Session 3:  Harsh Realities: The New Retirement with Gordon Pape, Author

Gordon led us through the harsh realities of retirement in this ever changing global world and provided advice for solutions to these realities. His new book, by the same title outlined the following key points for advisors:

1. Incredible changes have taken place from 2005 to 2011 that affect retirement

• Surprising stats: more than 2/3^rd Canadians plan to work after age 65: 38% due to not enough money
• 56% will retire debt free; 2 in 10 have a financial plan; 5% relying on lottery win to fund retirement

2. 8 Harsh Realities were outlined, including the following: demographics changing as boomers age; pension plans are dying; governments can't help; we aren't saving enough; we really don't know what we are doing to get out of the predicament; there is no safe place for our money; our tax system works against seniors; and, we have to make sacrifices to live a longer more financially stable retirement.

3. Financial Advisors need to offer the solutions ñ help retirees have a plan (only 21% of Canadians have a financial plan); pay off debt; know your pension plan; keep building the RRSP; tailor TFSA to goals; help clients help themselves to a better lifestyle; minimize taxes; be multi-dimensional in retirement planning.