Retirement objectives and planning parameters
SECTION 01
01Is the client’s retirement objective realistic?
02Does the client have realistic retirement assumptions?
03Does the client understand the implications of early retirement?
04Have the client’s “best-case” and “worst-case” retirement objectives been determined (expense level, retirement date, life expectancy, real rates of return)?
05Has the client adequately considered and prepared for his or her retirement lifestyle?
06Has the client provided a detailed net worth statement, cash flow statement, and projected retirement expense schedule (including quarterly tax instalments)?
07Have all retirement planning parameters been assessed and clearly communicated to the client?
08Can the client continue any employer-sponsored benefits during retirement?
Retirement income options
SECTION 02
Have all of the client’s retirement income options been thoroughly assessed — pension income amounts, timing, indexation, survivor benefits, and investment management issues?
09Government pensions: CPP and OAS. Is the defined benefit pension (DBPP) integrated with CPP?
10Employer pensions: current DBPP and/or deferred DBPP, defined contribution pension (DCPP).
11Personal sources:
Registered investment assets: spousal and personal RRSPs (is there a retiring allowance?), group RRSPs (GRRSPs), locked-in RRSPs/LIRAs, or RRIFs and LIFs/LRIFs.
Non-registered investment assets: investments and other assets that can be used to provide retirement income (e.g., cottage, UL insurance policy).
12Does the client have business assets that may affect the retirement plan and/or the estate plan?
Developing the retirement plan
SECTION 03
13Has the client’s retirement plan been developed for both the “best-case” and “worst-case” retirement objectives?
14Has a “sensitivity analysis” been completed for a number of scenarios, by assessing a range of retirement planning parameters?
Different rates of return (e.g., 6%, 8%, 10% nominal returns)
Different inflation rates (e.g., 3%, 4%, 5%)
Different income tax rates; indexation of tax credits and tax brackets (risk of “bracket creep”)
15Has the retirement plan been completed for both spouses together, and for each spouse as a survivor?
16If the client has significant retirement assets, has the estate plan been developed in conjunction with the retirement plan?
// note for Quebec participants: replace all references to the Canada Pension Plan (CPP) with references to the Quebec Pension Plan (QPP)
Blanks left on this list?
Investment services through Money Web Securities, an approved trade name of Aligned Capital Partners Inc. Member CIPF and CIRO.
