There is yet more proof, for those still in denial, that professional financial advice paves the way for a fulfilling retirement.
The latest TD Waterhouse Canadians and Retirement Report found Canadian retirees who are getting help from financial advisors are feeling confident about their retirement savings. The pan-Canadian survey of retirees, aged 55-70, also showed that 76% of retired Canadians are using an advisor to manage their investments.
“The good news is that Canadians are not only aware of the need to plan for retirement, but they’re taking the right steps to get there,” says Patricia Lovett-Reid, senior vice-president, TD Waterhouse.
Almost three quarters of respondents working with a financial advisor feel their retirement savings are on track compared to those without professional help. Respondents working with an advisor were found by the survey to be more likely to have a financial plan (52% versus 7% without an advisor).
And financial advice appears to be widespread among the survey cohort, with 76% of retired Canadians using an advisor to manage their savings and investments.
“There’s no such thing as a tried-and-true retirement plan that is a perfect fit for everyone; it’s essential to develop and maintain a financial plan that is right for you,” said Lovett-Reid. “When it comes to money, emotions can run high. When you are trying to find an advisor, I suggest looking for someone that can help you assess your situation, both emotionally and financially.”
While 57% of those polled said they predicted their expenses in retirement accurately, almost one third (31%) said they’re spending more than expected to cover day-to-day living expenses (77%), taxes (46%), medical/health costs (41%) and leisure activities (25%).
Although he acknowledged that there’s no way to know the exact amount of retirement expenses, Lovett-Reid said taking certain measures can help secure the best position possible and prepare for unforeseen expenses.
“One example is critical illness insurance, which can ease the burden for families facing the emotional turmoil of an illness by providing peace of mind that unanticipated costs, in addition to regular bills, will be covered.”
And it’s not just about the money, staying active in retirement, requiring no less discipline, is what completes the happy retirement picture. That may be the reason why many refuse to exit the workforce or slow down and continue to work past the normal retirement age.
Further, to many the thought of transitioning to retired life no longer being defined by their career could be unnerving. Forty-one percent respondents considered it to be the most challenging aspect of retirement.
The survey found nearly one third (31%) are continuing to work in forms ranging from volunteering (15%) and part-time work (9%) to consulting (4%) and small business (3%). Four percent responded that while they’re not currently working, they plan to in the near future.
While 78% chose to remain active for personal fulfillment, 56% enjoyed the social interaction; only 45% said they were doing it for money.
“From speaking with retirees across the country, we know that it’s not just about the money, however, I do believe having a financial foundation in place really does free you up to do the things that give your life more balance and meaning.” adds Lovett-Reid.
Not having to worry about money is extremely important to Canadians to achieve a happy retirement. Engaging the services of a financial expert is one of the most reliable ways to ensure there is no disconnect between retirement planning and its implementation.