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Retirement objectives and planning parameters<\/h2>\n
SECTION 01<\/span>\n <\/div>\n01<\/b>Is the client’s retirement objective realistic?<\/span><\/div>\n02<\/b>Does the client have realistic retirement assumptions?<\/span><\/div>\n03<\/b>Does the client understand the implications of early retirement?<\/span><\/div>\n04<\/b>Have the client’s “best-case” and “worst-case” retirement objectives been determined (expense level, retirement date, life expectancy, real rates of return)?<\/span><\/div>\n05<\/b>Has the client adequately considered and prepared for his or her retirement lifestyle?<\/span><\/div>\n06<\/b>Has the client provided a detailed net worth statement, cash flow statement, and projected retirement expense schedule (including quarterly tax instalments)?<\/span><\/div>\n07<\/b>Have all retirement planning parameters been assessed and clearly communicated to the client?<\/span><\/div>\n08<\/b>Can the client continue any employer-sponsored benefits during retirement?<\/span><\/div><\/div>\n\n
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Retirement income options<\/h2>\n
SECTION 02<\/span>\n <\/div>\nHave all of the client’s retirement income options been thoroughly assessed \u2014 pension income amounts, timing, indexation, survivor benefits, and investment management issues?<\/p>\n
09<\/b>Government pensions: CPP and OAS. Is the defined benefit pension (DBPP) integrated with CPP?<\/span><\/div>\n10<\/b>Employer pensions: current DBPP and\/or deferred DBPP, defined contribution pension (DCPP).<\/span><\/div>\n11<\/b>Personal sources:<\/span><\/div>\n\n
Registered investment assets: spousal and personal RRSPs (is there a retiring allowance?), group RRSPs (GRRSPs), locked-in RRSPs\/LIRAs, or RRIFs and LIFs\/LRIFs.<\/div>\n
Non-registered investment assets: investments and other assets that can be used to provide retirement income (e.g., cottage, UL insurance policy).<\/div><\/div>\n
12<\/b>Does the client have business assets that may affect the retirement plan and\/or the estate plan?<\/span><\/div><\/div>\n\n
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Developing the retirement plan<\/h2>\n
SECTION 03<\/span>\n <\/div>\n13<\/b>Has the client’s retirement plan been developed for both the “best-case” and “worst-case” retirement objectives?<\/span><\/div>\n14<\/b>Has a “sensitivity analysis” been completed for a number of scenarios, by assessing a range of retirement planning parameters?<\/span><\/div>\n\n
Different rates of return (e.g., 6%, 8%, 10% nominal returns)<\/div>\n
Different inflation rates (e.g., 3%, 4%, 5%)<\/div>\n
Different income tax rates; indexation of tax credits and tax brackets (risk of “bracket creep”)<\/div><\/div>\n
15<\/b>Has the retirement plan been completed for both spouses together, and for each spouse as a survivor?<\/span><\/div>\n16<\/b>If the client has significant retirement assets, has the estate plan been developed in conjunction with the retirement plan?<\/span><\/div>\n