“The financial services industry in…Atlantic Canada, is broken and in desperate need of fixing.  ”

— David Martin, Eltero Financial Partners

Retirement planning is one of the most important financial decisions Canadians face.

Yet, all too often, advice on the subject is boiled down to generalizations: “You need $1 million to retire comfortably” or “Save 70% of your pre-retirement income.” While these rules of thumb may seem helpful, they can actually do more harm than good.

The financial services industry in Canada, especially Atlantic Canada, is broken and in desperate need of fixing.  The focus needs to turn to effective solutions instead of expensive products.

The truth is, no two retirements are the same. Your financial needs will depend on your unique circumstances, goals, and lifestyle choices.

Let’s unpack why cookie-cutter retirement advice might be holding you back—and how personalized planning can empower you to retire with confidence.

The Pitfall of Generalized Advice

When you search for retirement advice online or meet with representatives from large financial institutions, you’re often presented with broad savings targets. These numbers might be based on averages, but they rarely reflect your individual needs.

Here’s why that’s a problem:

1. Overwhelming Numbers: Hearing you need $1 million or more can make retirement planning feel unattainable, discouraging you from even starting.
2. Irrelevant Assumptions: Generalized advice often assumes a specific lifestyle—one that might not align with your goals. For instance, if you plan to downsize and live a modest lifestyle, your retirement needs may be significantly lower than the standard recommendation.
3. Narrow Definition of Wealth: Generalized advice tends to focus solely on financial metrics, ignoring other factors that contribute to a fulfilling retirement. True wealth includes time, health, relationships, and the ability to pursue your passions. If your financial plan doesn’t account for these elements, it’s incomplete.
4. Missed Opportunities: Focusing on generic benchmarks may cause you to overlook strategies that could optimize your savings, such as tax-efficient withdrawals or maximizing government benefits like CPP and OAS.

Why Personalized Planning Matters

Retirement planning isn’t about hitting a magic number; it’s about creating a plan tailored to your life. A personalized approach considers factors like:

• Your current and future lifestyle goals
• Expected retirement age
• Savings, pensions, and other income sources
• Health care needs
• Tax efficiency
• Your personal definition of wealth and happiness

Advice-only financial planners specialize in helping clients build strategies that reflect their unique definitions of wealth. By focusing on your goals and values, they ensure your retirement plan isn’t just financially sound but also aligned with what truly matters to you.

How to Start Building Your Personalized Retirement Plan

1. Define Your Goals: What does your ideal retirement look like? Whether it’s traveling, spending time with family, or pursuing hobbies, your vision should guide your financial strategy.
2. Evaluate Your Resources: Take stock of your current savings, income sources, and potential government benefits. For an overview of services that can help clarify your financial picture, visit our services page.
3. Consider Your Values: Reflect on what wealth means to you beyond money. Is it time freedom? Health? Connection with loved ones? Let these values shape your plan.
4. Plan for Flexibility: Life is unpredictable. A good retirement plan allows for adjustments as circumstances change.
5. Seek Expert Guidance: Partnering with an advice-only financial planner can help you navigate complexities and make informed decisions that reflect your unique goals.

The Bottom Line

Generalized retirement advice might work for some, but for most Canadians, it’s not enough.

Retirement planning should be as unique as the person it’s for. By prioritizing personalized advice and redefining wealth to include more than just financial resources, you can feel confident that you’re on track to achieve the retirement you’ve envisioned.

Let’s shift the focus from numbers to what truly matters: your definition of a rich and fulfilling life. For more insights into creating a plan aligned with your goals, explore our blog.

If you feel you, or someone you know, might be suffering from a generic plan, please reach out to me to discuss so we can create your customized plan together.

Connect with David on LinkedIn.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment and tax-related decisions. You should seek independent financial advice from a financial advisor near you.