Value of advice more important as Canadians near retirement: study

Retirement Planning

Two thirds of Canadians say they want to know more about the logistics of their retirement

The majority of Canadians want more help understanding the aspects of a successful retirement, according to a recent study from Toronto-based Mackenzie Investments.

The Retirement Study, conducted for Mackenzie by Pollara Strategic Insights, found that 72% of respondents (and 74% of baby boomers) feel there’s an opportunity for financial advisors to help clients better understand all components of retirement planning.

Sixty-one percent of Canadians (47% of boomers) want to learn more about what is involved in transitioning toward retirement, with less than a quarter saying they are familiar with the logistics, including how the Canadian Pension Plan works, when and how to convert RRSPs to RRIFs, and how they’ll be taxed in retirement.

Additionally, only 53% of respondents (67% of boomers) say they are confident in their ability to manage their investments during retirement.

Carol Bezaire, vice president, tax, estate & strategic philanthropy, Mackenzie Investments, said the value of advice takes on “added importance” in areas such as tax and estate planning and optimizing investments as clients approach retirement.

“Canadians in general, and boomers in particular, are seeking advice on the details involved in making the successful transition to retirement. This provides Canada’s financial advisors with a tremendous opportunity,” said Bezaire.

The Pollara survey was conducted with an online sample of 1,518 adult Canadians from Sept. 18 to Sept. 20, 2019.

By: Maddie Johnson, November 13, 2019, IE: Investment Executive