WHAT IS A PENSION, EXACTLY? …. And why should you care ?
1. The majority of working Canadians are currently pensionless. About 7 out of 10 in the workforce do not have one.
2. Of those without a pension, many think that registered retirement savings plans are the solution. WRONG! Do not be mislead!! A pot full of money does not a pension make, regardless of rates of return.
3. Retirement income is more important than retirement assets. Learn about the difference, before it's too late! Where will that income come from, and how long will it last?
4. A pension includes a guarantee. A pension is a pledge that you will receive a real, predictable and reliable income stream for the rest of your life. No guarantee – NO PENSION.
5. There is a very good reason the insurance company charges you what seems to be so much for your pension product. First, interest rates are abnormally low right now, which increases the cost of any guarantee. But secondly, and more importantly, by offering you a lifetime income stream, they are taking the longevity risk off your personal balance sheet. What will you do if you run out of money at Age 81, for example? Who wants that to happen? We can help you to prevent that.
Our RETIREMENT BLUEPRINT service provides you with your retirement income model showing annual income for the rest of your life from all sources, in a tax efficient way. Inflation, rates of return, longevity and other retirement risks are assessed and solved, with your input on what you want.
These conclusions come from our own professional experience, and are supported by "Pensionize Your Nest Egg" Milevsky and Macqueen, Wiley Press, 2010. This is a book on personal finance and retirement planning which we are pleased to provide you a copy, with our compliments, upon the completion of your RETIREMENT BLUEPRINT.
Find us at www.wernhamwealth.com and book your appointment!