Would delaying CPP and OAS to ager 70 help our clients leave a larger estate for their children? As always, the correct answer is—it depends!
Recent research has concluded that, “When evaluating RRIF strategies for a client, financial planners must take into account various factors, such as the client’s potential lifespan and future investment returns.”
Personalization is essential
Research indicates that accelerated RRIF withdrawal strategies may not always deliver the anticipated benefits. While withdrawing more than the minimum before age 72 can be advantageous for some, the study suggests these benefits can be overestimated—particularly for retirees whose investment returns deviate from the expected average.
When advising clients on RRIF strategies, Financial Planners must consider various factors, including lifespan projections and potential investment returns. Relying on fixed assumptions for age and returns can introduce unnecessary risk. Instead, Planners should assess each retiree’s unique situation and tailor a strategy to their specific needs.
To put it simply, there is no adequate way for Advisors to answer client questions on government benefits without first doing the work to consider the unique client variables, and running personalized numbers. Advisors can do this efficiently and easily in Snap, which is exactly what today’s financial planning webinar will demonstrate.
Watch the financial planning tutorial
Could delaying CPP and OAS help these clients leave a larger estate for their children? Let’s find out.
Why Snap can help answer this question
With Snap Projections, creating a personalized retirement income plan is effortless. It allows you to factor in key elements like longevity, fluctuating returns, client goals, and various “what-if” scenarios.
You can also generate multiple real-time scenarios to compare different variables side by side. Watch the video above to see it in action!
Next steps
Canadian Financial Advisors, Planners, and Investment Managers are eligible to start a 14-day Free Trial of Snap Projections financial planning software.
Register for the next financial planning webinar.
Learn how to answer the retirement planning question, “Should I take the commuted value of my pension?“
