Recent statistics show that people in Canada are living longer. This reality has changed how wealthy Alberta residents prepare for retirement or consider estate planning. Many continue to have an active life of travel and socializing well into their 80s, which may mean major financial adjustments. Others may plan to be active longer than their bodies allow. How can plans adjust to these unforeseen circumstances?
Currently, 1.6 million Canadians are over the age of 75. This figure is expected to grow to 3.3 million by 2036. Longer life spans must be considered as people retire and age in the future. For example, many people in their 70s are considering more aggressive investment portfolios as they may be alive for decades longer. This is a change from the past when people at this age preferred conservative portfolios.
High-net-worth individuals in Alberta have even more questions to answer when it comes to estate planning. Many want to invest in a way that benefits rather than burdens the next generation. It is important that people prepare for longer life spans while also ensuring a will is created to handle assets in case of an earlier death. Financial burdens related to death should be considered in these plans. This includes services to care for a home and planning a funeral.
Legal questions often arise when undergoing estate planning. While many financial service providers offer some guidance, a lawyer is important to involve in the will preparation process. Those who have questions about estate administration and legal options for contesting a will can also speak with an Alberta lawyer.
Source: The Globe and Mail, “When 80 is the new 60, the needs of wealthy Canadians evolve“, Marjo Johne, Nov. 3, 2017