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Pattie Lovett-Reid

Chief Financial Commentator, CTV

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It is overwhelming trying to figure out how much money you will really need in retirement. There are so many considerations like your age, lifestyle, health, and income, to name a few.

The biggest concern for many is whether or not they will run the risk of outliving their money.  Given the fact we could spend one-third of our lives in retirement, it is a legitimate concern.  Do you need to worry about living too darn long? What about long-term care, or higher inflation potentially compromising your purchasing power?

A retirement income estimate supported by assumptions have some worrying needlessly with others are blasé when they should, in fact, be terrified their golden years might be tarnished.

Assumptions are not the way to go.

Not surprisingly, I’m intrigued by a new program recently launched by Manulife to offer a “liability-driven” investment strategy for Canadians. The goal is to help make the decision-making process easier for Canadians as they plan for retirement.  

The program is being referred to as GBI, or goals-based investing, that uses variables such as age, income, health, and even your postal code to help give you a clearer picture of the income you may need in retirement. But it is more than just that – the program includes a built-in investment solution designed to help you with your retirement goals and investment strategy.

Technology is moving forward rapidly and to have access to data that will identify your future income needs with a corresponding payment of income will not only help better project the income needed during the different phases of retirement, but it will also tailor an investment strategy designed especially for you.

The bottom line is retirement can be a wildcard and looked at with hesitancy – and maybe even a little concern.  The extent to which you can get a higher degree of confidence in obtaining the minimum amount needed to live is more of a reason to look at the data and plan accordingly.