Seeking advice on how to successfully transition from work: survey
Almost two-thirds (61 per cent) of Canadians — including 47 per cent of baby boomers — want to know more about how to successfully transition from employment to retirement, according to a survey released by Macenzie Investments.
Nearly three of four (72 per cent) also feel that there is an opportunity to put more emphasis on helping people better understand the components of "successful retirement planning" that go beyond "simply saving money," according to the survey of 1,518 people.
"Canadians in general, and boomers in particular, are seeking advice on the details involved in making the successful transition to retirement," says Carol Bezaire, vice-president of tax, estate and strategic philanthropy at Mackenzie Investments.
"This provides Canada's financial advisors with a tremendous opportunity. As people approach retirement, it's clear that there's more of a premium put on the value of advice as areas like tax and estate planning, and optimizing investments during retirement, take on added importance."
More than half (53 per cent) of the respondents — and 67 per cent of baby boomers — are confident that they will be able to manage their investments during their retirement years.
However, less than a quarter of the respondents overall are “very familiar” with: how the Canada Pension Plan (CPP) works; when and how to convert their registered retirement savings plan (RRSP) to registered retirement income fund; and how they will be taxed in retirement, says the study.
"It's a particularly important time for Canada's boomers. Not only are they having to learn a whole new set of rules as they approach retirement, but many are also managing the complexity of inheriting significant sums as the world goes through the largest transfer of wealth in history," says Bezaire.