Last updated: November 15 2011
Key message of Mick Kelly's speech on the deepening role for advisors in retirement income planning:
"People don't change because they see the light, they change because they feel the fire.î Mick presented a dynamic interactive session with live polls and thought-provoking ideas, many of which were validated with interactive live polls with audience.
1. Demographicsówhat is the advisor's role in:
a. Dealing with an aging population that is living longer
b. Retirement years that are longer and therefore more expensive
c. Canadians underestimate amount they need for retirement and need help with planning
d. Market turmoil has jolted retirees sense of financial security, and so they are ready for help.
2. 5 Key Risks to Securing Retirement Income
a. Longevity ñ must plan for longer retirement& Canadians underestimate amount needed for retirement
b. Asset Allocation ñ long list of solutions; know what is available in market place
c. Inflation ñ erodes purchasing power even if low; must be addressed
d. Withdrawal rate ñ Don't run out of money before you run out of breath! Mick suggested the ideal rate is 4.2%
e. Healthcare ñ biggest issue in next 10 ñ 20 years
3. Retirement income is a distinct discipline
a. Advisors need a formal deliberate process ñ have a written plan
b. Customization of plans goes up as affluence goes up