retired man and women on boat

Retirement is your reward for working all of your life. Savings have been delegated to your retirement funds over the years to cover you when you are no longer earning a salary, but will it be enough to sustain a retirement lifestyle? Here are five key risks that may affect your retirement income.

Life Expectancy

Modern medicine has made it possible for people to live happy healthy lives well into their senior years. However glorious and rewarding this may be, it also can prove to be financially crippling. In Canada, the general retirement age is around 65 years old, and people continue to live healthy and full lives long after retirement age hits. People can expect to live well into their 80s even 90s, which is a wonderful life expectancy, however is there going to be enough money in your retirement savings to supplement 30+ years of retired living?


The value of a dollar is always decreasing due to inflation. Things in life are constantly growing a larger price tag to the point of it being difficult to sustain a household without an increase in salary. How is your retirement income going to stand up next to inflation? With the cost of everything on the rise, there is concern that retirement funds will not be enough.

Poor Investments

Investing your retirement income is not always a guarantee of success. A poor investment will not yield you a return that will keep you afloat in the growing economy. Safer investments, such as GICs, retain their value, but they do not increase in value and do not generate a steady income.


If retirement celebrations last a little too long and a few too many vacations are taken, the retirement fund can start to rapidly deplete. It is extremely important to stay on top of your investments and be very aware of how much money you have allotted to spend so as to stay out of an overspending trap. With income not coming in at the same pace it once was, replenishing the retirement fund will not be possible.

Unexpected Expenses

Life is unpredictable. As we age, medical issues and other unexpected complications bring with them more expensive challenges. Medical expenses can quickly eat up portions of a retirement fund.

Retirement is meant to be a time of enjoyment and reward for a lifetime of hard work. Be sure your retirement income is properly managed and that it will be enough to sustain the lifestyle of your choosing upon retirement. Consult your retirement planning advisor from The Beacon Group of Assante Financial Management Ltd.