September 23rd 2020,
COVID-19 and your retirement
Among the devastations caused by Covid-19 beyond the pandemic aspect, no one can ignore those inflicted on your retirement planning. If you had to use your RRSPs to meet your budget requirements, you lost your job and stopped contributing; the value of your RRSP has decreased significantly? How are you going to get back on your feet when it comes to your retirement strategy?
Retirement strategy
Remember that a retirement strategy is a backdrop, a guideline, not a plan set in stone. Generally, we can easily adjust this strategy together. If you didn’t have a strategy, it might be worthwhile to establish one.
Life expectancy in good health
Here is a new concept one should introduce into his retirement planning. How many healthy years do you hope to have from the date you retire? Since 1994, Statistics Canada has published a comparative study every 4 years between life expectancy and health-adjusted life expectancy. Here is the 2015 data released in 2018. For a man retiring at 65: his life expectancy is 19.2 years and his healthy life expectancy is 14.4 years. For a woman it is 22 years and 15.3 years. This concept could influence your retirement strategy.
Adjusting your retirement strategy
The further away you are from retirement, the easier it is to adjust your strategy. Here are some ideas to consider when revisiting your strategy.
• Your retirement philosophy. Has Covid-19 made you envision your retirement differently?
• Your retirement income needs.
• Your retirement age.
• Your ability to increase your savings.
• The decrease (or the fear of it) of your retirement capital following the Covid-19.
• Your life expectancy in good health.
• ……
It’s important to review our strategy periodically. I encourage everyone to take an appointment with me to review and adjust if necessary your retirement & savings plan.
Mauro DiCesare, B.Comm, Pl.FinPlanificateur Financier/Financial Planner
Financial Security Advisor/Conseiller en Sécurité Financière avec Groupe Financier Finvest Inc.
Mutual Fund Representative/Représentant en épargne collective avec Investia Services Financiers Inc.
514-376-7771
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