The Real Retirement

Straight Talk and solid retirement advice for all Canadians In the face of government changes, financial market volatility, and an aging workforce, Canadians are understandably concerned about the impact on their finances and their future retirement. This reassuring book debunks the generally-accepted claims about necessary savings rates, which can cause paranoia among those beginning to contemplate retirement. The authors offer greater insight into planning approaches that are not widely understood, demystifies retirement targets (age, savings, income), and outlines concrete approaches to maximizing retirement savings. Offers practical advice for dealing with the changes to Canada's retirement system Includes advice for calculating your Neutral Retirement Income Target Contains solid financial advice in accessible language Written by the Executive Chairman and Chief Actuary of Morneau Shepell Canada's national actuarial consulting firm The Real Retirement offers a down-to-earth guide for preparing for comfortable retirement and shows what it takes to achieve it.

Preface xi Chapter 1: Crisis? What Crisis? 1 Chapter 2: Understanding the Foundation—Pensions 13 Chapter 3: Understanding the Foundation—Health Care 31 Chapter 4: Our Best Days are Behind Us 43 Chapter 5: When Can We Retire? 55 Chapter 6: How Workers Will Respond 65 Chapter 7: Deciding When to Retire 75 Chapter 8: The Three Phases of Retirement 85 Chapter 9: We are Better Prepared than We Thought 93 Chapter 10: Your Retirement Income Target—Why You Don’t Need 70 Per Cent 103 Chapter 11: The Neutral Retirement Income Target 115 Chapter 12: Arriving at Your Own Retirement Income Target 127 Chapter 13: Investment Basics 135 Chapter 14: Managing Your Portfolio 153 Chapter 15: Your Expected Return 165 Chapter 16: Choosing Your Savings Vehicle 173 Chapter 17: Should You Buy an Annuity? 185 Chapter 18: When You Can No Longer Cope on Your Own 193 Chapter 19: Tackling the Big Unknowns 201 Chapter 20: Ending on an Optimistic Note 211 Appendix A: Pillar 1 and Pillar 2 Benefits 219 Appendix B: Income by Source 223 Appendix C: NRIT Charts 225 Appendix D: A Guide to Retirement Programs in Canada 231 Glossary 241 Endnotes 253 Acknowledgements 257 About the Authors 259 Index 261