It’s important to understand that taking income in retirement (distribution) requires a different investment strategy than saving for retirement (accumulation). The table below outlines the key differences:
Emphasis on return
Emphasis on income and capital preservation
A focus on creating a personalized investment portfolio
A focus on creating a total retirement income plan
Time horizon clearly defined, yet adjustable
Time horizon unknowable and not adjustable
Impact of market declines is more manageable
Impact of market declines is less manageable
Inflation managed by wage growth
Inflation managed through investment choices
Learn about the 5 retirement realities and ways that you can work with your financial professional to reduce their impacts:
Perhaps more than any other factor, longevity has changed the very concept of retirement. People are living longer than ever thanks to advances in science, medicine and healthier lifestyles. This is great news, but longer lifespans mean we must also plan — and save — for extended time horizons.
Longevity Risk: Married Couples, Age 65
Market Volatility Over the Past 20+ Years
The Effects of Inflation Over 30 Years
Average Annual Expenditures by Age Group
Although total consumption generally decreases in retirement, keep in mind:
Rising Health Care Costs in a Typical Retirement
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses , which can be obtained from a financial professional and should be read carefully before investing.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
S&P/TSX Composite Index is a market capitalization-weighted index that is the headline index and the principal broad market measure for the Canadian equity markets. It includes common stocks and income trust units.