IN Focus - Maximizing Income In Retirement

Your employees have worked hard to save for their retirement. When that day comes they want to know that they have saved enough to fulfill their retirement dreams. Today, the concept of retirement is very different from even just a generation ago. People are living longer and leading more active lifestyles. However people tend to underestimate how long they’ll live and overestimate how long their investments will last. The end result could mean that employees outlive their savings.

Having RBC as your group savings plan provider, means that your employees have access to trained investment professionals that can help make sure that their retirement is the one they want no matter what their needs are. RBC will help your employees develop a diversified portfolio of tax-efficient investment to maximize their income in retirement to help ensure that it provides for their needs.

How has retirement changed?

• People are living longer. In fact, many Canadians are living 30-40 years in retirement. To put it another way, many Canadians are now spending as much time retired as they did working.
• With many people working for more than one company throughout the course of their careers, many need to rely on Group Savings Plans more than ever.
• Interest rates remain low by historical standards. In the past interest earned on products such as bonds and GICS gave investors enough income to meet their cash flow needs. Although interest rates have risen since 2004, they remain low by historical standards and are not expected to increase significantly in the near future.

Five Keys

When it comes to investing in retirement, everyone’s needs are different. Here are five principles an RBC investment professional can help your employees consider when it comes to investing in retirement:

1. It’s what you earn after tax that matters
2. Pace yourself – don’t withdraw your money too fast
3. Give your money room to grow
4. It’s not just about the investment – the type of account matters too
5. Tap into your assets in the right order The following materials can also assist your employees with their retirement needs

Making the most of Your retirement

Planning for retirement

Generating retirement income using a systematic withdrawal plan

Using annuities to create a retirement paycheque

Maximize GIC returns using a laddering strategy

RBC Cash Flow Portfolio Update

RBC Cash Flow Solutions Comparison

Encourage your employees to talk with their RBC investment professional as they approach retirement. They will receive the knowledgeable advice and expertise that will help design a balanced diversified portfolio of investment solutions to help them get the most out of their retirement.

Help your employees maximize their retirement by taking advantage of the benefits of having an RBC group savings plan. Talk to your Group Financial Services representative to arrange for an education seminar in your office.