Episode 1.2 of the Canadian Advisor.cast features Simon Chan, founder and CEO of Adapt with Intent and Advisor.ca’s longevity columnist. Since joining the platform in February, Chan has built a following among advisors who recognize that retirement planning has to evolve as Canadians live longer.
Chan talked about the need “to redesign many of the systems that we have in place — to modernize — so that they are there for a 100-year life.”
This is a big shift, with implications inside and outside financial services. Advisors know better than most how retirement is evolving. Virtually every day, they talk to clients who have something other than a traditional retirement in mind. Canadians have done the math, and understand the risks of a post-work life that may well run three decades.
“How can we possibly fund a 30-year retirement on a 30-year career? The math just generally doesn’t work out,” Chan said.
It’s not only an arithmetic problem. Chan believes there’s a place for a retirement coach in the network of partners you refer clients to.
“They talk about the non-financial aspects of the retirement planning process. They will sit down with a client and talk to them about what their goals are, what their passions are, what strengths they have,” he said. “And the really good retirement coaches are ones who actually work with the financial advisor as a partner. They’ll help the client develop the non-financial conversation and goals. And that is used … to create a financial plan that actually aligns with how the individual wants to live.”
There’s an important message in all of this for advisors themselves, too. Like other hard-driving professionals, advisors often struggle to develop interests outside of family and career. That makes retirement a more difficult transition because so much of their identity is wound up in the work they used to do and the kids that used to live under their roof.
“Recognize that you need support through this transition and you need to be thinking about it before you get to retirement,” Chan said. “This isn’t something you want to figure out on retirement day plus one.”
Start with this excellent book by Doug Treen: Psychology of Executive Retirement from Fear to Passion: Escape the Rat-Race & Save Your Life. Treen is a human resources and strategic planning consultant in King City, Ont. He writes about preparing emotionally for retirement, and avoiding the kind of “retirement shock” that can trigger health crises.
Canadian Advisor.cast is available in both video and audio formats, via Advisor.ca and Spotify.