Today, being concerned about outliving your savings in retirement is a prevalent issue among retirees relying upon RIFs and LIFs for consistent income. Many of us are living longer and healthier lives, however that longevity combined with reduced purchasing power at the grocery store, at the gas pumps, and the always present tug-of-war between interest rates and the stock market upon your investments, is leaving many to ask this question; will I have a guaranteed income for life?
We tackled these concerns in the 10th, 11th and 12th episodes of Your Money on CJNU. If you missed tuning in, you can find them online in the CJNU archives to listen. But no doubt about it, while longevity is one of the greatest achievements of the modern era – it presents some challenges.
Back in 1999, roughly six percent of global population was over the age of 65, today that number is nine percent and by the year 2050, one in six people will be over the age of 65. Most of these Canadians don’t have a guaranteed pension other than what the federal government provides through CPP. Thats why deciding when to take your CPP is so important and why we discussed that topic in episode 4 of Your Money.
Guaranteed employer pension funds, which were most popular in the 1980s with roughly 38% of those employed participating in one, has now dwindled to only 15% and this participation rate is trending toward zero. So managing our RIFs and LIFs to guarantee life long income is a paramount concern. If this is a question you want answered, a financial advisor can provide answers, and we can provide guarantees too.