If you are like 85% of working Canadians you are thinking, “I know when and how I’m going to retire.” Do you? Really? Not according to a recent Ipsos Reid poll
released by RBC in September 2012, that canvassed adults over age 50 with household assets of at least $100,000.

That poll found that of already-retired baby boomers 62% had less than 6 months notice of their departure from work. 20% had notice of less than a month. The three main reasons given by respondents for forced retirement included “request by employer,” health issues, and the need to care full time for another person.

The results illustrate the importance of what I and other Certified Financial Planners emphasize to our clients: Do not postpone contributions to your RRSP. Many people carry forward RRSP contribution room intending to build up their contributions “some day.” If your employer closes or down-sizes, or you have to care for a spouse with dementia, or you become disabled, that “some day” will never come.

The sober facts of life for 62% of middle income Canadians over age 50 also illustrate the wisdom of maintaining diversified investments outside the RRSP as well to achieve growth, hedge against inflation, and allow for liquidity.

A private disability insurance policy is a vital part of financial planning to cover each breadwinner in the family especially if self-employed or otherwise without access to group benefits. If you pay the premiums on your own private disability policy then the benefits flow to you tax-free if disability strikes.

I can help you as a Certified Financial Planner to maximize the utility of your RRSP. I can also help you design a non-registered portfolio and disability insurance that will work together with your RRSP if you are one of the 62% of Canadians whose retirement date is a surprise.

You can telephone me at 905-984-2100 ex 27 or email me at p_boyko@donro.on.ca to arrange a one hour, no-obligation consultation. We can meet at my office or your home, as you prefer.