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7 Key Risks to Your Retirement Income

Addressing these issues will improve your peace of mind.



Longevity Risk

Longevity Risk

  • Living longer can put pressure on your savings to sustain your standard of living and the ability to cover living expenses
  • The longer you live, risks like market and inflation can be compounded
Inflation Risk

Inflation Risk

  • Being too conservative or committing to lower return guaranteed investments can erode purchasing power over time
  • Longevity can compound this risk with rising costs over an investment time horizon
Market Risk

Market Risk

  • Market fluctuations can affect performance and income payments
  • A diversified portfolio can help mitigate these fluctuations
  • A disciplined income delivery process can help minimize impact on income payments
Taxation Risk

Taxation Risk

  • Different investment vehicles attract different levels of taxation
  • Investment income can affect things like after tax return performance and affect taxable income which can influence eligibility for certain government benefits
  • Organizing withdrawals and having an income delivery process can help minimize taxable income in order to maximize spendable income
Health Risk

Health Risk

  • Short or long-term health issues can impact employment income and place strain on an investment portfolio if required to supplement living costs
  • Living benefit insurance (health, disability, critical illness protection) can help protect income earning potential and allow investment plans to continue without unanticipated withdrawals
Mortality Risk

  Mortality Risk

  • Financial and overall life plans can be jeopardized by an untimely death
  • Life insurance can help protect the sustainability of financial plans, provide capital for income protection and estate planning as well as safeguard assets for dependents and beneficiaries
Estate Transfer Risk

Estate Transfer Risk

  • Estates fees, taxes, lawyer and accounting fees can reduce capital for beneficiaries
  • Estate settlement can cause emotional and financial stress for executors and beneficiaries
  • Estates can be audited up to 4 years after death in Ontario
  • Estate Information Return requires all assets to be valued and accounted for shortly after death