6. How much longer do you plan to work? Source: McKinsey Consumer Retirement Survey, 2006 Almost half of all Baby Boomers expect to work past the age of 65 . . . but only 13% of Retirees have actually done so. Average Age of Expected Retirement vs. Actual: 40% of Retirees were forced to stop working earlier than planned for the following reasons: Care for spouse or family member Health-related issues Job loss / downsizing The average retirement age in Canada is 61 years. Source: McKinsey Consumer Retirement Survey, 2006 Expected Actual 2% 53% 45% 27% 60% 13% <55 55-65 66+
8. How long will your journey be? Once you reach 65, chances are good you’ll outlive your initial life expectancy by at least a decade! Source: Canadian Institute of Actuaries. It could be longer than your career! 50% chance of living to 86 25% chance of living to 92 86 92 25% chance of living to 89 89 50% chance of living to 83 83 At least one person has a 50% chance of living to 90 At least one person has a 25% chance of living to 94 90 94 Male age 65 Female age 65 Couple both age 65 100 95 90 85 Age 80
9. Redefining your journey Source: Insurance Advisory Board, 2006 OLD Timeline People are retiring 10 years younger and living 10 years longer 20 year gap NEW Timeline Work for over 40 years Life expectancy of 70-75 Retire at 65 Build a career Live until 80+ Retire at 55, travel, work part-time, start a business, volunteer, etc. 5-10 Years 25+ Years BABY BOOMERS (Born 1946-1966) Age 40-45 Age 55-60
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11. Your View How much will you need? 1. Mortality and Longevity Concerns
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14. Your View How much can you spend? 2. Spending and Inflation Concerns
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17. Your View What will your portfolio earn? 3. Portfolio and Investment Concerns
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19. The facts… Source: Global Financial Data, Bloomberg, Research Marketing Group Historical Perspective Asset Class Returns 1935-2006
20. The facts… Source: Global Financial Data, Bloomberg, TD Waterhouse Portfolio Advice & Investment Research Group 1 Year-end holding period (years) Time Equity Risk Diminishes with Time Rate of Return for Stocks (TSX 1950 – 2006), Highest/Lowest 45% -26% 37% -14% 25% 0% 17% 3% 14% 7% 12% 9% 2 5 10 20 30 -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0%
21. Your View 4. Health Concerns How would a change in health for you or a family member affect your standard of living?
Good morning/afternoon/evening everyone and welcome to “Navigating Your Future, new retirement realities”. Introduction: For those of you that I may not have had the opportunity to meet yet, my name is ___________, I have ____________ years of experience in financial services/ Wealth Management, and I am a(n) ___________(title) with _____________ (insert business) at TD Waterhouse. Our goal for the next hour is to help you achieve peace of mind that comes with knowing that you are financially prepared for your future. Joining me tonight are a number of my colleagues, an exceptional team of wealth management professionals who bring a variety of expertise, ranging from Estate and Trust Planning, Investment Management, Banking, Insurance, Credit, Charitable Giving, Tax, Investment Strategy, as well as Financial Planning. Our collective goal is to add value where we can, either through discussions tonight; answering any specific questions you may have, either during or at the end of the seminar, or meeting with you and your family on an individual basis, depending on your preference. Introduce Wealth Partners in attendance Provide name and business Ask partners to stand up to be identified Introduce Other Partners in attendance On behalf or myself and my partners, I’d like to thank you all for being our guests here today.
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