Study Finds Retiring Early Can Be a Big Problem

Study Finds Retiring Early Can Be a Big Problem

Study Finds Retiring Early Can Be a Big Problem
By Will Ashworth

Advisors are great hockey forwards helping clients score with retirement savings, but they may be leaving the net wide open for “unexpected health events.”

Insufficient savings combined with expensive, financially draining prescriptions and other medical costs such as long-term care, have financial advisors and their clients facing a double whammy, suggests new research and advisors may have to switch up their game to address the threat.

Sun Life Financial released its findings from the fifth annual Canadian Health Index survey this week, and  chief among the results is the fact that 70% of retired Canadians were unable to retire when they planned. Still, of this group, 41% actually retired early because health issues prevented them from continuing to work full-time.

Brian Burlacoff and Kevin Williams have 54 years combined experience in the financial planning industry; both are also Sun Life advisors and recently shared with WP their thoughts on the study’s findings.

While many advisors tend to go on the offensive focusing almost exclusively on saving for retirement, there is an opportunity for industry practitioners to take a more holistic approach to financial planning that also stresses defensive protection, or more specifically, the use of various types of insurance such as life, disability, critical illness, and long-term care, to provide replacement income when there is an unexpected health event. The dual tracks of saving for retirement combined with the appropriate protection are vital to Canadians’ well-being.

Williams puts it best when discussing his role as holistic practitioner stating, “Have I covered off as much as I possibly can? Have I fully educated my clients on both the savings and health aspects of their financial plan?”

It’s these two questions that keep him up at night.