THE 2ND 30 – 40 YEARS – LIFETIME RETIREMENT (55 – 95) - HOW WE GOT FROM THERE (THE 1ST 30 - 40 YEARS) TO HERE (THE 2ND 30 - 40 YEARS)

FROM 1960 - 1990.......

.................FINANCIAL PLANNING WAS DONE 

BY THE CORPORATION - NOT THE EMPLOYEE.

EMPLOYEES BUDGETED INCOME - EXPENSES.

THAT'S IT! 

THE EMPLOYEE TRADED HIS OR HER FINANCIAL TIME FOR A GUARANTEED LIFETIME AT RETIREMENT.

Large corporations began to dismantle defined benefit pension plans over 20 years ago.

The first demographic group who were targeted were those in their mid 50's. Why? Because it is costly to fund a lifetime retirement with 10 years left (i.e. 55 - 65). This left those affected with only one choice - do it on your own. A $100,000 / year retirement income requires $2,000,000 in capital assuming a 5% rate of return on the capital - that's $200,000 / year in retirement funding. That sum speaks for itself. Most corporations did not start the retirement funding early..

Once a corporation removes a guaranteed pension for all intents and purposes an employee becomes self employed. The only advantage anyone has financially in a large institution is the opportunity to receive a pension and retire with peace of mind. Once you are on your own you are acting as an independent entrepreneur and not an employee. Loyalty cuts both ways.


That's the background that has resulted today in 60% of all working Canadians not having a defined benefit pension plan which would allow them to sleep soundly throughout the 30 - 40 years of their retirement (from as early as 55 to as late as 95. - look around you in your own family.)


Ask public servants why they work for the government from a financial point of view - their defined benefit pension.


Financial planning was done by the corporation - not the employee. Employees budgeted – income – expenses – that’s it. The employee traded his or her financial time for a guaranteed lifetime income at retirement.


Employees bought financial products for their individual accumulation purposes but had very little certainty whether they would be able to transition their accumulated savings capital into a sufficient and sustainable lifetime retirement income.


That brings us to 2016 where 14,000,000 + boomers in Canada are preparing to retire and are inadequately aware of which professional financial practitioner can replace the corporate financial management team who once upon a time designed and implemented their defined benefit retirement plans…….


That's where we are today.

PEOPLE: MONEY: RETIREMENT: "THE UNVARNISHED TRUTH"

This is about people, money and long term financial certainty.


The subject is simple.


Are you sure you can fund a sustainable income (no shortfalls in any year) for the 30 – 40 years you may be retired (e.g. Age 60 – 90).


WE KNOW HOW TO EARN AN INCOME FOR OUR FIRST 30 – 40 YEARS.


HOW DO YOU PLAN ON PROVIDING A SUSTAINABLE INCOME (NO SHORTFALLS) FOR THE NEXT 30 – 40 YEARS – DURING YOUR RETIREMENT?

For the complete article read:

http://beyondrisk.blogspot.ca/2010/02/second-30-40-years.html


Dan Zwicker

MOST CANADIANS DON'T PLAN TO RETIRE: SURVEY

What used to be called retirement will be just another day at the office for more than a third of Canadians, who say they'll need to keep working to pay the bills, a survey suggests.

The survey conducted by Harris/Decima on behalf of Scotiabank indicates nearly 70 per cent of Canadians plan to work after retirement.

People cited different reasons for staying in the workforce.

Seventy-two per cent said they want to remain mentally active, and 57 per cent want to stay socially active. Thirty-eight per cent of those surveyed said they'll be working out of financial necessity.

Five per cent of respondents said they are counting on a lottery win to see them through their retirement years.
Three-quarters of those who plan to retire fully from the workforce said they have been saving for about 15 years. More than half of these people said they have saved less than $20,000 in the past five years.

"While there's no magic number that Canadians should be aiming for when saving for retirement, it's important that Canadians are realistic about how they plan to spend their retirement and how much it will cost," said Gillian Riley of Scotiabank.

The Harris/Decima poll consisted of 1,011 online surveys completed between Oct. 14 and 25, the results of which were then weighted by region, age and gender. The results do not have a traditional "margin of error" because respondents were drawn from a pool of existing Harris/Decima panel members and thus not based on a probability sample.

Harris/Decima poll
10/14/2010 and 10/25/2010
Reported by CBC.ca
01/04/2011