How working with an advisor can help you prepare for some of the challenges of aging
In just over 10 years, the youngest Baby Boomers will be turning 65, meaning that one in four Canadians will be a senior citizen by 2030.
“There is unquestionably a seismic shift in demographics taking place in this country. As a firm, we are heavily focused on helping aging Canadians deal with many inter-related issues,” says Sylvia Azoulay, Vice President, Tax & Estate Planning at Richardson Wealth.
“There is a feeling of uncertainty about retirement. As people get older, many face concerns regarding the loss of independence and the challenges of downsizing among other lifestyle changes; that you will outlive your resources; or how you will be impacted by the cost of health care,” she says.
“Richardson Wealth Advisors are focused on understanding the client’s whole situation – including what retirement means to you as an individual. We used to think of retirement as ‘you stop working, then you go golfing’. Not anymore. Retirement now means you’re changing gears – maybe you’re working part time, maybe you’re doing volunteer work, but you’re not stopping. If you’re a business owner, retirement adds an extra layer of complexity: how do you let go when your identity is closely tied to the company you’ve built?”
The role of the Advisor, therefore, is to best prepare and reassure clients for the road ahead.
“We build retirement projections before clients reach retirement age to answer those tough questions before they come up: When can I retire? How much can I spend? Will I have enough?” Ms. Azoulay says, adding that more questions are inevitable as clients stop working, sell their business and need to draw income from their retirement savings and investments.
“You have all of these ‘buckets’: RRSPs, TFSAs, Old Age Security (OAS) pension, Canada Pension Plan (CPP). Our Investment Advisors can analyze your unique situation and help you to choose the right strategy regarding how to draw from the various buckets with the expertise of our tax and estate planning group.”
Azoulay points out that as high net worth clients age, estate planning also becomes a priority.
“Among the key issues are questions like, ‘How do I transfer my wealth to the next generation in the most tax-efficient way possible?’ and ‘How do I plan today in the event of my incapacity?’ These are some very difficult conversations involving power of attorney (sometimes called Personal Directives), but we can help you to have these discussions with the next generation,” she says.
“Ultimately, we want to assist our clients’ families make a smooth transition of wealth so that everything is clearly stated, easy to administer and with minimal conflict,” Ms. Azoulay says. “We’re here to help individuals have these important conversations, choose the right financial strategies, and offer reassurance that we’re here for them.”
Enhanced advice for unique clients
Because women tend to live longer than men, they are more likely to face the financial and lifestyle challenges that can accompany aging. As women increasingly become the dominant holders of wealth in Canada, money is often tied not just to financial outcomes, but to security, independence and maintaining the lifestyle they want as they get older.
Richardson Wealth advisors understand how to relate financial matters to women’s lives — focusing not simply on dollars and cents, but on what their money can do and how it can support their goals throughout every stage of life.
Women are also more likely to take on caregiving responsibilities. Many spend time out of the workforce raising families or caring for aging parents, which can reduce opportunities to earn income, build retirement savings and contribute to pension plans. These realities can have a significant impact on long-term financial security and are among the many factors advisors consider when creating a wealth plan tailored to women’s needs.
As clients approach retirement and navigate the issues that come with aging, good advice becomes invaluable. That advice extends well beyond where and how to invest, helping ensure they make informed decisions that support their goals and enhance their lifetime standard of living.
