Advisor.ca, Bryan Borzykowski
So you think your clients have enough money saved for retirement? Well, think again. According to Fidelity Investments Canada, retirees need to save enough to earn between 75% and 85% of their pre-retirement income in order to live comfortably. That’s up to 21% more than the 70% that some advisors have pegged as the earnings benchmark.
“People in retirement have higher aspirations,” says Peter Drake, Fidelity’s vice-president of retirement and economic research. “They want to travel, be involved in new activities and may well change the place they live.”