The New
Are Canadians prepared for the longest retirements in history?
Your 65 will not be
your parents' 65.
With longer, healthier lives on the horizon for Canadians, retirement can last 20 to 30 years now instead of what it used to be 10 to 15 years ago. Add in a volatile economy, and creating future financial security becomes a complex challenge.
Canadians are living longer, more engaged lives.
Average lifespan of Canadians today1
More and more of us are living to age2
Yet few of us are ready for a longer, more engaged retirements.
Over 50% of Canadians have done no financial planning at all3
23% of Canadians 45+ say they don’t have the financial resources to cover living expenses over the next five to 10 years4
Meanwhile, inflation and interest rates are volatile.
3.3%
Annual inflation rate July 20235
+9.1% Grocery prices6
+30.1% Mortgage interest costs6
7.2%
Bank of Canada Prime Rate as of Aug. 31, 20237
Most Canadians will be looking to answer
All clients come with their own income challenges.
Living expenses
What’s needed to maintain our day to day?
Lifestyle wants
What more do we want to see and do?
Legacy planning
What will we leave behind for our family?
Then there's the fourth L: Longevity
With people living longer, there’s a disconnect between what Canadians are saving today, and what they’ll need to live the retirements they’ve dreamed of.
According to the World Economic Forum, today, Canadians will outlive their retirement savings by more than 10 years.8
Meet Chris and Diane
Chris 43 / Sales Representative / $76 K per year
Diane 41 / Interior Design Consultant / $82 K per year
Two children / Nina 16 / Sammy 11
These two 40-somethings know what they want in retirement —
but aren’t sure how to achieve it.
Living expenses
A vital life without worries in the house they call home
Living wants
A chance to travel (finally!) and necessary renovations
Legacy planning
Diane passing her business to her children and helping their grandchildren get their lives off to a great start
Now let's discuss LONGEVITY.
Chris and Diane can expect a much longer retirement than their parents.
According to the Sun Life, Life Expectancy Calculator9
Born (1980–1985)
Life expectancy
Male
Female
0*
0*
Compare this to their
parents10
Born in 1952
Life expectancy
Male
Female
0*
0*
*Estimated hypothetical based on gender, current ages, height, weight, and lifestyle habits of Chris and Diane inputted into the Sun Life Life Expectancy Calculator.
Case study is for illustrative purposes only.
Chris and Diane going forward
Needs
a steady income stream
growth potential in volatile markets
Challenges
soaring inflation
interest rate uncertainty
macro-economic instability
Today's market volatility may present
opportunity for income investors.
1980s–2020
EQUITY
Positive markets make equity-based portfolios the status quo.
In 2023
LONGEVITY
Long-term income-generating products are called for.
Income diversification is critical.
Bonds are a key component.
Fixed income, which has historically outperformed in recessionary environments, and a strong diversifier potentially minimizing downside risks in a volatile market.
Attractive yield
Highest since Q4 2007
(after years of near zero)
Good portfolio diversifiers
A lower volatility investment, critical in a slowing economy.
Liquidity in uncertain times
Provides needed access to cash in retirement.
Sun Life Global Investments offers a broad, comprehensive product suite that allows you to customize investment and income portfolios with more than one type of solution.
Sun Life Global Investments |
Helping you solve for today's income challenges
- As Canadians live longer lives of higher quality, they face a new host of concerns.
- Funding living expenses, lifestyle needs, and, potentially, a legacy is increasingly top of mind.
- Market unpredictability increases the importance of strategizing how to fund income needs in retirement.
There are many solutions to help Canada’s aging population of income-seeking investors. However few providers can offer access to such a wide breadth of solutions like Sun Life Global Investments.
Meeting clients’ income needs and solving for the risks they face is not easy. Sun Life Global Investments’ broad, comprehensive suite of products can help.
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