flexibility (choice of when to begin taking income), liquidity (ease of withdrawing money as needed) and inflation protection.

Products designed to meet these needs today range from GIC’s, annuities, Income Plus segregated funds, standard segregated funds to mutual fund T series.

GIC’s offer high advantages with respect to guaranteed income, capital guarantee, liquidity, product simplicity and income flexibility, but offer low advantages with respect to income and inflation.

Annuities offer high advantages for guaranteed lifetime income and product simplicity but offer low advantages with respect to capital guarantee, income flexibility, inflation and return.

Income Plus segregated funds offer reasonably high advantages for guaranteed lifetime income, income flexibility, liquidity, inflation protection and a reasonable return but offer low advantages with respect to product complexity and now availability. Most insurance companies have withdrawn the product entirely or reduced the income guarantee percentage (Manulife, Empire Life).

Standard segregated funds offer a capital guarantee, high income flexibility, liquidity, inflation protection and good income return possibilities. They do not guarantee income for life however.

Mutual fund T series funds offer high income flexibility, liquidity, inflation protection, tax advantages and good income return possibilities. They do not guarantee income for life however.

Using Manulife’s product allocation tool we can calculate your Retirement Sustainability Quotient (RSQ). This tool basically allows us to calculate what percentage of success your current plan has of providing sustainable income for life. We can allocate your savings amongst various products from GIC’s to mutual funds to improve your RSQ and therefore maximize your retirement income and help ensure it will last.

I would be pleased to go over your specific goals and concerns and see how they can be managed with the optimal mix of products, using a Product Allocation approach.