Canadians want flexibility when it comes to retirement income
Canadians have been bombarded with advice about how to save for retirement but, until recently, they’ve been left on their own when it comes time to tap their nest eggs.
That’s why products offering the prospect of a guaranteed income in retirement have gained massive appeal, particularly in the aftermath of the most recent financial crisis.
Nonetheless, it appears that most of us want the best of both worlds when it comes to retirement income planning – a guaranteed income stream and the flexibility to access funds whenever they choose.
The report identifies what Canadians believe are the important elements of a retirement income plan (flexibility to deal with unexpected events, maintaining current lifestyle, guaranteed income, not outliving their money), and examines why it will be difficult, if not impossible, for most to attain all of these elements without making sacrifices.
According to the report only 40% of those planning to retire in five years are willing to give up control over some of their retirement savings in order to receive guaranteed income for life.
As well, 67% of all respondents believe flexibility to deal with contingencies is more important than ensuring a predictable retirement income for life.
What’s your plan when it comes to retirement spending? Will you look to annuities and GMWB products or try to handle things on your own?
By Gordon Powers, MSN Money