Life Expectancy

The older you are, the longer you live. Today, the average 65-year-old Canadian is expected to live another 20 years, according to Statistics Canada. Interestingly, once you reach the age of 85, your life expectancy increases to 92. At 85, you are expected to live seven years longer than you were at 65.


What would an extra seven years mean for your finances? Assuming an inflation rate of 2% per year, your withdrawals will need to be 15% higher in your 93rd year than in your 86th if you are to retain the same level of buying power. To keep pace, your portfolio would need exposure to investments with growth.

At Windcroft, we recommend that a portion of your portfolio remains invested in equities even in the later years of life. Equities can provide growth to help keep pace with inflation through dividends and stock price appreciation. As medicine advances and the general health of Canadians continues to improve, your retirement plan needs to take into account a longer life span.