Just How Tax Efficient Will Your Retirement Be?

A recent Globe and Mail article cites a Royal Bank report in which 46% of Canadians over 55 felt they weren’t saving enough for retirement. Worse still, 31% of Canadians hadn’t started saving for retirement yet. This is an opportunity that tax and financial advisors can help with. Tax refunds coming back now can be a great trigger for the question: how tax efficient will your retirement income be?

This is an important consideration because the life expectancy of Canadians has increased appreciably over the past century; it’s now 84 years for women and 80 years for men. The result is that more people are reaching age 65 and living longer than ever before.¹ 

In high-income countries like Canada, retirees live 19 years longer on average than people in low-income countries.²  That means your money must last longer—or you need to save more to have it last through a lengthy retirement period. This makes retirement income planning more complex, as both passive and actively earned income will likely be factors during retirement years.

Statistics bear that out: According to Statistics Canada, while 85% of Canada’s workforce is aged 25-54, there has been a 140% increase in workers over age 65 since 2005, and a 67% increase in workers over 55. This means that many retirees will continue to build unused RRSP contribution room and advisors will need to rethink the best way to use this and other investment opportunities.

The bottom line is that layering and averaging income in retirement requires a plan to get the best after-tax results, which is critical to ensuring funds last over longer retirements. Knowledge Bureau’s Advanced Tax Efficient Retirement Income Planning course is designed for professionals who wish to provide accountable structure and a tax-efficient process for clients by specializing in tax-efficient retirement income planning.

“This is a skillset that is in great demand by the baby boomer demographic—the most affluent generation in our history—who seek credible, trusted and expert solutions to their complex retirement planning requirements,” says Evelyn Jacks, President of Knowledge Bureau. “They rightly view tax erosion as one of the biggest threats to their wealth.”

This course covers a holistic retirement income planning process, which provides the student with the skills to:

• Be conversant with recent tax changes relating to personal, corporate and trust taxation pertinent to the creation of tax-efficient retirement income planning
• Proficiently use a powerful assessment tool around which to structure the client’s pre- and post-tax retirement income needs and monitor ongoing results
• Establish a long-term, strategic “real wealth management plan” that focuses on the increases in personal and family net worth through four pillars of planning: accumulation, growth, preservation and transition of sustainable wealth
• Establish action plans for a long-term, tax-efficient retirement income throughout the various phases of retirement
• Work with structures specific to planning for business owners in developing retirement income plans, including the distribution of funds from an operating company, holding company and family trusts
• Provide specific retirement income planning approaches for executives

For more information about the course, visit the Advanced Tax Efficient Retirement Income Planning page on our website.

What Our Students Say: “This is the first course that I’ve taken that has had an immediate impact on my business. The introduction to the calculators plus the training on how to use them has been very useful in preparing retirement income plans in my practice. The material is interesting and, as I mentioned, very relevant to today’s retirement wave. Thank you for strengthening my business.” Marc Ouellet, Ottawa, ON

¹ http://www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/health72a-eng.htm
² http://www.conferenceboard.ca/hcp/provincial/health/life.aspx

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